| |
| |
| |
Business Rule #3:
Think Big, but not That Big!
September 23, 2004
(PAGE 3 of 3)
I’ll give you a great example of me NOT doing my homework. As a young man, I created financial opportunities by producing concerts and promoting them effectively. I booked acts such as Brian McKnight, Sisqo, Lil Kim, Snoop Dogg, and N’Sync to name only a few, at first-class venues like the Allstate Arena, Soldier’s Field and the Rosemont Convention Center. I booked one huge event early on with a budget of $300,000 but failed to do my homework.
Every artist that you book comes with something known as a rider. A rider tells you things like what the artist eats, how he travels, and where you may lodge him. This particular event may not have been my first, but it was the first for its size! I figured into my budget the cost of all the performers, the venue rental, and the hotel accommodations for the main artist. When all was said and done, I was $30,000 under budget! I immediately went out and hired an advertising agency for the tidy sum of $15,000. When I heard my ad on the local radio station, man, was I flying high! This was really something. This was huge! Unfortunately though, I didn’t take into account the costs involved with the mandatory perks for the artist and his crew such as the limo rental, the additional security, and all of the extra hotel rooms, food, and first-class airline tickets that were needed. I also neglected to figure in the added price of the venue’s union labor and the cost of delivering the tickets to TicketMaster. I had honestly thought that I was covered; I had even thought that I had been smart for having placed $5,000 aside for “incidentals.” Boy was I in for a rude awakening! I now found out I was $35,000 over budget! If I had done my homework, I would have known that I needed that extra money to pad against those rider items and that without them, the concert wasn’t going to happen in three weeks!
| |
| advertisement |
 |
|
| |
| |
The important thing is I didn’t panic. I used my business savvy to encourage sponsors to sign on for the event. I got the venue to help me secure sponsors in exchange for a percentage of the revenues from the signage I sold them. I also moved merchandise, making the sold-out event an even greater success.
I know you’re probably saying, “It’s good to learn from your mistakes.” I though believe in learning from my successes. Today I am preparing to hire a team to start my own clothing line: LaVelle Style. With my homework done, I feel confident that I can make a real go at it and be just as successful with it as I am with my other ventures… and just in case you’re wondering, my road to becoming an overnight success began twelve years ago.
What in sum did we learn this week? You should know the possibilities inherent in everything you do. Do everything you can to find out as much as possible about what you plan to do. Don’t expect anyone to baby you, lead you by the hand, or look out for what’s in your best interest. Most people look out for themselves, not you. If they have put great time and effort into doing their homework, why would they give you a leg up and share what they’ve learned with you?
LaVelle Ward
|
|
Don’t expect anyone to baby you, lead you by the hand, or look out for what’s in your best interest.
