An internet radio business is a relatively new commercial enterprise opportunity that is available because of the ability to stream music on the web. This is a rapidly growing market as people increasingly rely on their home computers for work and recreation. Offering an online specialty music site to a well-defined market niche can be quite lucrative if the details of the unique service, from subscription plans to music selection, are well thought out in every respect. The internet radio business plan will need to explain in the Executive Summary the features that make this business unique in the marketplace because ease of competitor entry is a potential problem. Investors will look for multiple revenue sources like subscription fees, advertising revenues and co-marketing arrangements. Another important question is how the internet radio service will keep people connected to the business so they continue renewing subscriptions. For example, will live radio guests be included in the mix or will regular contests be run to engage the marketplace?
The internet radio business plan will include discuss:
- Station format, i.e. music, local news, etc.
- Size and scope of the market
- Music genre, i.e. rock, pop, Christian, country, classical etc.
- Music rights and sources of music talent, i.e. audio files, unsigned community bands, live music played by guests
- Whether the business is home or station based
- Hours of operation (which determines staffing requirements)
- Capital requirements
- Demographics of the target audience
- Federal Communications Commission (FCC) licensing and other permits
The ability to listen to streaming music files has made starting a radio station affordable. However, like any business there are start-up and operating capital requirements, and potential investors will verify that these factors have been addressed in the business plan. The type of radio station equipment needed depends on the station setup. For example, a station playing live music will need space for bands and appropriate equipment for transmitting high quality sound from a studio. If there will not be live music played, the equipment and space needs are greatly reduced. Equipment for a radio production facility can include electronic hardware, microphones, signal processing equipment, audio recorder, and a lot more.
Ideally, investors will be presented with proof of federal and state licensing and a business plan that includes a detailed analysis of the market and the competition. A successful internet radio station will have a solid plan for advertising and marketing the station and subscriptions. Allowing people to contact the radio station and make comments or music requests is an excellent way to engage the marketplace. Most radio stations have sponsors and having them lined up before delivering the business plan to investors is a plus.
Since so many critical details are required in order to develop an internet radio business plan, many entrepreneurs turn to OGS Capital for assistance. OGS Capital consultants works closely with radio station operators to develop the ideal business plan and can help entrepreneurs target particular investors. You can quickly get the help needed by completing the online contact form.
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