Musical equipment rental business plan. Renting musical equipment as an idea to make money
There are many unfilled business niches these days that can be very profitable.
One of these types of business is the provision of music and lighting equipment for temporary use. After all, without music and light it is impossible to hold any event, which means there is every chance to earn good money. However, in reality everything is not so simple.
First of all, you need to understand that professional sound rental and light rental require a very large initial capital. Even if you purchase a remote control and several active speakers, you will need at least several thousand dollars. At the same time, you need to understand that no self-respecting musician in life will play through a Chinese amp or a bad microphone. The prices for high-quality tube amplifiers are truly astronomical figures, and that is why there are so few random people in this business. Alternatively, you can purchase a set of inexpensive equipment and open a rehearsal facility. On such a basis you are guaranteed to earn 300-500 rubles per hour. If the equipment is of a good standard, then earnings can be 1000-1200 rubles per hour. Naturally, it is necessary to take into account that cheap equipment breaks down more easily, and it is very difficult to restore its sound to a good level. Expensive equipment does not break down so often, but it requires expensive repairs and maintenance. So, for example, changing tubes in amplifiers will cost a pretty penny. The use of transistor technology is not particularly welcomed by professional musicians. In addition, at the bases they usually rehearse all sorts of incompetent “dummies”, so the risk of breakdowns increases many times over. The drum kit requires particularly frequent repairs - replacing the head and cymbals will cost around 10-20 thousand rubles. It is almost impossible to force a careless musician to change the head. So you need a person who will tune up the equipment before the rehearsal and make sure that the drummer does not play with damaged sticks. And if an intentional breakdown occurs, you can demand compensation for the damage.
But the rehearsal space is the bottom level of such a business. Professional rental of audio equipment, rental of sound for stage performances will require not only expensive amplifiers, speakers, monitors, switching, but also transport for their transportation. Smart workers will also be needed to connect the equipment, as well as install it according to the stage plan of the performance. As a rule, good sound engineers and workers require increased salary, inexperienced people can burn all the equipment in the first month of operation. So labor costs will also occupy a fairly large part in the overall range of expenses. As for income, at first there will be little of it, since no one will trust a start-up equipment rental company. An alternative is to work first with small clubs and impresarios, and also try to organize concerts yourself.
It is also quite possible to try to occupy a specific niche in this type of activity. For example, organizing street concerts and taking money from performing musicians. Or try to promote such a business as rental of lighting equipment, rental of light, specializing in high-quality lighting, offering it not only for concerts, but also for television companies and photo studios. After all, this is really in demand, given that for filming, television crews often need to rent several spotlights or spheres for short term. In short, the success of such a business strongly depends on the ability to think, intuitively find clients and calculate upcoming income and costs.
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Prices for our services are based on several components
Quantity of equipment
Equipment class
Event date
Transport costs
Duration of the event
Work of technical staff
How to calculate the amount of musical equipment
The amount of equipment is calculated based on factors such as the number of people, the event program and the area of the space. For example, for a small conference of up to 100 people in a regular assembly hall, a set of equipment consisting of two speakers on stands and a pair of microphones, as well as a projector with a screen, will be sufficient. If we are talking about a concert of a musical group, then such a set will clearly not be enough.
Which class of audio equipment to choose
The class of equipment also affects the price. Each music equipment manufacturer counts on a specific segment of users. For example, a summer cafe on the beach or a wedding DJ are unlikely to buy an expensive line array for their daily work. But for a concert hall or street stage for City Day and similar events, where famous artists perform and several hundred or thousand people gather, two budget speakers will clearly not be enough.
Event date and price for technical support
Like most businesses, our work has seasonal ups and downs. There are several peaks in demand for our services throughout the year, and they all occur during the holidays. IN holidays rental prices for musical equipment are becoming more expensive than usual. Please be understanding about this. Any holiday is very good, but we work, and you rest.
Transportation of concert equipment
Our equipment is located in Moscow, Sochi and Krasnodar, but we often work in other cities. To transport equipment, we use freight transport, which we hire together with a driver. If the event allows you to bring equipment and immediately release the car, then this will minimize transport costs. If the equipment needs to be transported over a longer distance, or we are talking about a series of concerts in several cities, then as a rule we hire a truck with a driver for the entire duration of our work. We also include these expenses in the cost of our services. If you want to reduce their cost, then in some cases this can be done through transportation. If you have such an opportunity, you can take care of the transportation of equipment to the event and back.
Complexity of the event and its cost
Despite the general similarity of scenarios and technical equipment, each event is unique in its own way. Everywhere has its own nuances that we are used to taking into account. For example, when only one musical group performs at an event, which comes with its own sound engineer and lighting designer, then on our part there is no need for this work. All we have to do is prepare the site according to their requirements and simply make sure that someone else does not accidentally pull out any cord from the outlet. Or when it’s started big program, and on stage the groups are constantly changing and equipment is being re-switched to suit the requirements of each artist, then the amount of our work increases noticeably. All these points must be taken into account when forming technical specifications and, accordingly, prices for our services. That is, if you say, “There’s nothing complicated, you just need to install speakers, turn on the music and that’s it.” So we’ll just put on the speakers, turn on the music and that’s it)) We’ll arrive at other options less prepared. In order for us to understand exactly what is required of us, please tell us about your event in more detail.
Event technical staff
As mentioned above, each event has its own characteristics in holding and servicing. These features are also formed from the technical rider of the event. With some technical specifications One or two people can easily handle it, but in some cases a whole team will be needed.
Everything will depend on such basic factors as:
In this material:
In practice, opening a recording studio as the main source of income today is a promising and profitable direction 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?
Domestic consumers today do not have high demands on the quality of the music they listen to, which is why recording studios opened in small spaces, with a modest staff, and not equipped with expensive equipment are in high 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.
Beginning and established musicians 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, beginning musical groups and solo performers often have 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. With limited funds at the starting stages, aspiring 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 record a professional 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, or in the form of a company with limited liability or joint stock company open or closed type (for professional large studios with impressive initial costs). Optimal shape regular payment of tax payments - 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 a room 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 this system is of utmost importance for the effective operation of the studio's recording equipment. Sound insulation is especially important when setting up a recording studio in your own or rented apartment in a residential building in 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 fire safety standards and sanitary and epidemiological control requirements.
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 its activities, a studio may need the professional services of 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 a fully functional licensed software, suitable for professional audio recording and 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. Don't give up traditional ways advertising services: printed 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, remuneration of employees and costs associated with conducting regular marketing campaigns to attract new clients. 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 a business project, 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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Perhaps you have noticed how many festive events take place in your city every day? New offices, shops, factories, and companies are opening. Weddings and corporate events are held. Can you imagine a large party or wedding without high-quality and modern music? It's about not so much about live sound, but primarily about quality sound. Even digital sound can be completely different. Sound quality largely depends on the level of music equipment.
Not everyone can afford to buy expensive musical equipment; to everyone’s joy, today in many cities there are companies offering rental of musical equipment for various purposes. Their work is aimed at meeting customer demand in terms of supplying quality music for events. It must be said that this option of starting your own business is becoming increasingly popular.
Who needs music equipment?
It’s worth deciding who is yours potential clients. Local musical groups, bands. After all, they regularly perform at concerts and always need high-quality equipment. Musical groups need good sound, but musicians prefer to buy their own sets of guitars, stereo speakers, subwoofers and amplifiers. Buying even expensive equipment completely pays for itself after a while.
Another story is for beginning rock, rap, pop groups, and solo performers who cannot purchase expensive equipment. This is part of the potential clientele. The equipment is also necessary for companies wishing to hold corporate events for their employees. Also heads of new companies for the purpose of presenting new business. Your clients will be both anniversaries and wealthy citizens who want to cheerfully celebrate their memorable events. The list of potential customers is huge. The number of clients directly depends on the range of musical equipment being rented. If only expensive music systems are available, then there will be few customers, but with decent payment. If an entrepreneur offers a large selection of both expensive and cheap equipment, then the circle of potential clientele expands.
How to start a music equipment rental business?
It is necessary to understand that this business requires substantial investments. Let's give examples of the cost of popular equipment. A set of two passive speakers JBL AM6215/64 at 1000w costs 190 thousand rubles for 1 speaker. A Yamaha MSR400 speaker system costs from 25 thousand rubles. The cost of one Crown MA 5002 amplifier reaches 150 thousand rubles. One set may contain several of these types of equipment. Now the cost of the equipment is clear.
Cost of renting musical equipment
Depending on the package, the cost starts from 3000-5000 rubles per day. This is the cost of a set of acoustics with a power of 1 kW. (1000 watts). Equipment with a power of 7-8 kW. costs 14-20 thousand rubles. Equipment with a power of 25-30 kW. costs 50-70 thousand rubles.
Calculation of profit from rental of tools
For example, consider 6 kW musical equipment. The set includes 2 subwoofers costing 140 thousand rubles, two passive speakers costing 90 thousand rubles, plus two power amplifiers costing 300 thousand rubles. The complete set costs 550 thousand rubles. The cost of renting a complete set is from 15 thousand rubles. That is, financial costs will fully pay for itself after 33 rental orders. Over what period of time you will pay for the equipment depends on the advertising of your services. Simply by renting out such a kit at least 5 times a month, after 6 months of work you will fully recoup its cost and then receive a profit from the rental. And the profit is quite decent. There may be not one, but 5, 10, 20 sets of equipment at your disposal.
Whether it is worth starting such a business directly depends on the city where you plan to open a musical equipment rental point. There are cities where few people celebrate holidays, but there are also those where not a single event is complete without quality music. For you, it is worth understanding whether this city is suitable for such a business or not.
We can definitely say that this business option has great opportunities for development. Today, many companies offering equipment for rental supplement their price list for services with the rental of stages, podiums, decorations and lighting equipment. If there is supply, there will be demand. Good luck in creating and promoting your business!
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