DJ - MDJ Business 101 - Getting Started Step 3.3 {Insufficient Startup Capital}
"DJ 101" - "MDJ 101" Get your checkbook out. How much will it cost to start a Mobile Disc Jockey (MDJ) business? Ideally your initial investment to open a Mobile Disc Jockey (MDJ) company could be around $75,000. Most Mobile Disc Jockey (MDJ) ventures fail for simply lack of planning.
There is the saying: Failing to plan is planning to fail!
3. Insufficient Startup Capital. This is possibly the single most damaging catalyst to the Mobile Disc Jockey (MD) industry. Entering a Mobile Disc Jockey (MDJ) business with little to no startup capital. In many cases people are in an unstable work situation. Little to no savings and nothing to fall back on. In many cases the Mobile Disc Jockey (MDJ) venture is an attempt to fill in the deficit(s) of other employment. The temptation to purchase starter gear and low cost promotional materials is born out of necessity due to being under funded. This is also the point where most contempt is fostered. An under funded Mobile Disc Jockey (MDJ) is proud of their system, even though it may lack professional and commercial appeal. I've seen Mobile Disc Jockey (MDJ) systems literally duct taped together. Think about the image being displayed. How can you justify your value if your tools do not present a professional or commercial image.
Example: For several years I chose to build the lighting products that we used in shows. Largely due to economic factors. Lighting was costly to acquire and costly to maintain. I was able to build solid music libraries and sound systems at the expense of lighting because I was underfunded. Looking back, I would most definitely do things differently. It seems very superficial, however, the industry has changed. If you do not have the tools of the trade up front your credibility is suspect. Why? Too many Mobile Disc Jockeys (MDJ) selling the gear rather than their talents.
What's a good rule of thumb? That depends on your business plan. You can choose what level you want to compete on. This choice is critical. What you RUN affects where you'll have FUN. If you're happy playing VFWs and Legion Halls a basic run of the mill system will do. If you are attempting to play high dollar venues buying gear that is conducive is prudent.
While it is possible that a Mobile Disc Jockey (MDJ) can enter the industry for as little as $1,500 the truth of the matter is that audio, lighting, music libraries and office supplies should cost you around a minimum of $20,000 to adequately compete as a legitimate business. Transportation (Gig Rig) adds another $15,000. Proper startup promotional marketing adds another $15,000. Factor in at least one year of payroll for you or a staff and you add another $25,000.
Let's do the math:
$20,000 Gear, Music & Office
$15,000 Vehicle
$15,000 Advertising
$25,000 Payroll
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$75,000 Basic Mobile Disc Jockey Startup Capital
This is a first glimpse as to WHY the Mobile Disc Jockey (MDJ) is undervalued. The entry level philosophy to do it yourself on the cheap with little to no training. That is a huge white elephant to hide. This is why so many Mobile Disc Jockeys (MDJ) justify why they are worth less, not more.