Radio is one of those romantic bastions of culture that lives strong today but which also reminds of a more simple past. For those looking to invest in a new business, the possibility of buying a radio station is a very real one. Just remember that the costs are going to stretch quite a way beyond the radio station equipment.
Patrolling the Airwaves
Whether you simply love radio and all the connotations that come along with it, or you feel that there is a gap in the market that you could take advantage of financially, the buying of a radio station is an exercise that is actually a lot easier than you might have thought.
It’s a bit more complicated than buying the radio station equipment and getting started, but it can definitely be done. Here’s how.
Find a Broker
If you are interested in buying an already established station, the first step is to seek out a broker who will know who is selling and who is not. The radio industry can be quite secretive and stations don’t often make it public knowledge that they are looking for a buyer. These guys will be able to point you in the direction of those who are.
A radio station is a great idea for those with a passion for the industry but it may not be the smartest investment in financial terms right now. Apart from the radio station equipment that often needs updating and maintaining there are a whole load of other costs that will start to come your way once you receive the keys to the door.
Have a Punt
Once you’ve checked all of your own boxes, it’s time for you to get out there and put a bid in on a station. The radio industry is not enjoying its greatest period at the moment so you do have an advantage when it comes to doing the deal. Never bid more than 90% of the quoted price and go even lower if you know that the station has been on the market for a while without any takers.
Give it the Once Over
Once you’ve started the potential buying process it is essential that you get a professional engineer in before you commit to handing any money over. Some stations that are looking to sell will have been getting by on radio station equipment that is on its last legs. You need to be fully aware of these facts as it will dramatically affect the price you should be willing to pay.
If everything goes according to plan, and the sale goes through, you still won’t be able to start using your newly acquired radio station equipment until you have got all of the correct certificates from the authorities. The responsibility of running a radio station is no joke and so there will be a lot of bureaucratic procedures that you have to go through before you can play the song that will be the best one you have ever heard in your whole life!