Do you want to know exactly how much it cost to start a recording studio? If YES, here is a detailed cost analysis for starting a recording studio and raising finance.

The Recording Studio cum Music Production industry is indeed witnessing a steady growth over the years especially in developed countries such as the United States, Japan and even the United Kingdom. Though for some underdeveloped countries where piracy is still on rampage, the growth is a bit redundant.

Having provided you with a:

  1. Industry Overview
  2. Market Research and Feasibility
  3. Recording Studio Business Plan
  4. Recording Studio Name ideas
  5. Licenses and Permits
  6. Recording Studio Marketing Plan
  7. Cost of Starting a Recording Studio
  8. Marketing ideas & Strategies

We will consider how much it cost to start a recording studio from scratch including the operating costs.

  • Industry Overview

Although starting a music and production company requires moderate start–up capital, but it is indeed a very profitable venture to go into especially if you live in an urban area where the demographic composition has enough young adults within the age range of 16–35 years. This set of people are ready to do anything to hit the lime light; and music is one of the avenues for them to make their millions and by extension become famous.

Much more than being skilled in mixing sounds, and also having the required capital to set up a music recording studio, you would also need to be socially inclined if you must truly do well in this kind of industry. You should be able to go all the way to promote artistes that sign under your record label.

The truth is that, once you are able to raise one celebrated music superstar under your label, you will struggle less to have artistes to work with. As a matter of fact, you will be screening artistes so that you can work with only the best.

One good thing about starting a recording studio business is that even if you decide to start it in the United States of America, your market will not be restricted to artistes or business in the U.S.; the world will be your target market, many thanks to the internet which has made the world a global village.

All you need to do is to strategically position your recording studio brand on the internet and you will be amazed at the rate people interested in recording their music, audiobooks, or jingles for adverts will be calling you from all parts of the world.

How Much Does It Cost to Start a Recording Studio Business?

The cost of setting up a recording studio to a large extent has reduced from what it used to be; many thanks to the advancement of technology and perhaps the internet. These days it is easier to see people set up recording studios in their homes. All they need to do is register the business and pronto! they are in business.

If you are considering starting your own recording studio, you might not start making profits immediately, but if continue in the business; it won’t be too long before you gain fame and fortune.

The amount required to start a record label company may vary slightly from country to country and from state to state. Part of the factors that can influence the start-up cost of a recording studio is the amount needed to rent or lease a facility, the cost of the equipment you would need and the money needed to brand your business.

On a more serious note, starting your own recording studio is to a large extent dependent on your preference and budget. You could budget and spend millions of dollars, or you could choose to spend moderately; far below a million dollars.

  • When it comes to purchasing microphones and head phones, you can go for Neumann u87; it will cost you about $2000 or more.
  • For mixer, you can go with Euphonix or any other brand of your choice. But Euphonix is great (especially with is sweet sounding preamp and on board compressors). It will cost you about $30,000 or more.
  • On the alternative, you can choose to go for purely digital and skip the mixer altogether. This means you will need a good audio inter face with multiple inputs. 12 stereo pairs minimum. The emu 1820m is a good one.
  • Then cables (nothing else but mogami cables. these are the best audio cables in the market for now; you can explore other options though).
  • You would need to create budget for pre-amp.  Avalon are perhaps your best bet and you can get it for about $2500 or less.
  • You should prepare a good budget for monitor; monitor is one of the most important gadgets you would need in starting your own recording studio. You can go for a Yamaha monitor; it is simply one of the best you can get in the market.
  • When it comes to acquiring a computer, you just have to budget for high end computer designed for such purpose. Your computer should of very large memory, high end graphic card, and 2.6 GHz quad core processor and you can search for a good software to work with.

Other factors that may be slightly different in terms of costing when it comes to starting a standard recording studio in any of the countries listed above are cost of labor, cost of transportation and logistics, local tax, business incorporation fee, cost for promoting and branding the business and rent/leasing amongst other factors.

Over and above, when it comes to starting a medium scale recording studio business, you should be prepared to either rent or lease a standard and centralized facility in a business district; this is going to be one of the areas where you are expected to spend the bulk of your start–up capital.

How Much Does It Cost to Start a Recording Studio Business in the United States?

These are the key expenses you are expected to make when starting a medium scale but standard recording studio company in the United States of America;

  • The total fee for registering the business in the United States of America – $750.
  • The amount required for obtaining licenses and permits as well as accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of the recording studio company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for leasing a standard facility for the studio and administrative office – $150,000
  • The cost for remodeling the facility and construction of studio – $100,000.
  • Other start-up expenses including stationery ($500), phone and utility deposits ($2,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000.
  • The cost for start-up inventory (CDs supply, notice board, printing papers, printing ink/cartridges, pen and stencil et al) – $2,500.
  • The cost for cash register, security, ventilation, signage – $3,750.
  • The cost for the purchase of studio equipment (Digital Audio Workstation (DAW), a DAW Remote, a MIDI Controller, Air conditioners, good lighting systems, Headphones, Mixing console, Multi – track recorder, Microphones, Reference monitors which are loudspeakers with a flat frequency response, Keyboard, Acoustic drum kit, Digital audio workstation, Music workstation, On Air or Recording Light, Outboard effects, such as compressors, reverbs, or equalizers, DE-essers, Cables, Pre – amps, Computers, Audio interfaces, Monitors, Software, Effects racks, CD duplicator, and CD printer) – $200,000.
  • The cost for the purchase of furniture and gadgets (Telephone, printing machines, computers, tables and chairs, book / CD shelves, cabins, standard library, photocopier, fax machine, amongst others) – $4,000.
  • The cost for building and hosting a website – $600
  • The cost for opening party – $2,000
  • Miscellaneous – $5,000

You will need an estimate of three hundred and fifty thousand dollars ($350,000) to successfully set up a medium scale but standard recording studio company in the United States of America. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and it applies to a standard recording studio.

Starting a small scale but standard record studio company that can only carry out basic recording services/studio works in the United States of America will cost about twenty thousand dollars to fifty thousand dollars ($20,000 to $50,000). Please note that with this budget, you will be expected to settle for fairly used studio equipment and the studio will be built in your home so as to enable you cut cost and overhead drastically.

When it comes to starting a standard and large-scale recording studio with several studios in key cities in the United States of America, a recording studio company that offer services in various niche areas in the music industry and a record studio company that has the intention of selling franchise in the nearest future, then you should look towards budgeting well two million, five hundred thousand dollars ($2.5 million).

How Much Does It Cost to Start a Recording Studio Business in the UK?

These are the key expenses you are expected to make when starting a medium scale but standard recording studio company in the United Kingdom;

  • The cost for remodeling the facility and construction of studio – £86,500.
  • The cost for leasing a standard facility for the studio and administrative office – £135,000.
  • The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – £2,400.
  • The cost for hiring business consultant (including writing business plan) – £2,500.
  • Marketing promotion expenses for the grand opening of the recording studio in the amount of £3,500 and as well as flyer printing (2,000 flyers at £0.04 per copy) for the total amount of £3,580.
  • Legal expenses for obtaining licenses and permits as well as accounting services (software, P.O.S machines and other software) – £700.
  • In the United Kingdom, online applications are usually registered within 24 hours and cost £12 (paid by debit or credit card or PayPal). Postal applications take 8 to 10 days and cost £40 (paid by check made out to ‘Companies House’). There’s a same day service costing £100.
  • Other start-up expenses including stationery (£300), phone and utility deposits (£1,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – £60,000
  • The cost for start-up inventory (printing papers, printing inks / cartridges, pen and stencil et al) – £2,000
  • The cost for cash register, security, ventilation, signage – £2,500
  • The cost of purchase and installation of CCTVs: £4,500
  • The cost for the purchase of studio equipment (Digital Audio Workstation (DAW), a DAW Remote, a MIDI Controller, Air conditioners, good lighting systems,Headphones, Mixing console, Multi – track recorder, Microphones, Reference monitors, which are loudspeakers with a flat frequency response, Keyboard, Acoustic drum kit, Digital audio workstation, Music workstation, On Air or Recording Light, Outboard effects, such as compressors, reverbs, or equalizers, DE-essers, Cables, Pre – amps, Computers, Audio interfaces, Monitors, Software, Effects racks, CD duplicator, and CD printer) – £180,000.
  • The cost for the purchase of furniture and gadgets (Telephone, printing machines, computers, tables and chairs, book / CD shelves, cabins, standard library, photocopier, fax machine, amongst others) – £2,500.
  • The cost for building and hosting a website – £600.
  • The cost for opening party – £2,000.
  • Miscellaneous – £5,000.

You will need an estimate of three hundred and twenty thousand Pounds Sterling (£320,000) to successfully set up a medium scale but standard record studio company in the United Kingdom. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and it applies to a standard recording studio.

Starting a small scale but standard record studio company that can only carry out basic recording services/studio works in the United Kingdom will cost about eighteen thousand to forty eight thousand Pounds Sterling (£18,000 to £48,000). Please note that with this budget, you will be expected to settle for fairly used studio equipment and the studio will be built in your home so as to enable you cut cost and overhead drastically.

When it comes to starting a standard and large-scale record studio company with several studios in key cities in the United Kingdom, a recording studio company that offers services in various niche areas in the music industry and a record label company that has the intention of selling franchise in the nearest future, then you should look towards budgeting well two million, two hundred thousand Pound Sterling (£2.2 million).

How Much Does It Cost to Start a Recording Studio Business in Canada?

These are the key expenses you are expected to make when starting a medium scale but standard recording studio company in Canada;

  • For federal incorporation of business in Canada, the cost to incorporate is $200 if filed online through Corporations Canada’s online Filing Centre ($250 if filed through other means).
  • The amount required for obtaining licenses and permits as well as accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of the recording studio company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for leasing a standard facility for the studio and administrative office – $150,000
  • The cost for remodeling the facility and construction of studio – $100,000.
  • Other start-up expenses including stationery ($500), phone and utility deposits ($2,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000.
  • The cost for start-up inventory (CDs supply, notice board, printing papers, printing inks/cartridges, pen and stencil et al) – $2,500.
  • The cost for cash register, security, ventilation, signage – $3,750.
  • The cost for the purchase of studio equipment (Digital Audio Workstation (DAW), a DAW Remote, a MIDI Controller, Air conditioners, good lighting systems,Headphones, Mixing console, Multi – track recorder, Microphones, Reference monitors, which are loudspeakers with a flat frequency response, Keyboard, Acoustic drum kit, Digital audio workstation, Music workstation, On Air or Recording Light, Outboard effects, such as compressors, reverbs, or equalizers, DE-essers, Cables, Pre – amps, Computers, Audio interfaces, Monitors, Software, Effects racks, CD duplicator, and CD printer) – $200,000.
  • The cost for the purchase of furniture and gadgets (Telephone, printing machines, computers, tables and chairs, book / CD shelves, cabins, standard library, photocopier, fax machine, amongst others) – $4,000.
  • The cost for building and hosting a website – $600
  • The cost for opening party – $2,000
  • Miscellaneous – $5,000

You will need an estimate of three hundred and fifty thousand dollars ($350,000CAD) to successfully set up a medium scale but standard recording studio company in Canada. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and it applies to a standard recording studio.

Starting a small scale but standard record studio company that can only carry out basic recording services/studio works in Canada will cost about twenty thousand dollars to fifty thousand dollars ($20,000CAD to $50,000CAD). Please note that with this budget, you will be expected to settle for fairly used studio equipment and the studio will be built in your home so as to enable you cut cost and overhead drastically.

When it comes to starting a standard and large scale recording studio with several studios in key cities in Canada, a recording studio company that offers services in various niche areas in the music industry and a record studio company that has the intention of selling franchise in the nearest future, then you should look towards budgeting well two million, five hundred thousand dollars ($2.5 millionCAD).

How Much Does It Cost to Start a Recording Studio Business in Australia?

These are the key expenses you are expected to make when starting a medium scale but standard recording studio company in Australia;

  • In Australia, the fees to register your business name with ASIC include: $34 for 1 year. $80 for 3 years.
  • The amount required for obtaining licenses and permits as well as accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of the recording studio company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for leasing a standard facility for the studio and administrative office – $150,000
  • The cost for remodeling the facility and construction of studio – $100,000.
  • Other start-up expenses including stationery ($500), phone and utility deposits ($2,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000.
  • The cost for start-up inventory (CDs supply, notice board, printing papers, printing ink/cartridges, pen and stencil et al) – $2,500.
  • The cost for cash register, security, ventilation, signage – $3,750.
  • The cost for the purchase of studio equipment (Digital Audio Workstation (DAW), a DAW Remote, a MIDI Controller, Air conditioners, good lighting systems, Headphones, Mixing console, Multi – track recorder, Microphones, Reference monitors, which are loudspeakers with a flat frequency response, Keyboard, Acoustic drum kit, Digital audio workstation, Music workstation, On Air or Recording Light, Outboard effects, such as compressors, reverbs, or equalizers, DE-essers, Cables, Pre – amps, Computers, Audio interfaces, Monitors, Software, Effects racks, CD duplicator, and CD printer) – $200,000
  • The cost for the purchase of furniture and gadgets (Telephone, printing machines, computers, tables and chairs, book/CD shelves, cabins, standard library, photocopier, fax machine, amongst others) – $4,000.
  • The cost for building and hosting a website – $600.
  • The cost for our opening party – $2,000.
  • Miscellaneous – $5,000.

You will need an estimate of three hundred and fifty thousand dollars (AUD$350,000) to successfully set up a medium scale but standard recording studio company in Australia. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and it applies to a standard recording studio.

Starting a small scale but standard record studio company that can only carry out basic recording services/studio works in Australia will cost about twenty thousand dollars to fifty thousand dollars (AUD$20,000 to AUD$50,000). Please note that with this budget, you will be expected to settle for fairly used studio equipment and the studio will be built in your home so as to enable you cut cost and overhead drastically.

When it comes to starting a standard and large scale recording studio with several studios in key cities in Australia, a recording studio company that offer services in various niche areas in the music industry and a record studio company that has the intention of selling franchise in the nearest future, then you should look towards budgeting well over two million five hundred thousand dollars (AUD$2.5 million).

Estimating Start–Up Cost for Recording Studio Company Based on the following factors;

  • Specific Location

Record studio company and most service based type of businesses require that you see physically with your clients hence it must be located in a good location; a location that is prone to both human and vehicular traffic and a location that has the right demographic composition if indeed you want to attend to loads of clients and maximize profit from the business.

  • Staff/Manpower

When it comes to starting a standard recording studio company on a large scale, you would need the services of the following professionals;

  • Chief Executive Officer
  • Studio Manager
  • Music/Record Producer
  • Sound/Recording Engineer
  • Admin and HR Manager
  • Marketing and Sales Executive
  • Accountant
  • Front Desk Officer
  • Other roles can be contracted; roles like company lawyer (entertainment lawyer), graphic artist and brand manager

Can a Recording Studio Business be Bootstrapped on a Lean Budget Right from Home?

If you a looking for a small scale business that you can successfully bootstrap on a lean budget right from your home, then you should consider starting a recording studio. One good thing about recording studio business is that you can successfully run the business from your home especially if you choose to operate on a small scale.

As a matter of fact, you can start a recording studio company with as low as twenty thousand dollars or even less depending on how small you want the business to be. All you need to do is to register the business, purchase the basic needed studio gadgets (fairly used), print your business card and market your services.

The challenge here is that you must be ready to take on more than half of the available roles in the business. You should be able to serve as the manager, accountant, human resource and admin officer, sales and marketing officer sound engineer, music producer et al.

How Much Does It Cost to Buy a Recording Studio Franchise?

From available research conducted, there are no known fully operational recording studio business in the United States of America, United Kingdom, Canada and Australia that is into franchising; most players in this line of business are adopting strategies that will help them leverage on the internet and main stream media to market and promote their business.

Besides, it is easier to start and run a recording studio business from scratch to profitability without leveraging on a known brand name. People will patronize your services based on your competence as against relying on a brand name.