Studio business is a rather narrow niche in modern market, and the whole point is that only someone whose life is closely connected with creativity and music can develop in this direction. Let's try to figure out how profitable it is business recording studio and where is the best place to start to create a profitable and successful record company.
In times of crisis, an expensive recording studio may not be profitable from a business point of view. Of course, any self-respecting connoisseur of quality music would like to open his own " Real World by P. Gabriel" or "Abbey Road" But when thinking over a business plan for a recording studio, immediately prepare for the fact that in modern realities, the winner is the one who can afford dumping. Basically, these are the so-called " studios at home" Those who, having large areas and expensive equipment, provide truly high-quality services, are forced to stand idle and suffer losses.
The problem is that the tastes of Russian consumers of music products are not particularly demanding. What if target audience does not make high demands on sound quality, then why overpay? In addition, many modern musicians, bypassing the stage of recording a disc, immediately post their work on the Internet, because they know that one way or another they will end up there, but this time “thanks” to pirates. And the World Wide Web and quality music are incompatible concepts. Of course, many performers and groups are willing to pay for a “CD”, but record directly during rehearsals. At best, in a small home studio. Sadly, in Russia CDs often play the role of advertising leaflets, which should attract as many people as possible to the concert or attract the attention of a wealthy sponsor who is ready to splurge on a corporate event. When consumers choose to download music for free online, CD sales become unprofitable. Therefore, it is not surprising that in such conditions few people care about the quality of sound recordings.
How to open a recording studio
Today, opening your own recording studio has become much easier than decades ago. And all thanks to the advent of digital technology. Plus, with a home studio, you won't have to pay rent for the space. From the necessary technical equipment You need a good powerful computer with a high-quality sound card, studio monitors, microphones, a midi keyboard, and closed headphones.
From software you will need, for example, Pro Tools . Don’t repeat the mistake of many novice entrepreneurs: if you save on space for a recording studio, don’t skimp on licensed software! So that your artist’s recordings can get into the serious Western market, it’s even better microsoft office install licensed. If you don’t want to buy, look for free, legal programs on the Internet, but don’t download pirated ones. With this software, your performer will, at best, be able to sing in a restaurant.
How much does it cost?
It will cost you approximately 150 thousand rubles to purchase equipment. It is not necessary to look for separate specialists for the position of composer and arranger; a talented sound engineer can easily handle this. An hour of work costs 500-1000 rubles. If you can find clients, you can count on a constant, albeit small, income. If you want to open your own recording studio business, remember the secret of success as “specialization by genre.”
Each studio should have its own musical focus, don't try to grab everything at once. Decide what you will write: live music or electronic. The technical equipment of the studio, its capacity and even its decoration depend on this. Look for a specific music crowd, build up your clientele, and, with luck, your studio will turn into a club hangout. A recording studio does not pay for itself - it is closely tied to other parts of show business. This means that there must be a constant flow of musicians passing through your studio. Where to look for them? Of course, running after them at music events, offering your services, is quite stupid. Make sure they find you themselves. You can offer an hourly rental of the studio as a rehearsal point, and at the same time the equipment will not be idle. Such a move could turn out to be quite profitable, since there is so much young talent that special places There simply isn’t enough for rehearsals for everyone. Having a recording studio and rehearsal space in the same space can be a pretty lucrative combination! It’s easy to find clients for entrepreneurs who make music themselves. It is much more difficult for those who want to buy a recording studio in order to make connections with the music scene and move in these circles.
Don’t be afraid of competition from professional record labels and technical “pros”; they simply don’t exist in Russia yet. The Soviet school of sound recording died long ago, and a new one has not yet emerged. Experts confirm that the vast majority of sound engineers working in our country are self-taught amateurs.
Today computer technology have come so far that creating and equipping a home music studio is no longer difficult. We will use these opportunities so that the question of how to make money no longer bothers musicians.
Previously, about 10 years ago, when computer components were expensive, buying a computer was an expensive pleasure. Today, thanks to scientific and technological progress, enormous opportunities are open for people, both for creativity and for earning money.
So, a musician who decides to follow the path I suggested must first equip a home studio. To do this, he will need a computer, a microphone to record voice, and an audio card to digitize sound.
He will also have to learn sound recording techniques and learn how to work with sound editors.
It is impossible to do without training at the initial stage, as well as without investing money in the purchase of technical equipment.
If we talk about the parameters of a computer system, then it is advisable to have a hard drive of at least 500 megabytes and RAM of at least 2 gigabytes. A priori, the higher the parameters of the computer system, the better, but believe me, you can use a less powerful system for work.
The idea of earning money, its essence, is that you, as a musician, need to start recording your own musical works, if any, or recording young performers.
Many musicians have practical experience creating arrangements and composing music. You just need to translate it into the plane of technical, that is, computer processing and thus earn money with the help of a computer and your musical abilities.
You will need to learn how to record, how to use audio processing plugins, how to apply a compressor and equalizer, how to process vocals, how to do mixing and mastering.
There will be a lot to learn, but take comfort in the fact that you are expanding your capabilities as a musician by combining regular notation and arrangement basics with modern capabilities music editing.
Once you've mastered the music editor, the next step is to create demo recordings. You must have your own portfolio.
Show yourself as an arranger and sound engineer. Showcase your unique sound.
You can burn your works to disk, post them on the Internet, on Youtube. Register also on music social networks, demonstrate your skills, start advertising.
Your task is to attract customers.
Of course, the easiest way is to use your environment. Tell your friends and acquaintances what you do. Offer them your services for creating phonograms, recording novice vocalists, creating musical backgrounds for children's matinees.
Any work related to sound is your bread and butter. If someone needs a phonogram, get to work. Someone wants to register their voice, take the order.
While you are just starting out, don’t inflate your prices and don’t go overboard with orders. You need a job now not only to earn money, but to gain experience and connections. Raise your authority. Let people say: “He does a good job and charges inexpensively.”
Learn, raise your level. Learn from books, watch video tutorials, chat with other sound engineers, learn by doing real work.
As soon as you start making money, spend some of it on advertising your services. The other part is for updating the studio, if necessary.
When you begin to notice that you have a lot of customers, that a queue has already formed for you, then begin to gradually increase your prices. This process will allow you to weed out random customers from regular ones. This way, you will develop your own clientele.
The next stage of development, when you already have a lot of work, give some parts of it to novice sound engineers who, like you once, are also starting their journey.
How can this work be organized? For example, do the mixing and mastering yourself, and you can leave the recording of some tracks in the hands of other musicians.
You can also create a team of remote workers and give them terms of reference to create one part or the entire arrangement.
Of course, finding conscientious remote workers who would work in a similar style to you is a troublesome task, but it is quite possible.
Another stage in the development of the studio is to expand the range of its services. If you previously specialized only in arrangement, add another service such as dubbing for videos and books.
KHOBIZ.RU also suggests using remote workers here. If you have an established base, you can give them technical specifications, receive the audio they recorded over the Internet, and work only on the final stage of the order.
At this stage, the idea of making money can develop into a business idea.
Its further development depends on your organizational skills. I showed you how you can make money. You need to start with the simplest thing, namely, by creating your own home music studio.
This good idea business that musicians can use by retraining as computer arrangers.
The article was written specifically for the website KHOBIZ.RU
Recording studio business plan 320 Project summary Description of the enterprise Analysis of market conditions Marketing plan Production plan. To carry out the work on drawing up a business plan, I chose the 320.ru recording studio. Confidentially, please return if you are not interested in the project...
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In this material:
In practice, opening a recording studio as the main source of income today is a promising and profitable direction of entrepreneurial activity. A recording studio business plan contains recommendations regarding the process of organizing and registering a business project, as well as requirements for premises and equipment, the ability to find clients and financial analytics.
Should you open a recording studio today?
Today the domestic consumer is not faced with high demands to the quality of the music being listened to, on the basis of which recording studios opened in small spaces, with a modest staff, and not equipped with expensive equipment are in due demand. Such recording studios quickly recoup the initial investment and reach the break-even point. At the same time, projects with impressive volumes of initial investment will develop much more slowly and will be more difficult to withstand competition, taking into account the need to recoup the initial investment.
Beginners and those who have gained popularity strive to win the fight against piracy by independently posting their own tracks on the Internet, where there is no need to talk about high-quality sound recordings. Thanks to this, in order to save money, such performers will only need to use the services of a more budget-friendly recording studio. Musicians and performers who continue to record professional CDs also often benefit from replacing their rehearsal studio with an affordable recording studio.
List of recording studio services
A professional recording studio provides the following services:
- recording and mixing of tracks and full-length music albums;
- recording music for commercials;
- voice acting for videos, translations and localizations of films and TV series;
- work on arranging compositions;
- recording remixes of popular tracks, creating mix albums;
- and so on.
The quality of the services provided and their range are enhanced by the acquisition of new recording equipment and the modernization of existing equipment.
Additional sources of profit
To generate additional profit, it is recommended, in addition to the traditional services of a recording studio, to rent out rehearsal space for aspiring musicians. Today for beginners musical groups and single performers, there is often a problem with the lack of premises not only for recording, but also for rehearsals before recording, performances, and concerts. By allocating a separate area in the rented premises to create a rehearsal room, you can diversify the sources of income for your business project.
In addition, it is recommended to rent out sound equipment for aspiring musicians and bands for an additional fee. Limited funds for starting stages Beginning performers often do not have their own musical equipment and rent it for use not only for sound recording purposes, but also to equip the venues for concerts and performances. In this case, you need to take care of the additional purchase of special concert equipment for subsequent rental.
Not only musical groups and professional performers turn to the services of a recording studio; your clients will also be various advertising agencies who need to professional level record a voice-over for a music video or provide the video with musical accompaniment. In addition, the services of a recording studio are in demand by videographers who film weddings, celebrations and various festive events in order to record professional musical accompaniment for the final video.
Where to start?
Studio registration
To carry out activities you will need state registration in the form individual entrepreneur without education legal entity, either in the form of a limited liability company or joint stock company open or closed type (for professional large studios with impressive initial costs). The optimal form of regular tax payments is a simplified taxation system, in which 6% of income or 15% of net monthly profit goes to the state budget. In addition, this form of taxation does not imply the regular need to prepare complex tax returns and financial reports, thanks to which at first you can do without the expensive services of a certified accountant or hire a third-party specialist.
Room
The best option is a room with an area of about 50 square meters, divided into three zones: a room for direct recording of performers, groups and musicians, a separate room for recording equipment and a sound engineer, as well as a small rest room that acts as a reception area. You can organize premises for a recording studio at home, however, the solidity of the organization will be emphasized by renting a separate non-residential premises. The first option, however, will save significant funds at the initial investment stage and current expenses studios.
Particular attention should be paid to the soundproofing system, since efficient work studio recording equipment this system is of utmost importance. Sound insulation is especially important when setting up a recording studio in your own or rented apartment in a residential building in a residential area. To separate the area where the recording equipment is located and the work of the sound engineer from the area where the performers' performances are directly recorded, it is recommended to use durable special triplex glass. Among other things, the premises for a recording studio must comply with the standards fire safety and the requirements of sanitary and epidemiological control.
A recording studio does not imply employing a large staff of employees; for effective work it will be enough to hire a qualified and experienced sound engineer, as well as a customer service manager, whose responsibilities will also include conducting a regular marketing campaign to attract new clients. It is recommended that you perform the functions of a studio administrator yourself in the first stages. At certain stages of activity, the studio may need professional services an accountant and a lawyer, who are recommended to be hired from outside as outsourced specialists, rather than hired on a permanent basis.
Equipment
Acquisition necessary equipment For a recording studio, it is mandatory to formulate initial investment items. You will need the following equipment:
- several professional microphones with stands and noise reduction;
- closed headphones;
- midi keyboard;
- a personal computer equipped with an expensive modern sound card and special studio monitors installed in the sound engineer’s work area.
Among other things, you should consider purchasing and installing full-featured licensed software suitable for professional recording and audio processing.
How to look for clients?
The constant flow of clients and the workload, and often overload of the studio with orders, ensures a high and stable level of income from the business project. Renting a separate room for rehearsal purposes in parallel with the provision of recording services will attract new clients and provide additional income. You shouldn’t give up traditional ways of advertising services: print media mass media, radio and television broadcasting, posting advertisements, advertising on thematic Internet resources and music forums. A separate effective component of the marketing campaign will be the creation of your own business card website for the recording studio and promotion of the project in popular public pages. social networks. The organization’s website is equipped with a price list with a list of services provided and prices, a page for the studio’s portfolio, as well as contact information for the client manager, indicating the location of the recording studio and work schedule.
Financial component of the project
Recording studio investment and running costs
The initial investment required to open a studio comes from the costs associated with the procedure state registration an individual entrepreneur, a limited liability company or an open or closed joint stock company, as well as searching for and renting suitable premises, carrying out repair and design work, purchasing the necessary professional recording equipment, computer equipment and office furniture. In addition, startup costs include expenses associated with organizing and conducting a start-up advertising and marketing campaign. Depending on the region where the studio is located, the list of purchased equipment and other factors, the amount of initial investment reaches an average of 500-800 thousand rubles.
Current expenses are formed from tax payments, rent and utilities, employee compensation and costs associated with conducting regular marketing campaigns to attract new customers. On average, the monthly expenses of a recording studio range from 100 to 200 thousand rubles.
Income and calculation of profit and profitability
Taking into account the modest payback period of the business project, the net profit with a stable flow of clients is about 70 thousand rubles monthly. The profitability of the project is about 32%, the payback period for the business is about a year.
Possible risks
Opening a recording studio in a small town is associated with the risks of low demand for services and an unstable client flow. At the same time, organizing a recording studio in a metropolis implies a high level of competition. Among other things, the potential risks of a business project are unfavorable social and external factors, low efficiency of carried out advertising campaigns and the inability to attract qualified personnel.
A business related to the provision of recording services to clients, additional rental of premises for a rehearsal area and sound equipment for organizing concerts is accompanied by business risks, but is a promising way to generate constant profit.
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You can realize your goals and plans with the help of your own business. Consider opening a recording studio as a business idea. This is a rather interesting and unusual case. But for it to start making a profit, you will need to draw up a competent business plan for a recording studio. It’s worth noting right away that the opening of such a business should be carried out by a person associated with music, who knows this business first-hand and understands where to start and how to properly implement the project.
Business benefits
A time when opening recording studios required huge premises and expensive equipment, passed. Today the situation is such that you can open a studio at home, with a minimum of equipment.
This is due to the fact that modern consumers of music products are not too picky and picky. For many, sound quality does not matter; the main thing is accessibility and the opportunity to get a new musical product immediately, without waiting for it to be recorded in a studio and put up for sale.
Many musicians have long been posting the results of their creativity on the Internet, which increases their ratings and popularity, given the competition in the music market.
There is no denying that performers use the services of recording studios to create CDs and music tracks with “clean” sound. This is required rather to carry out concert programs than for sale, since, given modern technologies, listeners rarely buy CDs, because it’s easier for them to download their favorite composition via the Internet. Thus, selling CDs and maintaining large recording studios will only bring losses.
Developing a plan is the initial stage of opening any enterprise, allowing you to determine the main points in the work, development prospects, approaches to searching potential investors, the approximate amount of profit. A business plan for a recording studio must become a realistic basis to bring your plans to life, so you will need to consider quite a lot of specific nuances.
What could be your main starting advantage – your own professionalism. Russian musicians believe that 90 percent of recording services in the country are provided at the amateur level, so for the diligent and talented person there is huge scope for development and reputation.
Organizational stage
So, we decided that to open a studio you don’t need to look for a huge room. You can simply open a business at home or find a suitable premises and rent it. It is necessary to include clear parameters into the recording studio business plan, what kind of premises will be needed, what the rent will cost and the costs of its re-equipment and maintenance: prerequisite– excellent sound insulation.
Equipment
It is not profitable to purchase special musical equipment. Therefore, a list should be developed necessary equipment, which may include:
- A powerful computer with a sound card.
- Monitors.
- Keyboards.
- Microphones with stands.
- Closed-back headphones.
It may take 150-200 thousand rubles to purchase such a kit. In addition to the equipment, you will need to purchase special licensed programs that allow you to record high-quality sound. The second approach is not to be picky about opportunities. software product and use free software; The choice depends on the focus of your main services. What must be excluded immediately and unconditionally is the use of pirated programs.
Choosing a musical direction
You don’t need to write everything down in a business plan. possible options music recordings. It is best to focus on one thing, such as live or electronic music. Depending on the chosen musical direction, a business plan for a music studio should include options for technical equipment of the premises, equipment capacity, and search for a contingent.
To ensure that the purchased equipment does not stand idle, it is necessary to include in the business plan options for finding customers and methods for retaining them. For example, you can rent out a studio for vocal rehearsals. In this case, it should be developed as component common project business plan for a vocal studio, provide for the procedure for renting out the studio: at what hours and at what cost.
List of services
The studio's services may include recording and processing of phonograms, production of videos and clips, voice-overs for commercials, or creation of radio advertisements. A service in demand by the population - transfer to digital media home archives from negatives, audio and video tapes.
Financial side of the issue
To equip a middle-class studio, you will need to include approximately 200-300 thousand rubles in the business plan for opening a recording studio. This is the minimum figure for a home studio, since the actual cost will depend on the wishes of the developer.
If there are grandiose plans to implement the plan, then the costs can range from 500 thousand to 1 million rubles. For example, if you plan to invite professional arrangers or a sound engineer to work.
In a beginner home format studio, it is quite possible to get by by hiring a professional sound engineer to hourly work– the rate of such a specialist is about 1 thousand rubles/hour. On terms hourly pay You can also work with actors to voice over videos.
It is necessary to take into account that the cost of renting the premises will be monthly, and this is from 10 to 30 thousand rubles, depending on the location of the studio and settlement. On average, an hour of studio work is estimated at 500-1000 rubles, so the payback of the project will largely depend on how quickly you can attract regular customers in order to minimize downtime.
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