a) Equipment split
Equipment split always happens when the band goes their separate ways. Everybody takes what is theirs and goes home. Equipment is an asset you invest into the band. In the real business world assets are counted at the beginning and at the end of the business. Entertainment groups must be run like a normal business even though it might not last as long as General Motors. This may be a little to much for the weekend warrior . But when things get rolling well you will appreciate that the band was built on a good foundation. Numbers don’t lie.
Taking an equipment split off the top each time you get paid will cover all investors in the band. This should be a set percent of the total income for the weeks performance. As a group, decide what percent off the top this slit should be. Ten to twenty percent should not offend any one for being too high or low. If you had to rent the gear, you would have to take out more money than that to pay for it each week. The members in the band that own equipment are your investors in your business. They must be compensated for what they have set on the stage for all to use. Here is an easy way to be fair to everybody:
- Look at each ones gear that is necessary for the band to perform. This includes an individual personal setup as well as the PA and lights. Give a set value for each investors equipment. If one persons truck or van is the vehicle used to move all the equipment this also can be called an asset.
- Then get a grand total value for all the equipment.
A + B + C = D [total value]
- Now here is the math. Take the grand total value and divide it into each personal investment. This will give you the percent of the total value that each member has invested.
D / A = AA [A’s percent]
D / B = BB [B’s percent]
D / C = CC [C’s percent]
- Now multiply the twenty percent you took of the top as an equipment split by each members percent. This final total is what each investor would get extra as their equipment split.
20% x E = H [A’s equipment split]
20% x F = I [B’s equipment split]
20% x G = J [C’s equipment split]
Here is an example.
In a three piece band the drummer [A] has $1000 worth of gear. The base player [B] has $250, and the lead player [C] has $1250 of equipment. That is a grand total [D] of $2500.
A + B + C = D
$1000 + $250 + $1250 = $2500
Now divide the grand total [D] of $2500, into the drummers $1000 [A], and you will get .40 or %40 [AA]. The base player numbers would be $2500 [D], into$250 [B], for a remainder of .10 or %10 [BB].
And the guitar player would be $2500 [D], into $1250 [D], with a remainder of .50 or %50 [G].
There is you individual split for each time you get paid. The drummer gets %40, the base player gets %10, and the guitar player gets %50 of the whole equipment split. If this band made $1000 for the week and used %10 off the top that would be $100 total equipment split. The drummer would get $40, the base player would get $10, and the guitar player would get $50.
By doing the equipment split it pays back each member of the band according to their investment. And this also influences future investments in you business. Face it someone had to lay down the bucks for the equipment you all take advantage of. And even 25% off the top is not too much to pay for the use of it.
b) Maintenance and repair fund
Maintenance and repair fund is good idea as extra insurance that not one person will shoulder the cost. This can be set up the same as the equipment split using the same basic number formula. You could take off %10 for maintenance and %15 for equipment. That still is just %25 of the grand total income. This extra cash comes in handy when you need to fix a flat or get a room during bad weather. It will make you feel like you didn’t have to pay for it when an emergency arises. Again this idea may be a little to serious for some.