Opening my business in stages.... is this wise?

Discussion in 'Music Business Forum' started by rosssr, Feb 8, 2012.

  1. rosssr

    rosssr

    Joined:
    Oct 14, 2011
    Likes Received:
    0
    Location:
    Rochester N.Y.
    For the passed couple years I have had the idea to have an independent label. There is a minor problem here. I'm looking at a start-up cost of $900,000 overall and I know no bank will just give me that large of a loan. The business plan is complete and most of the research is done. What I would like to see is this studio to specialize in open recording, touring and band management, radio and t.v. voice overdubbing work, C.D. duplication (for bands and businesses who would like data on C.D.) and the occasional music lesson to reduce the idle time our equipment has. I was wondering if anyone can help me determine what parts I should start first so I can obtain loans in stages as the business grows or even if this is a good idea at all. I have one skilled audio technician working with me right now as well.
  2. RemyRAD

    RemyRAD

    Joined:
    Sep 26, 2005
    Likes Received:
    48
    Location:
    Washington DC Virginia suburbs
    Home page:
    Simply tell the bank you want to open up another CVS drugstore. And you will have a room designed to treat people with music therapy also. This will also require you to hire managers with degrees in psychology/psychiatry. You will also be providing your customers with all of their medical information on CD-ROMs they can take with them. This is sort of like taking some lousy musicians to make them sound competently professional. Instead of the drugstore idea, why not try for specialized automotive services? Maybe a hi-fi shop? That's how Sheffield Recordings Ltd. in Phoenix, Maryland started. You know, before Best By & Walled Mart killed all of the small businesses. What about starting an independent recording school? Where the emphasis would be on education. You need to package this up the right way in order to sell it. You are merely presenting your dream plan to them which you already know the outcome of. What about some kind of alliance with the Eastman School of Music where my dad got his bachelor's degree back in the 1940s after WWII? Or was that before WWII? He's dead so I can't ask him any more. Though I'm sure my mother knows (Marilyn Cotlow). Though, at 88 she thinks everything was just 20 or 30 years ago. LOL

    The most obvious suggestion might be some kind of music school. Especially since that does not require all that much overhead. Even though you might be competing with Eastman, they offer degrees and you may only be able to offer certificates. You'd also get all of those folks that can't afford or qualify for college. In a city known for its abundance of eager, hopeful and professionally passionate musicians.

    I couldn't afford to go to college and never had the grades for it anyhow. So I'm stupidly talented.
    Mx. Remy Ann David
  3. BobRogers

    BobRogers

    Joined:
    Apr 4, 2006
    Likes Received:
    1
    Location:
    Blacksburg, VA
    This is a very local decision: local to your area and local to you personally. It's really about Rochester and about You. Do you have a day job? Which of those activities will (1) generate revenue (2) allow you to keep producing income at your day job? Can you market duplication (and compete with Discmakers, etc.) without providing the other services. Is there enough work in your area to pay off the equipment? How big a V.O. market is there in Rochester? What is your competition?

    So there isn't much that I know of to say on a national/worldwide basis. The closest that I can come is Remy's suggestion of lessons/teaching. The demand is always there. Lots of people are trying to outsource it (video/DVD), but students still want face time. Extremely flexible in terms of time and space. Not a huge amount of money in it. Not a very original idea. But it keeps a lot of people in the music industry in sox and undies.
  4. bigtree

    bigtree musician, mixer, music producer Has Studio Services

    Joined:
    Mar 20, 2000
    Likes Received:
    120
    Location:
    Prince George BC Canada
    Home page:
    Remy, ROTF!

    Personally, wow, I would love to do what you are planning but wouldn't touch it if I was a lender or an engineer with a wad of cash. There's no money in it, is there? This business is so destroyed with the home recording industry. Every kid on the block is a recording and mastering engineer and its not going to downsize anytime soon. But they will grow up and they do need a place to record better than the bedroom.

    The school sounds smart but where I really see a niche is providing an acoustically well designed space for all those wankers / plug-in boomers that need a place to do it for real. Then, let the other area's present themselves over time.
  5. RemyRAD

    RemyRAD

    Joined:
    Sep 26, 2005
    Likes Received:
    48
    Location:
    Washington DC Virginia suburbs
    Home page:
    ROTF... That isn't like ORTF, is it? Does that mean they're facing up and down instead of left to right? Maybe rotated 90°? Is that Fahrenheit or Celsius?

    I don't think I had anything to eat today?
    Mx. Remy Ann David
  6. Paul999

    Paul999

    Joined:
    Mar 23, 2011
    Likes Received:
    3
    Location:
    Edmonton, AB. Canada
    There is a lot of good info here. Over head of $900,000 is a lot no matter how you look at it. For me including the building I bought I have bout $600,000 invested. This was done after building a successful teaching business that morphed into a recording studio as well. I could justify such an expense based on the teaching studio alone. It took 3 years to get the business busy enough that the studio earned its keep. After sinking boat loads of money into gear I can tell you that you will need to be well financed to make it happen.
  7. BobRogers

    BobRogers

    Joined:
    Apr 4, 2006
    Likes Received:
    1
    Location:
    Blacksburg, VA
    I've heard ideas like this floated before. Are any of you guys running commercial studios getting this kind of business? There are clearly a lot of people out there who should use this kind of service. But I'm not sure there are a lot of people who will.

    For instance, I probably should do this when I'm tracking only drums. My room doesn't sound bad, but it also doesn't sound really good. But if I'm going to go to the trouble of remote recording I can borrow the church sanctuary for nothing.
  8. Paul999

    Paul999

    Joined:
    Mar 23, 2011
    Likes Received:
    3
    Location:
    Edmonton, AB. Canada
    A large portion of my clients fit this category. It is very rare for clients to not have some form of home studio. For every 1000 bands that will never go into the studio there are 10 that know they will not achieve at home what we can in a pro facility.
Similar Threads: Opening business
Forum Title Date
Song & Mix Collaboration Here is the Opening Song, for an 8 Song CD, called "On the Planet" - Looking For FB Sep 4, 2014
Digital Audio Having problem opening Omnispear Jun 18, 2014
Music Business Forum Grand opening party Ideas? Jul 21, 2013
Hybrid Mixing, Summing Forums Eroica opening chords contest - Mar 4, 2012

Share This Page