Estimation of Recurring expenses for Radio station Business Plan
Staff expenses forms a major monthly recurring expense for a typical radio station. This constitutes approximately 60-70% of the total monthly expenses of a radio station. Thus if you can keep proper tab on this expense you are effectively in control of 70% of your monthly expenses.
Typically a radio station employs the following staff – President / Owner, Program Producers, Promotion Producers, Production Assistants, Chief Engineer and the technical team, Anchors/Hosts/ Co-hosts, Operations Manager. Advertising Sales & Sales Executive,
You may have your own version of this but you must compulsorily cover all the functions undertaken by these people. An estimation of recurring staff expenses must include salary payment and payment of other perquisites to all these staff members.
Travel expenses of the sales and promotion team forms the second major constituent of the human resource expenses of a radio station. Besides this, you will also need to include expenses incurred on training programs for the staff for continuous up gradation of their skills.
The second major recurring cost head for a radio station includes the expenses on development of programs. This could include development of content or development of commercials. As the program quality has a direct bearing on the popularity of a radio station, this needs to be designed using the best of resources possible, even if that entails incurring recurring monthly expenses to take the services of the best of the creative talent.
Other recurring expenses would include:
1. Rental payments for studio (if your studio is set up on a leased premise),
2. Rental payments for installation place of antennae,
3. Utility bills,
4. Repairs and maintenance of equipments.
5. Maintenance of studio.
The list is too exhaustive there fore to avoid surprises. It is therefore advised to be a bit radical while estimating the expenses. You can also add a provision for unexpected expenses as a certain proportion of your total expenses.
You can download the Radio station Business Blueprint Kit for an exhaustive and complete treatment of the subject by clicking on the radio station business plan link above.
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