Before you start building a recording studio, you need to set up a structure and plan for your business. And way before you start investing in building materials and studio equipment you need to start the pre-selling process of establishing your expertise.
How do you do that–pay your dues?
There are a couple of ways to pay your dues:
- Go to an Audio Engineering School
- Apprentice with a Recording Studio Engineer or Record Producer
- Start as a successful musician, learn on-the-job in the recording studio.
- Record and produce your own material, successfully.
And along the way, develop relationships with people in the business.
Finally, you have paid your dues and people in the music industry recognize you as someone with an ear for engineering and producing music, now its time to build the foundation of your recording studio business.
You know the old adage; “If you fail to plan, you plan to fail”. Now is the time to write your business plan. Basically a business plan defines the what, when, where, how and why of your recording studio business.
As part of the business plan process, it is crucial to research what it is going to take to run a recording studio business. The following is a partial list of subjects to consider:
[ ]Are there federal and local laws that will affect the business of your recording studio?
[ ]What sort of legal structure do you need to set up, how long does it take and when does it need to be set up? Sole-Proprietorship, partnership, or corporation?
[ ] Do you need a local business license? Do you need to set up a Federal Employer Tax ID? Will you need a state sales tax ID? Do you need to establish a DBA?
[ ]What sort of financial software will you need
[ ]What does the local competition look like? What sets you apart from your competition?
[ ]What sort of marketing tools will you use? Local Advertising, On-line Advertising, website, mail marketing, brochures, business cards?
[ ]Do you need insurance; medical, property, workers comp, liability?
What are your financial goals? What is your break-even point?
[ ]What should you charge for your services? What other monetization methods will you need to support your recording studio business?
[ ]What systems do you need in place for the day-to-day operations? How are you going to handle scheduling? How are you going to protect your assets? Do you need business forms; contracts, agreements, invoicing?
Do you have business management skills? If you don’t know what a Profit and Loss is, it’s time you learned. Take an accounting class at your local junior college or business school. Learn about liabilities, owners equity, cost of goods and expenses. And most important, learn about hard costs, budgets and taxes.
So, before you start spending money on soundproofing and recording consoles, do the research and pay your dues, then lay the foundation for building a successful recording studio business.