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Recording Studio Business Plan

Discussion in 'Studio Lounge' started by OhioEngineer, May 30, 2007.

  1. OhioEngineer

    OhioEngineer Guest

    What should I include in my business plan to opne a studio, I'm doing this to recieve a loan from a bank
     
  2. BobRogers

    BobRogers Well-Known Member

    I can't figure a way to make this come across less harshly, but I'd definitely not let anyone at the bank see this post.
     
  3. MadMax

    MadMax Well-Known Member

    Dang, Bob... we do kinda' think alike... (I'd be real skeart if I wuz you!)

    Ohio,

    If you gotta ask, then I'd say you probably ought not do it... the business that is.

    I'm not trying to be harsh either. Rather than ask what should go into a business plan, maybe you should post the parts of your plan you are either confused about, or you are unsure of. (I wouldn't actually advise putting the actual business plan content up either.) Just paraphrase it.
     
  4. Thomas W. Bethel

    Thomas W. Bethel Well-Known Member

    There are books on this subject and your local library maybe able to supply some of them to you.

    Basically a business plan outlines how you will spend the money that the bank will be lending you and how you will make money to pay them back.

    Most banks today will NOT loan money for recording studios. As my banker said "we would rather loan you money to open a dynamite making factory than to loan you money for a recording studio" "The chances of us ever getting back our investment in a recording studio are very slim and most recording studios go bankrupt within a couple of years"

    If you have found a bank that will lend you money you are indeed fortunate. They will want to know what you will be putting up for collateral to cover the loan and this maybe something that you do not want to loose like your house or car.

    Best of luck and let us know how this turns out.
     
  5. OhioEngineer

    OhioEngineer Guest

    Thank you Thomas

    well the closet recording studio in my area that will give you demo quality is 20 miles away and they are charging 60 an hour

    and since I live in the city I'm going to charge 1,000 for demo 3,000 for a mixtape, and 5,000 for an album that will be completely done because with school and military I wont have time to sit and do an 6+ hour sessions

    I plan to put this plan in action within 2 years and give the bank half the money as a downpayment
     
  6. Thomas W. Bethel

    Thomas W. Bethel Well-Known Member

    OhioEngineer

    Best of Luck!
     
  7. I was fortunate enough to have a cool banker when I asked for a small loan last year:

    "And what will this money be used for?"
    "You can put audio equipment."
    "Like a
    stereo, or...?"
    "I'm a musician and I want to start a project recording studio from my home."
    "Hmm. 'To Pay Bills' it is."


    Is that "dynamite factory" comment a direct quote, Thomas?
     
  8. Thomas W. Bethel

    Thomas W. Bethel Well-Known Member

    Yes direct quote
     
  9. rois

    rois Guest

    Is that 1000 for a demo? and others are charging 60/hour? Will anyone buy it? I mean by having 1000, you may just scare off some potential customers.
     
  10. Link555

    Link555 Well-Known Member

    Just my two cents, but I would never want to see my gear reposed by a bank. The studio market is very tough; it requires much more than just good gear. You have to establish yourself, you might be better to carry a day job and build your rep for a few years. Save your money and buy your toys. I look at buying Studio gear is like buying a car, it’s not an investment it’s an expense. I am pretty certain most banks will see it the same way.
     
  11. OhioEngineer

    OhioEngineer Guest

    the closet studio around with good quality is 50 or more miles away and the equipment I got will make my sound and everything else better than theirs every one else within that length have little pesonal studios with a pc, cool edit and dynamic mic set-up that's it
     
  12. JoeH

    JoeH Well-Known Member

    OhioEngineer, I truly wish you the best of luck, and I want you to PROMISE you'll come back to us in 2 years and tell us EXACTLY what happened, right down to the dollars & cents involved.

    (Sometimes there's a REASON why there's no studios in your area.... not sayin, just sayin'....)
     
  13. MadTiger3000

    MadTiger3000 Active Member

    One reason is we have a brain drain/talent drain problem.

    There has been a history of people leaving OH for greener pastures, and taking their hopes and dreams with them.
     
  14. hexadecimal

    hexadecimal Guest

    Hi,

    I think most people have missed the point here...the guy wanted to know what he should include in his recording studio business plan - he didn't ask how to be a sound engineer...i'm guessing he already knows that.

    Anyway i'm not a professional business plan writer - you can get but you can get a

    recording studio business plan from here.

    Hope that finally answers your question.
     
  15. MadTiger3000

    MadTiger3000 Active Member

    NO, we got the point.

    We are trying to save him from himself.
     
  16. Thomas W. Bethel

    Thomas W. Bethel Well-Known Member

    We started our 12 year in business on the 5th of July 2007. If I knew then when I know now I would probably have done things a lot differently but it is hard to see into the future. I did do a very detailed business plan. I figured things out literally down to the penny. The model I proposed worked for the first couple of years in business. Then things started changing in the music business nation wide and we had to adapt. I am doing things now that I never dreamed of in my original business plan.

    My point is that even with the most detailed business plan it is only a plan and things can change rapidly and if you don't have the wherewithal and good sense to adapt to changes then you may have some problems.

    You want to open a recording studio. You say there is not much competition. You may have to ask yourself WHY there is no one else around offering recording services. (lack of musicians needing your services, too many basement/bedroom studios, local music scene sucks, etc.) Let say the bank gives you the loan and you build a recording studio that is state of the art and you are charging reasonable rates but two weeks after you open another person or a couple of other people open similar studios. Then your business plan is no longer based on the assumptions that you made in the first place.

    A business plan is a way to make you think about what your are proposing to do and to meet all the contingencies that will come along.

    I can only wish you the best of luck but do some DEEP soul searching when you are answering the tough questions....
     

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