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The Balineum
will be considered as going from a standing
start, with initial working capital coming
completely from a combination of public revenue
sources. This public funding is expected to
be reduced by 10% year on year to be replaced
by corporate sponsorship and growing revenue
generated by all sections of the Centre.
Personnel levels will
be kept to the minimum compliment necessary for the
day to day running of the production company, the
centre and the hospitality amenities. The wage structure
will be fair but not high and there will be a general
parity, with no overly high earners in any position.
Wage increases will hold with the rate of inflation
for the first three years at least. Any extra personnel
required will be taken on either temporarily or on
finite contractual basis. A contingency has been worked
into the overall budget to cover this eventuality.
Click
here to see a schedule of the personnel and wage structure.
We expect wages to rise consistently
with the rate of inflation for the first three years
at least, when the general policy will be reviewed
and adjustments made accordingly
We
are expecting to have to raise funding from
a combination of public sources to cover complete
costs for the first year, but will look to
reduce our funding needs by 10% year on year
for the first five years of our operation.
Our anticipation is that we will begin to
attract strong sponsorship interest by year
two and will reduce our public funding needs
by an amount corresponding to corporate sponsorship
won.
Return for this funding will be significant,
with up to 3000 tickets given away per week
free of charge to school parties for curriculum
productions, and standby tickets at nominal
sums available to students for all evening
performances where seats are available.
Production budgets will
be kept to a fixed rate with no going over budget
expected or allowed. As a production group we are
well versed in working to tight budgets and those
assumed will be more than adequate for the shows we
expect to produce. At present that budget has been
set at £10,000 per show for physical costs (set
props and costumes). Also we are lucky in that several
shows for our first year, and for the curriculum programme
which we expect to produce year on year, have already
been costumed by us and those remain in storage. This
gives us a significant head start on the productions
both in terms of budget and timetable. We also expect
to store much of what we build make and buy for shows,
creating a pool resources on which to draw, again
allowing us the freedom and capacity to reduce our
funding needs year on year.
Merchandising costs are fixable,
with rates for printing, CD duplication etc. etc.
easily obtained. Assessments of Catering costs have
been estimated based on current wholesale prices,
and pessimistic turnover to asses need.
Click
here to see a breakdown of costs
In estimating all of the costs and turnovers
to produce our first year cashflow we are forced to
take best guess estimates from utilities, insurance,
in fact almost everyone that would supply us, who
at this moment have to work with intangibles. Some
things we can be clear about, such as the catering
or printing costs, but in most aspects we are taking
assumptions which are probably very inaccurate.
In order to balance this we are making
quite cynical estimates as to turnover and attendance,
and in later forecasts we will assume year on year
growth of between 10 and 20 percent.
This forecast will continue to be adjusted
as more data, and more reliable estimates, become
available to us.
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