danielray Posted October 31, 2011 Author Share Posted October 31, 2011 Ok; let's take three instances: 1) DCI, 2) an existing corps like Jersey Surf, and 3) an upstart group attempting to create a corps. Where would each of these three entities secure the capital to actually create taxable subsidiaries (especially since most of the current income they receive has to be targeted to the mission and not targeted to creating subsidiaries). 1) Doesn't need it. Just apply existing resources to fee-for-service activities 2) Start something small... grow. 3) Start something small... grow. I think I mentioned previously in this thread about a kitchen apron business that I started with pocket money. The money that I got from that I ended up putting into another company... buying computers, hiring employees to create a digital design firm... which l took the revenues from an seeded a tech startup. My point is that what you initially set out doing does not need to be what you ultimately aim to do. Rather than looking for outside capital, start something smaller... build up in steps. Take the cash from the first thing and invest it in the next one, and so on and so on. An example of this sort of mentality is this kid who turned an old phone into a Porsche. If you're a startup corps... you should be thinking of processes of how you can turn a phone into a Porchse, not how to get the financing for one. 2 Quote Link to comment Share on other sites More sharing options...
danielray Posted October 31, 2011 Author Share Posted October 31, 2011 Here's an easy example for a drum corps to be able to utilize idle assets. Connect with a company like this, that has existing customers and sales channels, and cut a deal to lease out the food truck to clients (their small trucks rent for from between $2,500/day to $12,000/mo). Take the money from this and reinvest in small food service trucks (sort of like taco trucks... but needs to be something unique) that would serve key places in cities (ex: business parks) on a regular route. There are very high margins...and you end up with a small food truck to service camps (you don't need all the refrigeration and extra prep space for camps). This not only allows your key asset to be rented out longer, but provides a replacement for camps and non-touring events that can also be turned into a new revenue stream. Take the money from this new revenue stream and buy another.... eventually turn it into a fleet. Soon you could have a serious business on your hands that does quite well in a recession. Any corps out there could do this. They also don't need to necessarily have the trucks in places where they operate, but places where there is greatest market opportunity. In the Bay Area... for example, there could be a very interesting opportunity with the umpteen million business parks out there. As this would be a business where the proceeds go to supporting activities for youth, there could be a unique angle. Reach out first to the community relations departments of these organizations with a brief overview of the organization and the business... and request the ability to stop in their parking lot once per week. Chances are they will not only like it (it provides a convenience to their employees... allows them to quickly get back to work... all the while making the company look good), they may even promote it internally. Get one of these locations locked for each day of the week... and repeat process with another truck... and so on... and so on. 2 Quote Link to comment Share on other sites More sharing options...
Stu Posted October 31, 2011 Share Posted October 31, 2011 Here's an easy example for a drum corps to be able to utilize idle assets. Connect with a company like this, that has existing customers and sales channels, and cut a deal to lease out the food truck to clients (their small trucks rent for from between $2,500/day to $12,000/mo). Take the money from this and reinvest in small food service trucks (sort of like taco trucks... but needs to be something unique) that would serve key places in cities (ex: business parks) on a regular route. There are very high margins...and you end up with a small food truck to service camps (you don't need all the refrigeration and extra prep space for camps). This not only allows your key asset to be rented out longer, but provides a replacement for camps and non-touring events that can also be turned into a new revenue stream. Take the money from this new revenue stream and buy another.... eventually turn it into a fleet. Soon you could have a serious business on your hands that does quite well in a recession. Any corps out there could do this. They also don't need to necessarily have the trucks in places where they operate, but places where there is greatest market opportunity. In the Bay Area... for example, there could be a very interesting opportunity with the umpteen million business parks out there. As this would be a business where the proceeds go to supporting activities for youth, there could be a unique angle. Reach out first to the community relations departments of these organizations with a brief overview of the organization and the business... and request the ability to stop in their parking lot once per week. Chances are they will not only like it (it provides a convenience to their employees... allows them to quickly get back to work... all the while making the company look good), they may even promote it internally. Get one of these locations locked for each day of the week... and repeat process with another truck... and so on... and so on. Ummm... The IRS wants most income for a non-profit to go toward the actual stated *mission* not toward creating for-profit enterprises. If they see a lot of resources going into for-profit ventures, even in the creation of subsidiaries, they will see this as attempting to skirt the non-profit charitable aspects. I have seen this happen to a few organizations (albeit outside of drum corps). As for idle assets, are you kidding me!!!!!! Quote Link to comment Share on other sites More sharing options...
garfield Posted October 31, 2011 Share Posted October 31, 2011 Ummm... The IRS wants most income for a non-profit to go toward the actual stated *mission* not toward creating for-profit enterprises. If they see a lot of resources going into for-profit ventures, even in the creation of subsidiaries, they will see this as attempting to skirt the non-profit charitable aspects. I have seen this happen to a few organizations (albeit outside of drum corps). As for idle assets, are you kidding me!!!!!! Stu, DCI's budget is $10million, all of that is "related". If DCI used $10,000 to start a business making... oh, I don't know... aprons, because that business will generate $50,000 towards the drum corps cause, do you think the IRS would pitch a fit? The point is that the apron business mission is aligned with DCI's because all the net revenue flows to DCI. Isn't it arguable that starting that business is, in fact, in the best interest of DCI's cause? I think you're thinking too "inside the box". The laws aren't nearly as constrictive as you imagine. 1 Quote Link to comment Share on other sites More sharing options...
KeithHall Posted October 31, 2011 Share Posted October 31, 2011 This post is no longer fun! A few of you have put in way to much time on this....do you have a life? Is DCI reading this stuff? Do they care? Are they interested? Why are you all spending so much time on this when you could have gone to Washington, DC and fixed the debt? 1 Quote Link to comment Share on other sites More sharing options...
garfield Posted October 31, 2011 Share Posted October 31, 2011 (edited) This post is no longer fun! A few of you have put in way to much time on this....do you have a life? Is DCI reading this stuff? Do they care? Are they interested? Why are you all spending so much time on this when you could have gone to Washington, DC and fixed the debt? Well, Keith, it's a matter of perspective, I guess. There are some on this board who are actually actively working to better drum corps. Some may be thinking about DCI, others might be thinking about their own corps or their own dreams about a new corps. Regardless, there has been a tremendous amount of facts, opinions, and creativity that has come out of this discussion. That you'd spend your time being Mr. Smith doesn't deter or diminish the goals and aspirations of others who view the world differently than you (or I). Have you asked DCI your questions? Is it possible that there are people on this board who actually DO have DCI's ear? What business is it of yours how I spend my free time? Now, back to the discussion at hand (presumably without Keith's input). EDIT: I can't help but point out that you and I joined DCP about the same time and you've posted WAY more than I, so STHU! Edited October 31, 2011 by garfield Quote Link to comment Share on other sites More sharing options...
KeithHall Posted October 31, 2011 Share Posted October 31, 2011 Most of my postings were Historical or DCA. However, shouldn't this be done in another area? Like say at the DCI office? I like the idea that was presented but it has gotten so "out there" that I don't find it interesting. More like, who can outdo the other. I won't be quiet...ain't gonna happen! Well, Keith, it's a matter of perspective, I guess. There are some on this board who are actually actively working to better drum corps. Some may be thinking about DCI, others might be thinking about their own corps or their own dreams about a new corps. Regardless, there has been a tremendous amount of facts, opinions, and creativity that has come out of this discussion. That you'd spend your time being Mr. Smith doesn't deter or diminish the goals and aspirations of others who view the world differently than you (or I). Have you asked DCI your questions? Is it possible that there are people on this board who actually DO have DCI's ear? What business is it of yours how I spend my free time? Now, back to the discussion at hand (presumably without Keith's input). EDIT: I can't help but point out that you and I joined DCP about the same time and you've posted WAY more than I, so STHU! Quote Link to comment Share on other sites More sharing options...
Stu Posted October 31, 2011 Share Posted October 31, 2011 Most of my postings were Historical or DCA. However, shouldn't this be done in another area? Like say at the DCI office? I like the idea that was presented but it has gotten so "out there" that I don't find it interesting. More like, who can outdo the other. I won't be quiet...ain't gonna happen! Hate to break your heart on this but DCP is not here for your own personal interest!!! And so what if you do not find this thread interesting. Go somewhere else on the board; or better yet, just go somewhere else where *your* interests are top priority. Quote Link to comment Share on other sites More sharing options...
GUARDLING Posted October 31, 2011 Share Posted October 31, 2011 (edited) Well, Keith, it's a matter of perspective, I guess. There are some on this board who are actually actively working to better drum corps. Some may be thinking about DCI, others might be thinking about their own corps or their own dreams about a new corps. Regardless, there has been a tremendous amount of facts, opinions, and creativity that has come out of this discussion. That you'd spend your time being Mr. Smith doesn't deter or diminish the goals and aspirations of others who view the world differently than you (or I). Have you asked DCI your questions? Is it possible that there are people on this board who actually DO have DCI's ear? What business is it of yours how I spend my free time? Now, back to the discussion at hand (presumably without Keith's input). EDIT: I can't help but point out that you and I joined DCP about the same time and you've posted WAY more than I, so STHU! you over estimate the value of mere opinions and whos listining..this I know for sure...im not by any means saying the conversations shouldnt continue with whoever wants to join in. Hell news groups are entertainment for most ( nothing more )and thats cool. Edited October 31, 2011 by GUARDLING Quote Link to comment Share on other sites More sharing options...
Jeff Ream Posted October 31, 2011 Share Posted October 31, 2011 Please tell me that wasn't a serious question. well since you refuse to give serious answers, you tell me. You seem to think DCI has all these employees sitting around doing this that can take on additional business. oh wait...outsource it right? there's a price tag for that too. Quote Link to comment Share on other sites More sharing options...
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