How to Start a Radio Station Methodically - 'Radio Station Business Plan' Explained Step By Step!

Starting a radio station requires you to break up all the activities into two broad parts -

(1) Making the radio station business plan.

&

(2) Ground execution.

You will be surprised to learn that most of the people who start a radio station spend 3-15 months just making the plan and only 2-3 months for actual ground execution.

Benefits of a making your Radio station Business plan

1. It defines the key actionable and sets you into a progressive and definite action mode.

2. While drafting the plan one gets to know the ins and outs of the business.

3. The broadcast license application is judged based on the quality of the plan.

4. It is the only way to raise funds from banks, investors or venture capitalists.

5. Expenses are incurred based on a well thought out scheme thereby reducing the chances of wrong buying.

Contents that you should incorporate in your radio station business plan

(just an indicative list)

1. Identifying statutory norms and proposed compliance.(licensing, royalties, taxes, human resource laws etc)

2. All data required for completing the license application form.

(U.S applicants can check the requirements of point 1 & 2 at www.fcc.gov/. U.K applicants can check for these details at: http://www.ofcom.org.uk/. Other country applicants should simply search for the term "broadcast license, your country name" in a search engine to find out the licensing authority of your land.)

3. Demographic survey of the city where you want to start. (specific tastes and preferences).

4. Niches in which you want to operate- i;e target audience, contents and other specialties for your station.

5. Quotes from equipment providers and comparison of vendors. (It is advised to buy all equipments from a single supplier as it would bind him to give you solutions and not just equipments)

6. Studio design, layout, location and other technicalities.

7. Organizational structure and the constitution of the company.

8. Financial projections and estimations.

9. Human resource requirement planning.

10. Performance rights organization and royalty payments management planning.

11. Marketing and promotional plan.

12. Program production and promotion content.

You are ready with your business plan, when you collate all this data at a single place.

Mind you that you are not spending even a single penny up till this stage.

After you obtain a license with the help of a well drafted business plan, you will then get down to execution.

You will require the services of solution providers like equipment vendors, production designers, software suppliers etc.This would be the ideal time to take the services of consultants and other specialists.