Financial Planning for Your Music Business

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Financial management is essential to the success of your music business. Though the costs to start up and operate a KMR business are low, it is important to write out a specific financial plan prior to starting your music business. Your plan should include overall business start up costs, estimated monthly operating costs and estimated income.

It is typically recommended that business owners add at least six months of operating costs when calculating their start up costs. This amount should be placed in a savings account or be available as a credit line to cover sudden business growth or fluctuations.

Costs to Start Your Business

Actual license fees for a KMR business vary depending on the region and whether an exclusive or non-exclusive territory licenses is selected. Overall the cost to start up and operate a Kids' MusicRound music center is modest and is seldom a prohibiting factor. Please call for more detailed pricing.

In addition to licensing fees, here is a list of typical costs associated with staring your own music business. Your local SBA is a great source for a more complete list of business start-up costs related to state and city regulations.

  • KMR Licensee Application Fee
  • Teacher Training Workshop
  • KMR Licensing Fee
  • General Class Materials (i.e. portable sound system, instruments)
  • Local and State Business Registration and License Fees

Costs to Run Your Business

After determining your initial start up costs it is important to estimate and budget your ongoing business operating expenses. These costs vary greatly by location and are, in most cases, under the control of the licensee.

Here is a list of typical operating costs to consider when creating your business financial plan.

  • Space Rental
  • Music Class Materials
  • Telephone and Utilities
  • Liability and Workers Comp Insurance
  • Taxes
  • Marketing Expenses (advertising, brochures, etc.)
  • Professional Development
  • Professional Business Assistance (accounting, legal, tax services)

Income from Teaching Music Classes

The income potential of licensing a Kids' MusicRound center is based on how many classes are offered, the number of students enrolled, and the fee charged per student.

Income = number of classes x number of students x enrollment fee

Licensees may earn a full-time income running multiple locations or choose to operate a part-time business generating a more moderate income.

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