If you want to make money...

[teleblaster]

You gotta spend money; right? At least that's how the addage goes...So this is my 3rd business venture. I've hung out my shingle as a general contractor, and as an independent software developer. I'm currently working FT for a large software company and building my songwriting business in my spare time with the cash from my 'day gig'My first 2 ventures were, well.., less than raging successes. The GC business was extremely painful, the s/w business wasn't a huge money maker, but it was actually a great stepping stone into the career I have now.It seems that most business models these days are built around loans and cash flow. I'm currently workng on a cash basis. Upsides: 1) less pressure -- my house, life savings, health insurance etc aren't on the line (at least not because of my business), 2) no interest payments eating into my bottom line (assuming I make some money at this some day). Downsides: 1) It will take longer to get to the place where I'm songwriting full time 2) I'm pushing old gear and I don't have the option of buying expensive software libraries, plugs etc. 3) lost opportunities -- I could probalby quadruple my output if I were writing fulltime, and have time for more business developmentCurious to hear how others are managing costs and cash flow with their businesses. ThanksErich BTW: I'm not trying to be one of those 'cash only' self rightous dudes. In this economy with a projected deficit of 1Trillion plus, inflation is almost certainly around the corner, a business loan might make perfect sense -- borrow today's money and pay back at an inflated value.

[fusilierb]

May 26, 2009, 10:52am, teleblaster wrote:YCurious to hear how others are managing costs and cash flow with their businesses. Poorly. I'm so upside down in cash outlay for gear versus income from gear its comical. But, I use the gear I did invest in on a daily basis and have gotten more out of it personally than almost anything I've ever blown cash on before. And it does take money to make money, so its an investment in yourself. Can't take it with you!B

[chriscarter]

It took me a while before I could turn things profitable. Like many people here on the forum, I spent a few years spending more money than I was making. And I managed to run up some good credit card debt in the process (something I don't recommend because it wasn't fun paying it off).The easy part for you is that you have a good 'day job' so I wouldn't worry so much about turning a profit right away. Rather, I'd try and situate yourself long-term thinking at least three years down the road. The scary part comes when you turn this music thang into your day job - and trust me, it's SCARY. In terms of cash flow, you always have to keep stuff in reserve because your income will be like a rollarcoaster from month to month. You will get used to it, but it's tough to grapple with at first.Whatever you do though, DON'T take out a loan. There is massive instability in this business right now. Currently, the only thing slightly stable is writing cues for TV, and honestly I see the stability in that starting to become highly questionable. The reality is that you should never take out a loan unless you have a solid plan on how/when you will be able to pay it back and you just can't make those kinds of predictions in this business. Just make wise decisions in terms of what you spend on gear and what you spend on outsourcing work. It's just like any other business and you have to weigh the opportunity costs of any investment you make. But you are right that you do have to spend a certain amount of money to get things going. Part of it is gear, and part of it is hiring people that are better than you at certain things so you aren't wasting your own resources (a lesson I learned the hard way!).Best of luck to you!TAXI FORUM MEMBERS ONLY: 50% off mixing from July 1 through July 31. This is ONLY for my TAXI forum friends.

[fusilierb]

May 26, 2009, 3:14pm, chriscarter wrote: Currently, the only thing slightly stable is writing cues for TV, and honestly I see the stability in that starting to become highly questionable.

[k o star]

"Curious to hear how others are managing costs and cash flow with their businesses. "Soldier-ing on!!!Grateful to have this "day job" to support the Music!K

[mazz]

May 26, 2009, 8:12pm, reasondemon wrote:"Curious to hear how others are managing costs and cash flow with their businesses. "Soldier-ing on!!!Grateful to have this "day job" to support the Music!KContinuing with the day gig to fund the business and forgoing much sleep to feed the pipeline "on spec" until such time as the amount of tunes out there reaches a critical mass and starts generating livable royalties. Some days I'm more patient than others!