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anonymous 27 April 2005

Okay, I have to admit I find it kinda funny looking back, but it really hacked me off when they first said it:

"Why don't you just go buy a good computer and put Pro Tools on it?"

In case you can't tell, I was trying to get a loan to start my own studio in this area. Sure, I'm 19 and was asking for $500,000 (most of which would've been construction), but what I had going for me was running three successful businesses and customer accolades from shows and demos I had done. Honestly, I consider $500,000 to be a small amount for starting a business from the ground up, especially a studio.

I just want to know from others who have experienced this type of stuff, "What was your worst response from a bank regarding building a studio?"

Comments

LittleDogAudio Thu, 04/28/2005 - 07:31

One of my oldest and dearest friends/clients, is a vice-president of a very large bank. He is the richest and smartest man that I personally know. He has been recording with me for about 20 years and if I told him that I was going to approach a bank for 1/2 million dollar loan to open a recording studio, he would kick me in the teeth.

And I would thank him for it.

If you're NOT really interested in making a profit from this venture, then go for it!

but...

If this is like most businesses that need to see a revenue flow rather quickly, I'd reconsider this move.

btw, I've owned 4 studios over 22 years, so I know a thing or two about the changing economics of the biz.

Chris

anonymous Thu, 04/28/2005 - 17:55

The odd thing is, they were willing to give me $750,000 to start webhosting WITHOUT a business plan when I was 14 and my co-signer was actually "high risk". Sure, I had it paid off in 3 months, but I asked for a 15-year loan because that's what I thought it would take to start making a profit. Basically, what I am saying is "why the hell will they give me money for a shot in the dark but not something that has been planned out to the dime?"

anonymous Fri, 04/29/2005 - 09:37

It's quite possible, Chris...
Brian, five years ago it was era of e-commerce boom. Then
whole bunch of .coms came down, then post 9/11 stock crash.
The banks are smarter now, that's all. Particulartly in the states
like OK, where bankruptcy laws are as good as it gets.
I know a person who has an awsome new studio, about 5 mils
worth. He is a well-known engineer and producer. Having his
name established, he rounded up a few partners/investors and
created a joint venture with a board of directors. He is the
presiden ecc. Way to go, in my opinion.
But you can do whatever you want, of course.

anonymous Tue, 05/17/2005 - 12:57

It's not relatively hard to get a loan. It's all a matter of minimizing risk. Show the bank you can make good on a small loan first and they are more than likely going to give you the bigger one down the line. Ask for 10,000. Pay it back within 6 monthes. A few monthes later ask for 25,000. Pay it back within 6 monthes. Next time ask for 100,000. Odds are you get it. It's really pretty simple.

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