|
Post by jcoutu1 on Sept 20, 2017 21:32:53 GMT -6
I've got a line on a studio space. The place needs some work, but has good bones. I'm trying to get a sense of numbers beyond rent. What expenses am I looking at? Heat, electricity, internet, alarm, insurance. What else am I looking at?
|
|
|
Post by noah shain on Sept 20, 2017 21:35:39 GMT -6
Water Coffee Snacks Tech services
|
|
|
Post by rowmat on Sept 20, 2017 22:28:37 GMT -6
Meth Cocaine Lap Dancers Pizza
|
|
|
Post by spindrift on Sept 20, 2017 22:31:32 GMT -6
Re-ribboning Gear Maint - stuff breaks
|
|
|
Post by drbill on Sept 20, 2017 22:32:12 GMT -6
Gear Repairs Gear acquisition fund Building Maintenance Client Amenities Studio Manager (if you really want to stay booked) If you don't, YOU'LL become the studio manager. Assistant Engineer I'll say it again - Client Amenities!!!!! This is probably the #1 thing you should concentrate on, and usually the LAST thing people building out a studio throw money at. But if you want to run a BUSINESS, it should be the #1 thing.
|
|
|
Post by Pueblo Audio on Sept 20, 2017 23:35:02 GMT -6
Steel yourself to surrender all manner of unexpected tributes to state, county and city entities.. For example, it's not uncommon for a city to asses an annual fee based on the value of your equipment within the building. One city I know has a fee just to hang a sign over your store front... $1,000/year!
And then there is insurance to consider.
|
|
|
Post by svart on Sept 21, 2017 6:24:35 GMT -6
Also, incorporate in such a way that you shield yourself from lawsuits. Pay yourself as an employee so that if someone were to sue, they sue the company and can't get to your personal accounts. Pay yourself the majority of the profits so that the company runs very lean.. It'll work better for you if you ever need to go to court. Do everything for the studio under that name, so if you ever find yourself underwater, you can abandon the company, and not have to pay out of your personal accounts.
Keep your gear under your name and lease all of it to your company. That way it's YOUR gear in case you need to liquidate the company and you get to write it off as expenses under the company.
Also, budget about 30% more than you think you need for any one place in time. Always keep money in a separate reserve account just in case.. Never mix your personal money with company money once you've incorporated. Loan your company the seed money to start your corporate bank account. Pay yourself back and write it off.
If you're renting/leasing a place, take out gear insurance! The building insurance WILL NOT cover your stuff, even if it says it will cover belongings. Also, take out any additional insurance for power surges and rain/flooding if you can. Insurance companies WILL try to use any and all excuses to avoid paying, usually by shifting blame to the building owner, or you.
Have an electrician inspect the power wiring. The wiring is the lifeblood of your studio. If the studio is next to a factory or anything that uses a lot of power, expect a LOT of noise (physically and electrically).
Absolutely, positively get the best security system you can. Cameras, alarms, glass break sensors, motion sensors, etc. If your area is anything like Atlanta, it's a matter of WHEN, not IF you get broken into once the word goes out about your studio.
|
|
|
Post by drbill on Sept 21, 2017 10:39:55 GMT -6
^^^^^^ Good advice.
Kind of hinted at, but put an attorney on retainer. Doesn't have to cost that much.
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Sept 21, 2017 12:19:20 GMT -6
I had a 110V UPS / Battery system by APC just in case of dirty power / electrical storms / outages etc. I'm not from the US but a lot of this sadly rings true everywhere. Make sure you have both building / contents insurance and your premises are well secured.
It never hurts to get a property survey either, this one place I looked at was built upon an old railway line. A portion of the outside was sinking into an old tunnel, cost me $300.00 to avoid it but damn it's better than trying to get out of a mortgage.
In the UK at least you can set yourself up as an LLC (limited liability) which equates to a fixed sum across the company not the individual, where as a sole proprietor would have to accept full liability. Which of course LLC makes the most amount of sense..
It never hurts to be careful but I never run into any issues, ironically my studio never got broken into but my house did.!
|
|
|
Post by johneppstein on Sept 21, 2017 13:15:00 GMT -6
Steel yourself to surrender all manner of unexpected tributes to state, county and city entities.. For example, it's not uncommon for a city to asses an annual fee based on the value of your equipment within the building. One city I know has a fee just to hang a sign over your store front... $1,000/year! And then there is insurance to consider. Most professional studios I can think of have (had) no sign or any other form of identification on, over, or anywhere near their front door.
|
|
|
Post by notneeson on Sept 21, 2017 13:41:44 GMT -6
Steel yourself to surrender all manner of unexpected tributes to state, county and city entities.. For example, it's not uncommon for a city to asses an annual fee based on the value of your equipment within the building. One city I know has a fee just to hang a sign over your store front... $1,000/year! And then there is insurance to consider. Most professional studios I can think of have (had) no sign or any other form of identification on, over, or anywhere near their front door. link
|
|
|
Post by johneppstein on Sept 21, 2017 20:41:08 GMT -6
Most professional studios I can think of have (had) no sign or any other form of identification on, over, or anywhere near their front door. linkThat's very new. For the first many decades of their existance as either Hide Street or Heider's there was no sign. In that neighborhood it would have clearly been asking for trouble. Maybe the yuppification of the area has made Michael bold in his old age.....? Hell, a couple years ago the door never even had fresh paint. The really fancy one under the freeway overpass - Trilogy - has no sign. The Automatt had no sign. I don't believe that Russian Hill did, but not positive. Different Fur? Nope. Putting out a sign is an invitation to burglars and various troublemakers... The thing about a real pro level recording studio is that there's no percentage in having a sign in front. Recording studios don't get any real walk-in street business and anyone who walks in is likely some sort of trouble. Anybody who belongs there - or is established in the music community doesn't need a sign to find it. If word gets out that you have a name client there you're liable to have an unwelcome influx of fans and, worse, paparazzi disturbing the artists. Unless you have warm bodies doing 24 hour security you're a major target for thieves. There are many, many reasons NOT to have a sign and no good ones in favor of it.
|
|
|
Post by johneppstein on Sept 21, 2017 21:08:48 GMT -6
That's very new. For the first many decades of their existance as either Hide Street or Heider's there was no sign. In that neighborhood it would have clearly been asking for trouble. Maybe the yuppification of the area has made Michael bold in his old age.....? (Or maybe it's a requirement of their landmark status that allows them to stay open?) Hell, a couple years ago the door never even had fresh paint. The really fancy one under the freeway overpass - Trilogy - has no sign. The Automatt had no sign. I don't believe that Russian Hill did, but not positive. Different Fur? Nope. Putting out a sign is an invitation to burglars and various troublemakers... The thing about a real pro level recording studio is that there's no percentage in having a sign in front. Recording studios don't get any real walk-in street business and anyone who walks in is likely some sort of trouble. Anybody who belongs there - or is established in the music community doesn't need a sign to find it. If word gets out that you have a name client there you're liable to have an unwelcome influx of fans and, worse, paparazzi disturbing the artists. Unless you have warm bodies doing 24 hour security you're a major target for thieves. There are many, many reasons NOT to have a sign and no good ones in favor of it. If there's a sign it's usually INSIDE, in the entryway/reception area.
|
|
|
Post by ChaseUTB on Sept 21, 2017 21:46:20 GMT -6
Lots of good posts ... makes me re think some of our setup.. hmmmm...
A glock or smith and Wesson firearm you are comfortable with being loaded with no safety and trained using within close range ... especially if this is a studio complex type like we have in ATL.
|
|
ericn
Temp
Balance Engineer
Posts: 14,934
|
Post by ericn on Sept 21, 2017 21:59:04 GMT -6
That's very new. For the first many decades of their existance as either Hide Street or Heider's there was no sign. In that neighborhood it would have clearly been asking for trouble. Maybe the yuppification of the area has made Michael bold in his old age.....? Hell, a couple years ago the door never even had fresh paint. The really fancy one under the freeway overpass - Trilogy - has no sign. The Automatt had no sign. I don't believe that Russian Hill did, but not positive. Different Fur? Nope. Putting out a sign is an invitation to burglars and various troublemakers... The thing about a real pro level recording studio is that there's no percentage in having a sign in front. Recording studios don't get any real walk-in street business and anyone who walks in is likely some sort of trouble. Anybody who belongs there - or is established in the music community doesn't need a sign to find it. If word gets out that you have a name client there you're liable to have an unwelcome influx of fans and, worse, paparazzi disturbing the artists. Unless you have warm bodies doing 24 hour security you're a major target for thieves. There are many, many reasons NOT to have a sign and no good ones in favor of it. Studios that have over the years found work in video, voice over, & duplication do need signage not for, advertising but simply for clients being able to find them. I know of guys who have put up signs because they lost clients who drove around the block for 2 hours because they couldn't find the place. Clients being stupid or to proud is a bad reason to lose them, but otherwise I agree!
|
|
|
Post by rowmat on Sept 21, 2017 23:30:05 GMT -6
|
|
|
Post by notneeson on Sept 22, 2017 9:37:10 GMT -6
That's very new. For the first many decades of their existance as either Hide Street or Heider's there was no sign. In that neighborhood it would have clearly been asking for trouble. Maybe the yuppification of the area has made Michael bold in his old age.....? (Or maybe it's a requirement of their landmark status that allows them to stay open?) Hell, a couple years ago the door never even had fresh paint. The really fancy one under the freeway overpass - Trilogy - has no sign. The Automatt had no sign. I don't believe that Russian Hill did, but not positive. Different Fur? Nope. Putting out a sign is an invitation to burglars and various troublemakers... The thing about a real pro level recording studio is that there's no percentage in having a sign in front. Recording studios don't get any real walk-in street business and anyone who walks in is likely some sort of trouble. Anybody who belongs there - or is established in the music community doesn't need a sign to find it. If word gets out that you have a name client there you're liable to have an unwelcome influx of fans and, worse, paparazzi disturbing the artists. Unless you have warm bodies doing 24 hour security you're a major target for thieves. There are many, many reasons NOT to have a sign and no good ones in favor of it. If there's a sign it's usually INSIDE, in the entryway/reception area. I know— that part of the Tenderloin, that block especially, does not feel gentrified. Except, maybe the homeless population is a bit more compressed into those few blocks due to the yuppification of the general area. I mostly posted the pic for fun, and to see if anyone would ID the dude in the pic. I did not intend to contradict your overall point. No sign over at Sharkbite either.
|
|
|
Post by drbill on Sept 22, 2017 9:56:05 GMT -6
Haha!! I can ID that dude. He's a rocket scientist. What's he doing @ Hyde? I've heard rumours he actually plays Elec. Grr.....
|
|
|
Post by notneeson on Sept 22, 2017 10:14:09 GMT -6
Haha!! I can ID that dude. He's a rocket scientist. What's he doing @ Hyde? I've heard rumours he actually plays Elec. Grr..... I know you can! This was for a yet to be published (and taking quite a long time) interview session.
|
|
|
Post by Pueblo Audio on Sept 22, 2017 15:26:01 GMT -6
Steel yourself to surrender all manner of unexpected tributes to state, county and city entities.. For example, it's not uncommon for a city to asses an annual fee based on the value of your equipment within the building. One city I know has a fee just to hang a sign over your store front... $1,000/year! And then there is insurance to consider. Most professional studios I can think of have (had) no sign or any other form of identification on, over, or anywhere near their front door. Es verdad, Juan. Curb-side anonymity is a prudent position. That being said, I do walk past dozens of studio signage on my lunch or dinner hunting-&-gathering trek, everyday. []Anyway, I presented this concept as an example of that which the everyday person might be stupefied for as to why they should bleeed out a grand, each and every year, for an assumed privilege. And there are more responsibilities... Is your facility ADA compliant? Have you made appropriate safety and fire prevention investments? On and on. It's all cool if you take these expenses into account and harvest the income to net a profit (you know, so you can make the art).
|
|
|
Post by keymod on Sept 23, 2017 8:33:17 GMT -6
Cost to change all of the locks. Smoke detectors / fire alarm. Fire extinguishers. HVAC maintenance. Exit / Emergency lighting. Insurance. Accountant, Lawyer, taxes. Cleaning, general upkeep. Electric bill, ISP bill, Utilities. TIME: travel/commute time back&forth. This is a big cost when you have a family, even though you can't see it on the books.
|
|
|
Post by jimwilliams on Sept 23, 2017 8:53:51 GMT -6
Steel yourself to surrender all manner of unexpected tributes to state, county and city entities.. For example, it's not uncommon for a city to asses an annual fee based on the value of your equipment within the building. One city I know has a fee just to hang a sign over your store front... $1,000/year! And then there is insurance to consider. In Los Angeles they tax you for the square footage of your building's roof. I call it the "bird shit on the roof tax" as it's designed to help clean up the bird feces that collects and washes down the storm drains.
High operating costs an low profit potential is why any bank will not provide a loan for a recording studio, it's not a profitable business model anymore.
|
|
|
Post by rob61 on Sept 23, 2017 9:48:22 GMT -6
^^^^ Unfortunately, I have to agree with Jim. ^^^^
|
|
|
Post by jcoutu1 on Sept 23, 2017 10:22:24 GMT -6
^^^^ Unfortunately, I have to agree with Jim. ^^^^ Luckily, I have a day job and the studio can operate as a semi-private part time thing. If I can keep the lights on, add some gear here and there, and make some spending cash, while working on projects that I like and believe in, I'll be pretty happy.
|
|
|
Post by ChaseUTB on Sept 23, 2017 18:35:06 GMT -6
^^^^ Unfortunately, I have to agree with Jim. ^^^^ Luckily, I have a day job and the studio can operate as a semi-private part time thing. If I can keep the lights on, add some gear here and there, and make some spending cash, while working on projects that I like and believe in, I'll be pretty happy. Make it Happen bro 🤘
|
|