Print

Please login or register.
1 Hour 1 Day 1 Week 1 Month Forever
Login with username, password and session length

[Matt Vivlamore]

Today my wife told me that I could quit my day job only if my Sound Business makes $50k a year.

What does it take to make $50k a year in this business?  I pretty much can close out FY2009.  And as a weekend warrior I’m almost 1/3rd away from that goal.   But I glad to say that in my 3rd year of business my bottom line was green.

I do have a few goals in FY2010, my main goal is to purchase a cargo van and up my insurance coverage.  As far as gear it’s very minimal, but a couple more speakers are in that plan.

I am planning on being able to reach my $50k goal within the next 2-3 years.  For those that have reached that and/or is making sound your only income; what are some pointers?

[Bennett Prescott]

Good luck "planning" on reaching any particular number in pro audio. Every year for me it's "am I still making enough to not get a real job?". So far the answer is yes... if things keep going the way they have been, I hope to never have a second thought about it, but I would feel very differently if I had to support a family right now.

[Andy Peters]

Matt Vivlamore wrote on Wed, 23 December 2009 19:50

Today my wife told me that I could quit my day job only if my Sound Business makes $50k a year. What does it take to make $50k a year in this business?  I pretty much can close out FY2009.  And as a weekend warrior I’m almost 1/3rd away from that goal.   But I glad to say that in my 3rd year of business my bottom line was green. I do have a few goals in FY2010, my main goal is to purchase a cargo van and up my insurance coverage.  As far as gear it’s very minimal, but a couple more speakers are in that plan. I am planning on being able to reach my $50k goal within the next 2-3 years.  For those that have reached that and/or is making sound your only income; what are some pointers?

Are you talking that the business profit is $50K per year, or are you talking about drawing a $50k salary from the business (which must obviously gross more)?

-a

[Evan Kirkendall]

I started making a lot more money when I stopping purchasing gear.


Evan

[Jake Scudder]

Evan Kirkendall wrote on Thu, 24 December 2009 00:13

I started making a lot more money when I stopping purchasing gear. Evan

There is a lot of truth in this statement. I don't envy small and midsize providers trying to scratch out a living. I REALLY wouldn't want to be heading up a major shop responsible for the livlihoods of dozens of people in this climate.

Freelancers can make that figure fairly easily if they have the chops but it might require starting over at the bottom.

[Tom Reid]

Easy,

Create a business model that requires your business to do 500K a year.

[Matt Vivlamore]

Andy Peters wrote on Wed, 23 December 2009 23:47

Are you talking that the business profit is $50K per year, or are you talking about drawing a $50k salary from the business (which must obviously gross more)? -a

After all expenses are paid off, I want my bottom line at $50k.

This year I brought in about $13k, spent $15k on gear and sold about $6k of the old stuff.  The last 3 months I've only been doing 1-2 shows a month because I got married in Oct and bought a house in Nov.

[Bill Hinds]

Sounds like you are looking to create a $50,000 salary or income for you to live off of.  Don't forget to factor in how much you will need to re-invest in the business.  If you don't your business will not likely grow as you will not have any additional $'s or you will have to dive into your $50000 salary which may not make your wife to happy.  Gotta remember if Mama isn't Happy NooooBody's Happy!!!  

Good Luck!

[Ivan Beaver]

Evan Kirkendall wrote on Thu, 24 December 2009 00:13

I started making a lot more money when I stopping purchasing gear. Evan

HOW TRUE!

One of the serious addictions in the business is gear.  "If I get that new console-I will be able to get into a larger market-If I get more loudspeakers-I can do more people" and it never ends.

I have been SERIOUSLY addicted a couple of times and just like drugs it just about ruined my life.  The last time I swore off the rental business I was around $70K in debt.  I sold off my gear-got a day job that I still have -and found out that I owed the IRS $28K for the profit on the gear I sold.  

I went back in debt-but paid it off and have been debt free ever since (except the house)   Off course with 1 kid in college and another going next year that may be different

I talked to one of my mentors from my early days (about 30yrs ago) a little while back.

He is still doing the rental thing-but is making good money.

HOW?  He is STILL running the same cabinets and amps that he was 25-30yrs ago.   New consoles however.

He said that the gear was paid off decades ago, and he knows there is better performing stuff out there now-but he has the reputation for doing a quality show (and that is what most customers are interested in-not what model gear you have).

Yes it is bigger and heavy-but he has all these young guys who want to be in "rock-n-roll" to move the stuff around.

Once you start to look at the business side of things and not the passion-things start to look different.

[David "Luke" Landis]

Close to 1k a week in profit