Dear potential investor

Starworks Productions Inc. is a coalition of professionals of the entertainment field and community activists that have joined to bring the entertainment world, and other industries into the communities to give youth and adults opportunities to empower themselves through the arts and other vehicles. Our organization was started in 1984 and has been working for many years providing opportunities from Not for Profit ventures to cultural events and etc., in order to make our community thrive on many levels.

Starworks Productions Inc. is currently seeking startup capital to launch the multimedia entertainment production aspect of our company: The Starworks Entertainment Group (S.E.G.).  Once launched, S.E.G. will be used as a vehicle to raise funds and invest its profits to fund in-house and outside community and youth empowerment programs,  as well as creating a profit return to investors 

The plans and stages of our proposal are as follows:

 1) Provide professional services to the entertainment industry.

(See S.E.G. business plan)

 2) Provide substantial returns to investors and as well as provide a base for Starworks in which it can create a self-generating income and become financially independent

(See Cost/Profit Projections below)                                      

 3) Provide funding and a base in which private industry and private investors can invest and “Give Back” to the community so it can thrive economically, educationally, socially, globally through it’s not for profit (community based) projects.  IE: Project: H.O.M.E.  (House of Mental Edification) Entertainment, Arts, Education, & Cultural Center. A multimedia training facility for youth and community who are seeking to empower their lives through the arts and other vehicles. (See Non Profit Venture Project H.O.M.E. below)

4) Provide an ongoing fund that will be accessible to all global indigenous tribes in need.

    IE: Tribal Trust Fund International ä

Should you the potential investor wish to review more detailed information, you may consult  FYI and answers to FAQ by investors: below or please do not hesitate to contact us and we hopefully await your response. Thank you for your time and attention. 

Respectfully,

JOSE ANTONIO LOPEZ

                                                                                                         CEO, & Founder:

Starworks Productions Inc. (Starworks Entertainment Group).

FYI and answers to FAQ by investors:

  FYI and answers to FAQ by investors:

Description of Business - Who is our competition and why is our product or service superior?

Our business is predicated on a multi-tier model. The primary or core attributes are the commercial product-based enterprise, complemented by the social service (humanitarian-based) trust.   Being part and parcel of one another as cross-fertilization of resources and support, they mutually benefit the vision of the Starworks establishment. The business operations of Starworks Enterprises is the essential capital generator which allows for the funding of community projects to aid individuals and regional organizations in dire need of support services, technology, housing, environmental improvement, etc., and conversely, the people helped by the Trust reciprocate by providing local support for events, publicity, human resources, and many other complimentary attributes which serve the community along with the moral support of the Starworks platform. Our products are superior for several reasons. First and foremost we have access to top talent around us who are artists, technicians and entrepreneurs dedicated to causes and high achievement not solely based on monetary gains. Global networks of these individuals from diverse cultures are on our company roster. From these sources alone, we have the best of all commercial and educational content to market worldwide. Our Internet web presence integrating all tribes from around the globe provides us with access to material and marketing to a dedicated database of world culture yet to be viewed as documentaries, new world music CDs, to name a few. In this way we have first rights to market material previously unavailable. We also limit the competition by our serving as a global distribution arm for camera-ready productions already to disseminate or in-progress. From final ready-to-market material to CO-productions, Starworks serves as a clearinghouse for small enterprises that do not have the distribution capabilities to mass-market their product. These camera-ready and digital masters only need to be reproduced for marketing under the Starworks distribution trademark (label). The significant number of freelance creative sources provides us with unlimited material without advance payment, with full worldwide exclusive marketing rights. An endless stream of content, with freelance regional editorial boards and producers, allow for minimal overhead, and also giving us an extensive staff due to additional donations of manpower via interns and part-time supporters. Our approach is to reduce competition significantly by forming a vast network of strategic alliances. In essence, it is more an advantage to cross-market with Starworks, than it is to attempt to spend years attempting to replicate the network, which the founder and alliances has established for over a decade before the Starworks Company was even established. It takes an extensive business proposal to illustrate the extent of this functioning network and the products available from these world entities. For your due diligence, we will present an overview of the number of highly marketable productions in our initial catalog.

Who and what is our Market?

 A wide consumer base, primarily ages 16-40 for the audio products; 14+ for the film projects; 15+ for book and sheet music publications, etc. We are dealing with the largest market of all which is the ethnic-based urban market from preteen to young and mid-age adult who is also marketed to world distribution channels ranging from Cable broadcasting, to World Internet Channels, all major retail/whole outlets, the list is extensive.

 

Market  cont….

This is an ever-emerging market that is being extended to offshore regions as exponential growth. The potential is virtually unlimited in the entertainment and educational sectors, but taking into account the mass market demographics of the crossover sales and marketing of our commercial, pop and educational materials in these industries, a conservative estimate of our surveys of competitors sales reports, regional, national and international combined reveal the ability to -- if marketed extensively -- initially move 10s of thousands to millions of units, again depending on trends and advertising penetration.

 

What are our Market projections?                                                                                                                                                                                                     

We expect to capture a dedicated total market share of 3% in five years.

 

What is our Marketing plan?                                                                                         

[Marketing plan is extensive (also outlined briefly herein) - See separate proposal for full disclosure].

 

Strategic partners, Market research?                                                                                                                        

Much of the market research has been accumulated and accessed from the monthly and yearly-accrued sales report statements from my partner's efforts with major national and international retail distributors and direct sales of print publications and related media. Additional beta-testing and statistical analysis of sales figures were deduced from insider reports procured from associates working for major media entities who are strategic partners with Starworks.

Proprietary Technology and Intellectual Property?

There are absolutely no legal barriers to the development and sale of all copyright holdings; trademarks; etc., of any and all Starworks properties. Starworks holds full control of all intellectual rights of each and every property (technology; manuscript; visual data, et. al.) we bring to market.

Legally defensible technologies, competitive advantages?

In Lieu of the above, we have the advantage of non competition regarding all material assets -- thus we only have to deal with normal liabilities stemming from copyright infringement issues and fair competition of market share. We have a top New York Law firm whose expertise includes copyright law and all issues dealing with corporate and securities regulations.

Business Model?

Our business model is through a combination of Online; Retail; Wholesale; Mail order; Cable and Alternative Media Channels; Telemarketing; and other distribution sources.

Sales plan?

Yes. We have a sales, marketing and distribution plan. (See separate investment proposal for full disclosure)

Distribution channels to be used?

Distribution models to be used are Book distributors; Retail Reps organizations; Major Record Labels serving as distributor for CD and Video Lines (e.g., BMG; EMI); Major Sheet Music Publisher serving as distributor for Sheet Music Publications (e.g., Warner Bros. Publications; Columbia Pictures Publications); Online Music and Book Sales Companies (e.g., Amazon.com). (Note: These major distributors already have distribution deals with my Copartner under his media holdings group).

 

Key sources of revenue and what % of revenue expected to generate from each source?

Key sources of revenue will be from the retail and direct sales of our products and productions; live events; residuals and royalties from repeat plays and screening of our audio, video and film productions; along with our in-house services (developed in stage #2 as Starworks Studios; Starworks Graphics; etc.). As direct sales afford us much higher profit margins, our marketing plan is structured as 40% retail and 60% direct sales model.
Key expenses?

Maintaining a low overhead as a key directive, the greater of the capital base (seed and expansion capital) will be allocated to the production, manufacturing, sales & marketing of our intellectual properties (Print Publications - Sheet Music/Books); Audio Products - (CDs, MP3; Videos; Films (DVDs); Educational Software....

Margins & projections, method of distribution?

Margins will vary depending on method of distribution and type of product. Even with the same product, for example a Trade Book, the margins fluctuate depending on whether it is retailed or sold direct, and region of sales (Nationally vs. Overseas). We have calculated a gross profit margin based on net earnings taking into account overhead, manufacturing and marketing costs, inventory returns and damages, depreciation of assets, royalties, and so on. Direct to Consumer marketing including all the above and will allow for a 35-50% net profit based on an 8-10x manufacturing and development cost as retail price. On the strictly Retail level to Consumer, we expect a minimum of 15-20% pretax profit after all calculated expenditures. This does not include additional perks such as serial publication rights, translation rights, residual earnings of repeat use, etc., and is being only applied to this one example of a book publication. When dealing with live events, we expect a 3-1 ratio of block payout -- meaning an investment of $100,000 will return a minimum of $300,000 in a single event. Residual revenues would also be generated from the further marketing of the audio and video programming of the event as rollover and remainder-house gross sales.

*Deal Stage (Seed, Early, ) **Prior Financing &- Investments to date?

In excess of $300,000 (used to catalog and develop intellectual properties and create our network of artists and sales/distribution outlets).

Raised capital?

Over a period of 5 years.

Investments made?

Investments made thus far are from personal funds of the principal founder and goodwill of family and friends.

Sum that principals invested to date?

As Stated above.

**Financing Sought and Use of Proceeds?
 

Initially Fifteen Percent (15%) will be utilized for overhead, with the remaining capital applied to the manufacturing and marketing of various commercial products/projects (refer to business prospectus). Once the revenue generator is in place, a minimum of 30% of the yearly net profits will be delegated to stimulating empowerment community efforts to increase employment (job training, education, housing, et. al.). [It should be noted that the talent pool as local labor and related service companies (e.g., recording/film studios, computer graphics services, event security, etc.) owned and run by local residents will gain benefit from all these productions, events, and so forth.]

***Third Party Involvement?

Neither 3rd Party investors nor intermediaries claiming compensation.

Summarized Financials?
.

As we are dealing with diverse product lines, under separate cover, we will provide a breakdown of calculated (total) costs and profit projections for each of these. As several product lines are similar in content and marketing structure (books, sheet music, recordings, etc.), and analysis of one of these categories alone will provide the investor with an accurate and detailed overview of the case. There is not enough space here to demonstrate this. Suffice it to say that the net profits derived from the sale of the first print run not only breaks even our production and overhead costs, but also allows for decent dividends, even providing some excess capital for expansion in several cases where market demand is predominant.

 

Financials from previous 2 years?

Although Starworks has accumulated a vast database of marketable material, most all of which we hold the sole marketing copyrights for, the company can still be considered a startup in the sense of undemonstratible P&L statements as company financials. However, the founder and other supporting agents of this enterprise are not demanding any debt-based re-compensation, so the primary venture source is free of clearing any debt. All the cash and sacrificed time invested in keeping this enterprise active during this period, applied to the designing and preparation of these products, along with the injected distribution avenues as part of this equation, should be acknowledged via generous shareholding percentage for the founder/principals of the Starworks organization in allowing the angel investor to start off with a clean slate.

 

Sales assumptions?
 

Amortized across the board, making the assumption that as the stand-alone direct marketing capabilities of Starworks media network increases more per annum, with the retail market becoming only 25-30% percent of revenues, it is a conservative estimate to state that as a 5-year projection, @ year 5, we should realize a net cap of 300% on 50% of our product line, with a residual sales of 10% per year of back listed titles.

Who is the Management & Administration?

Starworks Productions Inc. which is the management & administration for all projects & ventures stated herein, is a coalition/partnership of professional people in the entertainment field that have a genuine interest in bringing the entertainment world into the communities to give youth and adults opportunities to empower themselves through the arts.  Starworks Productions Inc. is a synergistic conglomerate of artists, producers, and community activists that cover over 30 years of experience in community and youth empowerment and 50 years in the entertainment industry involved in every form of Entertainment and music including urban, rural and international music including hip hop, house, dance, R&B, jazz, new age, country etc.  The caliber of our producers are documented and certified doctorates of music compositions, and theory and have been celebrated in music and entertainment periodicals such as "Who's who in America",  "Outstanding Young Men of America" and "Who's who in music"  (which means that our musicians are over qualified to compose master recordings, film scores, concertos, sonatas, symphonies, fugues, etc., on the other hand we have producers who also are a major force in non secular music (Gospel).  (See more detailed history of Starworks Productions Inc. through our website) (Management credentials at request)

BUSINESS PLAN

&

FULL DISCLOSURE

Table of Contents

Page 3…………………………………Letter of Introduction & Agenda

Page 5…………………………………Business Plan

Page 12……………………………….Assets & Properties

Page 16……………………………….Profit Projections & Costs

Page 20……………………………….Management Team & Administrative Credentials

Page 32……………………………….Project: H.O.M.E./C.A.S.A.

Page 39………………………………Tribal Trust International

___________________________________________________________________________________________________

2462 DEVOE TERRACE, PENTHOUSE   BRONX, NY 10468

EMAIL: STARWORK 1@AOL.COM   VOICE MAIL: 646-548-4079

WEBSITE: WWW.STARWORKSENTERTAINMENT.COM

         Dear potential investor or To Whom It May Concern;

         Starworks Productions Inc. is a coalition of professionals of the entertainment field and community activists that have joined to bring the entertainment world, and other industries into the communities to give youth and adults opportunities to empower themselves through the arts and other vehicles. Our organization was started in 1984 and has been working for many years providing opportunities from Not for Profit ventures to cultural events and etc., in order to make our community thrive on many levels.

          Starworks Productions Inc. is currently seeking startup capital to launch the multimedia entertainment production aspect of our company:  The Starworks Entertainment Group (S.E.G.).  Once launched, S.E.G. will be used as a vehicle to raise funds and invest its profits to fund in-house and outside community and youth empowerment programs, (See Page 32) as well as creating a profit returns to investors (See Page 5).

The plans and stages of our proposal are as follows:

 1) Provide professional services to the entertainment industry.   (See S.E.G. business plan)      

 2) Provide substantial returns to investors and as well as provide a base for Starworks in which

      it can create a self- generating income and become financially independent.   (See Cost/Profit Projections )                                      

 3) Provide funding and a base in which private industry and private investors can invest and “Give Back” to the  community so it can thrive economically, educationally, socially, globally through it’s not for profit (community based) projects.  IE: Project: H.O.M.E/C.A.S.A., House of Mental Edification, entertainment, arts, education, & cultural Center, A multimedia training facility for youth and community who are seeking to empower their lives through the arts and other vehicles. (See Non Profit Venture Project H.O.M.E.CASA)

4) Provide an ongoing fund that will be accessible to all global indigenous tribes in need.

    IE: Tribal Trust Fund Internationalä (See Non Profit Project ) 

Should you the potential investor wish to review more detailed information, please do not

hesitate to contact us and we hopefully await your response. Thank you for your time and attention.

Respectfully,

JOSE ANTONIO LOPEZ

CEO, & Founder:

Starworks Productions Inc.

(Starworks Entertainment Group).

FOR PROFIT SECTOR

BUSINESS PLAN

*StarWorks Entertainment Group*

MISSION STATEMENT:

   STARWORKS ENTERTAINMENT GROUP is designed to function both as a productions house and marketing for audio, visual and literary (print) products.  The core concept is to develop and produce top quality CD's Videos, Sheet Music/Books and multimedia, as a cross-fertilization of talent in alliance with a roster of successful companies in the media and entertainment fields as well as other key strategic alliances. Thus, Starworks not only will produce the most unique projects with mass-market appeal, but will also serve as a resource for distribution, PR, international rights, a production studio, and the list continues.  The network of strategic alliances will ensure the continual influx of new talent, co-productions, matching capital, and service-based project monies, and so on to maintain a high standard of cash flow and company profits.  The corporation will consider key acquisitions, which further support the solvency of the company--such as securing space and renting to allied clients who not only increase business for StarWorks, but as landlord allows us to operate on a rent free and/or profit basis. The successful implementation of the above creates an ideal mechanism for the later public offering.  A more detailed overview of these strategies and divisions are outlined below.

EARTH BEAT STUDIOSä

An important asset of Starworks will be our recording studio, sound stage and video facilities. “EARTH BEAT” recording studios; editing facilities and video division serve 2 important purposes.  First it allows for cost-cutting low-budget production for CD's and video production for in-house projects; and secondly serves as a top recording and editing facility for upscale clients.  A fringe benefit of studio ownership is the custom designing of the most flexible environment for multi-genre productions as well as faster turnaround and effective use of down time.  EARTHBEAT studios will be involved with every type of audio/visual production from film scoring and record albums, to video game audio and documentary interviews (see strategic alliances).

The studio's architectural design has been completed and is ready for implementation. 

An award-winning studio and club designer developed the design.  The engineer chosen for constructing the studio's equipment operation is a leading inventor of new synthesis technologies, programmer and recording studio engineer.  His special abilities allow for the set up of a million plus recording studio at less than half the cost of others.  Thus, a million-dollar studio can be built for 350-400 thousand dollars -- with rapid construction.

A special adjunct will be a state-of-the-art MIDI-based production and editing studio room integrated with the main 48 multi track studio A -- offering the latest in digital audio (sampling etc) and new media formats (E.G., D.V.D., Sympte protocol for film audio...)

The Flexibility of this studio and stage arrangement will allow for a wide variety of productions from infomercials and TV Shows (set designs) - to sound stage acts and theatrical shoots. 

STARWORKS RECORDS ä

One of the main divisions is comprised of the recording labels.  To adequately represent the variety of music genres and special projects, three distinct record labels will be established.  These will be our in- house development labels dedicated to the following markets:

SOUL EXTREME RECORDSä

Soul Extreme Records will be exclusively devoted to producing records solely directed to the wide based mass-market consumer in all age categories.  The focus will be the R&B; Pop; Rock; Hip-Hop (RAP); and any other category, which represent the highest number of consumer sales. 

FULLCIRCLE RECORDSä

Full Circle Records will concentrate on the music genres Of Jazz, Classical, and World music.  From 21 century Salsa to New World Jazz, to Funky Gospel and Pop Strings, Full Circle stands for the cutting edge talent in these niche markets. 

FREE FLOW RECORDS ä

Free Flow Record's main focus is on the Alternative New Age and Crossover market.  From Electro-Acoustic Ambient Healing Tapes to experimental New Age Fusion--this will be the platform for the ever--growing needs for those music seekers looking for new mind--expanding sonic environments.

DISTRIBUTION & MARKETING

Each label has its own independent distribution source.  The distributors chosen will be the leading marketers for each specialized area.  A 3-tier approach will be utilized depending on which relationship is the most beneficial for sales.  Thus, the sales rep force of an independent distributor maybe selected for one label or a major label distributing for another.  Along with this, direct marketing via mail -- order; The internet; live concerts; alternative markets; premiums; co-advisors; 800 direct lines; and so on ... will supplement the retail and wholesale record outlets represented by the main distributors.  Public Relations campaigns will be a joint effort between our label and our allied distributor.  Package deals for PR is a cost -- reduction approach that is

effective on a reasonable retainer level for each label.  Naturally the greater the sale number for particular artists, the greater justification for reinvesting in up scaling PR efforts.  The above does not apply when projects and artists venues are sold outright as package deals to other (outside) labels. 

STARWORKS PUBLISHINGä

The publishing division is an essential component affecting all facets of the business, as controlling the copyrights of all music and literary properties is mandatory for leveraging the most profits from all works, and is the primary asset of the company.  The International Licensing of any property through ASCAP and BMI for music to international translation rights for a book, movie rights, to sheet music, folios and book sales.

Three division of the publishing wing will include Sheet Music Publishing; Mass Market Trade Books and copyright licensing.  As with the record labels, arrangement with different distribution arms will be procured for the sheet music and books.

The importance of this print and licensing division is based on 4 important factors.  A) Increased revenues from print publication sales; B) Identity support from the increase in exposure for an artist (E.G. sheet music, author/group biographies); C) Cross-marketing through creative packaging (E.G., Sheet music with CD); and D) The licensing rights to all media (Syndicated Radio; Television; Movies; Internet; Live Venues; Functional (Muzak), etc.).

STARWORKS PRODUCTIONSä

StarWorks Productions is the division which handles all in- house and co-productions; separate from the services offered as a for hire production facility.  From Videos, documentaries to features, and multimedia/theatrical, StarWorks Productions will produce and/or package musical groups/stage acts as touring venues or develop them for outright sale as spin-offs to other companies.

As will the record division, the appropriate distribution channels for productions sold by StarWorks will be established.  Thus, a production may be viewed as a Cable broadcast and later sold in video format in retail video outlets.  A musical or concert broadcast may be also released as an audio CD through one of the in-house labels, etc.

The production division derives a percentage of its material source as well as interfaces with the other divisions.  For example, film projects; television series; and so on will often emanate from properties procured through the Publishing Division.  Names will be selected as with the record labels for the sub-categories (e.g.; ICON VIDEO) for each area of media entertainment represented in this division.

STARWORKS NEW MEDIAä

This division is exclusively dedicated to the new media.  From developing projects for the new data standards (e.g., DVD) to Internet (Online) programming; and interactive CD-ROM; projects, which both entertain and educate will be considered.  This includes everything from educational software to service-based web sites based on new cutting-edge Internet services (already designed for implementation -- see separate prospectus).

StarWorks Media will have its own server to fulfill the above needs and a computer graphic dept for the design of all visual materials supporting the efforts of the company (book and poster cover design; desktop publishing; CD jackets; promotional events.

STARWORKS FEDERATED ARTS NETWORK (FAN) ä

Perhaps the most important of all of the divisions is the one, which supplies the ever-expanding client base for generating projects, service work and cross-platform marketing, The Federated Arts Network (F.A.N.) will Establish a network of alliances in all areas of the media and entertainment fields, positions one for receiving a continuous influx of talent and co-marketing opportunities.  This ensures continuous growth and cash flow stabilization.  The following are just a few of the many strategic alliances in place:

vP.U.P.I.L., Inc., -PEOPLE UPLIFTING PEOPLE IN LIFE Inc. {ATLANTA, GA}

Chairman of P.U.P.I.L. Inc: Mr. Grant Love

Celebrity Business Club 4001 Presidential Pkwy

Suite 700 Atlanta, GA 30340

Office Phone 678-597-1255 or 404-381-3637

EMAIL: Pupil4life@aol.com

WEBSITE: www.Pupilinternational.org

Ms. Shelly 'Suma Khem' Bullard,  {ROOSEVELT, NY}

Founder/Director:  DOSANSHA!

Grassroots Community Activism, Educational Workshops,

Global Visionary Solutions

Roosevelt, NY

EMAIL: workshopz@aol.com

Impact Talent Management LLC.  {OCOEE, FLORIDA}

CEO: Mr. Ralph Rios

315 Sterling Lake Dr. Ocoee, Florida 34761

phone: 407-294-9865

Email: NewFaces@ImpactTalentLLC.com

WEBSITE: http://www.ImpactTalentLLC.com

vFusion Productions Inc. {LILBURN, GEORGIA}

CEO Mr. Michael Green

4305 Paxton Ln #903

Lilburn, Georgia 30047 h(678)  344  0231 c(678) 508 7624 Email: leomikeg@aol.com

vBlack Waxx Recordings Inc. {NEW YORK, NY}

CEO: Ms. Shawna Glover & Producer: Mr. Tylon Washington

Black Waxx Recordings

P.O. Box 349 Rockefeller Center New York, NY 10185

Phone: (212) 696-8562   Fax: (212)591-6612

Tylon Washington 1-201-876-8784 or 1-347-546-3006

Email: BLACKWAXX1@aol.com     Website: www.Blackwaxx.com 

  vMAD SUN RECORDS {SEATTLE}

            (RECORDS/WEST COAST ALLIED STUDIO)

Mr. George Mattson

Mad Sun Records

1-253-846-9943

Done Deal Entertainment {ATLANTA}

(ATLANTA COMEDY GROUP)

Mr. Arlen "Griff" Griffen

678-358-4405

770-717-8636

678-523-8599

Mr. Ron Alexander {BRONX NEW YORK}

Ron Alexander Video Variety Show

718-220-3594

SOLGIRVISION VIDEO ENTERTAINMENT {BRONX NEW YORK}

VIDEO SHOW & FILM PRODUCTIONS

CEO: Ms. Blanca Girona

Info: 917 768 3584   Email: Solgirvision@yahoo.com

vMany Moods Productions  {BROOKLYN NY}

Ms. Linda Felder Cell: 1-917-622-2694 Home: 718-574-9884

Mr. Robert Powell Cell: 1-646-431-2058 Home 718-452-5394

www.manymoods.com

730 gates ave apt: 2b

Brooklyn NY 11221

Email: Webmaster@manymoods.com

Opinion Magazine {COLUMBUS OHIO}

Editor: Mr. Bruce Harcum

Founder of Opinion Magazine

TEL: 614-235-4433

1970 GUILDHALL DR COLUMBUS OHIO 43209 SUITE E

General info: Marcus@TheOpinionMagazine.com

Editorial Submissions: April@TheOpinionMagazine.com

Webmaster: Bruce@TheOpinionMagazine.com

EMAIL: OPINIONMAGAZINE@AOL.COM

Author's Connection Communications Group {ALBANY, OREGON}

Book publishing, Music publishing, and Television production

Telephone/FAX 541-928-4188

Postal address 125 Expo Parkway NE, Albany, Oregon 97321-6594

Electronic mail accomgroup@aol.com

Purpose Media Management  {NEW YORK NEW YORK}

540 W 146st street NY NY 10031   Phone - 917 566-0552

2 Way Pager - 2WAY@purpose-media.com

E-Mail - niamichelle@purpose-media.com  or PurposeMediaMgt@aol.com

PurposeInsider@aol.com or MERGENewYork@aol.com

NuPurpose@aol.com

Website: http://www.purpose-media.com/

Ms. Mimi Johnson CEO {EAST POINT, GA}

Caustic Entertainment Group

2644 Graywall Street

East Point, GA 30344

404-428-3356

404-610-8063

www.causticdames.com

causticmimi@aol.com

Mr. Luther Ingram (James Ingram's Son) {FAIRVIEW HEIGHTS, ILLINOIS}

770-289-0531

770-350-0162

618-628-9228

PO Box 4509

Fairview Heights, Illinois 62208-4509

Lout321@aol.com

            Mr. Kevin Michael {MIAMI, FL}

Barefoot Productions

2648A NW 21st Terrace

Miami, FL 33142

(305) 637-3444

www.geocities.com/miamimusicstudios

Email: barefootmiami@earthlink.net

TASHMARAY ENTERTAINMENT (BOOKING) {SANFORD, FLORIDA}

CO/Ms. Tashea Margolis

678-480-0372

118 FAIRWAY DR. 

SANFORD, FL 32771

TASHMARAYENT@AOL.COM

Black Crow Entertainment   {YAKIMA WA}

Mr. Raven James Neff

1223 N. 1st Street SuitE#116

Yakima WA 98901 cell: 509-901-1774   H: 509-452-6551

Major Money Entertainment "Doin' It In A Major Way!" {RICHARDSON, TX}

Attn: Mr. Terry McGill, CEO

908 Audelia Road, Suite 200

Richardson, TX. 75081-5150

(972) 675-5242 Office (516) 908-3743 Fax

new email address: majormoney@earthlink.net

Info/Newsletter Web Site Link http://www.majormoneyentertainment.com

Ms. Tamara Jordan (Songwriter)

626-356-4677

818-728-2662

vUNITY DEEP PROMOTIONS {NY}

 (GOSPEL MUSIC, CD'S CONCERTS, MOVIES) 

vSTARWORKS {NY/CA} (MUSIC/VIDEO/THEATRICAL/SECURITY SERVICES)

vM.E.R.C.  ENTERPRISE    {NY/PR/LA/TX}

(SECURITY, ENTERTAINMENT, RECREATION)

The expansion of StarWorks will be implemented in stages.  With an initial investment of $1,000,000 the first stage will be the launching of a line of Audio CDs.  A reinvestment of profits, utilized for producing/marketing more CDs and the launching of a Book Division would be the second stage.  Thus all revenues generated by each product line will be applied as seed capital for launching the next division (e.g., sheet music, videos, etc).  Depending on the level of venture funding as the front end, naturally determines whether one or more division are actualized simultaneously.  With an investment of $2,000,000 the Audio and Book divisions can be co-developed. This would of course speed up the growth of the company, but is not mandatory, as the eventual goal of positioning each of these sub-entities (divisions) would eventually be attained from the reinvestment of profits.

Other significant sources of revenue and cost reduction measures will also be put into effect.  The reason for not mentioning them in the above projects what that we wanted to present a bare-bones bottom line scenario, a true return on investment not dependent on any outside auxiliary conditions.  Thus, at the very minimum, this is what you can expect. However, it is worth mentioning here so as to clarify the additional potential for increase cash flow and lower cost expenditures.

SERVICES...

Being connected to state-of-the-art studio facilities, and based on a highly discounted package rate, StarWorks will also act in the capacity of being an audio service on studio down time. Thus, monies will be generated from renting out excess studio time.  StarWorks, and our roster of professional musicians, arrangers and audio engineers, will serve as a work-for-hire service arm for outside clients in the entertainment community.

READY PRODUCT......

Independent companies who have developed superior product and need a distribution source can be represented and/or sold under the StarWorks label/publishing imprints. A roster of associated companies in need of major (mass-market) retail and direct distribution, have already presented significant product lines as plug-ins to our distribution network.  This is a strong value-added aspect, which makes StarWorks a unique marketing resource for independents that don't have the sales channels to successfully sell their product.  These projects are ready to be sold as finished mastered productions.  StarWorks also functions as a rights arm and packager -- where ready product can be sold to a major house for a buy out quick turnover, or released under the StarWorks trademark.

CO-PRODUCTIONS, BUDGETS & MATCHING FUNDS......

A total in-house investment for developing product in not always necessary as allied producers will equally invest in co-productions.  Budgets for using StarWorks as a service arm is another, and matching funds to expand product lines is another venue of stimulating further and more rapid growth. Again, the above scenarios are seen only as extra revenue enhancements, the stated business plan is totally sufficient for creating a thriving business entity based on previous projections.

Two other areas to be addressed are the time lines for the aforementioned project earnings. As it requires a 6-month lead period at the outset for producing, releasing and receiving payment from distributors from the first line of CDs, the final dollar sales figures (profits) will culminate in 18 months.  Once the product flow begins after the first 6-month grace period, there would be no more delay from that point forward.

The second area not previously addressed is overhead costs.  The business plan is focused on the idea of producing the most products with the least cost.  Overhead will remain low, with the core staff being the principals of the organization, along with the heads of each division and one assistant (e.g.; Lopez as CEO; Love as COO; Green as Pres. Of New Media Internet division; etc) Overhead costs are dramatically reduced due to using a roster of top freelance professionals which take care of most of the production services.  The small offices required for this first year operation is of nominal charge being an offshoot of existing studio operations.  StarWorks also brings to the business assets additional audio gear, computers, fax, copier, and so on.  The initial funding therefore is primarily used for producing product.  With quarterly sales returns, the offices and staff will be increased as necessary.  At the start, for the first 6-9 months, where only a core staff of dedicated principals and secretarial duties, phone, email, etc., are required.  The above project investment is sufficient for this purpose.

CLOSING STATEMENT

The information outlined in the following company guidelines is intended to show the basic structure of StarWorks.  The general plan illustrated can be implemented on a small to very large scales.  Level of funding and time constraints will dictate the extent of how many divisions will initially be launched and/or the number of projects developed.  The key areas of recording and publishing, as well as audio and video services, distribution, and so on, can immediately go into effect even with the first projects produced and marketed.  The Web Site and Internet Marketing can also be simultaneously put into effect; thus, on a smaller scale, for practicality sake, the structure is in place for the beginning of a soundly organized media entity. With international distribution already established for records, video, sheet music and books from the outset, a strong foundation is in place. With significant alliances able to generate project capital/matching funds, a roster of clients, cut rates on services (from printing & graphics to PR), co-productions, and so on, rapid growth is assured.  With leading talents in each area of the music, literary and film arts, the mass and niche markets are securely covered.  Along with property rights already procured for injection in this new corp., the company starts with a value based on copyright ownership, 20 years of developed international distribution networks, and the credibility of the principal director having produced and marketed lines of publications nationwide and overseas.  The staff chosen has equally impressive credentials in these industries.  The course presented has already been beta-tested over a 20-year period.  Therefore, other than a new name, with new product, the company is far from a start up venture.  It is a new media company in name only, the sales network for marketing product on every level, is ready for proactive channeling.

SPECIAL NOTE...

Two recent developments have culminated which allow StarWorks the opportunity of becoming a major media entity and high-growth company in a fraction of time originally projected as a 5-year development period.  The first is StarWorks recent alliance with. 

This exciting new capability guarantees the future success of StarWorks. With this foundation of capital, along with exclusive rights and incredible artistic and marketing skills, StarWorks is ensured to be a No. 1 media company.

With the ability to match sums at a ratio of 10x, StarWorks has developed a plan of establishing an alliance with film and television/cable production companies, in which by procuring expansion capital for these companies, StarWorks gets a percentage of those production companies profits (equity in the company) and a portion of the amount (this expansion capital) for generating film and television audio work for these companies productions.  With this approach, StarWorks will be doing simultaneous film scoring and TV programming audio work for countless productions VIA StarWorks (EARTHBEAT) Studios.

The first investors in StarWorks will be positioned at the top of the pyramid and enjoy the success of being part of a multi-dimensional entertainment media entity, as well as seeing a company grow to a high-end multi-million dollar establishment within a relatively short period of time.

There is no time like the present for this exciting venture.......

StarWorks Entertainment Group

Cost/Profit Projections

COMPACT DISKS {CD's}

Column A:

Costs Per Unit

Retail Price:             $16.50

Cost:                         $  1.50

Author Royalty:       $    .25

PR/Advertising:       $    .25

Dist/Ware....:            $  1.00

                                                         Total:                          $13.50

Retail Price = Suggested retail based on average market trends for single CD. (Per unit pricing)

Cost = Studio Time; Cover Design/Graphics; Jacket Printing; Plastic Housing; CD Pressing.

(Per unit production costs including overhead)

Author Royalty = Artist percentage of sales. (Per unit artists earnings)

PR/Advertising = Public Relations and Advertising costs.  (Per unit marketing costs)

Dist/Ware = Distribution and Warehousing of stock. (Per unit stock/inventory fulfillment costs; includes billing; shipping; tracking; sales reports; etc)

Above costs of $3.00 subtracted from the retail price leaves $13.50 remaining.

Column B:

Retail Marketing Per Unit

Retail Surplus:     $13.50

            Minus            6.75

50% Discounting $  6.75

to Retailers Leaves: $6.75 remaining per unit.

Projected Mass-Market Sales based on National Distribution via major retailers = 25,000 units per CD Release (Conservative Estimate based on mass-market genres and PR/Ad support.)

Profit per 25,000 unit sales:

25,000 x $6.75 = $168,750

Three (3) CD Market Release per four (4) month quarter = 9 CD releases per year.

Profit Summation of 9 CD releases based on above figures.

$168,750 x 9 (or 225,000 units sold) = $1,518,750 gross sales revenue.

Minus costs of; $3.00 x 225,000 = $675,000.

 $1,518,750 Gross Sales

-    675,000 Investment (Costs)

 $  843,750 Net Profit Return

Note: 1^st Year (3 quarterly profits).

Column C:   Direct Marketing Per Unit

Same Retail and costs as Column A.

Retail Surplus with no deduction for Direct to Consumer Marketing (Zero (0) discounting) leaves $13.50 remaining.  Consumer pays for shipping & handling.

Projected Mass-Market Sales based on National Distribution via direct marketing sources = 10,000 units per CD Release. (Conservative Estimate based on mass-market genres and PR/Ad support.)

Profit per 10,000 unit sales: 10,000 x $13.50 = $135,000

Three (3) CD Market Releases per four (4) month quarter = 9 CD releases per year.

Profit Summation of 9 CD releases based on above figures.

$135,000 x 9 (or 90,000 units sold) = $1,215,000 gross sales revenue.

Minus costs of; $3.00 x 90,000 = $270,000.

$1,215,000 Gross Sales

-    270,000 Investment (costs)

  $ 945.000 Net Profit Return

Note: 1^st Year (# quarterly profits).

BOTTOM LINE: TOTAL INVESTMENT:

$675,000 + $270,000 = $945,000

Combined Net Revenue (Pure) Profits of Retail and Direct sales:

$843,750 + $945,000 = $1,788,750

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TRADE BOOKS

Cost/Profit Projections

Column A:

Costs Per Unit

                                                           Retail Price:/Hardcover $24.95

                                                           Cost:                                 $  3.50

                                                           Author Royalty:              $    .50

                                                           PR/Advertising:              $    .50

                                                           Dist/Ware                        $  1.00

                                                          Total:                               $19.45

Retail Price = Suggested retail based on average market trends for single Book Copy. (Per unit pricing)

Cost = Typesetting; Cover Design/Graphics; Jacket Printing; Body Printing and Binding;.

(Per unit production costs including overhead)

Author Royalty = Artist percentage of sales. (Per unit artists earnings)

PR/Advertising = Public Relations and Advertising costs.  (Per unit marketing costs)

Dist/Ware = Distribution and Warehousing of stock. (Per unit stock/inventory fulfillment costs; includes billing; shipping; tracking; sales reports; etc)

Above costs of $5.50 subtracted from the retail price leaves $19.45 remaining.

Column B:

Retail Marketing Per Unit

Retail Surplus:     $19.45

             Minus          9.72

50% Discounting $  9.73

to Retailers Leaves: $9.73 remaining per unit.

Projected Mass-Market Sales based on National Distribution via major retailers = 10,000 units per Book Release (Conservative Estimate based on mass-market genres and PR/Ad support.)

Profit per 10,000 unit sales:

10,000 x $9.73 = $97,300

Three (3) Book Market Releases per four (4) month quarter = 9 Book releases per year.

Profit Summation of 9 Book releases based on above figures.

$97,300 x 9 (or 90,000 units sold) = $875,700 gross sales revenue.

Minus costs of; $5.50 x 90,000 = $495,000.

    $875,700 Gross Sales

-    495,000 Investment (Costs)

 $  380,700 Net Profit Return

Note: 1^st Year (3 quarterly profits).

Column C:   Direct Marketing Per Unit

Same Retail and costs as Column A.

Retail Surplus with no deduction for Direct to Consumer Marketing (Zero (0) discounting) leaves $19.45 remaining.  Consumer pays for shipping & handling.

Projected Mass-Market Sales based on National Distribution via direct marketing sources = 10,000 units per Book Release. (Conservative Estimate based on mass-market genres and PR/Ad support.)

Profit per 10,000 unit sales: 10,000 x $19.45 = $194,500

Three (3) CD Market Releases per four (4) month quarter = 9 CD releases per year.

Profit Summation of 9 Book releases based on above figures.

$194,500 x 9 (or 90,000 units sold) = $1,750,500 gross sales revenue.

Minus costs of; $5.50 x 90,000 = $495,000.

$1,750,500 Gross Sales

-    495,000 Investment (costs)

$1,255.500 Net Profit Return

Note: 1^st Year (# quarterly profits).

BOTTOM LINE: TOTAL INVESTMENT:

$495,000 + $495,000 = 990,000

Combined Net Revenue (Pure) Profits of Retail and Direct sales:

$380,700 + $1,255,500 = $1,636,200

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