There’s nothing like taxes to make you aware of how your cash flows. When you filed your taxes for 2012, you likely noticed your cash flowing in one direction: out. As a singer, it’s easy to feel like you’re at the bottom of the economic food chain. We keep everyone in business: from opera companies (thank you, application fees!) to dry cleaners (all those gowns). So if you want to start your own performance project, how on earth are you supposed to pay for it all? Very simply: don’t pay. Or, don’t pay with money—certainly not your own.
Among the things that singers are accustomed to paying for, such as voice lessons or application fees, there’s no room for negotiation. Not so with self-produced projects. There are certain things you do have to spend money on, but many others—such as renting a hall, designing a website, or even attracting top talent—can be negotiated or bartered.
Being a singer means being a collaborative artist; there’s not much music you can make all by your lonesome. Even if you want to strike out on your own—a solo recital series, say—you will quickly discover just how many people you will need to help you. Now is the time to speak with your colleagues, fellow entrepreneurs, and friends to see how you can collaborate. You might find a partner to work with on ideas together, or you might hire people to support your vision. In any case, start talking to people you know.
Maybe you’ve worked with someone who knows the manager of a performance venue who can give you an insider’s rate. If you admire someone’s website, ask them for their designer’s name, then ask if they have special rates for start-ups. If you need to rent an instrument, such as a harpsichord, see if anyone in your extended circle has instruments to lend—and if they can help you move it. Sometimes people who make or repair instruments will offer one for free if you promote their services at your event. No matter what you need, now is the time to be bold about leveraging support in all forms. You will have plenty of nonnegotiable expenses, so save money wherever you can.
As for hiring artists, this might seem like a catch-22. You can’t attract good people without money, and you can’t attract money (in the form of donors and ticket buyers) without good people. But you would be surprised. As long as your artists feel respected, their time is well used, and they get something out of the bargain, talented folks will be willing to work with you. For example, if you can’t provide a big paycheck, offer your fellow performers a chance to play a piece of their choosing on the program. If you feel your project will attract attention from the press, the possibility of a review can make up for a smaller fee. I also find that talented directors, designers, and lighting professionals are eager to add an opera credit to their résumé. In general, people tend to understand that start-up operations are not going to be flush with cash and, just like you, they want to perform.
In any case, once you’ve agreed on someone’s fee, pay it no matter what. Even if you ultimately don’t get along, even if you feel you overpaid them, even if you take a loss at the box office. The last thing you want is to earn a reputation as someone who pulls a bait-and-switch on their artists. It’s very professional and puts everyone at ease if you create a contract with anyone you hire, indicating the fee you’re offering and what you expect in return. Never written a contract before? Just one more thing to ask your circle about—surely someone can lend you an example or look over your draft.
So how do you do this without bankrupting yourself? Three magic words: set a budget. Start with your fixed costs (printing, space rental, etc.), determine your artist fees, then think about ways to bring that money in. The larger the production, the larger your audience will be: there are more friends and family to come out, and bigger shows tend to draw more notice. But don’t rely on ticket sales to pay for everything. A conservative estimate is to count on earning back about one third of your expenses, but ideally, have enough money in the bank to cover the entire project. Donations from close friends and family, a benefit concert, advertisements in the program, and multiple performances are all excellent sources for start-up funds. Credit card debt is not.
After you’ve identified where your money will come from, find a way to keep track of it. Unless your project is a one-time thing, you should open a separate checking account strictly for related expenses. Most banks are eager to support small businesses and will have a staff person who can help you decide what kind of account you’ll need. When you would like to set up an enterprise using a name other than your own, you need to register your “Doing Business As” (DBA) name with the local county clerk or state government. You will then be a Sole Proprietor business. When I went to open a separate bank account for my Baroque company, my banker walked me to the local town hall to register my DBA, a one-page application.
Unless you’re anticipating an enormous operating budget, a single checking account should suffice. Your banker might try to convince you to open a savings account or other products, but don’t do this unless you later find that you need to; the more accounts you have, the more likely you are to incur fees. Your project-related income and expenses should be tracked separately from your finances concerning the rest of your singing career, but will come under the same categories for your taxes. Now’s the time to find a good accountant, too.
It might feel very dreary to embark on an exciting artistic venture and then be bogged down with financial planning. But a few systems in place up front will save you major headaches down the road. And besides, as a singer, you’ve written a few checks in your time. You can do money.
