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BUSINESS PLAN

Revision 1.5-14 November 2002

CHANGING TIMES

Not much has changed with the business other than adding another product to our catalog (MindCandy Volume 1: PC Demos). The publishing side of the business is at a standstill although I still write every now and then. Be sure to visit the products section of this web site for more details on the new DVD product.

NO INTRODUCTION NEEDED

Please excuse me for a moment while I write an introduction where no introduction is needed. Below is the business plan for "Fusecon." It was composed over several days with my word processor saying only a few hours. A lot of books really suggest having a business plan. I guess they figure if you can't take the time to write down your thoughts or what you hope to accomplish then your business is destine to fail. Course, those who buy into that probably won’t get very far. Sitting back and letting the "experts" tell you how a business works will probably end up convincing you not to start one even though you might have an incredible idea. Business plan or no plan, do roll with your gut feeling.

BUSINESS DESCRIPTION

The company, Fusecon, grew out of an idea to produce and provide a unique form of music via CDs as well as unique publications via books. The idea for the company didn't grow into reality until late 1996.

Back in the mid 80's when computers such as the Apple IIe, Commodore 64, and Atari 800 were what people were using many interesting programs-known as intros or demos-came into popularity for those who considered themselves part of an underground type scene. This "demo scene," as it later came to be called, has a long history in which many talented musicians, coders, and artist evolved. As the years advanced some of those talented people were replaced by others who were equally, if not more talented, some left the scene, and some eventually got jobs in the gaming / art / music field.

It is the intention of Fusecon to seek out (or be seeked out by) these talented scene/computer musicians and publish some of their works on an audio CD. Thus, Fusecon is another music label. However, now with release of the MindCandy DVD we are a little more than just a music label.

On the publication side of things Fusecon intends to bring unique (different) works of writing to the attention of those who can relate and/or are interested in exploring books not meant for the masses. Fusecon will accept ideas and submissions though most products will originate in house. The publication side of Fusecon is considered the other 50% of the company. Eventually, I anticipate more activity in the publication side of Fusecon.

At this time there are two products available under the "Fusecon" namesake--audiophonik, release in 1999, which is an audio CD consisiting of electronic music composed by various demo and music scene musicians and MindCandy Volume 1: PC Demos, released in 2002, which is a DVD contain some of the best demos of the PC demo scene from 1990-2001. Be sure to check out both pages for more details. Previous projects before Fusecon include two CDs ( Escape and Freedom) and a couple of small press zines (Fathoms Below). These projects were tackled in small volume (less than 1000 for the CDs and 200 for the zines) and few, if any, samples remain available for purchase.

Fusecon is a sole proprietorship although certain projects shall be tackled with peopled paid on a contract type basis.

Fusecon hope to provide interesting music, video and publications to those seeking "something different."

BUSINESS FORMAT

For all intense purposes Fusecon is a home based mail order business. Most transactions will occur through e-mail or telephone where appropriate. Credit, checks, money orders, cash, and some trades are accepted forms of payment for Fusecon products.

Since most scene musicians Fusecon will target exist on the internet that is where the primary focus will be. Fusecon's web page "www.fusecon.com" will provide product descriptions, author bios, and musical samples in the case of audio products.

Fusecon's record/audio division intends to produce computer (tracked) CDs, i.e. be a label for a group, person, or people, and may distribute other related computer music CDs. These CDs can contain music ranging from dance to jazz to techno to experimental although most will likely have a semi trance or ambient slant. I anticipate the productions coming out of Fusecon being unlike any music one can find in music stores or stores that sell music. The publications division is expected to work at a slower pace and is likely to only produce a handful of books. Similar to the record division one will find that the books published through Fusecon will be unlike any found in most bookstores.

The key players for Fusecon's success will be those taking part in the individual projects--from the artist, to musicians, to helpers and so on down the line. Fusecon's intentions is to act as a guide and supporter allowing for the creativity to remain on an individual level rather than on what Fusecon believes something should be.

MARKET RESEARCH

The majority of Fusecon's audio customers will come directly from the scene that produces/listens to computer music. Most of these customers exist on the internet (in Cyberspace).

There are two categories of competitors--computer related and new age/synch related. Companies like Narada and Miramar are big time new age/synth producers or record companies. Both have high prices, well established musicians, and worldwide distribution. Within the same category are also companies like World Domination, Castle Rock, Silent, and Hearts of Space. I am sure there are many more as electronic music is a somewhat (+/- 20 years) new and emerging field. The computer music companies consist of at least Area51, TRSI Recordz, Lynnmusic, and Center of the Nebula. All are scene related companies producing and selling to scene and related musicians in small quantities (1000 or less). The size of the industry is small at the moment. Growth trends are unknown. Based on the amount of scene members in existence one can hope to sell roughly a third of their pressings (+/- 300/1000) to scene related members. Competition pricing ranges anywhere from around $9 on up to $15 for a major label. Based on cost estimations and competition Fusecon expects to charge around the $10-$13 including postage. Because Fusecon is a mail order business the overhead is limited to manufacturing, supplies, computer upgrades, and minimal utilities. Cost per project is estimated at less than $10,000.

MARKETING STRATEGY

Fusecon hopes to reach most of its audience by advertising in related newsgroups on the internet, related internet publications, and by sending samples to various print publications where an album/book review is possible. Since most of Fusecon's audience resides on the internet that is where the strongest marketing campaigning will take place.

Through the distribution channels and by sending out samples new leads and customers are anticipated.

FINANCING

All moneys required upon initial start up will come from money saved through the owners full time job. Once a few projects start rolling it is anticipated that enough money from those projects will allow for new ones. Approximately $3000 is expected to be required for each CD project (books slightly more). CD production is around $2000 including art and 1000 CDs with cases. The other $1000 will be required to pay artist, studio time, editors, etc. It is understandable for some projects to require more and some to require less however Fusecon will not sacrifice quality in order to reduce costs.

SALES PROJECTIONS

A press run of 1000 is anticipated for each CD project and 500-2000 for each book project. Within 1 year of publication it is expected to have greater than half of the product shipped.

PRODUCTION GOALS AND STRATEGIES

With the help of other scene members I hope to produce 0-2 CDs/DVDs per year. Each project takes about a year of planning and development so there may be a gap between projects. Distribution of other scene products is still being considered. The intention of distributing others CDs is to help pull other business for Fusecon's products as well as provide wider distribution to those whose products might not be as accessible (i.e. they are produced and sold outside the United States).

On the publication side there are a couple books in the queue which I hope to publish in the next couple years.

COMPETITION

Big name electronic synth publishers/producers are what I would considered within Fusecon records competition even though Fusecon will initially target a different audience. The future intentions is to reach the same audience, for some productions, that companies like Miramar and Narada reach.

Fusecon hopes to ally and work with any and all other scene/computer related business in order to reach a greater audience.

FINAL REMARKS

Fusecon Productions is here for those who like to listen to computer/tracked music, watch demos, and read something different. It is also there for me to reach out and provide some of my talents to hopefully help make mine and few other peoples dreams come true.