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Just opened a new studio... about to go red for first time.
Old 28th May 2020
  #1
Just opened a new studio... about to go red for first time.

Feeling frustrated... This year will be the first time I've gone red on the books. Currently in the black but one or two months away from the red. Not sure how to feel about this? It could be worse, and many have lost more... so I'm not complaining, but feel the need to vent and looking for wise words from other's experiences.

I've been a working musician for 20yrs. I first formed my company in 2008 to score a film, and make taxes easier. Opened my first Micro Studio (2 small rooms) in 2012, and in Nov 2019 decided to move to a much larger Medium Size studio (multi room, three isos, Studio A and B setup). We did a few good projects in Jan and Feb, but have been shut down since March. Pulled a few small mixing jobs during shutdown, but it's mostly dead. Definitely no recording.

Now... I'm feeling forced to turn it back on and attempt to book sessions, but not sure I feel good about that just yet. Also wrestling with the decision to abandon ship, and return to a small home rig with a lot of gear going into storage. It's been a dream to open a place like this, and never really got to use it.... As of right now, we're planning to use a loan to float it and extend the lease, but this is THE WORST climate to try and make it work.
Old 28th May 2020
  #2
Lives for gear
 
AlphaDingo's Avatar
 

Sit with your accountant. A loan for a lease may not be the best idea.
Old 28th May 2020
  #3
Gear Head
 

NYC is a tough spot. But, things appear to be loosening a bit, so who knows? On the plus side, I know plenty of musicians who tried DIY during the lockdown; in the process they gained MORE respect for the pros, which will certainly help when things begin to normalize. I hope you find a way to keep afloat while waiting for the inevitable (IMO) return to being as busy as ever.
Best of luck!
Old 29th May 2020
  #4
Notify your creditors too. This will help to save your credit.
Old 29th May 2020
  #5
Quote:
Originally Posted by Synth Guru View Post
Notify your creditors too. This will help to save your credit.
My credit is ACES and my debt to asset ratio is ultra low. Not counting my lease, I own $150k+ in gear and owe only a few thousand in debts.... that was before obtaining SBA disaster loans. I could hand those back and not use them, but that's crazy. PPP is basically a grant (unemployment check for biz). EIDL is ultra low interest long term loan.

So... it's more about speculating on futures than running out of money. The business has been strong for a long time. Never had a month in the red in almost 10yrs of operating. The only question is... Will there be a stable business climate in 6-12 months, or is this potentially a deeper and darker period with no hope of return on investment? And... Do I remain closed until I feel the pandemic has passed, or return to operating a studio in the active C19 PPE world?

That's what I'm wrestling with.
Old 29th May 2020
  #6
Lives for gear
 

i closed down one of my five studios and sold all of its gear (except some mics) due to the current situation and to keep afloat...

should things not pick up again within the next six months, i'll either sell another studio or pull out of the rental company of which i'm a co-owner; interestingly enough, the latter seems to be picking up steam again and it looks like i'll be very busy from september to december, doing more albeit smaller gigs...
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