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Old 17th September 2019
  #52
Quote:
Originally Posted by The Byre View Post
Some important points here that really need to be addressed -

This thread is asking where are all the studios going? The true answer is that they are hitting the brick wall of commercial reality. There are those who think that there is somehow a magic world where we can potter about running a lifestyle business and it will all work out OK somehow. If you are rich and you've got a money-hose, fine. It's a nice hobby that sometimes pays towards its costs!

For everyone else, please remember the words of Ayn Rand - “We can ignore reality, but we cannot ignore the consequences of ignoring reality.”

To claim that opportunity costs are not real costs is to fly in the face of economic reality. If I have $1m to invest in a business, I can put it into a (loss-making?) studio, start a (hopefully) profitable business, or I can simply stick it into a growth fund and leave it there. If the growth fund would have given me 5% p.a. then all other alternatives must be measured against that 5%, if I am to work out if they are genuinely more profitable than doing nothing.

Doing nothing would earn you $50,000 p.a. less inflation of about $20,000.

There is nothing wrong with spending about $1m on a recording studio - I should know! But I am not under any illusion about the profitability of a studio.

As for schools and colleges opening state-of-the-art studios - that is all part of the Great American (and British) Education Scam. Some pointless vocational degree at a no-name college but in a windswept and groovy subject!

"Here at the Wysuckie College for the Totally Dumb, gain vital college credits for money paid!"

All part of the Dewie, Cheatem & Howe group of companies!
I wouldn’t disagree with that. I think you can RUN a studio profitably. I think building one properly from scratch and expecting to to become profitable is a lost cause. You can also run yourself as a studio/business profitably (lots of us do that!).

I don’t always thing measuring what you might make from a given business against what else you could do with the money is the right thing however. It truly depends on what you value, and for some of us “enough” money and a job you enjoy is better than “maximum” money and hating every minute at work.

The difference between a business as an investor, and a business as an owner/operator.