When running a business, an owner is not only going to meet challenges but also expenses. Business expenses for a radio station may be calculated differently than any other business, but that doesn’t mean that the funds can’t be allocated. From production to transmission, here are some costs to expect when running a radio station.
There are two types of costs you can expect: the start-up expenses and the recurring expenses.
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Startup expenses include engineering fees, studio equipment, and the application.
An application is needed for the first step of running a radio station. Obtaining licenses and important legal documents as well as checking the available frequency should be taken care of by the owner. However, if it takes too much trouble to do the work, it might be worth it to hire a pro.
An engineer can prepare your radio station set-up and find out the frequency to use. There are many professional engineers that focus on the broadcasting industry. It’s important to have your business run by someone with radio specific knowledge. They can install and transmit the equipment quickly because that is their expertise.
Another essential part of the business is the studio equipment. Depending on the scale of your radio station, studio equipment may take the biggest part of the total budget allocation. If you want to use new equipment that would of course be more expensive than finding second hand equipment that can be half the cost.
An Emergency Alert System must be purchased initially because it can monitor the airwaves for any emergency alerts. There are used EAS, but it is not a common item because no radio station replaces it. If you are short on the budget, you might want to purchase moderate grade studio equipment instead of aiming for the high quality that could cost a fortune. However, some low quality pieces of equipment don’t have good clarity.
Something else to consider having is a second production studio that can record materials. It may not be necessary, but if you want to have better materials while the other talents are doing live broadcast, then the secondary studio is surely needed.
Antenna, transmitter, and other equipment that can make transmission smoother – this can cost up to $12,000 depending on the type you choose. Air broadcast utilizes transmission equipment as part of the necessary tools.
Recurring expenses include the staff and the utility costs
Rent and Utilities
If buying a space costs too much, renting is another great alternative. A dedicated transmitter may be needed in case your rooftop has no space for the antenna. The transmitter and all of the equipment also need electricity to power them up. Also, phone and internet connections are necessary.
Whether it is the radio talent or the administrative staff, you need to allocate the money for the payments. It is part of an operating budget to keep the office running smoothly according to your company philosophy.