by Jerry Bazata - “Money Answer Man”
I’m amazed at how often mobile DJs tell me that they spend less than a few hours planning for business growth and success every year.
Success doesn’t just “happen.” It takes careful planning, and decision making based on a variety of factors.
Although we’re already in the first month of 2012, it’s not too late to begin planning for the rest of the year.
Start by preparing a budget for income and expenses based upon what you spent last year, and take into account the following:
- Gas is expected to average $3.25 per gallon
- Consumer prices are expected to rise about 3-4%
- Savings, Credit Card and Loan rates are expected to remain flat
- Consumer spending are expected to rise 5%
- Insurance costs are expected to remain comparable to 2011.
- Advertising expenses are expected to decrease about 10% as the market becomes saturated with more online and print advertising choices
Buying New Gear
Set a budget for new equipment purchases. Industry experts anticipate a deluge of new products in 2012, especially with wireless uplighting, lasers, and digital music players. Do plenty of research and price shop prudently whether online or through a retailer.
Based upon historical trends, the opportunity to get the best deals are at DJ trade shows in February and August, and in the month of March.
A Good Year for Weddings
All indications are that 2012 is going to be a strong year for Mobile DJ as it relates to weddings. Think before you react to competing on price. Selling yourself short just to book a deal will cost you in the long run. Remember you are a professional and not a commodity.
Think about the following when setting your price:
- What is average fee for my market?
- Am I above or below the average?
- Do I take into account ALL of the time I spend preparing for an event when setting my fee?
- What is the real value I bring to clients?
- What is the impact on my company’s growth if I compete solely on price?
Creating a Safety Net
As a general rule, you should also plan to set aside enough money to cover at least three months’ worth of expenses in case of an emergency. Once that money is put away, you won’t need to rely on your credit cards should you not be able to perform or experience unforeseen expenses.
To learn more about planning your finances, and business growth for 2012, I recommend the following links:
http://www.inc.com
