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2. Company summary
2.1 Company legal entity
“En-Chanté” will be registered to the French “Registre du Commerce et des Sociétés” (RCS) as a SARL (Société à Responsabilité Limitée) or LLC in English (Limited Liability Company).
This is one of the safest way of creating a company in France. Indeed, it restricts the liability of the owner. In other words, the legal framework of LLC is similar to a safety net if the company would not go well. It also helps to avoid double taxation that can appear in some other types of companies.
2.2. Company ownership
Alexis de Cagny is the founder of “En-Chanté”. The ownership will be shared with a friend of him who has an engineering background and has a bartender experience in Paris. It would help to have two associates who complete each other in skills: Alexis de Cagny will be in charge of the finance, marketing and strategy and his friend will be in charge of the technical work like sound system or for the website.
Alexis de Cagny studied for three years at Audencia Business School and were the General Secretary of Audencia Sailing Club for 1 year. He was in charge of finding sponsors to organise sail races: this experience will also be a strong asset in the building of the Karaoke bar.
Furthermore, as he has been deeply involved in student associations, partnerships with such associations will be sealed more easily.
In addition, Alexis de Cagny, one of the owner of “En-chanté” has completed a Dual Degree with the NCCU IMBA Program in Taiwan, where he discovered the Taiwanese culture and Taiwanese Karaokes. Through this powerful academic experience, he also learnt about Confucianism and Leadership and will try to use his learning to manage well the bar.
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2.3. Start-up identity
The “En-Chanté” Karaoke bar has deep-rooted in his name the culture of happiness that comes while singing. Therefore, this start-up wants to strengthen this mantra in its identity. For instance, colours in the bar will be warm with presence of wood and soft lights.
In addition, as customers will identify themselves to a brand if it looks like them, “En-chanté”
wants to be associated with the image of a young, social and dynamic person, who enjoys life pleasures and open-minded to discover new leisure.
One another strong personality trait of “En-chanté” is that the brand will lay stress on the Corporate Social Responsibility (CSR) of the company. Indeed, the founder Alexis de Cagny, thanks to his education and academic background, is really sensitive to CSR. He has followed 3 CSR courses in the last three years, in France and in Taiwan, and his French business school is actually renowned for teaching CSR in France. Furthermore, Nantes is one of the most active city in France that promotes publicly CSR: they support around 50 projects to develop CSR in the Nantes Metropole, which cover many fields like the reduction of waste or the encouragement to involve local communities in business.
Therefore, CSR will be clearly included in the DNA of “En-Chanté” bar, first because of personal motivation of the founder, Alexis de Cagny, and second, because of the market sensitivity to CSR.
The picture on the right represents the name of the bar that will be displayed on the storefront of the bar. It is a simple logo which clearly highlights the concept of the bar.
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In the same way, here are some pictures of the bar and rooms to share the atmosphere with the readers of this business plan. In order to maintain a warm and welcoming atmosphere, we have chosen to display some wood components on the walls of the ground floor, as many bars in France do. In the Karaoke rooms, we have chosen to have a modern and design decoration to fit well with the whole Karaoke sound and video systems.
View of the ground floor: bar with tables and chairs for customers
View of the Karaoke room for 10 people: sofas, tables and screens to ensure a high-quality experience
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2.4. Overview of products and costs
The launch of the Karaoke bar “En-Chanté” will necessarily lead to prepaid costs before the opening of the bar. A deeper analysis of costs and products will be conducted later in the marketing and financial analysis, but here is a first overview of the main sources of products and costs.
Products:
Revenues from Karaoke rentals and Buffet (package all-included)
Food sales at the bar
Beverage sales at the bar
Costs:
Administration Costs (legal, salaries, alcohol license and singer property rights)
Real Estate Costs (rent of a 3-floors commercial building in Nantes)
Furniture and Decoration (sofas, tables, chairs…)
Fixtures and Devices (TV, microphones and sound system)
Inventory (food & drinks)
The earnings will mainly come from the location of private rooms for Karaokes and the access to a buffet, the sale of drinks (wine, beers, sodas, cider, liquors) and the sale of snacking food (French fries, sandwiches (Kebab), biscuits, cookies…).
The costs are mainly investment costs which are implied by the structure of the business.
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2.5. Justification of the Taiwanese-style Karaoke
First of all, the history of Karaoke must be reminded before continuing the business plan. Indeed, Karaoke culture is very widespread in Asia and remains one of the most loved leisure for Asian people. Karaokes started in Japan in the seventies to become today the first source of revenue of the leisure industry: the Karaoke industry profits reached 8 billion euros in 2010 in Japan, far ahead of the cinema industry with “only” 2 billion euros. As a result, singing culture in a Karaoke has become in the past few years an inevitable social experience if someone goes to Japan, and now, in almost all Asian countries.
The very first Karaokes in Japan were places where you could sing in front of the public, with no possibility to rent private Karaoke rooms. They were first places for MTV to watch bands on screens and then, they become KTV with possibility of singing with screens and lyrics.
The Karaokes, where private rooms could be rented, were developed and pulsed by countries such as Taiwan. Indeed, in Taiwan, the Karaoke is experienced in a private room that you rent with friends to sing together, and therefore, appears much more intimate. This intimacy trend, that has gained momentum over the past years, has helped Karaoke to become a strong cultural and social leisure in Asia. For instance, many business contracts are today signed after Karaoke experiences: they are not only a leisure but an experience with important repercussions in the economic and social life.
Therefore, “En-chanté” wants to adapt this Taiwanese-style Karaoke in France, as it does not exist yet in Nantes. The following parts of this business plan will explain how “En-chanté” can and will become a successful business in Nantes.
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3.1 The industry of Karaoke and bars in France
The industry of the Karaoke bars is really different in France from what it is in Taiwan. Indeed in the main French cities, there are very few bars who allow their customers to rent a private room to sing as it is possible in Taiwan. For instance, there are only 2 Karaoke bars in Nantes today, and none of them has this particular feature: those three bars are more on the Japanese style Karaoke and are not welcoming to students and young people.
Therefore, the vast majority of so-called “Karaoke bars” in France are just normal bars with one with screen on a wall where Karaoke songs can be displayed. It means that to do a Karaoke in France, you usually have to sing in front of the whole bar, often full of passers-by or unknown people. In addition, sound and video systems in those Karaokes are rarely high-quality devices and the quality of the experience would necessarily be sabotaged.
All this industry of Karaoke bars in France can therefore be a very disappointing for people who enjoy singing in private and partying in a warm and welcoming atmosphere.
More generally, the culture of Karaoke in France is increasing years after years, especially thanks to many television shows that encourage people to sing. For instance, there are no less than 10 TV shows that consist in promoting the singing experience. Among them, “N’oubliez Pas les Paroles” (Don’t forget the lyrics” in English) is the most popular in France, followed by almost 4 millions of viewers each day. Nagui, the television host is even the most appreciated TV host in France (Poll: TV Magasine, Le Figaro Décembre 2017).
Finally, bar culture in France is highly developed in French people’s minds. First, the idea of café-terrasse comes easily to travellers’ mind when they think about French bistrots and French bars. It is one of the most striking essential trait of differentiation compared to other countries.
Furthermore, the culture of alcohol in bars is widespread in France: first with the appetite for French wine in every part of the country ; and then with a consequent consumption of beer that has increased by more than 4% during the last semester of 2016 (Nielsen, 2017).