BUSINESS PLAN FOR FAMILY MUSIC CLUB / MUSICIANS COOP / SANDWICH SHOP
The following plan describes my rough ideas, subject to revision and change by democratic input from other members, for a family music club run and staffed by the musicians who perform there. Madison has privately owned music clubs which may be very difficult for many of Madison’s hard working and practicing musicians to land gigs with. Musicians may not spend enough time promoting themselves, they may be potentially popular musicians without a good resume, or just not well connected socially. But for whatever reasons gigs may be hard to get, being part of a musicians coop guarantees you gigs every month.
One reason many music clubs don’t make it, I believe, is because they are not good places for families to frequent. When you take parents, children, and teens out of your potential market, that’s big. In no way do I believe that hard drinkers, singles, and twenty something represent the entire interest in live music and it’s about time a music club catered to families. That means not just no alcohol, but sandwiches and snacks available that kids love, and a kids care area staffed by one of the members which has books, toys, games, and crafts available so that parents can listen to music undisturbed.
Rough estimates of numbers look like this:
Start –up costs $50,000
Monthly fixed costs $5,000 ( rent $3,000, utilities $500, advertising/promotion, insurance, equipment, contingency/emergency fund -$1,500)
With a good mix of bands, duos , and soloists, around 100 musicians can play two guaranteed 2-hour gigs per month. A cover charge of $3 at all times (under 12 free) will establish both consistency and affordability in a weak economy. 100 musicians will have to pay $500 each for start-up costs, and $50/month for membership fees. With all cover charge money pooled and distributed equally among the month’s performers, and approximately 90 two-hour gig slots available per month, each gig will need to bring in an average of $55 to hit the break-even point for all members. This would be 18-19 paying customers for a two hour gig.
If the coop has as many as 200 members, this would mean start-up costs of $250 each and $25/month membership fees. But there would most likely be time for only one guaranteed gig per month for each member to make back their fee money.
With only 50 members, each musician member pays $1000 each in start-up costs, and $100 month in membership. But each musician will have four gigs per month, or one per week to make back their money.
WHAT THE MEMBER/MUSICIAN GETS:
- Two guaranteed two-hour long gigs a month (with 100 members), where the members are in charge of repertoire, style. Guaranteed listings in publications.
- If the club does well, a chance to make good money for your gigs after membership fees are deducted from the pooled cover charge money for that month.
- A chance to work extra hours if desired in the service of the coop (concessions, cover charge collection, kids care, etc.) and if the concessions do well, make good wages after cost of wholesale food for the next month is deducted.
- Be a part owner of your own music club, vote on committee members and policy, no more begging and schmoozing to find gigs, no more getting suspiciously underpaid by venue owners and having to do everything their way.
- Show the community how musicians can take power into their own hands, and how other trades can do the same – taking themselves out of situations where they can be exploited and keeping the money in the local economy.
WHAT THE PUBLIC/CUSTOMER GETS:
- A venue featuring 40 – 50 different music acts every month (at about 100 members) ,with live music at all times of operation.
- A music venue that parents can take children to, or teens can go to, with no alcohol served.
- A consistent, affordable $3 cover charge at all times (under 12 free) will be less painful to pay in tough economic times, and more worth it for those planning to stay for only 30 – 40 minutes (many parents).
- A free kids care area where parents can drop off children in order to listen to music undisturbed.
- A sandwich shop, featuring easily made gourmet and traditional sandwiches, and kids favorites, along with other snacks and side dishes which can be made easily by concession workers (members).
- Magazines, newspapers, and books available to read.
- A local artist has an exhibition on the walls each month.
COVER CHARGE DISTRIBUTION
If there are over 100 musicians as members, each member will pay a LESSER share of the start up costs and monthly fixed costs, but receive LESS per musician for each gig.
If there are under 100 musicians as members, each member will pay a GREATER share of the start up costs and monthly fixed costs, but receive MORE per musician for each gig.
If the goal is two gigs for each musician per month, the gig slots will fill up more quickly with more soloists and duets, and less quickly for four or five piece bands. It is hoped that there will be a healthy mix of bands, soloists, duets, trios. Membership will fill more quickly if large bands become members, but by having say 20 five-piece bands making up a membership of 100, each band would play once a week and there would be overexposure of bands and not enough variety. It is hoped that there will be a healthy mix of music acts of all sizes, although jazz big bands and orchestras will be difficult to accommodate.
A consistent, at all times $3 cover charge for any act will help draw in patrons in a weak economy. A low cover charge also has the advantage of not turning away the 30 minute people. With people everywhere pressed for time, some have only 30 or 40 minutes to spare for entertainment and a bite to eat. They will not pay a $6-8 cover charge for this amount of time.
All cover charge money for the month can be pooled, and after the next month’s fixed costs have been subtracted, and assuming the club is in the black after this, the remainder is split equally between the members based on the number of gigs they played in that month.
An act’s draw can be affected by different things. It can be affected by the previous act, or the following act. It can be affected by the day of the week, the time slot, or the weather. But it will also be affected by the strength of the act. Here is a possible way to reward acts with consistently good draw without punishing those acts that have run into bad luck.
Each act on a particular day will have the number of patrons to the club for that day recorded and written down. The number of patrons for the day will be written the same for all the acts that perform, because it will be too hard to tell which patron came to see which act. Every six months, the total number of patrons recorded for all gigs played in the six months by that act are added up. The total number of patrons for each act are listed and the top five acts in total number of patrons would split a pool of money that is set aside as a percentage of cover charge money for the six months (5%? 10%?). This pool of top draw money set aside from cover charge income will be split evenly between all musicians included in the top five acts.
CHOICE OF TIME SLOTS FOR PERFORMING
A sign-up sheet will be available on a given day before the next month’s acts (online?) and be on a first come, first serve basis. This is much easier than having acts pull names out of a hat to see who picks times first, or a lottery, or being assigned by a committee which nobody would want. To even popular times out as much as possible, and make things as fair as possible, each act signing up will be allowed only one slot on either Friday, Saturday, or Sunday (assuming 2 gigs per month) - the most desirable days. The other gig for the month must be on a Tuesday, Wednesday, or Thursday. An act can, however, choose to have both their gigs on the least desirable days. Each act must also choose two different times for their gigs. Acts should be able to exchange e-mails and phone numbers so they can arrange to trade gig times, or offer a gig to another act when one act becomes unavailable for a slot and needs a substitute.
EXAMPLE OF WEEKLY GIG SLOTS: (22 total)
Sun Tues Wed Thurs Fri Sat
12-2 PM 12-2 PM
2-4 PM 2-4 PM
4-6 PM 4-6 PM 4-6 PM 4-6 PM 4-6 PM 4-6 PM
6-8 PM 6-8 PM 6-8 PM 6-8 PM 6-8 PM 6-8 PM
8-10 PM 8-10 PM 8-10 PM 8-10 PM 8-10 PM 8-10 PM
When a member or group of members wishes to discontinue their membership, or a band breaks up and quits, it still must pay its membership fees until it can find a replacement act on a waiting list. When 100 members share the risk of the business equally, any acts who drop off without being liable for their portion of rent, utilities, and insurance left on the lease that they pay for through monthly dues forces all remaining musician/members to pay more to make the rent. Imagine a scenario where everybody abandons ship, and 5 – 10 members are left holding the bag and having to split $4000 per month in fixed costs. The original 100 or so founding members must be liable for their portion of membership dues through the length of the lease unless replacement acts can be found. We anticipate turnover, and hope to have a waiting list of acts wanting to join after enough members are found to allow each act two gigs per month. Musicians in combo acts that break up can always reform another act for the next month and remain participating members.
An act that chooses for whatever reason not to play its two gigs for the month cannot make up a gig and play three gigs in a future month. They can work out an arrangement with a substitute non-member act, but the coop still pays the member act for the gig and it is up to them to work out a pay arrangement with the non-member act.
MUSIC QUALITY
When the first seven member committee is formed to organize the coop, it will be by musicians who all respect each other and their music. Recruitment of the next 93 members, will be on the basis of the committee meeting to do a brief audition (live, demo CD, myspace, youtube) of all prospective members and making sure music is of good performance quality. The committee cannot be too picky about this, the coop needs 100 members who are willing to invest in start-up. Those 100 members must come up with their share of start-up costs, agree to the voted- upon rules, and co-sign the lease.
There will be comment boxes for both coop members and patrons in the club. If any of these boxes contain comments concerning the poor quality of a music act, especially if there are multiple comments of the same, the committee may discuss and hold a vote on whether the music act’s quality is up to the coop’s standards. If the committee votes on termination, a replacement act on the waiting list can be contacted. The name of the musician(s) in the dropped act are crossed off the lease and the musicians in the new act are added (after an audition). If there are no acts on the waiting list, the committee will have to decide which is better – allowing the act the right to continue performing so the coop can receive their share of the fixed costs, or terminate them and have all coop members pay a little more to make up their share. Member/musicians should make a commitment when they join to play music which is rehearsed, not at painful or ear-splitting volume, and family-friendly lyrics (or altered lyrics for the club).
In keeping with the theme of family music club, once a month there will be a kids band/musician night. Members’ children will have first choice of the slots, but non-members may sign up after that. Acts can range in length between one hour and one song. If there are not enough children interested, adult acts can fill the schedule. Children will not be paid (child labor laws) and there will be no cover charge on that night.
OPERATION OF MUSIC STAGE
Acts will be given a two hour time slot in which to perform. The first 15 minutes of the two hour slot will be considered set-up time. When it is time for one act’s slot to begin, the previous act should have their equipment taken off stage by the time the next act is set up and ready to perform.
Example:
4 – 4:15PM Act 1 sets up
4:15 – 6:00PM Act 1 plays
6 – 6:15PM Act 1 takes down while Act 2 sets up.
6:15 – 8:00PM Act 2 plays
8 – 8:15PM Act 2 takes down while Act 3 sets up.
8:15 – 10:00PM (closing) Act 3 plays.
10:00 – 10:15PM Act 3 takes down.
Acts will be allowed 5 to 10 minute breaks halfway through their set. Any style of music allowed. Lyrics should be family-friendly, or changed for purposes of the gig. Music can be at attention-grabbing, listening volume (not background music) but not at ear-splitting volume where nobody can be heard while talking.
Groups and band s are responsible for having their own sound person. The band can either work out their own pay arrangement with the sound person if they are not a member, but if they are a member, they will get an equal cut of the income.
The coop will probably need to purchase a PA system and microphones as initial start-up costs. Stage construction may be needed. Extra wiring and outlets may need to be installed to keep from overloading extension cords and circuits.
If the cover charge income for the current month, after pooled, is sufficient to pay all fixed costs for the next month, the remainder of the money will be split between members equally based on the number of gigs each member played during that month, with 5 – 10% going to the pool for the top drawing five acts for a six month period.
If cover charge money is not sufficient for all fixed costs for the next month, the following should be done. An emergency fund will be established from start up money to cover potential monthly shortfalls. It is hoped that it will not be used to make up the difference month after month to keep the bills paid, but if such a situation occurs, each member will vote on whether they want to pay additional money out of pocket every month to keep the coop surviving, or whether they want to disband operations. In the former case, if any member cannot or does not make their monthly payment, the coop will let them off with a warning and allow them to defer payment to the following month – IF there is sufficient money in the emergency fund to cover for members unable to make their monthly payment. If there is insufficient money in the emergency fund to pay for non-paying members, the coop will attempt to replace the non-paying members’ name(s) on the lease with a new act/member on the waiting list. If there are no acts on the waiting list, there will be a shortfall to paying for fixed costs during the next month. The matter may eventually be taken up by the owner and utilities for the venue, but ONLY with non-paying members and not with the coop as a whole. In NO WAY WHATSOEVER will any member become responsible for more than a hundredth of the share of rent and utilities to make up the difference for non-paying or quitting members. The same will hold true if the coop decides to disband operations.
It is hoped that the owner of the venue will not see the coop as a whole responsible for rent and utilities each month, but as 100 separate tenants, each individually responsible. Each individual is responsible for their share of rent and utilities every month for the length of the lease, unless their signature is replaced by a new act’s signature, regardless of whether the coop stays open or closes its doors and quits at any point. It is hoped that the pooled cover charge money for each month will be sufficient for the following month’s fixed costs, even if the money left over and split up may or not be worthwhile performance pay for members. But in no way will any individual or individuals, whether they are organizers or more or less involved in the profile of the coop, be responsible for the rent and utilities shares of non-paying or quitting members – only their own shares. This must be written into all contracts.
CONCESSIONS/SANDWICH SHOP
All members will have the opportunity to sign up for service work in the coop as well as gigs every month. Shifts will be available to sign up for online. There will probably be a need for three workers there at all times. They will primarily be working in the concessions/sandwich shop area, collecting cover charges, staffing the kids care area, or cleaning and maintenance. If the club is open 24 days in a month, there will be 72 shifts available during a month. It is probable that the committee members will work these shifts more often. They will need to take care of accounting, make sure everything is going according to the agreed upon rules, and provide some direction. There will probably not be enough shifts for every member to work one per month, so they will be signed up for on a first come, first serve basis with each member being allowed to sign up for only one shift (assuming around 100 members). If there are not enough volunteers for all the shifts (highly unlikely), members will have to be recruited to work them.
Sandwiches are a good choice for main course food availability. They are easy to make, quick to make, and there are so many different kinds everyone can find something they like – from gourmet vegetarian sandwiches to grilled cheese and peanut butter/ jelly for kids. Details for a menu can be worked out before opening. Other foods which could be served with the sandwiches include bags of chips, ice cream cones, popcorn. Drinks could include soda, coffee, milk, fruit juice, tea. Griddles and foods which need to be fried make concessions more complicated and messy, it is hoped that the shop can provide good food and sandwiches without the need for a griddle.
Food and concessions income will be considered a separate branch of the coop/music club income and its distribution. Whereas the cover charge income pays for fixed costs and musicians compensation, food income will pay for wholesale food costs for the next month and be split equally between the staff workers for the month after that, based on how many hours they worked. Three staff workers on hand for every shift would mean about 24 shifts pr week(two each on Sat. and Sun., one on the other four days makes 8 shifts X 3 workers =24). 98 shifts per month would normally mean one shift per month per member. A committee member or experienced member should always be on each shift to take care of accounting, organizational work, or provide direction. All three staff workers will be working concessions, cover charge collection, kids care, and maintenance.
FOOD INCOME
Estimate: concessions open 44 hours per week, or 176 hours per month. $9000 in monthly food income would mean $51 per hour. In most restaurants, the cost of goods (food) sold is 25% - 40% of income. Let’s say our cost is 40%, to keep the food affordable and to attract customers. The coop would target $3600 of that $9000(40%) to pay for next month’s food costs. The remaining $5400 would get split equally among the staff workers based on the number of hours they worked. 176 hours open per month times three staff workers equals 528 staff hours per month. $5400 divided by 528 staff hours per month comes out to $10.22/hour compensation for each staff worker during that month. Nobody will have a higher wage rate, regardless of experience or know-how, because no member is in this to “rise to the top of the coop”. Everyone is here because they are musicians who want exposure as musicians.
If food income for the month is lower than the $9000 estimated above, the amount of food ordering for the next month will be lower and adjusted accordingly. Staff members will still make some per hour worked if food sales were poor, but it will be less than $10.22/hour.
$4500 in monthly food income would mean about $25/hour in food income. $1800 would go to pay for next month’s food costs (40%) and the $2700 left, divided between 528 staff hours would come to $5.11/hour compensation for each staff worker during that month.
The committee will need to decide where distribution should come from, where all the bulk food will be purchased. They will have to decide on the equipment needed (freezer, microwave, counters, tables, chairs, cabinets, etc.), research the best prices, and pay for it from start up money.
KIDS’ CARE
One of the three staff workers on hand at any given time will be in charge of the kids’ care area, if there are any parents or guardians who want to drop kids off in that area while they listen to the music. Kids can get bored and fidgety with even the best of music, and a play area gives the parents a chance to relax, read books or magazines, and sip coffee while listening to the music without being disturbed. Parents will appreciate this, and they will not pay extra for it. Just like at many health clubs, the parent will sign the child in with their name, child’s name, and address with phone number. Some parents will be more comfortable with leaving their children in kids’ care if that area is farther away from the exit door than the music and dining area – so that a child who leaves the kids care area unseen or unpermitted has to pass by the music/dining area and be seen by the patrons before he or she reaches the exit. If there are no children desired to be dropped off by anyone, the staff worker designated for that can work in concessions, maintenance, etc.
The kids’ care area can have books, magazines, toys, arts and crafts, but no electronics to interfere with the music acts. We could consider separating part of the kids care area into an older kids and teens area with appropriate books and magazines where supervision is more lax.
GETTING STARTED
Seven like minded musicians interested in the idea, respecting each other and their music, will form the initial steering committee. If the goal is to recruit around 100 members, they will begin recruitment and auditions of potential members.
When 100 musicians have signed names and expressed interest in becoming members (no commitment or obligation yet), members will research possible venues, and calculate equipment needed, costs, and best sources for purchase of equipment and food. After an accurate estimate of the start-up cost total is known, and after a suitable venue and owner have been found, the musicians who expressed interest before will be contacted and asked once again if they are interested in becoming members. When 100 members have signed their name to the lease, operations can begin after equipment has been purchased and the music club and concessions areas are laid out and constructed.
The committee will vote on methods, rules, menu, etc. After one year, the committee members can be voted out or voted back in by all members in an election. New members can run for the committee and be elected by stating in a coop newsletter their vision, direction, what they would like to change, etc.
ESTIMATED ALLOCATION OF START-UP MONEY
A rough estimate of start-up costs is $50,000. This would amount to $500 for each of 100 members. The number is arrived at by making rough estimates as follows, with all estimates subject to much revision.
· Equipment for concessions area, remodeling (cabinets, freezer, fridge, microwave, etc.) $10,000
· Equipment for stage and club area (PA system, stage construction, tables, chairs)
$10,000
· Lease payments (3 months’ rent) $9,000
· Electric and phone deposits $500
· Beginning food inventory $1,500
· Franchise costs (fees, signage, supplies) $4,000
· Insurance (one year) $3,000
· Attorneys, contracts $2,000
· Initial advertising and promotion $2,000
· License, permits $750
· Office, employee supplies $500
· Emergency cash flow/unanticipated expenses $6,750
· TOTALS $50,000
One reason many music clubs don’t make it, I believe, is because they are not good places for families to frequent. When you take parents, children, and teens out of your potential market, that’s big. In no way do I believe that hard drinkers, singles, and twenty something represent the entire interest in live music and it’s about time a music club catered to families. That means not just no alcohol, but sandwiches and snacks available that kids love, and a kids care area staffed by one of the members which has books, toys, games, and crafts available so that parents can listen to music undisturbed.
Rough estimates of numbers look like this:
Start –up costs $50,000
Monthly fixed costs $5,000 ( rent $3,000, utilities $500, advertising/promotion, insurance, equipment, contingency/emergency fund -$1,500)
With a good mix of bands, duos , and soloists, around 100 musicians can play two guaranteed 2-hour gigs per month. A cover charge of $3 at all times (under 12 free) will establish both consistency and affordability in a weak economy. 100 musicians will have to pay $500 each for start-up costs, and $50/month for membership fees. With all cover charge money pooled and distributed equally among the month’s performers, and approximately 90 two-hour gig slots available per month, each gig will need to bring in an average of $55 to hit the break-even point for all members. This would be 18-19 paying customers for a two hour gig.
If the coop has as many as 200 members, this would mean start-up costs of $250 each and $25/month membership fees. But there would most likely be time for only one guaranteed gig per month for each member to make back their fee money.
With only 50 members, each musician member pays $1000 each in start-up costs, and $100 month in membership. But each musician will have four gigs per month, or one per week to make back their money.
WHAT THE MEMBER/MUSICIAN GETS:
- Two guaranteed two-hour long gigs a month (with 100 members), where the members are in charge of repertoire, style. Guaranteed listings in publications.
- If the club does well, a chance to make good money for your gigs after membership fees are deducted from the pooled cover charge money for that month.
- A chance to work extra hours if desired in the service of the coop (concessions, cover charge collection, kids care, etc.) and if the concessions do well, make good wages after cost of wholesale food for the next month is deducted.
- Be a part owner of your own music club, vote on committee members and policy, no more begging and schmoozing to find gigs, no more getting suspiciously underpaid by venue owners and having to do everything their way.
- Show the community how musicians can take power into their own hands, and how other trades can do the same – taking themselves out of situations where they can be exploited and keeping the money in the local economy.
WHAT THE PUBLIC/CUSTOMER GETS:
- A venue featuring 40 – 50 different music acts every month (at about 100 members) ,with live music at all times of operation.
- A music venue that parents can take children to, or teens can go to, with no alcohol served.
- A consistent, affordable $3 cover charge at all times (under 12 free) will be less painful to pay in tough economic times, and more worth it for those planning to stay for only 30 – 40 minutes (many parents).
- A free kids care area where parents can drop off children in order to listen to music undisturbed.
- A sandwich shop, featuring easily made gourmet and traditional sandwiches, and kids favorites, along with other snacks and side dishes which can be made easily by concession workers (members).
- Magazines, newspapers, and books available to read.
- A local artist has an exhibition on the walls each month.
COVER CHARGE DISTRIBUTION
If there are over 100 musicians as members, each member will pay a LESSER share of the start up costs and monthly fixed costs, but receive LESS per musician for each gig.
If there are under 100 musicians as members, each member will pay a GREATER share of the start up costs and monthly fixed costs, but receive MORE per musician for each gig.
If the goal is two gigs for each musician per month, the gig slots will fill up more quickly with more soloists and duets, and less quickly for four or five piece bands. It is hoped that there will be a healthy mix of bands, soloists, duets, trios. Membership will fill more quickly if large bands become members, but by having say 20 five-piece bands making up a membership of 100, each band would play once a week and there would be overexposure of bands and not enough variety. It is hoped that there will be a healthy mix of music acts of all sizes, although jazz big bands and orchestras will be difficult to accommodate.
A consistent, at all times $3 cover charge for any act will help draw in patrons in a weak economy. A low cover charge also has the advantage of not turning away the 30 minute people. With people everywhere pressed for time, some have only 30 or 40 minutes to spare for entertainment and a bite to eat. They will not pay a $6-8 cover charge for this amount of time.
All cover charge money for the month can be pooled, and after the next month’s fixed costs have been subtracted, and assuming the club is in the black after this, the remainder is split equally between the members based on the number of gigs they played in that month.
An act’s draw can be affected by different things. It can be affected by the previous act, or the following act. It can be affected by the day of the week, the time slot, or the weather. But it will also be affected by the strength of the act. Here is a possible way to reward acts with consistently good draw without punishing those acts that have run into bad luck.
Each act on a particular day will have the number of patrons to the club for that day recorded and written down. The number of patrons for the day will be written the same for all the acts that perform, because it will be too hard to tell which patron came to see which act. Every six months, the total number of patrons recorded for all gigs played in the six months by that act are added up. The total number of patrons for each act are listed and the top five acts in total number of patrons would split a pool of money that is set aside as a percentage of cover charge money for the six months (5%? 10%?). This pool of top draw money set aside from cover charge income will be split evenly between all musicians included in the top five acts.
CHOICE OF TIME SLOTS FOR PERFORMING
A sign-up sheet will be available on a given day before the next month’s acts (online?) and be on a first come, first serve basis. This is much easier than having acts pull names out of a hat to see who picks times first, or a lottery, or being assigned by a committee which nobody would want. To even popular times out as much as possible, and make things as fair as possible, each act signing up will be allowed only one slot on either Friday, Saturday, or Sunday (assuming 2 gigs per month) - the most desirable days. The other gig for the month must be on a Tuesday, Wednesday, or Thursday. An act can, however, choose to have both their gigs on the least desirable days. Each act must also choose two different times for their gigs. Acts should be able to exchange e-mails and phone numbers so they can arrange to trade gig times, or offer a gig to another act when one act becomes unavailable for a slot and needs a substitute.
EXAMPLE OF WEEKLY GIG SLOTS: (22 total)
Sun Tues Wed Thurs Fri Sat
12-2 PM 12-2 PM
2-4 PM 2-4 PM
4-6 PM 4-6 PM 4-6 PM 4-6 PM 4-6 PM 4-6 PM
6-8 PM 6-8 PM 6-8 PM 6-8 PM 6-8 PM 6-8 PM
8-10 PM 8-10 PM 8-10 PM 8-10 PM 8-10 PM 8-10 PM
When a member or group of members wishes to discontinue their membership, or a band breaks up and quits, it still must pay its membership fees until it can find a replacement act on a waiting list. When 100 members share the risk of the business equally, any acts who drop off without being liable for their portion of rent, utilities, and insurance left on the lease that they pay for through monthly dues forces all remaining musician/members to pay more to make the rent. Imagine a scenario where everybody abandons ship, and 5 – 10 members are left holding the bag and having to split $4000 per month in fixed costs. The original 100 or so founding members must be liable for their portion of membership dues through the length of the lease unless replacement acts can be found. We anticipate turnover, and hope to have a waiting list of acts wanting to join after enough members are found to allow each act two gigs per month. Musicians in combo acts that break up can always reform another act for the next month and remain participating members.
An act that chooses for whatever reason not to play its two gigs for the month cannot make up a gig and play three gigs in a future month. They can work out an arrangement with a substitute non-member act, but the coop still pays the member act for the gig and it is up to them to work out a pay arrangement with the non-member act.
MUSIC QUALITY
When the first seven member committee is formed to organize the coop, it will be by musicians who all respect each other and their music. Recruitment of the next 93 members, will be on the basis of the committee meeting to do a brief audition (live, demo CD, myspace, youtube) of all prospective members and making sure music is of good performance quality. The committee cannot be too picky about this, the coop needs 100 members who are willing to invest in start-up. Those 100 members must come up with their share of start-up costs, agree to the voted- upon rules, and co-sign the lease.
There will be comment boxes for both coop members and patrons in the club. If any of these boxes contain comments concerning the poor quality of a music act, especially if there are multiple comments of the same, the committee may discuss and hold a vote on whether the music act’s quality is up to the coop’s standards. If the committee votes on termination, a replacement act on the waiting list can be contacted. The name of the musician(s) in the dropped act are crossed off the lease and the musicians in the new act are added (after an audition). If there are no acts on the waiting list, the committee will have to decide which is better – allowing the act the right to continue performing so the coop can receive their share of the fixed costs, or terminate them and have all coop members pay a little more to make up their share. Member/musicians should make a commitment when they join to play music which is rehearsed, not at painful or ear-splitting volume, and family-friendly lyrics (or altered lyrics for the club).
In keeping with the theme of family music club, once a month there will be a kids band/musician night. Members’ children will have first choice of the slots, but non-members may sign up after that. Acts can range in length between one hour and one song. If there are not enough children interested, adult acts can fill the schedule. Children will not be paid (child labor laws) and there will be no cover charge on that night.
OPERATION OF MUSIC STAGE
Acts will be given a two hour time slot in which to perform. The first 15 minutes of the two hour slot will be considered set-up time. When it is time for one act’s slot to begin, the previous act should have their equipment taken off stage by the time the next act is set up and ready to perform.
Example:
4 – 4:15PM Act 1 sets up
4:15 – 6:00PM Act 1 plays
6 – 6:15PM Act 1 takes down while Act 2 sets up.
6:15 – 8:00PM Act 2 plays
8 – 8:15PM Act 2 takes down while Act 3 sets up.
8:15 – 10:00PM (closing) Act 3 plays.
10:00 – 10:15PM Act 3 takes down.
Acts will be allowed 5 to 10 minute breaks halfway through their set. Any style of music allowed. Lyrics should be family-friendly, or changed for purposes of the gig. Music can be at attention-grabbing, listening volume (not background music) but not at ear-splitting volume where nobody can be heard while talking.
Groups and band s are responsible for having their own sound person. The band can either work out their own pay arrangement with the sound person if they are not a member, but if they are a member, they will get an equal cut of the income.
The coop will probably need to purchase a PA system and microphones as initial start-up costs. Stage construction may be needed. Extra wiring and outlets may need to be installed to keep from overloading extension cords and circuits.
If the cover charge income for the current month, after pooled, is sufficient to pay all fixed costs for the next month, the remainder of the money will be split between members equally based on the number of gigs each member played during that month, with 5 – 10% going to the pool for the top drawing five acts for a six month period.
If cover charge money is not sufficient for all fixed costs for the next month, the following should be done. An emergency fund will be established from start up money to cover potential monthly shortfalls. It is hoped that it will not be used to make up the difference month after month to keep the bills paid, but if such a situation occurs, each member will vote on whether they want to pay additional money out of pocket every month to keep the coop surviving, or whether they want to disband operations. In the former case, if any member cannot or does not make their monthly payment, the coop will let them off with a warning and allow them to defer payment to the following month – IF there is sufficient money in the emergency fund to cover for members unable to make their monthly payment. If there is insufficient money in the emergency fund to pay for non-paying members, the coop will attempt to replace the non-paying members’ name(s) on the lease with a new act/member on the waiting list. If there are no acts on the waiting list, there will be a shortfall to paying for fixed costs during the next month. The matter may eventually be taken up by the owner and utilities for the venue, but ONLY with non-paying members and not with the coop as a whole. In NO WAY WHATSOEVER will any member become responsible for more than a hundredth of the share of rent and utilities to make up the difference for non-paying or quitting members. The same will hold true if the coop decides to disband operations.
It is hoped that the owner of the venue will not see the coop as a whole responsible for rent and utilities each month, but as 100 separate tenants, each individually responsible. Each individual is responsible for their share of rent and utilities every month for the length of the lease, unless their signature is replaced by a new act’s signature, regardless of whether the coop stays open or closes its doors and quits at any point. It is hoped that the pooled cover charge money for each month will be sufficient for the following month’s fixed costs, even if the money left over and split up may or not be worthwhile performance pay for members. But in no way will any individual or individuals, whether they are organizers or more or less involved in the profile of the coop, be responsible for the rent and utilities shares of non-paying or quitting members – only their own shares. This must be written into all contracts.
CONCESSIONS/SANDWICH SHOP
All members will have the opportunity to sign up for service work in the coop as well as gigs every month. Shifts will be available to sign up for online. There will probably be a need for three workers there at all times. They will primarily be working in the concessions/sandwich shop area, collecting cover charges, staffing the kids care area, or cleaning and maintenance. If the club is open 24 days in a month, there will be 72 shifts available during a month. It is probable that the committee members will work these shifts more often. They will need to take care of accounting, make sure everything is going according to the agreed upon rules, and provide some direction. There will probably not be enough shifts for every member to work one per month, so they will be signed up for on a first come, first serve basis with each member being allowed to sign up for only one shift (assuming around 100 members). If there are not enough volunteers for all the shifts (highly unlikely), members will have to be recruited to work them.
Sandwiches are a good choice for main course food availability. They are easy to make, quick to make, and there are so many different kinds everyone can find something they like – from gourmet vegetarian sandwiches to grilled cheese and peanut butter/ jelly for kids. Details for a menu can be worked out before opening. Other foods which could be served with the sandwiches include bags of chips, ice cream cones, popcorn. Drinks could include soda, coffee, milk, fruit juice, tea. Griddles and foods which need to be fried make concessions more complicated and messy, it is hoped that the shop can provide good food and sandwiches without the need for a griddle.
Food and concessions income will be considered a separate branch of the coop/music club income and its distribution. Whereas the cover charge income pays for fixed costs and musicians compensation, food income will pay for wholesale food costs for the next month and be split equally between the staff workers for the month after that, based on how many hours they worked. Three staff workers on hand for every shift would mean about 24 shifts pr week(two each on Sat. and Sun., one on the other four days makes 8 shifts X 3 workers =24). 98 shifts per month would normally mean one shift per month per member. A committee member or experienced member should always be on each shift to take care of accounting, organizational work, or provide direction. All three staff workers will be working concessions, cover charge collection, kids care, and maintenance.
FOOD INCOME
Estimate: concessions open 44 hours per week, or 176 hours per month. $9000 in monthly food income would mean $51 per hour. In most restaurants, the cost of goods (food) sold is 25% - 40% of income. Let’s say our cost is 40%, to keep the food affordable and to attract customers. The coop would target $3600 of that $9000(40%) to pay for next month’s food costs. The remaining $5400 would get split equally among the staff workers based on the number of hours they worked. 176 hours open per month times three staff workers equals 528 staff hours per month. $5400 divided by 528 staff hours per month comes out to $10.22/hour compensation for each staff worker during that month. Nobody will have a higher wage rate, regardless of experience or know-how, because no member is in this to “rise to the top of the coop”. Everyone is here because they are musicians who want exposure as musicians.
If food income for the month is lower than the $9000 estimated above, the amount of food ordering for the next month will be lower and adjusted accordingly. Staff members will still make some per hour worked if food sales were poor, but it will be less than $10.22/hour.
$4500 in monthly food income would mean about $25/hour in food income. $1800 would go to pay for next month’s food costs (40%) and the $2700 left, divided between 528 staff hours would come to $5.11/hour compensation for each staff worker during that month.
The committee will need to decide where distribution should come from, where all the bulk food will be purchased. They will have to decide on the equipment needed (freezer, microwave, counters, tables, chairs, cabinets, etc.), research the best prices, and pay for it from start up money.
KIDS’ CARE
One of the three staff workers on hand at any given time will be in charge of the kids’ care area, if there are any parents or guardians who want to drop kids off in that area while they listen to the music. Kids can get bored and fidgety with even the best of music, and a play area gives the parents a chance to relax, read books or magazines, and sip coffee while listening to the music without being disturbed. Parents will appreciate this, and they will not pay extra for it. Just like at many health clubs, the parent will sign the child in with their name, child’s name, and address with phone number. Some parents will be more comfortable with leaving their children in kids’ care if that area is farther away from the exit door than the music and dining area – so that a child who leaves the kids care area unseen or unpermitted has to pass by the music/dining area and be seen by the patrons before he or she reaches the exit. If there are no children desired to be dropped off by anyone, the staff worker designated for that can work in concessions, maintenance, etc.
The kids’ care area can have books, magazines, toys, arts and crafts, but no electronics to interfere with the music acts. We could consider separating part of the kids care area into an older kids and teens area with appropriate books and magazines where supervision is more lax.
GETTING STARTED
Seven like minded musicians interested in the idea, respecting each other and their music, will form the initial steering committee. If the goal is to recruit around 100 members, they will begin recruitment and auditions of potential members.
When 100 musicians have signed names and expressed interest in becoming members (no commitment or obligation yet), members will research possible venues, and calculate equipment needed, costs, and best sources for purchase of equipment and food. After an accurate estimate of the start-up cost total is known, and after a suitable venue and owner have been found, the musicians who expressed interest before will be contacted and asked once again if they are interested in becoming members. When 100 members have signed their name to the lease, operations can begin after equipment has been purchased and the music club and concessions areas are laid out and constructed.
The committee will vote on methods, rules, menu, etc. After one year, the committee members can be voted out or voted back in by all members in an election. New members can run for the committee and be elected by stating in a coop newsletter their vision, direction, what they would like to change, etc.
ESTIMATED ALLOCATION OF START-UP MONEY
A rough estimate of start-up costs is $50,000. This would amount to $500 for each of 100 members. The number is arrived at by making rough estimates as follows, with all estimates subject to much revision.
· Equipment for concessions area, remodeling (cabinets, freezer, fridge, microwave, etc.) $10,000
· Equipment for stage and club area (PA system, stage construction, tables, chairs)
$10,000
· Lease payments (3 months’ rent) $9,000
· Electric and phone deposits $500
· Beginning food inventory $1,500
· Franchise costs (fees, signage, supplies) $4,000
· Insurance (one year) $3,000
· Attorneys, contracts $2,000
· Initial advertising and promotion $2,000
· License, permits $750
· Office, employee supplies $500
· Emergency cash flow/unanticipated expenses $6,750
· TOTALS $50,000