Economics: Cost and Music Essay example

Submitted By sb1776
Words: 700
Pages: 3

Economics

The business i am creating is a music production and promotion business. I chose this type of company because music will always be around and i have a strong passion for music. I feel if i had an opportunity to produce and promote peoples "art" i would have a posotive impact on society by putting out there posotive music and influences.

This business would benefit me by being able to do something i love to do while at the same time making money and getting my name out there aswell, and it would give me the opportunity to do things that not everyone gets to do and possibly go places not everyone can go. This would also benefit me by giving me the satisfaction of producing and promoting great music.

My business would be located in hollywood California because i would stay close to my familly and this would also be a good place to be located because hollywood is a great place to promote and all the "big" stars conduct themselves in hollywood, hollywood is a big place for music. There is only really two downfalls to being in hollywood and that is artists that are somewear els may not have acess to your studio but if i make it big time that would be no issue i could get them out here with no problem. The second downfall would be costs, the costs of being in hollywood would be more expensive than it would be in a less famouse/popular area.

The goods i would be providing are a studio and cd's. The services i would be providing would be production and promotion. To start i would have to build a studio which would probably be around 350,000 dollars. Then i would have to get insurance which would be around ($600) a month then property taxes which would run about ($900) a month then utilities about ($600) a month, then i would probably have 3 employes and their salary would be around $35,000 a year. I'd probably have to have a loan to get the $350,000. If i had 20 years to pay it off with a average interest rate of 6.5% it would cost 3,885.71 a month, so just to open the door for one month the cost would run about $14,735.71. If i could book 35 hrs a week and charge $125 an hr. i would make $17,500 a month, that would leave me a total profit of $2764.29 which isnt much so then i would have an employer promote the artists work. Costs for this can vary so there is never a set price on how much it will cost or how much you will profit this all depends on the…