ORIGINAL: len hallock
...Is there people out there that run a little recording studio successfully...is there a market for it?
Yeah, sure. And don't be discouraged, just realistic. Honestly, if you love to do something and are committed to it, then chances are you will do it well. And if you do a thing really well, you can be successful at it. After all, there *are* still successful buggy whip companies (just a lot less than there used to be!).
There are plenty of people who make positive cash flow from small recording studios. Whether they actually make enough positive cash flow to pay a mortgage and health insurance and invest some for retirement is a different story, but it *is* possible to have a studio be a net asset.
It is really no different from any other retail business. If you live in say metro New York or Los Angeles or Nashville, it may be tough because there are tons of well-known studios that can be hired inexpensively. Similarly, if you live 180 miles southwest of the middle of nowhere it may be tough because there are not very many customers. Once you've recorded both bands in town you may have to wait another two years for them to write enough new songs to go back in the studio.
On the other hand, if you live in say a medium-sized college town then there may a steady stream of local bands and not many high-profile studios. In this case you may be able to find suitable real estate for cheap and there may be a a fair number of musicians looking for an inexpensive studio.
Look at the other studios in your area. If you ask around or talk to them you may find that they are surprisingly helpful. Recording studios are often one of those businesses where "competitors" frequently help each other out and loan each other gear and send business each other's way when it makes sense to do so and so on. What you really want to find out is:
what they charge
what their selling points are
how busy they are
what their approximate costs are
Even if you don't want to blow your cover by overtly asking for help, a quick look at their rates, gear list, and space/location will give you a good idea of their hourly profit (presuming they stay busy), and a teensy bit of sniffing around will tell whether they're overloaded with clients or starving for business.
From there you can pretty easily figure out whether there is an easy market for services that you could provide, or whether you will have to bust your tail and be really creative to persude people to visit your studio. For instance, if you see that well-equipped small studios are charging an hourly rate that is just enough for you to live on and that they are having a hard time keeping busy without giving lots of block discounts, then that's a pretty good indicator that you would have a tough row to hoe in that area. If you see that puny rehearsal spaces with an 8-track are charging big bucks then you know that there is some opportunity to provide real value.
Sadly (or happily, depending on whether you're a customer), in most areas where there is a demand for recording studios it is not unusual to find fairly well-equipped studios that are happy to work for ~$20/hr or less. So unless you have something that they don't, such as great acoustics or top-flight gear or name recognition, that likely represents the ceiling that you can charge and still stay busy. In most parts of the US that's not a lot of money if you have bills to pay.
Cheers.