Backyard Theater Forum
December 12, 2017, 03:09:41 am *
Welcome, Guest. Please login or register.

Login with username, password and session length
News: If you're having difficulty activating your new user account  please check your junk mail folder for the activation email.  If you're still having problems, email info at  BackyardTheater.com and we'll help.
 
  Home Help Search Login Register   *
104 Guests, 0 Users
Welcome, Guest. Please login or register.
December 12, 2017, 03:09:41 am

Login with username, password and session length
Backyard Theater Marketplace
Projectors at Wal-Mart
Projectors at walmart
Recent
[November 03, 2017, 03:29:04 pm]

[October 21, 2017, 12:27:05 am]

[October 16, 2017, 02:36:34 pm]

[October 13, 2017, 10:21:19 am]

[September 23, 2017, 10:06:50 am]

[September 18, 2017, 10:29:07 pm]

[September 12, 2017, 09:43:17 pm]

[September 11, 2017, 10:58:22 am]

[August 31, 2017, 05:10:11 pm]

[August 17, 2017, 06:11:09 pm]
Add a BYT Badge to your website!

Backyard Theater - Outdoor Movies

Backyard Theater - Outdoor Movies  




Digg This!
Pages: [1]   Go Down
  Print  
Author Topic: Should I make it a business?  (Read 2438 times)
waverz
Full Member
***
Offline Offline

Posts: 94


View Profile
« on: June 06, 2016, 09:09:31 pm »

I've been doing BYT for 4 years now and have collected what I think is a pretty decent assortment of equipment. I play movies at home every weekend weather permitting and while I love doing it.  I think I would really enjoy making money by letting other prole enjoy it with me.  I have spent the last couple days reading posts in this forum and the more I read the more I realize I don't know what I am doing as far as owning and operating a business.

My biggest concern is insurance mostly followed by licensing fees. Is there any room for profit after that?  I live in the NE corner of Iowa. As far as I know there is no one around doing what I could do with the equipment I have.  I really have no idea if I could get business or not.  I have had a couple people ask me about doing private shows but I am almost certain once I tell them how much I would need to charge they would quickly lose interest.

People around here don't have a lot of money so I know I'm not going to be able to charge what some of you charge but I am thinking around $200 for the minimal amount of gear and working on different price points depending on screen size and audio needs.

What's the worst that can happen?  I don't get any business and im out a few hundred bucks on insurance and business startup costs? It seems like a gamble but in willing to try.

If anyone could offer me advice on how to get started I would greatly appreciate it.
Logged
11visions
Sr. Member
****
Offline Offline

Posts: 260


View Profile WWW
« Reply #1 on: June 07, 2016, 04:55:34 pm »

I made the jump from fun to business back in 2011 and as of this spring I now do it full time. First off, you have to live in an area where there is at least some people with disposable income. I live next to an extremely wealthy country where the medium income is over $100k/year so that part is easy for me. About 75% of my business is backyard-sized screens renting from $160-$300/night. I have between two and six rentals every weekend depending on weather. A single event of this size will take about three hours of your time (including driving) so you have to figure your cost of labor into the cost you charge. If, for example, you value your time at $20/hour, you need to make back at least $60 just to pay for your own labor. Then you need to decide a cost for rental of the gear. Let's say you charge 5% of retail for a rental fee. If your gear is worth $2000, you should be making an additional $100 on top of your labor costs. So that means you need to be making at least $160 per rental to make it worth your while. BTW, that's the exact figures I used to come up with how much I charge at MINIMUM.

Here's some expenses to think about:
- Liability insurance ($1000+ year depending on estimated rental income)
- Business auto insurance ($500+ year)
- Loss of goods (I have hundreds of dollars of equipment damaged by weather every year)
- Advertising
- Taxes

You're going to lose all your nice weekends too as 90% of rentals are Friday/Saturday. Other downsides include very late nights, stressful setup deadlines, annoying customers, etc. Sometimes you have an entire month of weekend rain and make NO money so the income isn't consistent either.

But I say do it. I love it!
Logged

Phillip Hullquist
I toured the U.S. showing outdoor movies in 2010 on Carl's 16x9 screen.
Now I own eight commercial rental screens ranging from 9x5 to 30x17!
waverz
Full Member
***
Offline Offline

Posts: 94


View Profile
« Reply #2 on: June 07, 2016, 05:55:09 pm »






I appreciate the reply. While it's unlikely I will be able to quit my day job doing it,  I think I have a chance at being able to make a little bit of my money back and have a little fun doing it. To be honest I am actually a little bored sitting at home watching movies by myself every weekend.

I like the way you figured your pricing.

Being I have so much audio gear I plan on offering different priced packages depending on the customers needs.

The base package which consists of:

Emotiva processor/pre amp
Blu Ray player
2 JBL EON 515's with stands

For upgrade options I'll have the following.

+$100 for 200" screen
+$50 for 5.0 surround sound (1 JBL EON 515xt' and 2 MTX all weather speakers with stands)
+$100 (2) 18" folded horn subwoofers and 2 800watt sub amps

So basically $450 for the elite package. I already own all the equipment except the inflatable screens. If I can get a couple gigs booked in advance I'll order them.

Setup and tear down is simple. Everything is in racks with wheels and handles and all speaker cables are labled. I just purchased a 5x8 enclosed utility trailer that I should be able to pack everything into.

Going to call about insurance tomorrow.

Mind if I ask what type of business you run? Is it an LLC?

I know little to nothing about owning or operating a business so in kind of going at this blind.

I made the jump from fun to business back in 2011 and as of this spring I now do it full time. First off, you have to live in an area where there is at least some people with disposable income. I live next to an extremely wealthy country where the medium income is over $100k/year so that part is easy for me. About 75% of my business is backyard-sized screens renting from $160-$300/night. I have between two and six rentals every weekend depending on weather. A single event of this size will take about three hours of your time (including driving) so you have to figure your cost of labor into the cost you charge. If, for example, you value your time at $20/hour, you need to make back at least $60 just to pay for your own labor. Then you need to decide a cost for rental of the gear. Let's say you charge 5% of retail for a rental fee. If your gear is worth $2000, you should be making an additional $100 on top of your labor costs. So that means you need to be making at least $160 per rental to make it worth your while. BTW, that's the exact figures I used to come up with how much I charge at MINIMUM.

Here's some expenses to think about:
- Liability insurance ($1000+ year depending on estimated rental income)
- Business auto insurance ($500+ year)
- Loss of goods (I have hundreds of dollars of equipment damaged by weather every year)
- Advertising
- Taxes

You're going to lose all your nice weekends too as 90% of rentals are Friday/Saturday. Other downsides include very late nights, stressful setup deadlines, annoying customers, etc. Sometimes you have an entire month of weekend rain and make NO money so the income isn't consistent either.

But I say do it. I love it!
Logged
11visions
Sr. Member
****
Offline Offline

Posts: 260


View Profile WWW
« Reply #3 on: June 09, 2016, 03:11:07 pm »

I'm operating as a sole prop still, but I will be switching to an LLC next year as the revenue is high enough now that it makes sense to isolate my personal liabilities. In my state, to operate as an SP, you just need to register with the clerk for a business license and a tax ID. An LLC filing will cost you a few hundred dollars + an annual renewal fee. I have insurance through Liberty United Insurance which now runs about $1500/year. They base the rate on the amount of equipment plus your annual revenue so it'll go up as you expand.

Most customers (even the big events) don't know what the different types of equipment are except for screen size so I base everything on that. $xxx for 16', $xxx for 24', etc. There are no upsells to keep it simple. The smaller screens get a smaller sound system and the larger setups get a bigger sound system. I give a 20% discount for weekday dates, but most people don't book on weekdays so it's not used very often. I offered a 5.1 system for two years and not once was I able to upsell it. You may have better results, but my market doesn't care about surround sound.

One great piece of advise I wish I had when I started was to get rain covers for your electronics. I use these:
http://www.amazon.com/Products-24040-Pop-Up-Greenhouse-22-Inch/dp/B00CPHV1W2

You can have the whole system running in the rain without damage. I obviously don't recommend that, but I've come back to pickup gear far too many times and had it sprinkle while I was gone and some gear got wet and/or destroyed. That's not something you want to have to worry about. My speakers are all passive so they can survive water just fine. I actually had a pair of Mackie C200's fall in a swimming pool last week WHILE running and they still work great.

I started with Open Air Cinema inflatables for my smaller screens and Airscreens for the larger ones. I now have ten screens, but I'm starting to buy new ones directly from China because they are far cheaper than anything I can buy here. I can tell you how to source them if you want.
Logged

Phillip Hullquist
I toured the U.S. showing outdoor movies in 2010 on Carl's 16x9 screen.
Now I own eight commercial rental screens ranging from 9x5 to 30x17!
rich92069
Hero Member
*****
Offline Offline

Posts: 1334



View Profile WWW
« Reply #4 on: June 12, 2016, 01:55:41 am »

I just get a plastic tub and cut out some notches for the projector and plop it on top to protect from rain. For $13.00 that's not a bad idea with the mini tent.

Insurance should be very inexpensive for inflatable screens. Below are the top two insurance guys for the inflatable amusement industry.

sam@libertyunitedinsurance.com
Liberty United Insurance Services, Inc.
6005 Vineland Ave, Suite 203
N. Hollywood, CA 91606
Tel: (888) 688 3788
Fax: (888) 265 6889
www.LibertyUnitedInsurance.com


Larry Cossio
Main Office: 107 Old Laurens Rd. Simpsonville, SC 29681
864-688-0121
https://www.cossioinsurance.com/
Logged

Pages: [1]   Go Up
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1 | SMF © 2006, Simple Machines LLC
TinyPortal v0.9.7 © Bloc
Valid XHTML 1.0! Valid CSS!