Music Tech Center business model - call for assistance

Today's article is related to the "Help Wanted" page I just added to this site. The Music Tech Center is looking for a qualified contractor to a help solidify our business plan, so that we can proceed with renovation. The motivation behind our search is outlined in the following text.

The vision for the Music Tech Center (MTC) has been evolving over the last three years. Most of my time has been focused on the mechanics of acquiring an appropriate building here in Bozeman and how to renovate the space accordingly. My background is not in business and, hence, the part of this project that is still a challenge is the cash flow model and overall business structure. That also is complicated by the unusual nature of the vision, sitting philosophically smack dab in the middle of "not for profit" but not necessarily warranting the complexity of a board of directors and the complicated bureaucracy that goes along with 501(c)(3).

We are very, very close to being able to submit for a building permit and ask the subcontractors to start the renovation in earnest. But I sit here still wondering if we have a model that can keep the facility going while still achieving the vision. We want to make sure we satisfy some key goals:

• make sure that local bands will always be able to play at the venue
• make sure that local musicians, especially kids will be drawn to the facility, collaborating with each other and gaining experience
• make sure that all local fans have access, not just drinking age patrons
• make sure that the acoustics, audio, video and networking are cutting edge
• make sure the MTC is an asset for the local music scene and source of enjoyment for southwest Montana

I've observed many years of local music business and recognize that it is rare for bands to get paid sufficiently for their live efforts. I know that the typical bar venue generates most of its income from alcohol sales, and sometimes bands get a (small) cut of that. The thing is, I want to see the MTC operate as part of a healthy eco-system. Obviously we need some income to pay for loans, property tax, insurance and utilities but there's a point where there's enough to cover the basic expenses. I'd like to see us establish a model that honors that spirit and makes sure that performers take the same responsibility and reap the same benefits that we do. Perhaps we can establish a monthly threshold and work to satisfy that throughout the sum total of all events for the month, then share all profits beyond that with the performers. Perhaps we take a similar approach but handle it on an event by event basis. Once we hit the (low) threshold for a given night, we simply share the rest between the bands.

For zoning reasons, the MTC cannot be a bar or a restaurant. We can partner with caterers to provide food and drink for shows, but cannot run those services ourselves. I understand that typically such catering agreements allow the caterer to keep the money they make on food and beverage sales. That makes sense and simplifies the model because the catering monies aren't part of our equation. Unfortunately that also means we don't have what's generally considered the best source of income for a venue.

We also struggle to make heads or tails of the for-profit vs. not-for-profit question. Our spirit is very much "not for profit" but the administrative and bureaucratic responsibilities of running this as a true not-for-profit appear to be a poor match for the project. How then do we run this in a more typical "for profit" model without maximizing profits and the never-ending quest for business growth?

So, the renovation plans are nearly complete and we could start demolition within weeks, immediately followed by construction. However, we could use some mentoring, support and guidance on the business model and projecting a target for the next three years. Do you have the unique set of skills, experience and interest necessary to help us get over the hump? We welcome your input and are flexible on terms. Mostly we just want to settle this issue and move forwards. Please contact me or reply below if you can help.