Viable proposition?

[cookiecat 0]

OK I am desparate to get back on the road again,but alas funds are non existant.

So yesterday I decided to email the MD of my local radio station(Moray Firth Radio) outlining my proposal of a "roadshow"type event featuring MFR DJs.

He has replied saying he would be quite happy for this to happen,subject to conditions.

Now the question is,do you think this would carry any clout when approaching banks for finance?Obviously with a business plan.

Thoughts please.

Thanks.

[YourBigEvent 0]

In what way ?

 

I have a few of the local radio 'DJ's' who can do discos for me, but hardly a good business plan, a DJ is a DJ in the view of the bank.

[cookiecat 0]

I was meaning if I were to approach the bank for funding as "joe bloggs" of the street I would have very little chance with them.

However if I went with the "approval" of the radio station I would be more favourably looked up on.

 

My idea would be to approach all the social clubs around 150 of them offering a package including the local "celeb"

[YourBigEvent 0]

But a local 'celeb' is only a celeb if you listen to that radio station.

Also will the 'celeb' do the gig and you get your cut as well.

I could put a disco out with a local 'celeb', one that does the Breakfast Show, but I would want to get a cut from it, and make it worth my while too.

[cookiecat 0]

It's just an idea at the mo.

MFR is very popular up here around 270,000 listeners a week(a lot for the highlands)

[ChrisPointon 0]

Do you have a local 'Tec' ? these advise people on writing business plans for free, and although mainly aimed at youngsters they will offer honest advice to anybody starting a business and will probably help with writing a working business plan.

 

Any bank is going to be more interested in how you are going to make the repayments on any loan given to you, rather than the staus of your clients, although the fact that the Radio Station is willing to offer you work, will of course be in your favour, just make sure that you have the agreement in writing, even if it is only in the form of a proposal rather than a contract.

 

It really is a chicken and egg situation, after all you can't really take work without equipment, and the bank will be more likely to lend you money if you have secured bookings in the future http://www.dj-forum.co.uk/html//emoticons/533.gif

 

Have you considering discussing this idea with a friend or colleague or even advertising locally for a business partner?, if you go into a partnership with somebody who is willing to put up part or all of the funding, even if they remain a silent partner, it would be half of the battle won, of course they would be entitled to a slightly larger split of the income, (at least until the equipment was paid for) but it probably wouldn't be any more than a repayment on a loan, and a partner would be more tolerant of a reduced payment during quieter times, than a bank would.

 

The other idea of course is to see if any member on DJU wants to introduce a second roadshow in your area, and is willing to supply the equipment in return for a negotiable share of the profits. Obviously this will only work if somebody is geographically close to you and I gather you are in the highlands which may lower the chances somewhat but it wouldn't cost you anything to find out.

[YourBigEvent 0]

PM me Cookiecat with your telephone number

[cookiecat 0]

pm sent

[YourBigEvent 0]

BTW I wouldn't call Brocolli a great vegatable, so next weeks avatar had better be a good one

[cookiecat 0]

Will change it ASAP

[spinner 0]

QUOTE (cookiecat @ Sep 1 2005, 06:22 PM)

the question is,do you think this would carry any clout when approaching banks for finance?

Do you have to use a bank? Quite a few equipment suppliers offer credit or what about a credit card?

[YourBigEvent 0]

IF you want to borrow some money, get a credit card, buy the kit, then get another credit card with 0% BT for 9/12 months

Transfer the O/S balance to the new card and after 9 months get another 0% BT card and do the same.

Its known as being a TART

 

DEBT ISN'T BAD, BUT BAD DEBT IS.............

[Kingy 0]

I would just offer a word of caution in regard to the Local Radio stuff. You will not get away with using cheap gear. It will need to be quality stuff with balanced outputs etc. To set up a decent rig I would guess you are going to be talking several thousand pounds. Remember, most of these guys already have established PA guys doing this.

 

I wouldn't like to think that you are wasting your money with this venture.

[ian 0]

I think that the business plan is what the bank will look at, and when I say "business plan" I really mean projected profit and loss accounts. If you can show that you have some income in the future (confirmed bookings) then they may be happy to lend you the money. If all you have is the potential for bookings (whether it's backed by the local radio or not), they will be less likely to lend you the money. You can probably improve your chances by getting a letter of intent from MFR.

 

Is there an equivalent of "business link" in Scotland? They give all sorts of useful advice with this sort of thing in England.

 

Another possibility would be to try to strike up some sort of deal with a local equipment hire company. They lend you some kit for free for the roadshow and you give them some free publicity at the roadshow and on the radio.

[Kingy 0]

QUOTE (ian @ Sep 2 2005, 12:57 PM)

Another possibility would be to try to strike up some sort of deal with a local equipment hire company.  They lend you some kit for free for the roadshow and you give them some free publicity at the roadshow and on the radio.

Good idea, but in all reality I cant see any advertising advantage to the audio hire company. Joe Public isn't usually in the market for their services, I am willing to bet you have never heard a PA hire company advertising on the radio.

 

Different industries may be willing to trade services for advertising, maybe a carpet cleaner or a tradesman etc but as the PA will be their bread & butter I doubt they would be interested.

 

Hiring in (to start with at least) would be your best bet.

 

I doubt very much whwther a bank would be interested unless you have an ongoing contract or are prepared to put up some kind of security. 1 offs to the bank mean nothing.

 

I also wonder whether MFR really want their top jocks in working men's clubs on a regular basis.

[ian 0]

QUOTE (Kingy @ Sep 2 2005, 01:05 PM)

QUOTE (ian @ Sep 2 2005, 12:57 PM) Another possibility would be to try to strike up some sort of deal with a local equipment hire company.  They lend you some kit for free for the roadshow and you give them some free publicity at the roadshow and on the radio. Good idea, but in all reality I cant see any advertising advantage to the audio hire company. Joe Public isn't usually in the market for their services, I am willing to bet you have never heard a PA hire company advertising on the radio. I'm rubbish at doing the blagging sort of thing, so my advice isn't worth a lot, but it doesn't really matter whether there is any advertising advantage to the PA company so long as you can convince them that there is. I think I'd be more pushing the fact that you'd be getting the PA company's name around at venues rather than with punters.   So maybe the approach you take is to explain that you will be visiting four different venues a month (or whatever), using their equipment at each venue and mentioning to the venue how good the equipment is and that they should keep the PA company in mind for their amplification needs in the future.   I might also try the approach that there's a bit of a lull in equipment hire between the end of the summer and the start of the christmas period, so they might have the equipment around doing nothing over these months when they could get some free publicity out of it.   Whatever, I'd think that it would be an easier proposition to get some free (or cheap) hire from a PA company than a loan from a bank! :-)   QUOTE Hiring in (to start with at least) would be your best bet   I would agree with this. Depending on what you mean by a roadshow, couldn't you work a lot at clubs and use their equipment instead? I used to only use club equipment when I started out (didn't have my own gear then) and so did everyone I worked with. It was only when I started to do weekend events and DJ's turned up with their own decks that I decided to use my own equipment.

[jackcu 0]

Why do you need to have a business plan or even tell the bank what you are doing? They are falling over themselves to lend money to people. I would have thought you simply have to get a form, fill it in, get the money, buy the gear.

 

Whether or not your idea will make any money is another thing entirely - but good luck if you decide to go ahead.

 

Cheers,

 

Jack.

[Dukesy 0]

Basic example.........for perusal

 

Every time someone applies for credit (the credit score) or a 'search' is done on the applicant....the 'search' is registered with credit scoring agencies.

 

This search goes against the applicants name, address, etc.

 

If we say that the 'score' is now a 'rating' - then the rating will go down every time the application / search is made.

 

Too many applications in a short space of time will reflect in the applicants rating.

 

The 'growth period' for the rating to 'climb' is approx 3 months.

 

Thus, if an applicant makes an application for opening an account / credit loan / overdraft / credit-card etc, then the next 'safe' application should technically be in 3 months time.

 

It doesn't mean an applicant can not apply for more credit within the 3 months but the rating would not have time to recover from the initial application.

 

A basic example application for a trading account (mobile DJ) :

 

Month 1 - apply to open a trade account and accept deposits from clients into the business name (cheque) lets presume success on application

Business Plan and full transparency of personal credit history to Bank Manager will help

Month 4 - apply for debit card for the business account - not credit card

Month 6/7 - if required, applicant can apply for low overdraft facility / buffer zone (if not already included in account)

 

The above example is very basic but to the 'credit scoring computer' - applicants are numbers. Poor rating - no application.

 

Bank managers have less and less say every year on credit applications but have a decisive role on 'pushing' applications if they really want to.

Business plans are essential to refer to and carry weight.

They demonstrait the applicants business outline, plan, projections and thinking. If the 'plan is floored' then so will the application.

Hope this helps.

 

[transeurope 0]

Firstly, let me say that everything that Disco Direct said about scoring is bang on the money.

 

Let me add a second very important fact about how banks work.

 

A "real" business loan to a bank is a substantial amount of money. Anything small is just a tarted up personal loan. With a personal loan they are looking at things like your repayment record in the past, your ability to pay come what may and your security...house etc.

 

It is only for a very large loan they really look at the business plan. For a small loan a business plan can help to show your competence and seriousness, but they aren't really relying on it.

 

The threshold each bank applies for a "real" business loan varies from bank to bank, but the reality is that most managers regard a loan that is equal in value to a 25% deposit on an "average" house in your area as a "real" business loan.

 

The reality is that many people think they are small businesses when in fact they are not. A small business has 5-20 employees and turnover in the millions.

 

A microbusiness is one that does not have those characteristics and banks do not depend on the business to finance loans like this. They depend on the individual to do it.

 

An artisan business is what most DJ roadshows are. Sole owner/employee with help from wife/relatives. They share the characteristics of carpenters rather than advertising agencies or bearing manufacturing companies. The latter two are examples of typical "small businesses".

 

Casual staff do not count as employees unless they are hired through a very formalised contract system negotiated with a trade union (like dockers) or through an employment agent (like caterers).

 

If you need further help..ask and I will be more specific.

[YourBigEvent 0]

Agree with most of what TE has said, however there are all small small businesses and larger small businesses, as well as microbusinesses, the business of businesses in everyones own business, I trade like a small business, I think like a small business, I am not a microbusiness, nor a large small business, but I am larger than a microbusiness small business. Most businesses whether a microbuisiness, a small small business or a larger small business should think like a larger business, whether that business is a microbusiness, a small small business, a lager small business, a small large business, or a larger large business. Do you agree ?

[Dukesy 0]

ADS, you are the business when it comes to the word business.

 

Your business, no matter how big or small the business is a business none the less.

 

http://www.dj-forum.co.uk/html//emoticons/biggrin.gif

 

 

[cookiecat 0]

It's none of your business!

[transeurope 0]

There is absolutely no harm at all in thinking like and aspiring to be a small business in the sense of having 5-20 employees etc...real employees or employees with recognisable entitlements and responsibilites and of course having a large turnover.

 

There is no harm in adopting all the best management practice from whatever source, provided it works for your scale.

 

Just like i guess there is no harm in putting advanced petrol in your car or better suspension.

 

You still have to know what you are though and what you are capable of. An Astra with better suspension is an Astra with better suspension. It is not capable of the roadholding of a Ferrrari.

 

If you can make out a business plan like a real small business the bank will be aware that you consider financial management important. That is a good thing.

 

You must however recognise that they will not be using this as the basis of your ability to pay.

 

Even worse, if you start insisting the bank should base their decision on your business plan alone it is pretty much the same as the Astra driver wanting to be put in a race with Schumacher.

 

People just will not take you seriously.

[jackcu 0]

If you simply can't raise the money to buy what you need and a loan from the bank is out of the question, how about we all chip in and live off your vast future profits?

 

I'm semi-serious (I think).

 

Is a simple, personal loan not on the cards?

 

Cheers,

 

Jack.

[spinner 0]

Do you own a house? If you do what about remortgaging, perhaps at a lower rate and to get a few grand extra for your DJ gear?