How To Start A Karaoke Business

How To Start A Karaoke Business - Background Info:

Today, almost everyone knows what karaoke means, and even what is originally stands for. However, many people are pronouncing it with a "western twang" often saying 'kar-ee-OH-kee' rather than the Japanese pronunciation 'ka-rah-ok-e.'

araoke is a form of interactive entertainment or video game in which amateur singers sing along with recorded music (and/or a music video) using a microphone and public address system.

The music is typically a well-known pop song minus the lead vocal. Lyrics are usually displayed on a video screen, along with a moving symbol or changing color and/or music video images, to guide the singer.
In some countries, a karaoke box is called a KTV. Due to its English pronunciation, it is sometimes incorrectly spelled "kareoke". It is also a term used by recording engineers translated as "empty track" meaning there is no vocal track (Wikipedia).

With karaoke being one of the hottest movements in entertainment, it has formed a new language.

For example if you are the head of the entertainment, then you can dub yourself as a KJ, which means karaoke jockey. If you are new to the business, and have just been given your starting contract it doesn't matter how confident you are, there will still be some jitters.

For people who love anything having to do with music, being a Karaoke Jockey (KJ) or being a DJ is a fun occupation. For such professions the person need not be an outstanding singer, musician or a composer but still can serve in the entertainment industry.

The karaoke business isn't known for being on the cutting edge of technology. Pop in a disc made 10 years ago, stare at a small monitor as lyrics fly by. And if you want to record your voice, you'd better have a cassette tape handy to pop into the machine.

You can set up your own karaoke restaurant, bar, or pub, as well as set up your karaoke business at events, parties, bridal showers, and many other venues where entertainment is desired.

Karaoke is serious business where sizeable monetary profits can be realized.

How To Start A Karaoke Business - Tasks And Skills Needed:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running a karaoke business:

Bookkeeping

Advertising/Marketing

Scheduling

Computer literacy

Answering machine

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate a karaoke business:

Create books of the songs you provide

Create lyrics in slide-show format

Get and maintain all proper licensing

Visit club owners and other entertainment venues to do marketing

Run all equipment including sound boards, lyrics, etc.

Set up and take down all karaoke equipment

Create and grow as large a music/songs library as possible

You'll also need to be in good shape. You will need to transport all karaoke equipment and music supplies along with, possibly, a laptop.

How To Start A Karaoke Business - Approximate Daily Hours Needed To Run This Business:

General Hours of Operation: - When your business is open - This job typically has longer hours that span from late afternoon to the wee hours of the next morning (approximately 2 a.m.).

Hours Needed to Prepare - Before Opening and After Hours Activities - You will need to be sure you prepare a checklist which has all the required karaoke equipment, karaoke songs, karaoke machine and karaoke downloads (if required), along with a pen and paper to take down karaoke requests.

Once you are all set up, if you are not going to be commencing for awhile, check if you can rope off your area. Individuals are fascinated with the karaoke apparatus, and you don't want your equipment touched.

You will also need to be sure you have your attire set out and/or packed as your venues may require a dress code (such as wedding versus nightclub).

Number of Employees Needed To Run This Business:

Minimum Number of Employees - During the Start Up Phase: You can start this business yourself on a full- or part-time basis.

Number of Employees - Once Your Business is Up and Running Successfully:

Website maintenance

Additional KJ's for breaks

Equipment repair and operation

Song supply

Songbook maintenance, replacements, compilations

Customer service/booking

Skill Requirements for This Business:

Handle the necessary equipment adequately

DJ experience

Party-planning

Sound/music equipment

Musician

Knowledge of music, types, and popularity/trends

Licenses:

When publicly broadcasting any type of copyright protected media, someone must either possess a license or pay royalties in some way. Karaoke is no exception.

As a KJ, most of your performances will be in bars and clubs. In virtually all areas these businesses are required to carry a "blanket license" to cover their entertainment. This includes bands, DJ's, karaoke, and even a jukebox. You are covered by this license when you perform in these places.

For other public agendas such as county fairs, street fairs, malls, etc., you should consult with the organizer on "per event" licensing issues.

To make your business legitimate, you will also need an LLC business license and tax i. d. number. For more information, see Business Name USA.

Also, if you are serving liquor and alcoholic beverages in your place of business, learning the local laws and regulations is helpful. You will need to apply for permits and licenses then, not just for your KTV bar / lounge, but also for the liquor and alcoholic beverages you plan to sell.

Copyright law is primarily federal law; however state-law governed contractual agreements can also affect copyrights. A must-read regarding licensing and copyrights is located at Burning Karaoke CD+G's Or Computer Karaoke.

Approximate Minimum Start up Cost:

Bare essential: - The average startup cost may vary form a couple hundred bucks if you already have a lot of the equipment to thousands of dollars if you want top-of-the-line equipment. You can start off small and expand your music collection and equipment as you grow.

Starting this kind of business may or may not be pricey. It really depends on your budget and what kind of karaoke business you wish to run So first check your financial standing and see how much of an overhead you wish to invest. This will lay the ground work as to what kind of karaoke business you wish to establish.

On average it could take about $5,000.00 initial start-up funds to get your karaoke business up and running as a first-class operation.

Minimal exposure - Like any other business, a karaoke business needs to be marketed well. You can market yourself either by personally meeting the organizers in the clubs, pubs and with event organizers. Be sure to carry your business card! Your initial outlay for a newspaper service listing and business cards with flyers will be around $300.

Necessary Equipment to Run this Business:

Necessary Start-Up Equipment & Supplies:

Karaoke CDG Player (if a disc system)

Amplifier and Mixer or Powered Mixer

Speakers

Speaker Stands

Wireless Microphones

RF Converter

19 Color TV

Component Rack

Disc Storage System (if a disc system)

Various Cables and Accessories

Automobile for transporting equipment

Cell phone

Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running:

2 - heavy duty 30 foot speaker cables

2 - light duty 1/4 cables (mic receivers to amp)

1 - double RCA cable (player audio out to amp)

1 - single RCA cable (player video out to RF converter)

1 - 6 foot standard TV cable (RF converter to TV)

1 - 6 outlet surge protector (protects your amp, mics, and player)

1 - small clip-on light fixture (many bars and clubs are too dark)

1 - cable connection splitter (you may need to connect to another TV)

1 - 100 foot standard TV cable

Van or truck

Monthly Expenses To Consider:

Answering and/or cell phone service
Warehouse or other storage rent
Wages
Any equipment rental
Purchase of music/songs
Internet access
Certifications, permits, licensing
Advertising/Marketing
Electricity
Fuel/gasoline

Special Requirements and Other Considerations for This Business:

Burning "back-up" copies of CDG's for use during a paid show or ripping your CDG's into a computer for use during a paid show is ILLEGAL. If you make money on a copyrighted work, you MUST USE THE ORIGINAL DISC(s).
Most importantly, you need some good quality equipment: a professional level karaoke machine, microphones, speakers, a monitor for the lyrics, a large karaoke music library, speaker stands, and cords. Some clubs have their own speaker system you can plug into.
If you would like to cut down on your expenses, and on the amount of equipment you need to haul in and set up at each gig, a great suggestion is to look into The Song Station Karaoke Machine. This karaoke machine is high quality, and provides a lot of features to simplify your karaoke DJ business.
If you have a karaoke machine which utilizes a television to display the lyrics, you don't have to provide the monitor. So in some locations you can get away without bringing the speakers, speaker stands, or the monitor, but very few clubs provide their own karaoke machine or their own karaoke music.
A dynamic personality to cheer on the crowd and get them going is a big plus! Also, a good singing voice is an asset, because sometimes it's YOU who sings the first karaoke song!
Anywhere in the city where the night life is active is a perfect place to start this kind of business.
The evolution of the karaoke technology has forevermore given rise to the word KTV or karaoke TV. This is due to the advent of the karaoke box: a standard karaoke machine connected via fiber-optic links that provides instant high quality music with video and with accompanying song lyrics.
Go all out because using your imagination is where the entertaining begins. Bring a camera around and treat party-goers like starlets for the night or give away magnificent prizes to the most talented singer and let the audience decide.

Pros And Cons:

The Pros of Running a Karaoke Business:

A karaoke business is fun to start and operate.

You have the advantage of being your own boss and setting your own hours.

You can travel.

You can build a following that can be useful in another music-related business.

This business is completely expandable.

Great business for night-owls (evening work hours).

Meet people.

The Cons of Running a Karaoke Business:

The equipment can be expensive.

Songbooks take time and money to create, maintain and update constantly.

It can be difficult to be taken seriously by other business owners (such as bar owners), thus you may have to struggle to get paid what you're charging.

Getting paid can be difficult.

You can be easily undercut by a competitor.

Musicians unions can be hard to work with.

Type of Customers You Need to Attract:

Radio stations are candidates, since they host promotional events all the time. Locate your local wedding planners, event planners, party planners. Leave your cards with caterers, florists, wedding photographers, videographers.

Your main customers are the venues that will host your karaoke services. This can include bars, restaurants and clubs. Don't forget less-visible lounges like those in bowling alleys, hotels and restaurants. You can also market your service to planners of events like corporate meetings, holiday parties, weddings and birthdays.

Your secondary customers are the karaoke singers; you've got to provide a great selection of songs and good service to keep them coming back week after week. Usually, tips will also be part of your business income so it pays to be friendly, fun and helpful.

Even your local churches and school districts may enjoy having a Karaoke Night fundraiser. Party supply houses might let you leave a stack of business cards at their registers. The supply of new leads for your Karaoke DJ business is endless.

Karaoke Business Statistics:

In recent years karaoke can't seem to find the right beat, becoming yet another victim of the 12-year downturn. A listless economy has wreaked disharmony in the karaoke business, triggering a wave of consolidation among companies that make, sell or use karaoke equipment. Shirou Kataoka, who's paid to survey the state of the industry annually, has been issuing some very sour notes (BNET).

While Karaoke isn't as popular now as it was in the boom of the late nineties, there is still a lot of demand for this fun activity at bars, clubs, and special events around the country. While some bars have taken the time to set up their own in-house karaoke systems, many others rely on outside services to come in for their karaoke nights.

The Internet is the main channel of distribution for karaoke music and karaoke equipment. This home based business has a strong market position and highly ranked by search engines.

Revenue:

See USA.gov for current revenue figures.

Resources:

Industry-Specific Websites:

Everything Karaoke

DJ Club and Entertainment

Tommy's Karaoke Secrets

Courses:

Starting And Running a Karaoke Business

How to Start and Run a Karaoke Business : Internet Advertising for Your Karaoke Business

Karaoke Business (CD)

Equipment and Supplies:

Unify

Microphone-Guide

AceKaraoke

LaserDirect

KaraokeWH

Forums:

The Karaoke Forum

DVD Talk

Karaoke and Midi Music Blog

Karaoke AnswerBag

Franchises:

Karaoke Entertainment

Associations:

American Disc Jockey Association

National Association of Mobile Entertainers

Books:

Don't Stop Believin': How Karaoke Conquered the World and Changed My Life

Hit Me with Your Best Shot: The Ultimate Guide To Karaoke Domination

Pocket Karaoke

Guide to Karaoke Confidence

Karaoke: The Global Phenomenon

Software:

Karaoke Software KaraFun

AudioGrabber

CDGtools Karaoke Anything!

MP3+G Toolz

PyKaraoke

DJ Pro 2000

Other:

PB Pulse

Free Karaoke

Laser Direct

How Big Is Online Karaoke?

Trademark Suit Targets 15 Karaoke Bars

Related Businesses:

Some karaoke businesses need as little as one coin-operated karaoke machine, a microphone and a willing singer. In this case, all you need is a tiny place to place the machine, preferably some place that is either sound-proof or so far away from people who might possibly not wish to be subjected to all that singing.
Other karaoke-related businesses include online selling of karaoke machines and karaoke machine rentals.
Party and event planning
Singer/entertainer