Thoughts on rehearsal / recording studios

[JSilvertone]

I am not afraid of hard work I have been working in marketing for the last 17 years for the same company. I am not turned on by big houses or fancy cars, just a normal modest life. I am tired of the corporate life, not the work of 60-70 hours 24/7 work loads just the politics. I find being in my mid 30s my colleges all measure their wealth & success by the size of the house, cars, boats and rank. For me its about time with my family and music. I have a strong knowledge on sound engineering and retail sales. Anyway my though was to build a 3-4 room rehersal studio with another recording room. I am looking to do one in the South Carolina area what are your thoughts, not to mention my wife is very supportive!

 

Thanks

[Kramerguy]

I would say go for it, but assume by all measures that it can, and will fail.

 

Not that it actually will, but certainly take the approach financially that it will, to make sure that if it does, you will be able to handle the collapse. Make sure to INC or LLC so that you aren't personally responsible for any lawsuits (even trip and falls from visitors), crazy, but it happens. Those who didn't create a business have lost everything from greedy opportunists.

 

Good luck!

[Poker99]

Do it man, just don't expect to make money!

[supervillain]

just make sure it's in an area where people need the studio. there's one that just opened up here in downtown ottawa (canada's capital) and it's doing well solely because of it's location. they've also expanded their facilities to add a green room and are adding video shooting services as well as offering affordable t-shirt printing. something to think about. makes it a one stop shop!

[scarecrowbob]

Even in my smallish city there is a rehersal studio that seems to be doing well... it is booked, at least, and I hope that whoever runs it is booking it a sustainable rate.

 

But it is like any other business:

 

who are your customers,

 

what are their needs,

 

what are their alternatives,

 

what value-added services can you add,

 

who are your competitors,

 

how much would customers be willing to pay?

 

Then....

 

how much does it cost to provide those services,

 

is that less than your competitors,

 

is it less than the costless than what your customers would be willing to pay,

 

etc.

 

It's just a big math problem, really.

 

Figure out the variables, figure out the fixed numbers, and you can predict what will happen.

[MartinC]

The grass is always greener on the other side. I've always worked for myself in my own business. The last time I was an employee was almost 30 years ago when I was 20 years old. When I see my competitors, we talk about the things employees get that we don't-paid vacations and holidays, health care, retirement plans. Those are pretty big things. Want to spend time with the family? Don't expect much vacation time. Not only do you not get paid vacation, your business may not generate any income while your gone. It's one thing to lose a week's pay. It's another for your business to lose a week's gross.

 

I'm not saying you shouldn't do it, but do it with your eyes open. There's no safety net when you work for yourself. In my case, there isn't even worker's comp. There's no point in paying comp if you run the place. You could break both legs and they will not pay you-they will tell you you can still run the place. Disability insurance is super expensive, so if you work for yourself, save money when times are good, take care of your health.

[The Byre]

When I am not running a studio, I also work as a business consultant. Sadly, studio owners just do not have the money for my services - which should tell us something!

 

Anyway, I began writing a book about the studio business, but the pressures of other commitments forced me to stop half-way through, so I made it into a website.

 

So bearing in mind that it is just one guy's opinions (albeit, fairly well informed opinions!) I suggest that you take a look at www.audiotalk.org and at the Business section in particular. There are some real-life business models right there.

 

There are many such installations as the one that you propose and some make their owners a living. No one to my knowledge has ever become rich off such a business however.

 

The big problem is that it is a business that cannot grow. There is no scalability. Even if every room is sold every day, that is as far as you can get. Or as Richard Hand, owner of Air and Strongroom said to me "The problem with this f***ing place is, you can only sell it 365 days a year."

 

But please remember, it has to be first and foremost, a business. Forget stuff like 'passion' and 'love' and 'commitment.' If you go for something like this, then you are a businessman and you have stop thinking like a musician and music lover and start putting a totally different hat on.

 

You will have to start thinking along very different lines if the turkey is to fly.