You love music, you love people, you love entertaining, and you love getting paid. But there is more than likely one thing you don’t like: running your Mobile DJ Business as a business. So before we go any further down the road to setting up your business, let me this disclaimer: I am Not, An Account, Lawyer, or Financial Consultant. Please check with the appropriate professional before taking any action mentioned here.
Don’t forget you will also need those essential things that state you are a legitimate business; Business. Cards, Separate Phone Numbers, marketing materials, and a separate mailing address other than where you currently reside.
Steps for setting up your Mobile DJ Business
There are many steps associated with setting up any business, which will be pretty much the same for any business. However, I will focus on those unique to being a Mobile DJ.
- Get the Necessary Permits & Licenses for your Mobile DJ Business
- Get Mobile DJ Business Insurance
- Set up your Mobile DJ Business Entity.
Plan your business
“If You Fail To Plan, You Are Planning To Fail,” quotes Benjamin Franklin.
Ask yourself these questions;
What type of Mobile DJ am I going to be?
Who is your ideal customer? Again, try to avoid being a jack of all trades here. After all, you are creating a brand.
What makes my Mobile DJ service different than other services in the marketplace?
Think about your vision for the company before getting started. What can you offer that makes you stand out from the competition?
What is my schedule? Most of your business is going to be nights and weekends.
How Many GIGs do I want to do? More GIGs, more Money, More GIGs, more work, which leads to more hours worked.
What should I charge for my service?
I am going to use a four-letter word in a second or two. If you have no experience, no one will hire you. So what to do? I recommend you offer your services for “free.”
There are countless places to offer your services for free to get the exposure and experience you need to become a well-rounded DJ.
The cool thing about this strategy is that you will have free face time with all kinds of people and if people like your style, they may want to hire you.
Making it Legal
Failure to acquire necessary permits and licenses can result in hefty fines or even cause your business to shut down.
The last thing you want is to get the GIG of a lifetime only to have your business shut down by local or state authorities.
My business requires getting a Federal Tax ID, State Tax ID, and County and city licenses to run a business in the area I work in, which are 5. Yes, each city has a requirement that you have a separate business license. (State of Nevada, Clark County, City of Las Vegas, North Las Vegas, and Henderson).
You will also need to open a separate banking account to protect yourself from your personal life.
Recommend: A lawyer to create a professional service agreement and review your DJ business’s liability insurance and legal entity.
The last thing I will mention here is becoming familiar with the local building codes. Some locations will require a particular use permit for Lasers, Cool Spark, and Fog Machines.
Running you business
You will need the following to ensure you are operating as a professional Mobile DJ service.
Service Contract
Since mobile DJ businesses provide services for events, it would be beneficial to write up a contract outlining what services you deliver to your client, what form of compensation shall be received, and any other relevant information.
The composer or license holder must acquire permission to play music in a business setting. Typically, it is possible to obtain a “blanket” license allowing a business to playing music owned by an extensive catalog of artists and recording studios. Can be received from Performance Rights Organizations, such as ASCAP or BMI.
Music genres will vary from party to party, so be sure to have something for everyone in your music catalog.
Consider signing up for a record pool – this is a great way to acquire new music at a reduced cost.
Service Contract
Since mobile DJ businesses provide services for events, it would be beneficial to write up a contract outlining what expected services, what form of compensation shall be received, and any other relevant information.
Get involved with organizations such as the American Disc Jockey Association and United States Disc Jockey Association. The Disc Jockey Association instantly provides you with a support group of other DJs, ensuring you’re up on the latest news and trends in the industry. They can also offer a wealth of information and resources to ensure the startup process goes smoothly and that your business continues to grow.
I will talk about attire once. Who is the character you want to be when performing because a DJ is more than someone who plays music?
Below is a list of basics you’ll need to get started:
Laptop with plenty of storage space
Music
PA Equipment
Lights
Microphone
Uniforms – remember, you’ll be in the spotlight throughout the event, so it’s important to look clean and professional.
Marketing materials – website, brochures, and business cards
Attorney and CPA to help ensure you have a solid business plan executed smoothly.
Vehicle large enough to transport all your equipment
Insurance
Conclusion
You’ll have to spend a fair amount of time deciding what type of business you will be running. The more time spent on the front end, the less likely you will have problems on the Back end.
If you participate in three events a week and charge $2,000 per event, your company will earn approximately $288,000 annually before expenses. Therefore, hiring additional DJs will not only assist in covering overhead costs but can also more than double your business’ profit, depending upon the pay scale you set.
But more than anything, have fun.