HarmonyHut - The Mini Karaoke Room Business Plan

Abstract

HarmonyHut is a project developed from the ideas of four co-founders of HarmonyHut Limited Liability Company. The project aims to establish a mini-karaoke bar suitable for small groups and young customers. With the goal of providing a unique and intimate karaoke experience, extensive research has been conducted to ensure its viability. The findings from the study are extremely positive, showing strong market demand and potential for success. As a result, the project has laid the foundation for future expansion. The expansion plan aims to replicate the successful mini-karaoke model in other locations, reaching a wider audience and further affirming HarmonyHut as an industry leader. The project's focus on customer satisfaction and dynamic entertainment environment set it apart, making it an attractive choice for small groups and young customers looking for a memorable karaoke experience. This thesis provides a comprehensive exploration of the HarmonyHut, a novel minikaraoke business model designed to cater to the unique needs of young customers and small groups seeking a distinctive karaoke experience. The HarmonyHut business model is predicated on providing a more intimate and private karaoke experience, distinguishing itself from traditional karaoke establishments. The model is strategically designed to appeal to small groups and young customers, a demographic identified through rigorous market research as being underserved in the current market. Key elements of the HarmonyHut model include strategic location selection, the incorporation of advanced technology, and the provision of a diverse and expansive song library. These elements, combined with a strong focus on customer service and a commitment to continuous improvement, will position HarmonyHut as an attractive destination for karaoke enthusiasts. The study concludes that the HarmonyHut business model exhibits significant potential for success and growth within the karaoke industry. The feasibility of the HarmonyHut is further underscored by the financial estimations provided in the three scenarios: Optimistic, Most Likely, and Pessimistic. Even in the Pessimistic scenario, which represents the worstcase scenario, HarmonyHut is still projected to generate a substantial net revenue of VND 6.401.623.120 by 2027, with a steady growth rate of 10% from 2026 to 2027. Despite potential challenges, the business maintains a positive net profit margin, reaching as high as 17% by 2027. The financial assessment indicators for this scenario, including a positive Net Present Value (NPV) of VND 2.371.140.599, an Internal Rate of Return (IRR) of 38%, and a Profitability Index (PI) of 3.39, provide strong evidence of the project's potential profitability and return on investment. In the Most Likely scenario, HarmonyHut is expected to achieve a net revenue of VND 7.968.306.576 by 2027, with a growth rate of 12%. The net profit margin in this scenario is even more promising, reaching 19% by 2027. The financial assessment indicators for this scenario, including a NPV of VND 5.372.198.699, an IRR of 78%, and a PI of 6.41, further confirm the project's financial viability and potential for a significant return on investment. In the Optimistic scenario, HarmonyHut is projected to reach a net revenue of VND 9.571.287.756 by 2027, with an impressive growth rate of 15%. The net profit margin in this scenario is the highest among the three, reaching 24% by 2027. The financial assessment indicators for this scenario, including an NPV of VND 7.503.866.573, an IRR of 98%, and a PI of 8.55, suggest that the project is expected to generate returns that far exceed the cost of capital. These financial projections and assessment indicators underscore the robustness and viability of the HarmonyHut business model. Regardless of the scenario, HarmonyHut is poised to generate significant revenues, maintain a healthy profit margin, and deliver a substantial return on investment. This resilience in the face of varying market conditions speaks to the strength of the business model and its potential for success in the Vietnamese karaoke industry. In summary, this thesis provides a detailed and insightful analysis of the HarmonyHut business model, offers valuable insights for stakeholders, and contributes to the overall understanding of innovation within the karaoke industry. The financial projections and assessment indicators further reinforce the feasibility and potential success of the HarmonyHut in the Vietnamese karaoke market.