- Posts
Howdy,
I know some here have been involved with commercial usage of neighborhood Part 15 radio. I need some financial support for that and for internet radio as well.
Howdy,
I know some here have been involved with commercial usage of neighborhood Part 15 radio. I need some financial support for that and for internet radio as well.
What I need is to read models of a business plan for such an operation. I know there is a need, everyone says so, but that doesn’t mean the numbers will show it to be a viable enterprise. How will I get support? How do I go about gathering data to show that such a small market can get my rent paid and equipment upgraded and maintained to stay on the air?
Ideas please …
Total posts : 45366A business plan is really a very simply document and you’ve identified the most critical element in your post – need. A successful business fills a need or solves a problem at a price that provides a profit.
So, you say “I know there is a need, everyone says so” and that means you’ll now need to identify who needs what and how much those with needs are willing to pay.
I’ll give an example using a similar (and quite profitable) business I helped start in 1999, a community newspaper.
Our target market was a suburban community of about 20,000 people that was somewhat isolated from a nearby major city. The major city had several radio and TV stations, two daily newspapers, and a weekly newspaper – all totally focused on the city.
We determined that four different groups had important needs that our idea could fulfill.
1. Local small businesses had no place to affordably advertise to their local community.
2. Political candidates, schools, government units and law enforcement had no easy method of delivering information to the local community
3. Residents had no way of learning about local events, crime reports, school lunch menus, etc.
4. Local restaurants, auto shops and convenience stores had no local publication to offer to customers
After talking to businesses, schools, and potential distribution points we found the idea was very well received. School coaches wanted to send photos and scores from games, law enforcement was excited about a venue to reach the community and the community was really excited to have their own identity in media.
We decided to print a 16 page paper (four full truck sheets folded and printed on four sides), 5,000 copies, every two weeks. Back then it cost about $350 for the print run and we paid a woman $50 to deliver the papers to 30 distribution locations – restaurants, c-stores, etc.
Ads sold for from $35 for a business card size up to $200 for a full page. By coincidence we opened a couple of months before an election and holy cow, did the candidates flood us with ad requests – if you can swing it, try to start up around election time, it’s great 🙂
We had 15 volunteer writers who were thrilled to see their names in print and the community loved that little paper so much that if we were late delivering to the distribution points the readers would knock on the editor’s front door and ask where the paper was!
We did lots of barter for ads – when our distribution person needed new tires for her truck we did an ad swap with a tire company, stuff like that.
After all expenses and barter, the little paper’s net profit was about $30,000 per year.
So, I would say that you have a similar opportunity and could start by finding out more about who needs what from a low power station and local web stream. A newspaper is a much easier sell to advertisers because they can see it on the news stand, but streaming can lead to measurable clicks, web hits, etc. A blog would be a natural side product, too.
I would say that there are lots of folks who might want to provide content and you might be best to follow the top 40 model – lots of short bits of things and lots of audio excitement in the form of fast paced programing with sound effects, etc. I would say that you would want to strictly avoid any ASCAP/SECAM materials because streaming and podcasting that stuff is horribly expensive.
What do others think?
Total posts : 45366This topic, “Business Plan,” is very appropriate for this web-group, for those who wish to explore beyond the hobby aspect and build an enterprise. It is something on the back of my mind as I operate a growing “non-commercial” streaming and Part 15 station.
The entries given by SCWIS and WDCX are very good ones and should be printed out as part of a “study library” on this subject. I will add some general thoughts about positioning yourself as a communications entity.
I propose that a multi-medium profile makes you stronger than being only a low power station. Your “product” becomes stronger by being “output” in every way imaginable. Make your website so attractive that your “customers” will want to be part of it; your website “representation” of your radio station that it actually enhances the “image” people have in their minds about your radio station. By streaming the radio station it takes on added strength. At one time I printed a newsletter named OUTPUT which was like a paper version of our website and a print version of the radio station. It was only one sheet of paper, or a legal-sized sheet on special occasions. Now comes the “contents” of your “output,” the programs themselves.
There are two kinds of programs in general, the ones you produce and the ones you relay from other producers. Many of the programs I carry have the condition that they only be aired non-commercially. But I believe you could ask for a letter from those producers giving their approval for running commercials on your station NOT tied to the non-commercial programs. There are multiple advertising paths: the website, the stream, the air, and print. These can be sold separately or as bundles.
The programs you produce might be worthy of syndication or podcast, which creates yet another “output.”
I just added a Part 15 shortwave station, and it doesn’t matter whether anyone hears it, what matters is that when we mention it KDX sounds bigger and better.
One more thing about programs. A radio program can become an entity in itself, with it’s own building, staff and full-time activity.
Simply by declaring it you can become a “network” and invite other Part 15ers or streamers to carry your program lineup, then you gain links from their websites and a more impressive image.
And arranging for many links with sponsors, friends, programmers, suppliers, can be a full-time activity.
Now some negative considerations. Ken Cartwright, on a radio interview, said that the reason the FCC shut down KENC was because of his “high profile,” and although I’ve been describing building a profile, it must be kept in mind that you may attract bureaucrats who say you’re not zoned correctly, that you need a business license, that you cannot have more than “X” number of employees or other charges. Licensed radio stations might “turn you in” which puts you on the defensive to prove you are a legal station.
It’ll be fun to watch this thread for additional constructive ideas.
Total posts : 45366Having ‘been there’, there are multiple things to consider in a business plan, particularly if you are taking money from sponsors or advertisers:
1. What is your listenership? How can you verify it? They will ask…
2. When did you play the sponsorship messages and/or commercials?
3. How often were you up (or conversely, when were you down, how long, etc.)? You’ll need to be serious about up-time, with redundant equipment and heavy duty servers
4. You’ll have to get a copyright license, and keep logs of everything that you play, for many reasons (not the least for complaints).If you take money from listeners (i.e., a subscriber model), how are you going to service them? Your Part 15 range is limited (at least for a signal that people will listen to), and there are hard limits as to how many listeners you can stream to on the Internet. What happens if people can’t connect? Or if something interferes with your broadcast? Do you give their money back?
And this just scratches the surface. Getting volunteers that will actually commit (I’ve found that everyone is interested, I got lots of verbal commitments and one time things, but few stuck with it), ensuring that whatever goes out over the air meets FCC (or in my case, CRTC, standards for decency or whatever), the list goes on and on. Very complicated and needs lots of manpower.
It’s why we don’t do the money thing at Artisan Radio anymore. I (and the others involved) take it very seriously, but we are not beholden to anybody other than ourselves, and do it for pure enjoyment (we like to listen to what we broadcast).
And we still get many, many listener hits per day from around the world (including our home base of Bowen Island) over the Internet.
My personal opinion right now is that there are too many restrictions for Part 15 radio to work in the traditional (and that’s the key word)radio model with money involved. Limited range (particularly for a listenable and LEGAL signal) is the biggie, and if you think that people don’t understand the concept of Internet Radio, try explaining in terms they understand why your signal only goes for 1/2 mile or so, and even then with static – they can listen to Jack FM anytime with a perfectly clear signal).
You also have hard limits on Internet connections, as most ISP’s severely restrict upload speeds. That’s why I was so interested in the ‘thinking outside the box thread’, which kind of dissipated.
Create your own wireless hotspot, or latch onto an existing one. Give away Internet Radios (programmed to your radio station) to businesses or anywhere where the public might hear it. Try to get your local cable operator to carry your station. Create a specialized station (such as servicing a ferry lineup or terminal, or for tourism) and form a partnership with the ferry company or the local tourist bureau. There are still lots of opportunities.
Me, I’ll just continue to play old Jazz, DooWop, etc. – and not worry about that devil money [although I’m really tempted to try to create the Artisan Radio hotspot in ‘downtown’ Bowen Island].
Total posts : 45366I have one you can use as a model, I will have to change it to pdf and store it for you to look at. This one is a little different situation than some. This one is for the states largest urban lifestyle center and includes the states largest 3 malls http://www.abquptown.com/ http://www.coronadocenter.com/ http://en.wikipedia.org/wiki/Winrock_Shopping_Center, 3 nicest hotels http://www.sheratonabq.com/ , and 4 aparment communities all within about 1 1/2 mile radius. This plan is more than I can do but it worked out to be around 65K take home with a slow build up in studio equipment. This would be for an energetic people person with in store and neighborhood interviews and a general interest in shopping and urban lifestyle and such needed. The business sponsors would pay minimal rates for very personal and frequent advertising. I’ll dig it out and post it someplace you might be the perfect “Mall Rat Radio” person. http://maps.google.com/maps?t=k&key=ABQIAAAAV8CPENmcSjrejjmYbF7a3BSb3nIKshkiexTcFNFzbt2B5BP47hSUelYWyIy_P5x_2IiVv5Dj2TPLtQ&mapclient=jsapi&ie=UTF8&ll=35.102215,-106.568155&spn=0.017344,0.027423&z=15
Total posts : 45366You also have hard limits on Internet connections, as most ISP’s severely restrict upload speeds.
Yes, and a proven work-around for that is the Streamerp2p product found here:
A free Shoutcast server can also be found here:
Total posts : 45366I don’t recall this being mentioned along with multi-medium outlets to promote a radio station/media cluster, namely a webcam.
You probably know many examples already, but one I watch often is at 1630kcjj.com in Iowa City, where the button “KCJJ Raw” brings up both the webcam and stream, and in the morning they have a loose and unpredictable talk show featuring none other than the station’s owner, “Captain Steve.” Many of us probably have heard KCJJ while hunting for an extended band channel, because it has 10,000 watts daytime.
In addition to putting the studio on cam, other interesting things might include a bird feeder, model railroad or slide shows showing your sponsors or community organizations.
I think I’ve talked myself into starting one.
Total posts : 45366AM/FM/SW, web cam and streaming would really make a nice footprint. Sure, 99.9% of the audience will listen on the stream, but the novelty copuld asttract a lot of attention – and that’s what it’s all about!
Total posts : 45366I didn’t expect quite so much on the subject of business plans, which is why I haven’t re-posted until now … and I’m just getting started.
All the ideas are being considered … believe me. I have some other resources as well, which I’m looking over.
I’ve owned businesses before, mainly my former outdoor maintenance business, but that was simple. It just happened because home and property owners couldn’t find enough reliable workers to keep their places in good-looking condition. IOW, it all came by word-of-mouth. It got spread around through the churches and hardware/garden supply stores on two islands. People came to me … I never advertised But it’s a bit difficult to apply that situation to this venue.
If it works, it will be because businesses vie for support of certain things here, like high school sports. Just reading about it, even online, is not the same as following the action live on radio, and maybe someday TV.
As far as internet radio goes, I’ve mentioned elsewhere I have a Shoutcast account which allows me 100 listeners for about $14/mo. I can even get my own dedicated server. My ISP allows up to 1 mpbs upload bandwidth, more than I need to get what I want to my Shoutcast server.
Easy to increase that as the need arises.
I’ll continue to watch this thread as I make headway. Thanks again …
Total posts : 45366I bet they have a business plan.
http://www.konkam.com/
Total posts : 45366KONK 1680 is a great example of an operation with a keen sense of profiling itself as a major community enterprise without ever mentioning the little details like “100 mW” and “200-feet.” Don’t you wonder what they say when listeners report no over-the-air reception?
Another example I have admired a long time is KPAH 1700 in Pahrump, Nevada, which has a great on air persona representing the Pahrump area and many ties with the community. The owner tried for years to get a full power license and just recently got a CP (construction permit) for an FM in a nearby town. I think in the beginning he was more obviously a Part 15 station, but developed the technique of simply not mentioning it and building on his online stream.
Changing the subject another brain association came into mind on the idea of multi-medium operation. I’ve recently become aware that air time on international shortwave stations located in north america is really cheap and there seems to be a lot of open time on stations I’m aware of, including WBCQ, Monticello, Maine, and WMRI, Miami, Florida. Having a weekly or monthly worldwide show would add to your arsenal. I’ve been thinking about trying it.
Total posts : 45366I was just reading about a DC radio personality who was dropped from his station due to a format change and budget cuts. This guy started a one hour podcast and is really happy with the results. He has companies sponsoring his podcasts and is actually pulling in $$$.
It made me think about doing podcasts of local school sports. Back in the late 60s when I was a high school boy, the local TV station would video tape local highschool games on Friday nights and replay them as Sunday morning fare, so the athletes who played in the games could see themselves and the game.
This was long before the teams could afford their own video equipment like they have today. It was very popular and really connected the station to the community.
Total posts : 45366to listen to. 🙂
- You must be logged in to reply to this topic.
