Interested in buying a recording studio.

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Keno53

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I'm interested in the possibility of investing in a music studio here in the Atlanta area in one of the following ways: buying an existing operation, building one (a daunting prospect) or coming in as an investor/part owner. I wonder if anyone out there has any experience or ideas in this area. There don't appear to be a lot of studios "for sale" the way one would buy a restaurant or convenience store, so building one out could be an option. Questions:
1. What factors are most important in a location?
2. How much space is optimum?
3. What kind of overhead is typical? (Payroll, etc)
4. The biggie: What kind of investment would be required to put together something decent and workable, but not necessarily top-of the line? For example, could this be done with, say a $50,000 budget ?

Any feedback would be appreciated.
--Keno
 
Keno,

In my opinion, the most important question is what is your MARKET?

There are different levels of investment based on what you want to record. If you are talking about a small project studio or a songwriters studio, then your costs go way down.
 
Keno53 said:
I'm interested in the possibility of investing in a music studio here in the Atlanta area in one of the following ways: buying an existing operation, building one (a daunting prospect) or coming in as an investor/part owner. I wonder if anyone out there has any experience or ideas in this area.


Each and every one has its problems.
To give you a serious answer for all the options I would need to write a book. No Less !. It is very complicated as a studio is a business and sucesess many times amounts to your nonmusical abilities.
If I had a $ for every studio that I knew that went under due to non musical issues, I would be a rich man.
If you want to build a serious operation your going to need a lot of money.
For example....to build a small operation using say a DAW or even a few ADATS with a board like a Mackie would be like throwing your money out the window. You CANT compete with home users using gear like that. You need to atract clients with serious gear as starters or else they will go to a cheaper serious home user.
That is a fact ! I see it EVERY day !. I'm sure there are small sucsessfull operations around but every day with home gear becoming part of a musicians life and every one has at least a DAW at home....they wont last to long...The future is not there.

If you want to invest with a partner you had better be sure you understand his attitude, the problems he has with his studio, who he attracts, How does he run the administration side (studios fall on crap like that). Do you both have the same look for the present and future. How are desicions made ? by whom? etc..etc...its a business.........
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There don't appear to be a lot of studios "for sale" the way one would buy a restaurant or convenience store, so building one out could be an option. Questions:
1. What factors are most important in a location?


It has to be a place were:
A. you can afford the rent (it doesnt seem to be a problem at first but then when things get slow your going to cut your throat...)

B. Noise factor....Can people play late at night with out problems from the neighbors. Are you in a industrial zone were THEY bang and it infultrates your studio. ( I had a shoe factory once ontop that swore to the owners they would work only during the day and when things go tough they started to work nights as well and the banging could be heard no mattered what investment was put into isolating the walls.)

C. Not as important but....elevators and parking can help !


2. How much space is optimum?

The room has to be balanced and sound good thats priority #1.
Here if your investing you had better get a pro designer to help you out. What are you going to do when you invest mega $ and it sounds bad after?. Tear it all down?

A comfortable control room makes a good impression on clients. Those small little box's where you have to squezze the band in them are fustrating

A good sized recording room is a great help for good recordings but I have seen enough small room with decent sound.


3. What kind of overhead is typical? (Payroll, etc)


It would depend from country to country but expect this:

1. Rent

2. Bills - phone ! electriciy - cleaning - up to one big bill like - media - small items that all add up to a major bill like coffe tea for clients - paper (of different kinds like track sheets and office stuff and billing clients and loads more)

3. Paying the assistant and main engineer.

4. fixing gear that will break down ( I promise it will and that you cant leave it in a shop for 3 weeks. You'll need it tommrow !!!!!)
Things that last at home for years can break down under extreme use. That is one of the reasons why pro's use expensive gear that (hopefully) will withstand abuse. Take a CD burner. It will burn and burn and burn and colapse.....you'll have to get a new one at once with out waiting if you have the cash flow or not.
Any loss of time can lose you clients..
Did you ever look into a clients face when things start to break down during his session? Some understand, many dont or want to !. Next session he is by your competetors........

5. advertising



4. The biggie: What kind of investment would be required to put together something decent and workable, but not necessarily top-of the line? For example, could this be done with, say a $50,000 budget ?


I'm not exagerating here !!!. with $50,000 your not close.

THE main problem today as I see it is...Home gear is putting many people out of business. What can you offer at $50,000 that will stop your client from going to
1. A bigger operation then yours even if he has to add a few $ to upgrade
2. A small time home studio were he will get a cheap deal.
3. His own gear at $15.000

Think ONLY in terms of "Clients". THEY will decide if you survive or die.
You have to think what will atract a person to come to YOUR studio. You have to give them a reason. Although you will have a advantage over a $20,000 home gear studio but will you be able to sustain a list of clients that will stream into your studio enought to make sure you can pay the bills? Think about after paying the bills how many clients you need to make a profit large enough to make this all worthwhile !!!!!. I'm talking about putting food on the table not driving a ferari.

There is much more but I will add one more imprtant thing you didnt mention.

COLLECTING YOUR FEE....The check is in the mail......I didnt get full service....oh yeh I can pay you next month ok?.....here is a down payment the rest I promise is comming soon......I want a discount, I mean the guy down the road agreed to record us for two $ less...... and so on and on and on and on...

If you stink in this field you had better hire somebody who can and will collect (adding more to the payroll) Sometimes you might need a lawyer.......
As I said.....its a business.

Good Luck
 
Keno 53, Actually if you can't answer these questions yourself, I guess starting a studio would be financiel suicide.
 
Good advice so far....

I suggest you read Chris Stone's (The Record Plant owner) book "Audio Recording for Profit: The Sound of Money"... it can help you with the business side decisions of what you want to accomplish.........

Bruce
 
My thanks to one and all for the good feedback--I certainly have much to think about as I proceed with this idea. Like many businesses, there are no doubt 1000 different ways to lose money if you don't know what you're doing. And admittedly the recording business is new to me, but not business itself, as I've managed and owned successful restaurants & nightclubs for many years. Music has been a passion of mine, but always just a hobby. Now as I approach the big 5-0 at the speed of light, I find myself more and more looking at ways to live my dreams, because life is short. Owning a studio or music venue is one of those dreams, so I plan to work toward it, probably in partnership with others. Again, thanks for the replies; any & all response is appreciated.
--Keno
 
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