Rasputin's Revival

Rasputin's Revival Planning Presentation George Laing BSc, PMP

Agenda • Introductions • Our Vision • Proposal • Goals • Scope of the Organization • Differentiators • Ideas • Operational Roles • How to Get to the Vision • Preferred Business Model • Alternate Business Model • Organization Structure • Interim Board Responsibilities • Start-up Project Schedule • Finances • Alternate Proposal • Decisions • Questions

Introductions • A few words about yourself • Any Rasputin’s reminiscences? • A poll: Do you think Dean’s hair is better short or long?

Proposal • George Laing and Brian Harris are presenting a proposal which in general terms is a low-cost revival of Rasputin’s. • These slides present the vision and “way-ahead” for this endeavor. • A motion to create an alternate organization structure will also be raised at this meeting.

Goals • Create a lasting organization that will continue even without participation of the principle volunteers • Create a mainly volunteer-based organization, where workload is shared. Brian and George are both hoping to work no more than 12 hours per week on the revived Rasputin’s once it is up and running. • George and Brian plan on working gratis for one year with the up-and-running organization, but may eventually, request some remuneration if: • Workload becomes heavy • New Rasputin’s is making money • Board approves remuneration

Scope of the Organization • Provide a physical home for folk events • Promote participation in folk music. Support, promote and house the Rasputin’s jams. • Develop performers through the open stage • Celebrate folk music by presenting paid performances. • Provide a listening environment for the enjoyment of folk music • Generally promote folk music • General support of folk music community

Differentiators • What makes our facility different than other restaurants with an open-stage and paid performers? • “Listening Room” environment during concerts • a quiet-listening atmosphere will be promoted • Important to distinguish ourselves • Only bar, to my knowledge that does this • Hugh’s Room comes close. Staff will wait on tables very quietly during sets. • Open Stage nights are treated as concert nights • Jam nights

Ideas • Folklore Centre recitals • Specialty music nights (e.g. Cajun, guitar…) • Open stage nights with back-up band • Jam night improvements • Soundboard sign-up list • Menu items named after folk icons • Minimum purchase/cover charge • Ottawa Folk Idol • Specialty Saturday Afternoons (e.g. Ukulele) • Recognition for Volunteers/Patrons • Occasional big name artists? • Connect in with Embassies • Connect with Guitar Manufacturers (e.g. Taylor)

Operational Roles • Board of Directors • General Manager • Treasurer • Monday Jam Coordinator • Tuesday Jam Coordinator • Old Time Jam Coordinator • Swing Jam Coordinator • Open Stage Jam Coordinator

Operational Roles (cont’d) • Newsletter Editor/Author • Webmaster • Communications • Programming Director and Programming Committee Members (book Fridays and Saturdays) (could introduce performances to Friday/Saturday audiences) • Billeting Volunteers • Lawyer • Accountant • Door Managers (sell tickets at the door)

Operational Roles (cont’d) • Host role for performance night (put away stage and sound system, collect cash, introduce artist, coordinate with Door Manager). Likely filled by one of Brian, George, Programming Director or Programming Committee Members

Preferred Business Model • Our focus • Partner with existing restaurant • Our organization will program evenings (7:30 to 11:30) • Ideal restaurant is • 60 seats • Low volume in evenings, or closed in evenings • Good layout is a factor • location • Recession may provide opportunity • Restaurants with drop in evening sales may be more likely to partner with us

Alternate Business Models • “Plan B” • Our organization takes on the lease • Partner with a restauranteur who invests in kitchen equipment • Our organization might invest in the “front of the house” • More investment than our preferred model

Alternate Business Models • “Plan C” • Our organization takes on the lease and runs a restaurant, or restaurant-type facility • Could be full restaurant or have minimal food, or anything in-between • A facility that sells specialty coffees (fair trade coffee, espresso etc.) and baked goods is a possible model. • Even more investment than plan B or our preferred model

Organization Structure • Co-op • Best fit at this point. To be confirmed in next stage. • Advantages (from www.canadabusiness.ca) • owned and controlled by members • democratic control by one member, one vote • limited liability • profit distribution (supplies earnings) to members in proportion to use of service; surplus may be allocated in shares or cash)

Organization Structure (cont’d) • Disadvantages (from www.canadabusiness.ca) • possibility of conflict between members • longer decision-making process • participation of members required for success • extensive record keeping necessary • less incentive to invest additional capital

Organization Structure (cont’d) • During Start-up Phase • Interim Board of Directors • Three to six members • General Manager - George Laing • Treasurer - Brian Harris • Lawyer • Accountant • Stage designer/builder(s) • Sound engineer (obtain sound equipment) • Members

Interim Board Responsibilities • Approval of Organization Plans • Decisions on co-op versus an investor-owned corporation versus a non-profit • Recommendations and details to be established by George and Brian in consultations with lawyer and accountant • Review (not approval) of by-laws • By-laws to be developed by George and Brian in conjunction with lawyer • By-laws are approved (adopted) at general meeting of members • Review and approve Business Plan • Review and approve Partnership Agreement • Arrangement with restaurant partner

Start-up Project Schedule (optimistic)

Finances - Startup Budget • Sound System (used) $2,000 • Stage (risers) $500 • Legal and Accounting Consultations $1,500 • Operating Capital • (includes buying 6 months insurance) $1,000 • Contingency @ 10% $500 • Total $5,500

Finances - Ongoing Budget • Expenses (per concert) • Fixed • Insurance ($2,000 annually) $20 • Accounting Services ($600 annually) $6 • Miscellaneous ($2,000 annually) $20 • Variable • Friday/Saturday Performers (75% of tickets) $50 to $450 • Accommodation for Performers $0 to $80 • PST (8% of ticket price) $0 to $48 • SoCan Fees (3% of performer fees) $0 to $14 • Contingency (4% of Expenses) $4 to $22 • Total Expenses $112 to $592

Finances - Ongoing Budget (cont’d) • Income (per concert) • Fixed • - $0 • Variable • Admission/Tickets $0 to $600 • Share of Food & Beverage Sales $0 to $520 • Contingency (-4% of Income) $0 to ($45) • Total Income $0 to $1,075 • Net per concert ($100) to $500 • Assumptions: 0 to 40 tickets sold; guaranteed minimum for performer of $50; max ticket price of $15; food & beverage sales of $18 per person; Share of sales is 20% over $200

Finances - Raising Capital • Sell memberships in the Co-op. • These are officially membership shares. • Usually 1 share per member • One vote per member • Limits to surplus funds distribution • Sell preferred (preference) shares • Generally non-voting • For member investors • Fewer limits on funds distribution • Sell bonds or debentures • Loans from members to Co-op • Business Loans (Ottawa Community Loan Fund (OCLF) has loans up to $15k for social enterprises • Gov’t Grants

Finances - Raising Capital (cont’d) • We would like to get a sense of how big our challenge is to raise the capital • Expressions of Interest (can’t sell memberships until we are further along) • Please see Brian before you leave today to let him know “if you are interested”.

Alternate Proposal • Carol Noel will present a proposal for another folk society.

Decisions • Organization? • Election of Interim Board Members?

Decisions (cont’d) • Need a Name • “Bytown” or “Ottawa” or “Rasputin’s” • “Folk Music” or “Roots Music” • “Co-op” or “Cooperative”

Questions • Riser Storage • Booth at Folk Festival

Rasputin's Revival