Becoming A Money Making DJ

Popularity: 76% [?]

Mar 12th, 2008 by Kenny

DJing is just about the coolest thing out there and you can even make a few bucks doing it. Here is a primer.

The first rule of business might very well be that a business is a business. In other words, starting a DJ business has a lot in common with starting a factory to produce widgets. It really doesn’t matter that the DJ business is exciting, fun, glamorous, and profitable. There are certain principles that have to be followed or there is little chance of ultimate success. It may be true that your talent and charisma is exceptional, but that is still just your marketable product. It still needs to be marketed correctly.

The very first step of starting a business is the development of the business plan. A successful business does not happen by chance. The majority of them begin with a concise and complete plan. The business plan is based on an estimate of the costs of doing business and the prospects for income. The cost analysis needs to be very carefully done and should include all of the hidden costs that are often overlooked. In the DJ business, the cost of equipment is usually taken for granted, but the hidden costs are not always considered.

A bit of research is necessary to finish the projected income part of the business plan. This can be done by examining the market where you plan to operate. How many competitors are already in business and how busy are they? What is the demand for DJs in your area? How much do they generally earn? These are the questions that have to be answered in the preparation of a good plan. The advantage of the plan, once it is prepared, is that you now have something to help you raise the capital that you will need. A good estimate of the startup costs for a quality DJ operation can run anywhere from $20,000 to $40,000 dollars.

If you are going to seek financing for your business, either through commercial lenders or private investors, the business plan is what they are going to want to look at first. Once again, talent and charisma is all well and good, but lenders are going to want to look at some numbers before risking their money. Once the plan has been made and startup capital is lined up, you should decide on the nature of the business. Most DJs are organized as sole proprietorships which means you have no personal liability protection. It is easy and inexpensive to organize the business as a limited liability type of organization. You will need a lawyer to handle the paperwork here. The advantage is that you are insulated from any personal liability and can lose nothing more than what you have put into your business.

Thinking of all of these business related matters is not much fun for someone who is anxious to get out and become a star playing music and entertaining people. This is certainly true, but if you want to start your own DJ business, it has to be done properly. If you do not want to deal with all of the hassle or do not have a trusted partner with good business sense, you are much better off working for someone else. If you want to do it your own way, you need to do it right.

Find DJ equipment suppliers near you at DJEquipmentandSoftware.com

Popularity: 76% [?]