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

You need an estimate of $350,000 to start a medium-scale recording studio in the United States of America. 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.

When it comes to building a professional recording studio, the major areas that you look towards spending the bulk of your cash is in renting or leasing a standard facility, converting the facility into a recording studio and equipping it with the needed gadgets such as Computer, Rack Mount, Power Conditioner, Microphone Preamp, Headphone Amp, Monitor Management,

Microphones, Studio Monitors, Desk/Workstation, Virtual Instruments, MIDI Controller, Electronic Drum Kit, Reflection Filters, Diffusers, Acoustic Panels, Bass Traps, Studio Chairs, Studio Rack Mounts, Control Surface, Software/Plugins, Snake Cable, Uninterruptible Power Supply, Direct Box and Keyboard instruments and related keyboard gear.

Aside from that, you are expected to pay your employees and utility bills. These are the key areas where you will spend our startup capital;

Estimated Cost Breakdown to Open a Recording Studio

1. The total fee for registering the business in the United States of America – $750.
2. Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
3. Marketing promotion expenses for the grand opening of the professional 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.
4. The total cost for hiring a business consultant including writing a business plan – $2,500.
5. The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.

The cost for renting or leasing a space or warehouse that will be converted into the recording studio for at least 6 months (Re – construction of the facility to include the “live room” of the studio, Isolation booths or vocal booths, The control room, where the audio engineers and record producers mix and The machine room, where noisier equipment, such as racks of fan-cooled power amplifiers, are kept) will cost – $180,000.

1. Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
2. Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
3. The cost for store equipment (cash register, security, ventilation, signage) – $4,750
4. The cost of purchase and installation of CCTVs: $2,000
5. Equipping the recording studio (the needed gadgets such as Computer, Rack Mount, Power Conditioner, Microphone Preamp, Headphone Amp, Monitor Management, Microphones, Studio Monitors, Desk/Workstation, Virtual Instruments, MIDI Controller, Electronic Drum Kit, Reflection Filters, Diffusers, Acoustic Panels, Bass Traps, Studio Chairs, Studio Rack Mounts, Control Surface, Software / Plugins, Snake Cable, Uninterruptible Power Supply, Direct Box and Keyboard instruments and related keyboard gear) will cost – $140,000
6. The cost of launching a website: $600
7. Miscellaneous: $2,000

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).

Please note that this is a rough estimate and we usually advise our readers who are interested in opening a recording studio to go to the market or directly contact wholesalers and suppliers of the types of the gadgets they need to build a professional recording studio, in a bid to get the real time prices of these items.

The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above and yet successfully build a world class recording studio.

Factors That Influence the Cost of Opening a Recording Studio

1. The Location of the Recording Studio

Usually, a thriving business location will attract extra cost hence if you decide to open your recording studio in such a location, you are likely going to spend more.

For example, recording studios thrive in metropolitan areas with a vibrant music scene such as Nashville, Los Angeles, and New York City.

These cities boast of proximity to entertainment hubs, a concentration of musicians, and a supportive local industry which are known to contribute to the success of recording studios.

2. The Size of the Recording studio

Note that recording studios vary in size, ranging from small home studios (100-300 sq. ft.) suitable for personal projects to medium-sized studios (300-600 sq. ft.) capable of handling small bands, and large studios (over 600 sq. ft.) equipped for complex productions, orchestras, or recording multiple musicians simultaneously. Of course, the size of a recording studio is tailored to specific recording needs.

Note that the size of a recording studio will affect the rent or lease, the amount required to furnish and equip the recording studio, and of course the budget for the manpower required to man different positions in the recording studio.

3. The Cost of Rent or Lease

As stated above, the amount you will spend on rent or lease will to a large extent depend on the size of the recording studio and of course, the location or city where you intend to open the recording studio.

For example, if you choose to open your recording studio in a metropolitan area with a vibrant music scene, such as Nashville, Los Angeles, and New York City you are expected to spend far more than the amount you will pay in any other city in the United States.

4. The Cost for Renovations and Add-ons

The reason why people spend money on renovating a facility before moving in is to make sure the facility looks like what they want.

Of course, most rented properties may not fit into the ideal picture of what you have in your mind, that is why you should have a budget for renovations.

You may plan to spend on changing the locks, and toilet wares, painting the facility, and perhaps demarcating the facility to create room for either your storage or changing room.

No doubt, the level of renovations and add-ons you are expected to carry out in the studio facility will influence the overall cost of opening the recording studio.

5. The Cost of Furnishing and Equipping the Recording Studio

A standard recording studio requires essential equipment such as microphones, audio interfaces, mixing consoles, studio monitors, headphones, and acoustic treatment.

They will also require furnishings such as soundproofing materials, comfortable seating for musicians, and workstations for audio engineers.

Apart from that, you may also want to equip your recording studio with specialized equipment like synthesizers and instrument amplifiers.

These furnishing and equipment are necessary because a well-equipped studio ensures optimal recording, mixing, and production capabilities, contributing to the overall quality of audio projects.

The type of service offerings you intend to offer in your recording studio will determine the type and cost of furnishing and equipping the recording studio.

6. The Cost of Hiring and Training Your Staff

If you want to run a standard recording studio, then you must make it a point of duty to hire key staff members who will occupy key positions in your recording studio.

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

7. The Cost of Obtaining Licenses and Permits

The truth is that without the required licenses and permits, you cannot legally open and operate a recording studio in the United States of America.

You should budget to get a business license, a music license, a health and safety permit, an occupancy permit, a building permit, and your zoning permit amongst other local permits and licenses that may be required by your county government.

8. The Cost of Marketing and Advertising

Even though social media has made people spend less on marketing and advertising their businesses, the truth is that you are still expected to have a budget for marketing and advertising if indeed you want people to pick up membership in your recording studio.

If you choose to advertise your recording studio on either a local or national TV or radio station, you will spend far more when compared to only promoting your recording studio online or from your social media platforms.

If you are not engaging in sponsored posts, then you might not be spending anything when it comes to promoting your recording studio but your reach will only be limited to your friends and family members on the social media platform you are using.

9. The Cost of Insurance

If is illegal to operate a business without having the required insurance policy coverage in place. It will be tantamount to exposing your workers, your customers, and people around you to risk.

So, if you want to legally open and operate a recording studio in the United States of America, then you should have a budget for insurance. You should at least plan to buy general liability insurance, property insurance, and workers’ compensation insurance.

10. Your Budget for Miscellaneous Expenses

For a recording studio, miscellaneous items cover a range of necessities such as power strips, extension cords, instrument stands, pop filters, audio cables of various lengths, patch bays, and equipment racks.

Apart from that, consumables like microphone windscreens, batteries, and recording media can be part of your budget for miscellaneous.

The truth is that your miscellaneous expenses should cover diverse items that are essential for smooth operations and everything that will help the studio address unexpected needs and maintain a well-equipped environment conducive to high-quality audio recording and production.

Possible Ways You Can Reduce the Startup Cost of a Recording Studio

1. When it comes to purchasing microphones and headphones, you can go for Neumann u87; it will cost you about $2000 or more.
2. 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.
3. On the alternative, you can choose to go for purely digital and skip the mixer altogether. This means you will need a good audio interface with multiple inputs. 12 stereo pairs minimum. The emu 1820m is a good one.
4. Then cables (nothing else but mogami cables. these are the best audio cables in the market for now; you can explore other options though).
5. 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.
6. 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.
7. 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.