I was curiouse to know if any on here USED a business plan before starting your business? You know to jot down your expenses along with projected growth and marketing...
If you have used a software to help you create a business plan, please share your insight on the software, and how it has or has not affected your business....
If you didn't use a business plan to start up, and you are running a successful business, please also share what you would have done differently from the beginning, or maybe share some insight as to what new comers should look out for and avoid...
An official business plan written up, is a good idea. Even more important if you plan on getting business loan.
I have a program I bought many years ago that has examples of legal forms and documents and there is also a business section that has examples of plans.
Set you goals. Write them down. It won't hurt anything.
Find out what type of a karaoke business you want to have.
How big?
Then you must decide on the equipment you will need to get there.
My personal goal was to be the best karaoke company in my area. And I also set a karaoke business income goal. It has happened almost from the day I started. I bought my way to the top with the system I decided to buy. It put me way above my competition. I am still ahead of them. My original equipment investment has paid me back in a very big way.
I went to as many bars as I could to watch different karaoke shows. I took mental notes on the good things they did and the things I never wanted to do. I put all of these together. Then I found a quality music store and told them what I wanted to do. He told me that nobody in the entire area was doing karaoke as I wanted to do it. I told him I didn't want to make a mistake and buy the wrong equipment. And I didn't want to have to re-buy the right stuff later. He started pointing to different pieces of equipment and started to tell me why I needed them. I took out a loan to buy my stuff. And a used full size van, to haul everything. I could not be happier with the equipment he sold me. I have never had to upgrade because of inadequate equipment. I have had to replace pieces that wore out or broke from use. I have never replaced my Yamaha speakers. I did need to buy a new mixer and amplifier. And new microphones and cables.
I used the equipment 5-6-7 nights a week.
A personal loan backed up with the equipment or other collateral will be easier to get than a business loan, unless you are a woman or a minority. I had a $20,000 personal loan. Gave them the van title and the equipment as collateral.
You really sound like you want to do this right. It takes money and time. Buy the right equipment from the start. Even if you have save to buy one good quality piece at a time. It will be worth it.
Write down everything you want to have and do.
I knew I wanted good microphones, and a curtain around my table. I wanted my business to look and act as big and professional as possible. I knew I wanted to have great sound. I don't buy anything cheap just to have it. Buying items on sale is a good idea. I actually some years ago bought a really good complete system, used. I added my touches to it and it worked very well.
I did everything as any real business would. I had professional business cards and letter head. Because I did a mass mailing to the 900 bars, taverns, restuarants and clubs in the phone book. (would I do the mass mailing again? probably not.) It cost me about $1500 to do. Now don't forget that was almost 15 years ago. Now, I get 99% of my jobs by referrals from satisfied bar owners and mostly singers.
Yeah just wanna do it right the first time and not worry about imitating 2nd hand KJs...I wanna be different, and I wanna offer a service that is way beyond any of my competitors here...
And the reason why I started the thread is because I beleive in setting goals and standards, that way you can measure your progress...
Looks like your gear and motivation to excel really might of set you apart from the bunch...Bigdog if you don't mind, can you give a brief description of your gear? And if you have used a business plan software, what did you use?
For everyone else...What is an easy-to-use business plan software that has a Mobile Karaoke Business format in it?
Thanks.......I try to do everything first class.... I'm worth it...
The program is called "Small Business Advantage" From Inc. Magazine It's about 10 years old...
Disc #1. Business & Marketing Plan
Disc #2 Reports & forms
Disc #3 Legal Advisor
Disc #4 Sales & Marketing letters
Disc #5 Credit Manager
Disc #6 Raising Money
16 channel P V stereo mixer
Alesis Reverb
Alesis Compressor
32 band EQ
3 cordless microphones @ $600 each
2 Pioneer 555 players (laptops are coming soon)
2-15" & horn Yamaha tops
2-18" Yamaha subs
Crown 900 amplifier.
All are rack mounted in 3 boxes
I never set up without the subs.
I have written business plans before. I never actually made one for the karaoke business.
I had everything in my head. I planned out every detail on how and why.
My budget was determined by what I needed to do, as I had it invisioned. Money was not the object. The object, was being the best sounding, most professional KJ in the area. And meeting my payback/income goal.
I blew right past my income goal. I more than doubled my income goal within 6 month to a year.
We are a fairly new operation as well and don't have nearly as much equipment as Bigdog, but I do have something that was well worth the money. It is a 7' BOSE tower and its base speaker right beside it. In a normal bar with the mixer levels at about half I keep the volume to the speaker on 4 out of 12. I have found this speaker to be way better because it is actually 24 different 3" speakers all stacked in a 3 piece tower which unfolds as the sound comes out. When folks in the music industry see us use it, they all drool. It also gives you the ability to talk in a normal tone right beside the speaker without shouting. All for about $2000. We also use a computer based system which eliminates the need for cds. This is a very part time thing for us (once a week currently) but we have a great time doing it!
Horns which deliver the highiest frequencies, need to be placed above the crowd so they delliver that sound without being blocked by bodies. At 7 feet tall, out of all of the speakers in the tower, how many are above the crowd?
If this set up is used on the floor level, only a few will be high enough. Defeating the quality of the presentation.
Sub frequencies travel 360 degrees & best along the floor. Not so with the mids and the highs. They are more directional and subject to being blocked.
Cordless microphones that have 2 channel receivers. Most only have one. And they usually have a dead spot somewhere in the room. Meaning the signal will drop out and you hear nothing... with two channels the signal gets picked up by one or the other...
I wanted all of my equipment rack mounted in protective boxes.
I have seen many KJs that just bring in each piece of equipment and stack them up on the table and then duct tape them together, to keep them from falling off...So unprofessional looking.. Now you have to plug in every peice of equipment night after night. That is too hard on the wires and the connectors. My equipment has as many plugs as possible plugged in all the time. My wiring is down to the barest minimum.. One 110 volt plug from each box. Player wires, amp wires, mini TV monitor wires and speaker wires. Power strip and extention cord to the wall and the TV coax wires...that's it...
Most KJs carry their equipment in.. I guess it's small enough to carry when you don't have much... I wanted to dolly my stuff in.. I'm not carrying anything that I don't have to...saves my back and looks professional..
I wasn't hauling my stuff in the back set of my car either.. 800 lbs of equipment won't fit and second of all, it looks stupid...
My goal was to put on a professional show from beginning to end. That includes how it looks when I come in and how it looks set up. It also includes how it sounds.
I'm after the total professional presentation... from business cards, to the sound quality...
Dead on Big Dog. Rack mounted equipment is the only way to go. I too have seen things drug in piecemeal and setup slopily. And the cable issue is a good one to note. The more you roll and unroll those cables the more stress you put on the connectors. Also important is knowing how to roll the cables properly. I've seen so many that just wrap them around their arm, with no idea of what stress and damage that causes.
Now I do have to admit to carrying some stuff in, but I do have a rack on wheels for all that equipment, and cases for everything else. My goal is to get setup and torn down as fast as I can because again I think it leads to a more professional appearance. I can have my entire rig setup and ready to run in under a half hour (working entirely on my own).
Hauling the equipment is a really good point too. I use a van, I've seen others use SUV's or Trailers. Any of the three looks better than trying to pull stuff out of the back seat or trunk of a sedan IMO. It also aids in the afore mentioned goal of a fast setup/teardown.
I also have to admit, and you know this already, that I don't have dual channel mics. As nice as it would be that's an investment I've not made. However, in the venues I've played the only issue I've had was with the squelch not being properly set. I think many, myself included initially, make the mistake of not tuning that at each location.
As far as the tower speaker goes... Have you ever experienced the sound coming from one of these? One of the places we play is band and music oriented so much that 5 nights a week they have either bands or open mic. the owner is possibly the best drummer I have ever heard and when folks come in there, they know the sound quality will be tops... He wants my speakers. Seriously, if you haven't heard this particular speaker system work, check it out. I have never found anyone who has heard it from musicians to the general public that have not appreciated the sound.
BD is most concerned about his professionalism and reputation, and I respect him for that. As a businessman, however, he has much to learn. To start with, I know local kj's that make as much as BD and they:
-don't have as much invested in audio equipment as BD or do have as much invested but choose to leave a lot of it behind (including subs)
-don't have boxes
-don't have skirts around their table
-use their cars to haul their equipment
-don't lug 800 pounds of equipment around (particularly important to the female and seniors among them)
Those KJ's, although it may not have resulted from a well thought out business plan, are producing a greater ROI (return on investment) for their businesses and less wear and tear on their backs than BD.
So, is it more professional to maximize your investment in your rig, or is it more professional to run a business that maximizes the flow of income on the SMALLEST acceptable investment?
Is it wiser to expend all of the capital available to you by the time you start your business operations, or is it wiser to have a plan of growth and milestones to reach before you invest in the next level of equipment AND HAVE PLENTY OF MONEY AVAILABLE FOR CONTINGENCIES?
The larger the initial outlay, the larger the loss if you do not succeed. Will making the largest possible initial investment insure a greater likelihood of success? BD might tell you it definitely would. I'll tell you RUBBISH. The other factors that contribute to success as a KJ far exceed the equipment in importance. Your music library, your familiarity with music (which will also have a bearing on your library), your personality, your ability to sell yourself to venue owners, your ability to critically hear the sound coming out of your system and to properly set the equipment for each singer/song, your marketing tools, your ability to fill the air with exciting sounds when you don't have many singers, AND WHO YOU KNOW around town will all play a greater roll than the equipment you bring with you.
Considering how much I have seen my local Karaoke market deteriorate (more Texas hold-'em and singing keyboard players popping up) and realizing how many KJ's are scrambling for work, I'd recommend that the initial investment in karaoke in this area should be very conservative. Is $5000 the bare bones minimum to spend on just the audio gear regardless of potential outcomes? Or is whatever gets you by for Karaoke the wiser investment?
Fong, I'm sorry to rain on your parade, but if I were you I'd first talk to local KJ's about what the competitive rigs are like, how much they get paid, how often they play out, how long their gigs last before they move on to the next. I'd also talk to local venue owners and pick their brains! THAT IS THE PLACE TO START!
ps. Please consider this: No matter what you buy there is someone who is going to have a different opinion about what you should have bought. And no matter what you spend, there is always another piece of equipment that costs more. And when push comes to shove, something better will be available next year!
Some good points have been raised.... although some have been neglected.
Many of the KJs that are scrambling for work are the very ones you speak of.. Texas hold em started in one of my bars... it's no longer there. Guess who has the biggest money night for the bar??????? At every bar I play, it's the same thing.....work comes to me....
Who's looking for work???
The ones with the CHEAP crappy sounding systems.
The one that play favorites with the rotation.
The ones that can't sing.
The ones that have no personality.
The ones that can not entertain a crowded bar.
The ones with a small selection.
The ones with no plan on how and where they want to go.
The ones that have to work cheap, just to say they work.
I work 5 nights a week. I have for 14 years. MY competition, doesn't work steady or nearly as much. Do you think it's an accudent that I have made well over $700,000 doing crappy karaoke????? Or do you think it's because I have carefully planned and made good business decisions???? It's not luck. It's from being the best above all of my competition. That happened the day I bought my first system and went into business. Yes the investment was high. But it made me king of the hill. There are some people that refuse to go in to the karaoke/any business on a shoe string and small thinking.
I treat my business as a major corporation. It has paid me back....
A professional will get more work at higher money, than any shoe stringer.
The shoe stringers come & go. I have buried many of their shoe string business'
The KJ's who are scrambling for work have over 10 years of experience. The venues offering karaoke and the audience for it is are both declining. It's just not what it used to be. When more of the KJ's (supply and demand) decide to leave the business, and I know of five seasoned KJ's that have quit in the last three years, then KJ's won't have to scramble as much for work!
BD, Wyndy does have a solid point in regard to equipment. Even with the best equipment a KJ can fail and a KJ with average equipment can certainly make it big. The best most expensive equipment can still sound like crap in the hands of an unskilled person. Even with the best sound possible, a KJ with no personality (as you pointed out) can be a flop.
I've seen KJ's with "kit" systems that are doing very well. Why? They have good song selection, are fair and keep the crowd entertained. Even the cheapest kit system can be tuned to a point where the average or even experienced listener will enjoy it. There is no fix for a KJ who's unfair, boring or unpersonable.
Wyndy, you would be amazed how much your appearance can affect your success though. Your singers and other patrons will judge you by how you look when you arrive and how things look while you're running the show. Do you have to have the exact items BD mentioned to look professional? No. I don't use a table skirt because I keep my cable snakes under wraps in other ways. I do however believe that a professional appearance is part of the key to being truly successful in this business.
As far as a business plan, definitely something that will enhance your success. Can you do well without it, sure. After KOK went south had scrambled to put together my new business wihtout a plan. And it's working fine. I've been offered shows without having to seek them out (doesn't mean I don't keep looking for new venues though). However, don't discount the value that a formal plan can have. It does make your chances of success greater.
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