Week of July 30, 2007

Friday 08/3, 2007

Unless you are planning on flipping a format in 2008, it's best to zero base each budget line in 2008. Past spending is no indication of needs next year. Making your station stand out from the pack requires creativity more than money these days. (It sure is nice to have both.) Go over each line and ask if it's totally necessary. If not, save the money for the most important part of the station, THE CREATIVE PEOPLE. It's the expense worth fighting for!

Have a great weekend!

Thursday 08/2, 2007

Can the sales department provide you with the promotion revenue you need to do a job? Here's a rule of thumb, if the promotion costs, you $5,000 in out of pocket expenses, you must sell $10,000 worth of advertising just to break even. Think big! Concerts, car give a way's, trips, and other big items can make a creative difference. Brainstorm with the sales department now. Asking for money without revenue in 2008 usually comes back rejected. Tomorrow, what you really need to run a station.

Wednesday 08/1, 2007

How do you calculate the annual station promotion budget? Answer, you can't in today's corporate environment. In the old days it used to be about 5 to 8% of your annual revenues, every year. Unless you are Jerry Lee at B-101 in Philadelphia, (look it up if you don't know) chances are "less is less" is the rule of thumb. Bottom line, your sales department is the only answer if there is no promotion budget. Tomorrow, what does that mean?

Tuesday 07/31, 2007

Are you faced with keeping your 2008 expenses flat with this year? Yet you want to give certain individuals raises? Remember to play the averages. Usually raises are calculated over the entire staff. Did you turn over staff in 2007? Remember, people who left won't be getting raises, correct? Make the most of it by only giving raises to those who deserve it. Tomorrow, the promotion budget.

Monday 07/30, 2007

Last week we discussed forecasting revenue for 2008. This week we'll tackle the first place corporate always looks. That would be the stations expenses. Over the past few years there has been debate as to how much is the "right" amount to spend on a station. I'll come right out and suggest that if the station is to grow, it's going to require an investment far greater than what we have done in the past. There is too much competition in broadband, sat radio, and the station down the street to cut any further. Think the company cares? Nah! Tomorrow we get into the theory of giving the right amount for a staff raise and getting the money some of your staff deserves.