Posted on : 16-08-2009 | By : Live Concert | In : Live Music
Tags: Live Music, Music, Online Music
Three times in the final month I have been asked the question, “what do I need to do to organize a gig?” In reality, when this question is asked it could mean several things: How do I find a Club? How do I sort out the PA? How do I get an audiences? And so on.
But there is a stage before all of this: the budget. I would suggest that the moment you start thinking about organizing an party you should write a budget. This budget spreadsheet informs you of the majority things that you will need to contemplate and will likewise demonstrate for you the risk, projected profit and the breakeven point. A sample spreadshhet is available to download from this address http://www.josaka.com/features/2005/Organize-A-Gig/Event-PandL.pdf
Assuming that the budget numbers do not look prefer they are working perhaps the gathering isn’t the right thing to be running. If you do not prefer the level of risk, perhaps you aren’t cut out to be a promoter.
So the start point is a spreadsheet. This should include all costs and all incomes. The key headings for costs should include: performer cost, PA, lighting, Venue hire, marketing, box office costs etc. The income is prefer ly to be largely ticket sales but don’t forget the chance to add a sponsor to the event.
The spreadsheet will help you work out the breakeven point for the get together i.e. how many tickets you need to sell to cover all costs. Every sale beyond breakeven is of course profit (exluding any box office commision). The added bonus of creating an get together spreadsheet is that helps define all the key tasks to be performed.
The realisation of the forecasted numbers developing into actual figures suggests that all parties have got the deal they were looking for or agreed to. The sample speadsheet also illustrates that everyone else involved in the show is largely earning a fixed cost and as a result the only individual taking a financial risk is the promoter.
So if you are thinking of organizing a live event I coomed you to work on the numbers first. This will stimulate ensure you deliver a excellent show and have control over the money.