Week of July 23, 2007

Friday 07/27, 2007

This week we have been offering tips on how to forecast 2008 budget revenues. After all the calculations, the bottom line is, will the company accept reality or fantasy? They are not in your market, and they usually just plug numbers without regard for individual situations. Your job is to convince them of reality. In all my years of doing corporate budgets, I have never seen a company allow a decrease in revenues for any reason. If you believe in your plan, and are prepared to defend it, they might allow you to submit slower growth revenue figures. You can't sandbag, nor can you doom and gloom it. They have hared it all. One final hint, how are you doing this year? If you are on target, they will believe you next year. Missing by a lot? You may have a credibility problem to fix before you submit for 2008. Want to do expenses next week? Ok, let me know, drop me a line at joegm@allaccess.com.

Thursday 07/26, 2007

This week we are offering tips on creating a proper station budget for corporate. Arriving at the market growth used to be easy. No more. the internet, falling overall radio revenues, and competition from other groups lowering rate all contribute. Asking other managers in the market what they are doing will only get you so far. (hint, if the company has another GM in the market besides you, make sure you both submit the SAME NUMBER!) Take your top 5 business categories, and your top 20 accounts, and go over them with your sales manager account by account. Be honest with your ability to raise rates. If your ratings are down 2% this year don't look for a 10% rate increase. Not happening. And here's a programming tip, don't even think of raising the spot load. The industry has enough problems. Tomorrow, we'll wrap up our discussion of budget revenue forecasting.

Wednesday 07/25, 2007

This week we are offering tips on creating a proper station budget for corporate. How to calculate revenue for your station? Here's a rule of thumb.

A. Take the average unit rate on the station 6am to 7pm, Monday thru Friday. (be honest here.) B. Times the rate by the average spot load. C. Assume a sell out of 80% 6a to 7p. D. Times the count by 6 days per week, times 50 weeks. The total should get you close to your revenue goals. Try it for YTD 2007 and see if you are correct. Now when you have your final number, add the market growth for next year. How do you calculate market growth? Come back tomorrow and you'll find out.

Tuesday 07/24, 2007

Starting in about three weeks, you will be getting the budget planning for next year. Where do you start in creating a 2008 budget for corporate? Answer....revenue! It always begins with the incoming money. This is the single most important number you will send to them. get it wrong, and you miss the year before it even gets started. Here's a few things to keep in mind about station revenue. Assume the following,

A. The market revenue will not grow as much as you (or the company) will want it to grow. B. Assume the ratings will not grow either. (except a format flip in the past 90 days.) C. Think negatively. Blue skies happen in the weather forecast. Not revenue forecasts. Tomorrow, the formula for calculating individual station revenue.

Monday 07/23, 2007

Over the next 3 of 4 weeks major public companies will start the 2008 budget process. As a GM, you already know the issues. How to grow your market share while keeping expenses in line. Getting a jump on it by thinking ahead of time can always help. Remember, proper budgeting and getting corporate to go along with it, may be two separate things. This week, we'll offer tips on creating a proper budget in the face of irrational corporate accounting.

Tomorrow, getting the revenue's right the first time.