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Old March 28th, 2004, 04:53 PM   #1
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Need ideas for studio facility project

Hi. I have an uncle which is prepared to invest in the construction and operation of a small media facility, could be used as a TV or audio studio. I want to convince him of the importance of building a high-quality acoustically designed space. He has construction workers, expertise and materials at hand so it makes sense because from his standpoint it's less expensive to build (no pun intended) value which in this market is not the norm. TV studio facilities available for rent in Chile are usually non-treated, rectangular buildings not built with this kind of use in mind. So I am searching for ideas that will help me convince him to take the idea seriously and invest. Any ideas that might help? Thanks!
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Old March 28th, 2004, 05:02 PM   #2
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Perhaps the easiest way to accomplish one part of this is to arrange for a tour of an existing professional facility that does meet the standards you set.
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Old March 28th, 2004, 05:16 PM   #3
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That's a very good idea and I had not though of it. That would a very good first step. Thanks!
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Old March 28th, 2004, 06:55 PM   #4
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Certainly, I am not familiar with the Chilean studio market nor with your uncle. But if your uncle is a businessman (as he sounds to be) and his interest is truly one of investment rather than appeasement of a nephew, then you may need to approach this as a true financial proposition.

Investment implies a return. That's what makes it different from an expense. What will it cost to build such a facility? What will be the cost to capitalize that investment? What will it cost to maintain the studio (ex: insurance, taxes, et.al.)? What are the genuine prospects for producing revenue from it? What will make a first-class studio more attractive to perennially penny-pinching film and music producers? What is the value proposition to them? Who is competing for such projects in your market? What are the prospects for unloading this investment in the future at a reasonable time-adjusted value? Etc.

If my nephew approached me with such an idea, these are the questions I would expect him to credibly answer.
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Old March 28th, 2004, 07:47 PM   #5
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Also, survey current customers and see what they're looking for, what they think they'll pay for, and what they wish existed on the market.
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Old March 28th, 2004, 11:16 PM   #6
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> What are the genuine prospects for producing revenue from it?

Thank You Ken, Michael.

We already have an idea of what we can make per day based on what others charge for similar spaces and services. And we also already have two customers, actually my uncle does... so he is half-convinced already :-)

I also have a client for an album production... he just needs the mix (the project will be recorded somwhere else) but at least it will be a good first audio credit.
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