The VenUe that Dayton Music lovers can Own
"Encore Live Room" is seeking to become Dayton's first live music venue where up to 49% of it's ownership is shared by its community patrons.
This venue would specialize in creating a premium intimate listening room environment for concerts of all music genres. Imagine a carefully curated private concert to only the closest fans in a perfect sound environment, complete with refreshments.
Essentially a premium large house concert featuring the latest in technology to enhance the experience. Dayton's last great listening room, Canal Street Tavern, once had a commitment to a focused space for hearing great performers. We will seek to honor Mick Montgomery's legacy with a commitment to the same: Music as King, Fans as Queen, and the King always serves the Queen.
The space, located on the second floor of 16 Bates Street, is currently the acoustically tuned "live room" of Encore Recording Studios, which also occupies the 2nd floor of the adjoined 14 Bates street.
The building complex is an 19th century home-with-attached-industrial-building, providing both cozy eclectic and modern industrial touches. Newly renovated from the burned out space it once was, it has been transformed
into a great sounding room for recording and listening to live music. In the lower levels of the same complex are sister companies, Encore Instrument Repair and record label Invention City Records.
The "live room" space would continue to be shared with Encore Recording Studio, with both entities (ELR & ERS) benefitting from each other. ELR will benefit from the team of sound engineers and videographers to provide the superior sound, lighting, and multi-camera filming of each concert. It will also benefit from the 14 Bates building providing green room space for artists, production rooms for audio and video recording, and lounge room space for VIP patrons. Encore Instrument Repair's entryway and Check-In counter would be used as Will-Call and Ticket Window during venue events. Encore Live Room would secure the live room space, and whatever additional space in the complex required for each event, for a minimum of 8 events per month, a maximum of 12.
A Tested Concept
We have successfully tested this concept with 4 separate events of different genres. 3 of the 4 events were sold out, and all of them were financial successes. Internationally acclaimed Scottish pop rock "Trashcan Sinatras" performed to a sold out crowd of regular and VIP ticket-holders. The positive feedback from that event in particular was enough to make us realize how appreciated and sought after this type of venue experience still was. Fans will pay pay well for an exceptional exclusive experience.
This type of experience must be carefully crafted with artist lineups that are developed by staff with the experience and connections to make such events even possible. The existing entities at ERS, EIR, and ICR all contribute to this ability and not only have the experience, but have it across a diverse range of genres.
This round of investment will be spent on the necessary building costs and improvements needed to make it a regular venue space. Staging, Stage Curtains, Venue and Stage Lighting Rigs, Premium Sound System, Seating, Projectors, Ohio Liquor License, Bar amenities, Increased insurance and many other related expenses. Ramp-up phase will be 3 months, with several events being scheduled throughout.
It probably goes without saying, but the level of investment by each patron will determine the percentage of equity owned. Shareholders can expect complete financial transparency on business income, and quarterly payouts on profits. IF the $98,000 goal is exceeded by no later than Dec 31st, 2018, the final total will be set equal to 49%, and each contributors equity amount will be calculated by its proportion to the total amount raised.
Also dependent upon investment levels, additional member benefits, discounts and perks will be made available. Examples of this would be ticket discounts, ticket upgrades, free swag & merchandise, discount beverage tickets, free beverage tickets, etc...
We would love to have your support and shared ownership of this new venue.
Will you be an owner with us?
Pick your Ownership Buy-IN Level:
Q1. If I invested $10k, would I own anything tangible that can be bought out of or sold later down the road when profitable?
A1. Unlike some co-ops that are really selling "token" ownership, we're selling actual ownership equity. The assets of the ELR business are part of that. If the business is ever sold or closed and liquidated, you are entitled to your % portion from that sale FIRST before any other settlements.
Those that buy-in may sell their equity stake at any time to a willing buyer. Owners may sell their shares to new owners, or other existing owners, but the majority partner must have first right of refusal to buy those shares that an owner may wish to sell.
Q2. What are the projected profits and targets so I can see when I would get my money back and begin to see a profit?
A2. Assuming $98k equals 49% equity (our goal with this), then your $10k stake equals 5% equity.
The first year goal is to book a minimum of 8 shows per month that bring in a minimum of $16k/mo in ticket sales, and $4k/mo in beverage sales. Those conservative numbers are based on 50% ticket sales.
Subtract 50% of ticket sales ($8k) to pay performers/promoters, $2k/mo in utilities, $2k/mo in stock supplies, $4k/mo in staffing, that leaves $4k/mo or $48k/yr. Subtract taxes, and we're looking at $32k/yr profit "worst case". 5% of $32k equals $1600. At that very conservative rate, you would make your money back and start to see ROI by the first quarter of the 6th year.
On the opposite end of the spectrum, we are hoping to get to the point of selling as many as 12 shows/mo, with 25% of those tickets being VIP tickets. This would yield $48k/mo in ticket sales, and $12k/mo in beverage sales.
Subtract 50% of ticket sales ($24k), $3k/mo in utilities, $4k/mo in stock supplies, $6k/mo in staffing, that leaves $23k/mo or $276k/yr. Subtract taxes, and we're looking at $184k/yr profit, "worst case." 5% of $184k equals $9200. At that progressive rate, you would make your money back and start to see ROI by the first quarter of the 2nd year.
Q3. Who would be the manager of day to day operations and booking?
A3. Jeremy Mix would be initially, but the goal would be to have a venue manager and minimal event staff within the first six months that he then oversees. This is similar to how the instrument repair shop and recording studio are run - they each have their own managers, and he oversees them.
Q4. Will there ever be further rounds of investment that would lower the equity % I presently have?
A4. As we cannot predict the future investment needs of the business at this time, we cannot rule out that may be needed. If more investment rounds are needed, the owners will have the opportunity to vote in a reasonable window of time on whether they are willing to allow additional rounds to happen.or not. 75% equity majority of owner votes must be reached on a proposed additional investment round.
Q5. What is the ideal ownership buy-in situation?
A5. As we desire this to be a DAYTON community owned venue, the ideal situation is one where the MOST number of people buy-in. It would be great if we had 980 people buy in at $100 each, or 9800 buy in at $10 each. That being said, we have financial goals we need to meet to get this thing off the ground in a timely manner, so any combination of owner buy-in levels is A-OK with us!
More Investment DeTails... For the curious and serious ;)
Encore Recording Studios, and Encore Instrument Repair, solely owned by Mix Management, LLC (Jeremy Mix) and located at the connected addresses of 14 & 16 Bates St., Dayton, OH, is interested in launching another related business in the large “Live Room” located on the 2nd floor of the 16 Bates building. This new entity would be called “Encore Live Room, LLC”, and would specialize in creating a premium intimate listening room environment for concerts of all music genres. Imagine a private concert to only the closest fans in a perfect listening environment, complete with refreshments. Essentially a premium house concert featuring the latest in audio and video technology to enhance the experience.
The intention is to share in the rent and utilities of the complex, without shouldering the full burden of them. This allows the space to be versatile, to benefit from the technology, expertise and facilities of the studio and repair shop, and for the entire complex to work cohesively together, well connected to the community of musicians and music lovers.
1200sqft 2nd floor vaulted ceiling venue space for events and concerts, and live music audio and video recordings.
Space is shared with Encore Recording Studios, and is benefiting from the audio/video equipment and engineering talent that is already present. Booked concerts would take precedent over recording sessions in live room bookings.
1) Current National Acts that wish to have intimate acoustic show with VIP access. Target acts with prior success in Dayton market.
2) Legacy National Acts that wish to have intimate acoustic show with VIP access. Target acts with prior success in Dayton market.
3) Album Release concerts where package deals (ticket + album + merch item), give the attendee enough value for a $20/person minimum ticket. Suitable for Local and Regional Acts.
4) Artists that wish to have a Live Audio/Multi-cam Video Recording
5) Special music events such as Artist Workshops, Drum Clinics, Repair Clinics, DIY Classes, etc.
6) Company Seminar/Training Multimedia & Live Broadcast events.
7) Other Special events: Grad Parties, Christmas parties, etc.
To book 8-12 events per month, 12 months a year.
Book ticketed events at a minimum of $20/person
Offer VIP and premium tickets up to $100/person.
Acquire on-site liquor license, sell beverages on-site during events.
A. ticket sales
B. bar sales
C. live audio/video recordings
D. livestream event tickets
E. venue rental Fees
Mature Monthly Income Sources:
A. Ticket Sales (sometimes shared with Artists and Promoters)
B. Bar Sales
Conservatively count on 2 drinks per head, at min of $5/drink: Additional $4000-9000/month at 8 shows per month, at 50-75 Tickets sold per event. Subtract 20% for bar supply stock.
C. Live Audio/Video Recordings:
In conjunction with live concert events, performances can be professionally recorded, both video and audio. These technical services would be rendered by ERS at a cost of $25-50 per hour, but could be billed to the customer at $100-200/hr, dependent on services rendered. Audio/Video
D. Livestream tickets:
Utilizing modern multi-camera equipment and social media, we have the capability to livestream any event, charging tickets to that online livestream, and/or collecting monies from an online “tipjar” associated with the live feed.
E. Venue Rental Fees:
When the venue gets booked for a non-ticketed or private event, a flat rental fee could apply, dependent on services required.
Ongoing Monthly Expenses:
49% total equity available for community investment
Buy-In at any level, i.e. $2,000 for 1% Equity, etc, Silent Partner Stakes
Any combination of community investors totaling but not exceeding 49% will be made available. 51% ownership will be retained by Mix Management, LLC who will be responsible for maintaining the work of the venue, and has already invested in providing a suitable space for this venture to begin.