Recording Studio Business Plan Template

Recording Studio Business Plan

If you want to start a recording studio or expand your current business, you need a business plan.

The following business plan template gives you the key elements to include in a winning business plan to help you start a recording studio business plan. It can be used to create a music studio business plan, or business plans for a recording engineer, music producer or other studio businesses.

You can download our recording studio business plan template (including a full, customizable financial model) to your computer here.

 

Sample Recording Studio Business Plan Template

Below is a recording studio business plan example with each of the key sections to help you write a recording studio business plan for your own company.
 

I. Executive Summary

Business Overview

[Company Name], located at [insert location here] is a new, independent recording studio focusing on producing high quality sound for its clients.

We seek to cater to the needs of independent bands, musicians and artists, professionally sound engineering their music. By finding these local artists and producing their pieces, we will be able to build a good reputation for our company that will translate to more clients and bigger named clients that are in need of our services.

The company is not only equipped to record and produce music and vocal recordings, but also other audio types like sound effects for films and ads.

Products Served

[Company Name] provides high quality sound engineering for musicians. Its services include:

• Postproduction, sound editing and design
• Recording services
• Commercial audio and TV audio mastering
• Audio copying

Customer Focus

[Company Name] will primarily serve artists and composers in [Location]. We also offer our services to advertising agencies and local filmmakers who need professional sound engineering and advertising jingles.

Management Team

[Company Name] is led by [Founder’s Name] who has been in the recording business for 13 years. [Founder] has never run a recording studio business himself, but he has the experience needed for it. He/she will have the help and support of his business partner, [Insert Name], that handles the marketing and admin tasks of the company.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• There is currently no independent recording studio in the area focused exclusively on up-and-coming, independent musicians.
• There has been a significant growth in independent music over the past three years. Those who cater to this market have been thriving.
• The management team has a track record of success in the recording studio business.
• Recording studios are a proven, successful business in the United States.

Financial Highlights

[Company Name] is seeking a total funding of $420,000 to launch its studio. The capital will be used for funding capital expenditures, staffing costs, marketing expenses and working capital.

• Recording equipment: $100,000
• Build-out and Startup costs: $200,000
• Salaries: $80,000
• Marketing: $20,000
• Lease expenditures: $20,000

Topline projections over the next five years are as follows:

 

II. Company Overview

Who is [Company Name]?

[Company Name], located at [insert location here] is a new, independent recording studio focusing on producing high quality sound for its clients.

We seek to cater to the needs of independent bands, musicians and artists, professionally sound engineering their music. By finding these local artists and producing their pieces, we will be able to build a good reputation for our company that will translate to more clients and bigger named clients that are in need of our services.

The company is not only equipped to record and produce music and vocal recordings, but also other audio types like sound effects for films and ads.

[Company Name]’s History

[Company Name] is founded by [Founder’s Name] who owned a personal recording studio in [month year] and then made it available for the public to rent. It was not [Founder’s] intention to open up a recording studio at first, but a lot of his friends, who were also renting his studio, were impressed by the quality of his studio and encouraged him to expand and open his own company.

Convinced, [Founder] officially launched [Company Name] on [Date Established]. With the help of his friends, his business is growing and now caters to a lot of clients. He/she now has [xx] number of recording rooms and plans to expand.

[Company Name]’s Products/Services

[Company Name] offers the following services to its clients:

• Post production, sound editing and design
• Recording services
• Commercial audio and TV audio mastering
• Audio copying

 

III. Industry Analysis

The Recording Studio industry has changed tremendously over the last five years.
Online streaming services have sparked a structural change in how media is consumed, distributed and recorded. Alongside new mediums for distribution, recent technological improvements in recording equipment have enabled musicians and artists to take more control over their content than ever before.

However, there is still value added to productions made in a professional studio due to the expertise provided by industry operators. As a result, the industry has still experienced steady growth over the past five years.

Moving forward, the industry will likely continue to provide valuable services to the music and media industries. This will likely lead to increased demand for industry operators’ services to help record and master new music.

The industry has significant outreach to clients beyond the music industry, proving very favorable to the industry. For example, movies, TV shows, commercials and audiobooks all require industry services. The diversity of the industry’s clientele ensures that demand will not likely diminish rapidly over time. Since the expertise provided by recording studios is not easily replicated, these other markets have continued to seek the industry’s services.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will primarily serve musicians and recording artists in the [Location] area. Over time, we expect that our studio will gain regional and national attention.

The city has a variety of artists, filmmakers, musicians, etc that would require the help of a professional recording studio. The following are the demographics of our clients:

• Local Bands and musical groups
• Solo Artists
• Filmmakers
• Advertising companies

Customer Segmentation

The Company will primarily target the following:

• Local musicians and independent recording artists: A large part of our clients are local bands that want to put their voices out there. We record and produce good quality music for these artists.
• Filmmakers: We do not only cater to music and vocal recordings, but also sound effects and audio recordings. The city has quite a number of creative and independent filmmakers that are in need of professional sound engineers to polish their works.
• Advertising Agencies: We help agencies create the best audio quality for radio and TV advertisements.

 

V. Competitive Analysis

Direct & Indirect Competitors

Black Current Studio
Established in 2002, Black Current Studio is an internationally renowned recording complex. Black Current Studio Studio was designed with state-of-the-art facilities and technologies, and in turn has been the studio of choice by artists ranging from pop stars to country music legends. The facilities now comprise eight recording studios with unrivaled equipment and microphone selection, including consoles available to fit any taste. Black Current Studio also operates an academy for professional audio education, which offers mentor-based, hands-on education.
Sound Studios
Sound Studios is a state-of-the-art recording facility that uses the latest software and equipment such as ProTools HDX Analog Gear Avalon, Universal audio, Nieve, Nuiman, and Sure. The studio offers top-quality recording and production services at affordable rates. In addition, the studio offers Instrument & Vocal Lessons, as well as an Audio Engineering & Music Business Course. Sound Studios has been in business for over 20 years and its clientele ranges from major TV productions to record labels.

Mix Media Studios
Established in 1997, Mix Media Studios is a full-service music and video production facility. The studio’s 10,000 sq. ft. building houses eight Rehearsal Studios, a Pro Tools HD Recording Studio, a 2,000 sq.ft. sound stage with VIP lounge, and a 2,000 sq ft Video Production Stage with a hard wall Cyc and lighting grid. The company’s clientele include independent filmmakers, record labels and streaming services.

Competitive Pricing

The competitor’s pricing is highly customized and varies depending on the scope of the project.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Location: [Company Name]’s location is within [Location] giving it better proximity to budding recording artists.
• Management: Our management team has years of business and marketing experience that allows us to market and serve artists and consumers in a much more sophisticated manner than our competitors.
• Relationships: [Founder’s Name] knows all the local leaders, media and other influencers. As such, it will be relatively easy for us to build branding and awareness of our independent music business.

 

VI. Marketing Plan

You can download our recording studio business plan template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

• Offering high-quality service to independent recording artists and musicians, ad companies and filmmakers
• Professional sound engineering for any type of audio recording.
• Providing excellent customer service and customer experiences with high-quality production.

Promotions Strategy

[Company Name] expects to reach consumers through the following tactics:

Direct E-Mail
[Company Name] will collect email addresses at concerts, pubs and via the social media accounts of local artists and then reach out accordingly.

Public Relations
We will contact all local and area newspapers and television stations to tell them about our recording studio.

Advertising
[Company Name] will advertise in local newspapers and sponsor community events in order to gain awareness of our services.

Sampling
[Company Name] will provide free tracks to customers and potential clients to let them know the quality of sound we can produce.

Ongoing Customer Communications
[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products and more.

 

VII. Operations Plan

Functional Roles

In order to execute on [Company Name]’s business model, the Company needs to perform many functions including the following:

Service Functions

• Sound mixing
• Audio recording
• Sales Manager
• Professional sound engineers

Administrative Functions

• General & Administrative functions including legal, marketing, bookkeeping, etc.
• Hiring and training staff

Milestones

[Company Name] expects to achieve the following milestones in the following [] months:

 

VIII. Management Team

Management Team Members

[Company Name] is led by [Founder’s Name] who has been in the recording business for 3 years. While [Founder] has never run a recording studio business himself, he has been active in the industry as he has worked for a local recording studio as a sound engineer and managed it for xx years.

Hiring Plan

[Founder] will be supported by a team of experienced sound professionals. As the Company grows, we will need to hire the following personnel:

• Sound Engineers
• Director of Marketing
• Administrative staff
• Assistant Manager

 

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s revenues will come from:

• Recording contracts from artists and musicians
• Sales from tracks
• Sound editing

The major costs for the company will be staff salaries, equipment and equipment maintenance.

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $420,000 to launch its studio. The capital will be used for funding capital expenditures, staffing costs, marketing expenses and working capital.

• Recording equipment: $100,000
• Build-out and Startup costs: $200,000
• Salaries: $80,000
• Marketing: $20,000
• Lease expenditures: $20,000

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

5 Year Annual Income Statement

5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement