Are you interested in starting a radio show at home for FREE? If YES, here is a complete guide to starting a radio show business with little money and no experience.
Okay, so we have provided you an in-depth sample radio show business plan template. We also took it further by analyzing and drafting a sample radio show marketing plan backed up by actionable guerrilla marketing ideas for radio shows. In this article, we will be considering all the requirements for starting a radio show. So put on your entrepreneurial hat and let’s proceed.
Why Start Your Own Radio Show?
In the United States, Radio broadcasting is a major mass medium. This is different from most other countries; American radio has historically relied primarily on commercial advertising sponsorship on for-profit stations. Broadcasting in the United States includes federal government programs for audiences beyond the shores of the country. Radio broadcasting became popular in the 1920s, alongside the new film industry.
Though the advent of television in the 1950s forced radio into a niche role, this is as major participants and contributors moved into the much larger field of television. Today, radio has been adjusting to the arrival of the Internet and Internet radio.
In 1912, most amateur-radio transmissions were restricted to wavelengths below 200 meters (i.e., frequencies above 1500 kHz) to prevent interference to future commercial broadcasters. By 1928, the United States had three national radio networks: two owned by NBC (the National Broadcasting Company), and one by CBS (the Columbia Broadcasting System). Until 1943, there were four major national radio networks: two owned by NBC, one owned by CBS ad one owned by Mutual Broadcasting System.
Today, radio stations have indeed become more creative and devising programs that can assist them to continue maintaining a large audience. This is very crucial in the sense that listeners to a particular radio station, radio programme, radio show etc., increases effectively the commercial advertisement sponsorship you can attract.
If you want to start a radio show business, here is all you need to know below;
Starting a Radio Show at Home for FREE – A Complete Guide
- The Radio Industry Overview
In the 21st century, TV is the predominant medium of mass communication, but still yet the level of followership of radio is still extensive. In the United States, Ninety-nine percent of households in 1999 had at least one radio; the average is five per household.
- Interesting Statistics About the Radio Show Industry
Every day, radio reaches 80 percent of the U.S. population. Revenue more than doubled in a decade, from $8.4 billion in 1990 to more than $17 billion in 2000. Also the fact that radio can be listened via the automobiles is still there, as it continues to prevail in automobiles and offices. In fact, the popularity of car radios has led to drive time being the most listened-to on most radio stations, followed by midday (or the “at work” shift).
Unlike most countries, the national and state governments in the U.S. do not operate any stations or networks directed at its own domestic citizens. It does operate networks overseas such as the most widely known network, Voice of America, which serves a general worldwide audience. The number of commercial radio stations had grown to 4,793 AM stations and 5,662 FM stations in 1998. Also, there are 1,460 public radio stations. Most of these stations are run by private foundations, universities and public authorities for educational purposes and are financed by donations, foundations, subscriptions and corporate underwriting.
About one fifth of citizens and residents of the United States, are exposed to radio shows while shopping, which is the major reason behind radio stations attracting adverts and sponsorship from corporate organizations, religious body and the government etc. It is indeed one of the most potent medium to reach out to a larger percentage of Americans. These are the percentage on where Americans listen to radio; Car – 42%, Home – 24%Work – 21%and other medium – 13%.
From the above stated facts and figures, it will be safer to say that the radio show industry is saturated, but that does not stop more entrepreneurs from venturing into the industry. The truth is that, if not for the advent of the internet, there would have been a sharp decline or stagnancy in the growth of radio stations in the United States of America. With the internet, it is now easier to set – up a radio show in the United States, especially as one can do so with some internet radio practitioners or even start an online radio station.
Starting a Radio Show at Home – Market Research and Feasibility Studies
- Demographics and Psychographics
The demographic and psychographic composition of those who need radio shows cuts across different segments of the society as it includes the public sector, the organized private sector, households, communities, religious groups, advocacy groups and people of different class and from all walks of life.
These are some of the statistics that can guide you to choose the demography you want to design your radio shows for;
- With an Average of 11.5 hours spent with radio each week More than 65 million Millennials use radio each week (52% male; 48% female).
- More than 56 million Boomers listen to radio each week (53% male; 47% female)
- Boomers spend the most time with radio each week, with an average of 14.5 hours
- About 94% of Adults ages 18 and older listen to Radio each week with household incomes of $75,000 or more; they listen an average of two hours and 27 minutes per day
- More than 32 million Hispanics are reached each week with radio; in fact they listen more each week than any other ethnic group, with an average of 12.5 hours
- Nearly 92% of African Americans (those 12 and older)use radio each week (47% male; 53% female) i.e. about 25 million African American listeners use radio each week
- Radio reaches 93% of college graduates ages 18 and older each week; they listen an average of two hours and 20 minutes per day
- Radio represents nearly one quarter of the time Americans (Adults ages 18 to 64) spend with media each day.
List of Niche ideas Within the Radio Show Entertainment That You Can Specialize in
When it comes to Radio, and radio shows, there are a plethora of niche ideas that one can specialise in. in fact more than any other mass media industry, it gives one an opportunity to delve into desired niches that suits with one’s ideology, belief, educational background etc. these are a list of the shows that a Radio show enthusiast/entrepreneur can delve into:
- Country Style Show
- News and Talk Show
- Sports Show
- Music Show
- Religious Show (Christian / Islamic/ Judaism et al)
- Documentary shows
- Kiddies show
- Science Fiction Show
- Traffic Shows
- Ladies only shows
- Men’s only shows
- Political shows etc.
The Level of Competition in the Radio Entertainment Industry
Surviving in the Radio show business is indeed an herculean task, this is largely due to the fact that there are a lot of Radio stations out there, both the traditional radio stations, and the internet radio, and there are also 1001 shows that are airing every minute across these radio stations. Thus, the competition in the radio show industry is stiff and only the determined and talented can last.
Though despite all these, it is easy to survive in the industry if you can be creative, innovative and entertaining with your shows, thus If you are into news, then you should serve fresh and latest news always. Naturally, people who listen to news usually tune to stations where they can get news as it breaks. Likewise, if you are into sports, then you should be up and doing in covering live sports events and also bringing the latest news in the world of sports.
List Of Well – Known Brands in the Radio Entertainment Industry
The radio industry all over the globe, is as old as a century now, therefore there are a lot of radio stations that have been in existence for decades. In the United States of America the case is the same. Hence, these are some of the top radio stations in the United States of America;
- WXRK-FM – 92.3 NOW FM – New York
- WQHT-FM – Hot 97 – New York
- WKSC-FM – 103.5 KISS-FM – Chicago
- WBBM-FM – B96 FM – Chicago
- WXKS-FM – Kiss 108 – Boston
- KHKS-FM – 106.1 Kiss FM – Dallas-Fort Worth
- WHTZ-FM – Z-100 – New York
- KIIS-FM – 102.7 KIIS-FM – Los Angeles
- KAMP-FM – AMP 97.1 – Los Angeles
- WIHT-FM – Hot 99.5 – Washington, D.C.
The radio industry is a booming one, thus the income you can generate from your radio show is proportional to the finance that you pump into it. One of the things you require to attract listeners to your show is by running a 24 hours 7 days a week radio station with some of the best on – air radio personality and quality programs, but that is quite expensive.
Though one of the major means of generating income from a radio station/ show is by having a large listenership, with this you can easily attract corporate organizations and individual to place adverts on your radio show.
Is a Radio Show Worth Starting from Scratch or is Buying a Franchise Better?
While many people will prefer the easy route to success, and which is why many persons will like to purchase a franchise rather than starting the business from scratch. The question therefore is; are there radio franchises available?
In the United States, if you want to start a radio station, you only have one option and the option is to start from the very scratch. The nature of the radio industry does not permit them to sell franchise on – like some other industry.
Therefore, if you are about to start a radio show, there is no other route for you than to start from the scratch, because it is only through that, that you can actually show the talent you possess and effectively pass your message. Though the fact that many people are motivated to start a business based on various factors and incentives cannot be over-emphasised.
If you are looking towards building a business that you intend controlling, a business brand that you hope to one day transfer ownership to your children and perhaps also sell franchise in future, then starting from the scratch should be your best bet. But if you only interested in making money and multiplying your wealth, then you may as well buy the franchise of a successful show that is willing to sell its franchise.
Possible Threats and Challenges You Will Face When Starting a Radio Show
The truth is that, organizations place adverts on radio shows that has massive listeners which is why you should always be on top of your game to keep people listening to your radio. This is why the major challenge and threat that you are likely going to face when you start a radio show is the anticipated and stiff competition from your competitors.
Other threat and challenge that you are likely going to face is the usual unfavourable government policies; which is very likely, as the government might come up with policies that will deprive you of airing your audiences’ favourite radio shows especially if it has to do with the security of the state etc.
Starting a Radio Show at Home for FREE – Legal Matters
- Best legal entity to use for your Radio Show
The size of the radio show you intend starting should determine the legal entity that will be appropriate for you. Although it is a fact that when choosing a legal entity for a business such as starting a radio show, you have the option of choosing a general partnership, a limited partnership, an LLC, a “C” corporation, or an “S” corporation.
But on the average it will be better that you start a limited liability company, an LLC for obvious reasons. Please note that these different forms of legal structure for business has its own advantages and disadvantages; which is why you must weigh your options properly before making your choice.
These are some of the factors you should consider before choosing a legal entity for your radio show; limitation of personal liability, ease of transferability, admission of new owners and investors’ expectation and of course taxes. If you take your time to critically study the various legal entities to use for your radio station, you will agree that limited liability company; an LLC is most suitable. You can start your radio show as limited liability company (LLC) and in future convert it to a ‘C’ corporation or a ‘S’ corporations especially when you have the plans of going public (selling shares in the stock exchange).
Upgrading to a ‘C’ corporation or ‘S’ corporation will give you the opportunity to grow your radio show so as to compete with major players in the industry; you will be able to generate capital from venture capital firms, you will enjoy separate tax structure, and you can easily transfer ownership of the company; you will enjoy flexibility in ownership and in your management structures.
Catchy Business Name ideas Suitable for a Radio Show
When it comes to choosing a name for a radio station, there is no specific rule that must be followed, all that is needed is to choose a name that reflects what your radio show professes. For example; if you want to begin a news/talk show inclined radio show, it will be wise to include news/talk show as part of the name for the radio show.
So also if you want to start a politically inclined radio station, the word politics should be part of the wordings when naming your radio show. These are some of the catchy names you can choose from when sourcing for a name for your radio show;
- Classical Show
- Islam Today
- Gospel of the truth
- Rhythm Undiluted
- Documentary now
- Talk Now show
- French 24/7
- Fashion Trends
- Politics Weekly
- Sports 360
Choosing the Best Insurance Policies for your Radio Show
In most countries of the world, and especially In the United States you can’t operate a business without having some of the basic insurance that is required by the industry you want to operate from. So, it is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best insurance policies for your radio show.
Here are some of the basic insurance covers that you should consider purchasing if you want to start your own radio show in the United States of America;
- General insurance
- Health insurance
- Overhead expense disability insurance
- Business owner’s policy group insurance
- Liability insurance
- Workers compensation
Intellectual Property Protection and Trademark
Having a show on Radio requires that your shows are unique and exclusive to you. As a result, you will need intellectual property protection. If you do no secure your special programs or content, the possibility of some other persons stealing your shows can’t be ruled out. It is in fact advisable that you must do this as soon as the show starts airing on Radio.
If you have intellectual property protection for your special radio shows it will make it easier to go to court and challenge anyone who decides to copy your content or program without seeking for permission from you. It will indeed make your show exclusive to you, and wade off impersonators who might want to come up anytime.
Is Professional Certification Needed to Start a Radio Show?
If it is your dream to start a radio show in the United States of America, you will need a professional certification. Actually the most important reason for being certified is to go into the business and knowing fully well what you are doing. Much more than being certified, it is very important that you carry out a thorough and exhaustive research that will help broaden your horizon.
These are some of the professional certification that you can acquire before starting your radio show in the United States;
- Certified Radio Operator (CRO) you can obtain this certificate alongside Broadcast Station Construction Permit / License from the Federal Communication Commissions’ office.
- The Amateur Radio Operator Certificate and Technical Acceptance Certificate (TAC)
List of Legal Documents You Need to Run a Radio Show
The radio industry is highly regulated in the United States and of course in most parts of the world, that is why you cannot possibly go into the radio show business, without first having the appropriate legal documents. This is so because the security and well-being of a nation can be breached if an illegal radio show airs, and pollutes the thinking and sentiments of the citizens and residents of the country.
So, if you want to operate a radio show in the United States, it is advisable to consult the Federal Communication Commission to give you a list of all the legal documents that you would need to legally operate. These are some of the basic legal document that you are expected to have in place if you want to run your own radio show in the United States of America;
- Certificate of Incorporation
- Broadcast station construction permit / FCC License
- Business License
- Business Plan
- Non – disclosure Agreement
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Consulting contract documents
Writing a Business Plan for your Radio Show
Having a business plan is the reason why some businesses have been successful while others failed woefully. The major reason of starting radio shows is to make money and making money involves attracting sponsorships and paid adverts from corporate organizations, government agencies, politicians, churches, activists and individual et al. hence the need of a comprehensive business plan.
Your Business plan is the blue print of your business; it is a business document that will help you to successfully set up a business and also administer / manage the business, you do not write a business plan because others do too, your business plan should be able to pass reality check; you must put relevant facts, figures and statistics into consideration when writing your business plan.
The truth is that, the main aim of writing a business plan is to have a detail guide on how to effectively set – up, run and manage your business. Your business plan should outline and cover strategies on how you intend to operate your radio show and to attract listeners, adverts and sponsorship deals.
You must ensure that you are moderate when it comes to setting projections on income generation when writing your business plan. These are some key factors that you should also consider when drafting a business plan for your radio show;
Executive summary and Company’s descriptions: here it is expected that you write about the concept behind setting up a radio show, descriptions of your company, your company’s vision statement, and mission statement, where your company will be located, the audience you want to reach out to and your management team.
Other key components that should not be missing in your radio show business plan are your service offering, SWOT analysis, marketing and sales analysis / strategies, adverts and sponsorship rates, costing and financial projection, management techniques, expansion strategies, publicity and advertising strategy, budget and start – up capital generation et al.
How Much Does It Cost to Start a Radio Show Business?
It is important to state that if you want to start a radio show, you should go for standard equipment which are really expensive. The concern should not just be about the amount needed to get the required equipment, but also the amount needed to pay employees and run the organization for at least 6 months, and the amount needed to secure a standard facility that meets your expectation and the amount needed to furniture and equip the office, the amount needed to pay bills, promote the business and obtain the appropriate business license and certifications.
When it comes to starting a medium scale radio show, the following will be useful;
- The Total Fee for incorporating the Business – $750.
- The budget for Liability insurance, permits and license – $ 3000
- The Amount needed to lease a suitable Office facility (Re – Construction of the facility inclusive) – $40,000.
- The cost of transmission and studio equipment (Including installation) – $40,000
- The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $3,000
- The Cost of Launching your official Website – $600
- Budget for paying at least 10 employees for 3 months and utility bills – $ 100,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
- Miscellaneous – $1,000
Going by the report from the research and feasibility studies, you will need about $200,000 to set up a medium scale radio show in the United States of America. You will need less than $30,000 to successfully set – up a small scale radio show in the United States.
If you are considering starting a large scale radio show that is far reaching with several employees under your pay roll, then you should budget nothing less than $500,000.
- Financing Your Radio Show Business
Starting a very good radio show that will stand the test of time requires a very robust and strong capital base. In fact, it might not be easy to attract adverts and sponsorship deals within the first three months of operation which is the more reason why you must have enough money to cover the cost for at least 6 months.
The fact that the major factors that must be considered in order to get support and financing for your radio show is to write a good business plan. If you have a good and workable business plan in place, you may not have to go through stressful processes before convincing your bank, investors and your friends to invest in your business. Here are some of the options you can explore when sourcing for start – up capital for your radio show;
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for loan from your bank / banks
- Pitching your business idea and applying for business grants and seek funding from donor organizations/investors
- Source for soft loans from your family members and your friends.
Choosing a Suitable Radio Platform for Your Radio Show
With regards to looking for a location for your radio show, you can choose a location that fits into your budget. The location of your radio show does not need to be in a hub where commercial activities happen; you can operate from the outskirt of town, as long as your signal can be received within the diameter you intend covering. Besides with the aid of Android/I-phone applications and the internet, a radio show can be aired in Washington, United States and someone in Accra, Ghana can listen to the radio show.
Whichever locations you choose to set – up your radio show, ensure that it is safe and easier to locate. This is important because your staff will work at odd hours and also for it to be easier for guest to visit your radio station when you want them live on air.
Starting a Radio Show at Home for FREE – Technical & Manpower Details
The need for a group of engineers to help you set – up the structure for your radio show cannot be left aside. It is also better to get brand new equipment due to the fact that they are more reliable and there is more tendency for it to last longer. Here are some of the equipment that you would need for your radio show;
FM Radio Transmitter, Antenna, Coaxial Cable, Power Supply, Audio Equipment and Accessories, Computers, Receiver, Transmission lines, Audio Processor, Connectors, Interface panel remote control, Cables, Equipment Rack, Power Protection equipment, UPS, Microphone, Silent Microphone boom arms, CD players, Mixer, Amplifiers, Monitor Speakers, Speaker Mounts, Computer automation software, Rack Mount, Power Protection Units
It is ideal to lease a facility or out rightly purchase one for your radio station as against renting on a short – term basis. When you lease a facility, it is easier for you to set up long term plans.
When it comes to the number of employees to run a radio show, it is expected that you use your discretion to make that feasible. Although there are some important roles that must be occupied, but that does not hinder you from beginning with a handful of employees and then grow the radio show as you begin to generate income from the station. Averagely, you will need a minimum of 10 people to run a small radio show. This is inclusive of your anchor persons (one or two people can run each shift; morning, afternoon, evening and night shift).
The Service Process involved in the Radio Entertainment Industry
The services process involved in the radio industry depends on the niches of radio services you are into. On the average, the process starts with writing a proposal of the show/programme you wish to air to seek approval, as soon as the radio show is approved, then it is expected that after the approval, the show begins to air on the radio.
Once the show is approved, then it is expected that the radio shows seek for sponsorship to ensure that the programme continue to be relevant and continue airing. Above all, it is expected that the support of sponsors and listeners go a long way to determine how long the radio show will last.
Starting a Radio Show at Home for FREE – The Marketing Plan
- Marketing Ideas and Strategies for your Radio Show
One thing is sure about radio show which is that it is easier to attract sponsorship and paid adverts when your radio show has a robust listenership. Before corporate organization sponsor or place advert on a radio show, they usually take a look at the statistics.
That is why it is important to win the hearts of your target audience in your target location before intensifying efforts to get people to advertise or sponsor a program on your radio show. Here are some of the platforms you can utilize to market your consulting services;
- Introduce your radio show by sending introductory letters alongside your brochure to all the corporate organizations and businesses in the United States
- Advertise your radio show in relevant business magazines and news papers
- List your radio show on yellow pages
- Attend expos
- Leverage on the internet to promote your business
- Join local chambers of commerce around you with the main aim of networking and marketing your radio show.
- Introduce your radio show by sending introductory letters alongside your brochure to all the corporate organizations, community leaders, schools, hospitals, hotels and government offices in your target area.
- Create different programmes for different category of persons in the society such as the Youth, elderly, kids etc.
- Engage in direct marketing, referral marketing and also email marketing.
Possible Competitive Strategies for Winning your Competitors in the Entertainment Industry
It might be challenging competing as a newbie in the radio show industry in the United States, this is because there are a lot of radio shows that have made name and have a large listenership.
In order to survive the stiffer competition in the United States, then it’s necessary to come up with unique business strategies. Other things that can be done to win listeners to your station, is to give out freebies in form of gifts etc. during the radio shows, it is also a good strategy to allow listeners to call into your show and air their views too, in fact you can have a dedicated toll free line to make this possible, also sometimes too you might consider allowing your best contributors on the show to come to the radio show live too.
Possible Ways to Increase Readers’ Retention for your Radio Show
When it comes to business no matter the industry you choose to pitch your tent in, one of the easiest ways to increase customers’ retention and perhaps to attract new customers is to satisfy your customers always. If your customers are satisfied with your services delivery, they can hardly source for alternative service provider or products.
Statistics has it that one of the major reasons why customer’s source for alternative service provider or product is when there is a drop in quality. Another reason is poor customer service. If you can continue to improve on the quality or your services and your customer service delivery, then you won’t struggle to maintain your loyal customers.
So as regards a Radio show business, one of the best ways to retain customers in this regard is by retaining the listeners to your radio station and this can be achieved by creating different strategies for different group of persons. It is also necessary to engage them when you are about to start a new show, and always give room for them to participate during the shows, likewise you should not neglect making it easy for them to share their thoughts through the social media platform. These will go a long way in retaining them
Strategies to Boost your Brand Awareness and Create a Corporate identity for your Radio Show
As a radio show, your primary focus is to get people tuned to your show always. Therefore making your business known is one of the greatest tasks that you have to carry out. Though sometimes doing this might be challenging, but you have no other option than to do it.
In boosting the awareness about your radio show, the sure bet is to make use of a radio station that can run jingles/adverts for you. Also you can make use of TV stations to promote your radio brand. Likewise you can leverage on the print media and the internet to boost your brand awareness and to create a corporate identity. In fact it is not costly to use the internet and social media platforms to promote your brands, as they are wide reaching.
Finally, you should create a compatible Application for your radio show. Such as: Iphone Operating system, Android enabled device, windows operating system etc. these Apps make it for people especially the youth to connect your radio station from their mobile devices without any stress.
Creating a Suppliers / Distribution Network for your Radio Show
The nature of the Radio industry gives room for the radio stations/shows to interact with one another, and also aid in disseminating information about each other’s programme/Radio show to ensure followership. In fact a host radio station can dedicate a part of its advertorial section to promote a particular radio show/ programme and also seeking for sponsorship in that regard too.
Tips for Running a Radio Show Business Successfully
The truth is that, irrespective of the kind of business you run, your ability to get all the members of your team on same page at all times is key, this is even more so because running a radio show is a lot of hard work, as you must try your best not to go offline at any period in time.
Likewise you need to build and form a formidable team around you that believe in what you do and share in your dreams and aspirations too, this is because if you work as a team, then it will be easier to achieve your goals and objectives. Also you need to do is to ensure that you create time for office meetings; a time where challenges, feedbacks, projections and relevant issues are discussed. The meetings could be daily, once in a week, twice a week or once in a month. It is indeed important that you have regular meetings in your organisation.
You must ensure that, you work towards building a standard operating process, as doing this you will not need to be available all the time to ensure that things work out smoothly. This can be achieved by running your business on an auto pilot.
You must also as a matter of fact encourage your employees to pursue certifications in their chosen area of specializations; this will go a long way in helping your organization’s profile and also aid the individuals.
Lastly, you should ensure that you have the right people in your team so as to ensure that your vision and mission is actualised. Also, your doors must be open for suggestions from your team members and also your listeners, as this will go a long way to make your programme more robust and engaging.