EMPLOYMENT OPTIONS!

[soundmanjim]

Ok cats here's one to test your brain cells!

Obviously for the past 6 years ive been running the Fat Surfer music venue, to varying degrees of success. I am now at the stage where i have just about paid off all that the equipment owes me (which i get back through door takings) and will soon be actually making money.

My dilemma is this.

I want to know what my best option is. Do i become self-employed and employ staff or do i start a small buisness?

The hall i dont have to hire as i am a CIU committee member. (the venue is actually a working mens club)

I currently have about 6-7 volunteers who have dilligently helped out over the years for nowt.

My outgoings are payment for bands (£50-£100 each, only every have 2 bands a night), three security guys (£200) and currently the rest goes to me to pay off the original loan to buy all the gear. (nearly clear). the ciu have suggested i pay myself enough to cover my expenses and for wear and tear on the gear and give the rest to the hall for its upkeep.

i currently run the fat surfer fridays, i run the smaller HK system at another venue on tuesdays (for which i get £180).
I have several other smaller gigs lined up plus a few festivals. Obviously i want to be 100% legal and above board, so where do i go now? I do not currently have a full time job.

i also would like to continue my work as a freelance engineer, how would this affect the dynamics of the situation?

Wife wants regular money coming in, house just been re-mortgaged, freeing up £20, 000. what would you do?

im at a bit of a crossroads now.

do i continue to run the surfer and take a small cut (its convenient as i have somewhere to store the big system) but i'll still be lorded over by the ciu committee, and if i had the chance i would lease a venue and run it completely off my own back, but theres no available buildings in the locality.

Or do i just sell all the gear and concentrate on getting work as a freelance soundie? (problem with this is i will lose the income im currently getting from the fat surfer)

do i sell the small hk system to the other club and sit in as in house engineer and pocket less cash.

im at a total loss.

bottom line is i really enjoy what i do, being the engineer at i club i run, but its getting a bit much and i want to go out on the road too.

ideas please!!

[soundmanjim]

pretty please?

[Simon Ryder]

Hi Jim,
The one thing you categorically don't want to start doing is employing people! PAYE, insurance etc make this an absolute nightmare. Sole trader is good, limited company is good but get yourself a good accountant. If you are telling anyone what to do then make sure you have employers liability insurance but make sure that you never actually employ anyone. The way to do it is to contract in companies or professional freelancers with the required public liability insurance etc.
A good source of advice on this is the PSA (Production Services Association) who are very helpful and knowledgeable with legal advice departments etc. You can reach them at www.psa.org.uk

Now it could be a case of just being what your local clientele can support but I would say that you are under selling your services. Residency engineering for a good engineer should start at £60 in the proveinces or £80 in London and that is without supplying any kit. Good engineering rates (rare in residencies but standard in touring, band engineering etc) should be £120 - £250 per night and that is still without supplying any equipment.

As for the kit, conventional hir rates say you should be looking for around £40 per night for you Soundcraft GB4, maybe £120 per night for your HK rig and so on. Ian Hassel should be able to fill you in on what he lets his HK kit go out for.

For your large rig, if you can find a venue that wants to use it three days plus a week or wants to use the speakers and amps for running DJs through when the live stuff isn't happening you should be able to get a decent rental for the kit.

It could reward you greatly to find an assistant who can run the rig when you are not there which would leave you free to to take any touring or freelance jobs that come your way. I currently have 4 or 5 well respected engineers to cover for me at the venue that I do a residency in because it pays me far ore to go touring etc than it does to be at my residency but as my residency is Mon - Thurs it leaves me free at the weekends (they have DJs then) to go and earn my higher freelance rates.

I hope this helps you Jim. You already know what you want to be doing. The next questions are "where do you want to be doing it?" and "what do you want to get paid for it?"

Good luck with it all,

best regards,

Simon

[pip]

Mate i reckon a option which is pretty good in your case if you ring the inland revenue and register as self employed (takes no time at all) than all the pa rental you do you invoice for and all the frelance work you do you also invoice for than if you employee people get them to right you a invoice and that than becomes a expence instead of a employee.

i would also keep your p.a and when you rent it out for £180 take a £100 sit at home and get a engineer to work and pay £80
that way free's you up to work else where if you need to also as regards to door taking i would hold onto it and use it either incase equipment brakes down and or booking larger and established acts for your venue

i would say also its not worth selling your pa to sit in as a house engineer as than you become stuck your in a position to grow iton somthing like skan or britania row

good luck

[soundmanjim]

thanks very much guys that was very informative indeed. inn the past few days a few more doors have opened so its looking good.

thanks again!

jimbo