Tag: start up

Assisted Living Facility SWOT Analysis

As people get older, they frequently need the services of an assisted living facility in order to assist them with caring for their day-to-day needs. As one of the primary strengths for an assisted living facility, there are always going to remain in demand in the economic climate. As more and more people from the baby boomer generation reach their later years – these services are expected to explode in demand. In fact, many economic studies point to the fact that there will be 5% year on year growth over the next 20 to 30 years. The barriers to entry for a new assisted living facility the are considered to be pretty high. This is due to the fact that startup costs can easily go over $1 million if real estate is going to be purchased in conjunction with providing assisted living services. Additionally, a number of specialty healthcare professionals need to be on staff at all times to assist residents. These professionals include medical doctors, nurses, certified nursing assistants, and related personnel that are properly trained on how to deal with geriatric patients. One of the other key strengths for an assisted living facility is that they are able to generate income from resident payments, publicly funded healthcare systems such as Medicare and Medicaid, as well as private insurance companies from time to time. However, it should be noted that some assisted living facilities are receiving steep declines in the amount of reimbursement they receive from both publicly funded healthcare systems as well as private insurance companies. This trend is expected to continue for a significant period of time. However, many patients that require assisted-living are able to tap personal resources for these expenses.

One of the primary weakness is associated with an assisted living facility is the high operational cost. Again, a number of highly trained professionals need to be on staff in order to ensure that residents are properly cared for. Additionally, insurance costs are very high given that there is the risk of medical liability when working with a president. However, provided that the staff remained within the letter of the lot out at all times – this risk is somewhat ameliorated.

For opportunities, most assisted living facilities companies will expand their operations by establishing ongoing locations. Additionally, many of these businesses frequently come on the market for sale. As such, these businesses can be easily acquired and integrated into an existing marketing infrastructure. Once a business reaches 100% occupancy for their initial assisted-living facility there’s really not much that can be done in order to boost revenues outside of establishing new locations. However, some assisted-living companies have taken to providing outsourced nurses to patient homes.

For threats, as an assisted living facility is a healthcare focused business – changes in healthcare registration, regulation, and legislation can have an impact on the profit and loss statements associated with these types of companies. Most importantly, changes in Medicare and Medicaid reimbursement policy may have an impact on assisted living facilities and provide specialized services that are paid for by the federal and state governments. It should be noted that this is a risk faced by all healthcare businesses, and there’s really not too much that an assisted-living company can do in order to ameliorate these risks. This is expected to be an ongoing and contentious issue as more people from the baby boomer population require assisted living facility services.

Roll Off Container Service SWOT Analysis

Given the need by construction businesses, roll off container services are able to provide a very important service to contractors on an ongoing basis. One of the most important strengths of these businesses is that once they establish ongoing relationships with general contractors, subcontractors, real estate developers, and construction management companies – they are always able to remain profitable and cash flow positive in any economic climate. Any time construction is being performed, whether it is on a residential building, commercial building, or industrial building, these services are in demand. Almost all human municipalities and state governments have laws that dictate how construction refuse is disposed of from any specific work site. As such, roll off container services serve a very important function for these businesses as they can ensure that construction refuse is properly removed and dealt with in accordance with law. The barriers to entry for a new roll off container service or considered to be moderate. The startup cost typically range anywhere from $50,000 all the way up to $500,000 depending on the number of initial containers that will be provided to the general public. Most importantly, the underlying operating expenses of these businesses is considered to be moderate as well given that once the roll off container is dropped at the work site – there’s very little ongoing costs associated with operating these businesses.

As relates to weaknesses, in any of market there is going to be a number of other providers that render the service. Additionally, many contractors in real see developers have turned to developing a number of the services in-house. As such, the primary weakness faced by roll off container service is the ongoing competitive issues that these businesses face on a day-to-day basis. The operating costs are again are considered to be moderate.

Roll off container services, as it relates to opportunities, can quickly expand their operations by simply acquiring additional vehicles, furniture, fixtures, equipment, and roll off containers that are provided to the general public. These businesses can often expand by developing ongoing contractual relationships with municipal agencies, state agencies, military branches, real estate developers, and general contractors. This ensures a continued flow of orders on a weekly basis. All financial institutions are willing to provide any startup and expansion capital needed given that most all of this capital is typically allocated towards tangible assets. Some wants trimmers will often take to acquiring third-party roll off container services in order to integrate their customer base and operations into their existing infrastructure.

For threats, there is really nothing is going to impact the way that these companies conduct their operations. Construction is always going to occur and the demand for the proper removal of construction refuse will remain strong in most economic climates. During times of economic recession, a roll off container service may have a slight decline in the revenues given that construction may wane slightly. This is also true during times of very high interest rates. However, outside of these threats there is really nothing that would impact the way that these companies conduct their operations. This is going to be one of the businesses that remains in profitable operation in perpetuity. However, some aspects of automation technology may impact the way that these companies conduct business in the future.

Acupuncture Clinic Business Loan

Acupuncture clinic business loans are moderately easy to obtain given that it is a healthcare associated business. In some cases, and to a limited extent – some private insurance companies do provide for the reimbursement of acupuncturist services. One of the nice things about owning and operating one of these businesses is that a license in order to provide the services to the general public is usually required.

The moderately high barriers to entry to provide a certain level of economic staying power for most of these often times, acupuncture services are rendered in conjunction with chiropractic services and related allied health professionals in order to provide non-pharmaceutical approaches to certain medical conditions. Acupuncture has gained a significant amount of notoriety and popularity among people that are looking for more holistic ways to treat specific medical conditions. As such, these businesses are generally able to remain profitable and cash flow positive in any economic climate. However, there are a number of areas that do not provide for the medical reimbursement of acupuncturist services. As such, the patients are required to pay for the services on an ongoing basis.

Startup costs are associated with an acupuncture clinic are generally considered to be low. Equipment required typically ranges anywhere from $10,000 to $20,000 and most of this is specific for furnishing individual patient treatment rooms. As such, the primary financing needed in order to own and operate an acupuncture clinic is specific for working capital purposes.  Most of the ongoing expenses regarding an acupuncture clinic are pretty low. In fact, most acupuncture clinics operate simply with the practitioner rendering all services and handling all incoming patients. In more established practices, a receptionist or practice manager may be hired when the acupuncturist time is completely dedicated to rendering services to patients.

For these types of businesses, and acupuncture clinic business plan is going to be required and submitted to the bank. This business plan should feature a three-year to five year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. Most importantly, a thorough demographic analysis is going to be needed within the business planning top banker understands the demographics are to be targeted from the onset of operations. The demographic that should be examined include median household income, median family income, population size, population density, as well as the number of people that carry private insurance that would cover the reimbursement of acupuncturist services. A marketing plan should also be included within this document which should focus substantially on developing relationships with physicians, dentists, physical therapists, as well as allied health professionals that can provide ongoing referrals to people that are seeking specialized holistic treatments is, many acupuncturists have developed ongoing relationships with oncologists as some studies have indicated that the practice of acupuncture can assist with cancer treatments,

As it relates to to acupuncturists in order to assist with very specific medical ailments. Currently, the economic climate is strong and patients are willing to pay for the services even during times of economic recession given that they consider it a necessity for their  well being. As more people from the baby boomer generation reach their senior years – it is also expected that these individuals will want to turn towards holistic treatments in order to reduce the number of pharmaceuticals and you to take for day-to-day pain. There is really nothing that is going to change about this given the this service. However, more acupuncture schools are starting and the competition among individual acupuncturists may increase over the next 20 years especially as demand increases as well.

Overall, receiving a acupuncturist clinic business loan is a pretty straightforward process and should be met only with minimal difficulty for someone that possesses a valid license to provide these services to the general public. Again, the key is that you are going to need to provide a significant amount documentation to a financial institution while concurrently showing how the practice will become cash flow positive as quickly as possible.

Lawn Mowing Service Business Loan

Lawn mowing service business loans are readily available to most entrepreneurs looking to provide this service the general public. The vast majority of the funds that are used for a lawn mowing service are specific for trucks, trailers, lawnmowers, and related equipment. The gross margins generated from these services are almost always able to support a debt obligation given that this is a service-based business.

In most instances, a lawn mowing service typically carries gross margins ranging anywhere from 60% to 95% depending on a few factors. If labor is considered as part of the cost of goods sold then this may decrease the gross margins somewhat also the fact that a business may accept credit cards as a form of payment may also incur a higher gross margin cost. However, overall these businesses are extremely profitable and are almost always able to produce revenues in any economic climate. This is especially true in both your area or areas where people tend to outsource lawn mowing in one’s landscaping contracting to a third party. Generally speaking, the startup costs that are associated with the new lawn mowing service ranging where from $30,000 to $100,000 depending on the area and initial scope and scale of the business.

Banks and lenders are almost always willing to provide the necessary capital for these types of business, again, given the very large tangible asset base associated with these companies. Foremost, a lender is going to want to see what equipment is going to be purchased with the money that is being borrowed. This includes providing a list of inventory including the make and model of trucks they purchased, trailers, lawn mowing equipment, as well as any other type of specialty equipment that would be used in the normal process of landscape contracting and lawn mowing. A business plan specific for a lawn mowing service should be included as well that showcases the profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page that features information normally associated with a lawn mowing service. Most importantly, a special focus should be paid to the tangible assets that are being purchased if the entrepreneur is seeking a lawn mowing service business loan.

Almost all lenders are going to want to see that the founder is making a 10% to 20% capital injection into the business in order to ensure that they can finance the ongoing operating expenses of the business for at least one year. Most banks and lenders prefer that the owner make the capital injection as a relates to working capital given that they want to see that the vast majority of the loan proceeds are used for tangible asset purchases. This is going to be one of the ongoing things that we discussed throughout this website as it relates to ensuring that a bank loan is almost nearly fully collateralized by hard assets. This is true even among service businesses like lawn mowing companies.

As part of the business loan package, most financial institutions are going to require that at least two years of tax returns are provided. This is true even if the business is a startup in which case the bank is going to want to see tax returns from the owner. If the proceeds of the lawnmowing service business loans are to be used for acquisition, then the financial institution will most likely want to see the tax returns of the current business for at least two years back. As such, it is important that a certified public accountant is hired so that these pieces of documentation can be properly provided to the bank especially in the case of a business acquisition.

In northern areas of the country, it should be made clear within any documentation that is presented to a bank that lawnmowing services are a seasonal business. This creates a little bit of additional complexity given that the owner is going to need to show how the business will make repayments of principal and interest from the business loan when the business is not generating revenue. This is generally not an issue in southeastern and southwestern based states given that the services are in demand on a year-round basis. A cash flow analysis that clearly showcases the first years expenditures should be included as well as it will provide the loan officer or the loan committee of an understanding of how the loan will be repaid. It is very important, in fact it is the most important fact within of receiving a lawnmowing service business loan, to clearly showcase to a financial institution how the credit facility will be paid back on a monthly basis. A loan amortization table should be included with any documentation that showcases the anticipated term and the anticipated interest rate that will be received by the business owner.

Very little is expected to change as a relates to lawn mowing services, and as such banks are very keen to provide a significant amount of ongoing capital support to these companies that they are able to generate revenues in any economic climate. Once a lawn mowing services established and per generating a substantial amount of profit – it becomes even easier to get financing as a significant portion of these proceeds will be used for the ongoing expansion of the business. While competitive threats are somewhat of an issue regarding these businesses given the very low barriers to entry – once an entrepreneur establishes their business as a high quality and well-known provider of landscape contracting and lawn mowing services they are usually able to remain profitable at all times.

Mail Order Pharmacy SWOT Analysis

Mail order pharmacies have exploded in popularity given that people want a secure, discrete, and moderate cost way of obtaining their prescription medications. Not only have mail order pharmacies exploded as standalone businesses, but traditional pharmacies have begun to offer these services as well. One of the most important strengths related to a mail order pharmacies that these businesses are completely immune from negative changes in the economy given that medications and related products are required by people in times of economic prosperity as well in times of economic recession. The gross margins generated from each sale through a mail-order pharmacy typically ranges from 10% to 20% depending on the product being sold. Mail-order pharmacies also have very high barriers to entry, but they also have very high start up costs. A new mail order pharmacy can cost nearly $500,000 to $1 million to launch operations. A substantial portion of this capital is typically used for the acquisition of pharmaceutical inventories. The licensure requirements and need to have a number of licensed pharmacist on staff also creates very high barriers to entry for these businesses. However, once established, these companies can be extremely lucrative for their owners.

For weaknesses, mail order pharmacies have a number of issues that they need to contend with on a day-to-day basis. First, they need to have an extensive staff in place that includes pharmacists, pharmacy technicians, billing specialists, and administrative employees that manage all incoming orders from physicians. This lends to a very high operating cost given that these professionals often want to have large benefit packages as well for working for the business. Additionally, one of the other key weaknesses is that these businesses need to have a very large marketing campaign in order to ensure that clients will become enrolled in the mail-order pharmacies drug distribution services.

For opportunities, most common way that these businesses expand is by increasing the size of their marketing campaign so that they are able to obtain new clients on a regular basis. Additionally, many mail-order pharmacies will establish relationships with assisted-living facilities, nursing homes, palliative care centers, hospitals, and medical clinics that they can serve as the wholesale distributor for any pharmaceuticals required by these third-party medical entities. Finally, many mail-order pharmacies will also seek to establish businesses that are already in operation in order to expand their revenues through non-organic means. One of the nice things about these businesses is that they are able to generate income not only from patient payments but also from publicly funded healthcare systems including Medicare and Medicaid. Many private insurance companies also prefer that their patients fulfill their prescriptions through mail order pharmacy given the lower cost associated with these types of services.

For threats, the landscape regarding insurance reimbursement and publicly funded healthcare reimbursement is constantly changing. As such, a decline in reimbursement can have a substantial impact on a profit and loss statement for a mail order pharmacy. However, given that these businesses are able to properly control their costs given that they are not located in an expensive retail area – these risks are somewhat less for these types of companies. One of the other threats that may occur is that there may be a change in legislation that impacts the way the mail order pharmacy conducts business. However, these are risks faced by all pharmacy and medical related businesses and remaining on top of these issues can ensure that these threats are properly ameliorated as they come up.

Roofing Contractor SWOT Analysis

Every home needs a roof, and as such roofing contractors are able to always generate revenues any economic climate given that they are able to provide not only installations of new rooms but also from ongoing repairs associated with existing structures. One of the key strengths for a roofing contractor is that there are very high barriers to entry for this type of business. This number of licenses in place in order to render the services to the general public. It generally takes about four years to become a licensed. In any economic climate these businesses are going to remain in demand and will be able to produce substantial gross profits from both roofing installations as well as repairs. The startup costs for new roofing contracting business are considered to be moderately low in typically range anywhere from $25,000 all the way to about $200,000 depending on the working capital needs of the business, furniture, fixtures, equipment, and vehicles that are to be purchased. Most financial institutions are more than happy to provide business loans as well as business lines of credit to new roofing contracting businesses provided that the owner is licensed in the state in which they are doing business. However, it does take time to establish a strong brand name for new roofing contractor and competition can be moderately high in most locations.

For weaknesses, roofing contractors – again – primarily have to face competition from a number of other service providers in any given market. As such, it is imperative that the entrepreneur establish a wide-ranging marketing campaign that will ensure that the brand name of the business is known from the Onset of operations. Also, one of the ways at the weaknesses regarding a roofing contracting business are ameliorated is by the fact that these essences will often partner with general contracting businesses, real estate developers, and other third-party contractors in order to receive ongoing work orders. The operating expenses of these businesses was also somewhat high given that a number of well-trained employees are needed in order to provide quality roofing services to the general public.

For opportunities, these businesses can readily expand by simply hiring additional staff roofers in order to complete a number of additional jobs on an ongoing basis. As stated above, almost all financial institutions are willing to provide expansion capital for profitable roofing contracting businesses. These companies can also expand by acquiring roofing companies are already established within the local market. Although this is a non-organic means of expanding business – the return on investment can be substantial if the acquisition is properly carried out.

For threats, where the biggest changes in this industry is the type of construction materials that are used in conjunction with the development of new properties. As such, a roofing contracting business needs to have a dedicated operation that ensures that only the latest and state-of-the-art technology is used when installing a new roof into a new building. Continuing education courses and related studies are almost require these days by many roofers in order to ensure that they are operating within the letter of the law as it relates to building codes. However, outside of any changes in technology and competitive threats – there is very little that would impact the way that a roofing country contractor conducts business moving forward. These businesses are expected to remain in demand in perpetuity.

Cell Phone Repair Store SWOT Analysis

The key strength to owning and operating a cell phone repair store is that these businesses are in continued demand given that having a mobile device is now a way of life for most people on a worldwide basis. The barriers to entry for this type of business are considered to be moderately low given that there are a number of people who are familiar with electronics and canned make appropriate fixes to most cell phones. The startup costs associated with this type of business typically ranges anywhere from $50,000 to $100,000 depending on the geographic location in which the business will be operated. The inventory cost for these businesses is typically very low as well with most companies having $5,000 to $10,000 of inventory, furniture, fixtures, and equipment. The vast majority of the start of capital needed for this type of business is typically allocated towards startup costs and working capital needs. One of the ways that these businesses can also maintain a very strong market presence is by partnering with an established cell phone manufacturer or acting as an authorized dealer for a specific type of cell phone brand. Cell phone repair stores are generally able to remain profitable and cash flow positive at all times, and enjoy a tremendous degree of economic staying power.

For weaknesses, the ongoing operational expenses of a cell phone repair store are considered to be moderate. Typically, an individual needs to have a few employees on staff that are very familiar with how cell phones are repaired and this can lead to a very high expense as it relates to training new employees. Additionally, one of the weaknesses associated with this business is that there can be some that relates to the privacy of a customer. Many people carry significant amount of information on their mobile phones – and as such – it is important that proper procedures and protocols are in place to ensure that the privacy of the customers content it remains intact at all times.

For opportunities, many cell phone repair stores expand their operations by simply establishing new locations. As the startup costs associated with the new location are somewhat low, most profitable cell phone repair stores can be expanded very aggressively and very quickly. In some cases, cell phone repair stores will also maintain e-commerce functionality where a customer can mail their phone to the location to have it repaired. This allows the business to operate on a much larger scale given the individual customers do not need to come to the location in order to have their cell phones and tablets fixed. Most financial institutions are willing to provide profitable cell phone stores with business loans and lines of credit for expansion purposes.

For threats, outside of competition within any moderate scale suburban or metropolitan market – there’s very little ongoing risk associated with this business. The usage of mobile devices is expected to continue in perpetuity, and as such – these businesses will be able to remain profitable and cash flow positive in any economic climate. There is currently no pieces of legislation or regulation that would impact the way that these companies conduct their operations.

Asbestos Removal Service SWOT Analysis

As many buildings are reaching the age where they need to be demolished or refinished, especially this removal services are especially important companies that can help retrofit a building that needs to have asbestos removed. One of the most important strengths related to these businesses is that they are always in demand regardless of the general economic climate. This is due to the fact that there are many laws and regulations in place that now require that old buildings have their asbestos removed. The gross margins generated from the services are also very high given that the fees are substantial due to the hazardous nature of this type work. In most cases, provided that the lilies of the company – gross margins typically range anywhere from 60% to 90% depending what consists of the cost of goods sold anywhere from $100,000 dollars to $300,000 depending on the vehicles, these businesses are expected to remain in profitable operation for at least the next 20 years as more states and municipalities enact building codes require that asbestos is removed.

The primary weakness with an asbestos removal service is the fact that this is a hazardous materials business. As such, the operating expenses are very high especially from the standpoint of requiring insurance that needs to be held in place at all times. Additionally, there may be liabilities associated with having employees that are consistently exposed was best as if they are not given the proper equipment to do their job. One of the other weaknesses regarding a in asbestos removal service is that these businesses will have at some point and end point. This is due to the fact that many new buildings are completely devoid of asbestos, and this business will eventually have a in life when no more buildings need to have asbestos removed.

As it relates to opportunities, asbestos removal services can expand by simply acquiring additional vehicles, hiring additional employees, and obtaining ongoing contracts with government entities for the removal of asbestos within government buildings. One of the other ways of these businesses frequently grow is to acquire third-party companies that render substantially similar services. Many financial institutions are willing to extend business loans and lines of credit in order to ensure that these businesses can expand rapidly in order to provide a substantial number of services to the general public.

For threats, there’s really nothing that would impact the way that these companies do business on an ongoing basis given the regulatory changes that require that asbestos is removed from certain buildings. Again, the most significant threat faced by an asbestos removal service is the fact that these businesses do carry significant amount of ongoing liability as it relates to their day-to-day operations. Also, the expected at life of these businesses will be in about 20 to 25 years given all new buildings do not contain any level of asbestos whatsoever. As such, anyone that is getting into this business for a substantial period of time will need to have an exit strategy in place in order to ensure that they can either provide different services to the general public or have simply made enough money to cover all the startup expenses.

Accounting Firm SWOT Analysis

Accounting firms are always going to be required given that there is a substantial amount of complexity as it relates to completing taxes, undergoing audits, and dealing with ongoing tax matters that affect both individuals and businesses on an ongoing basis. As it relates of the strengths of an accounting firm, the high gross margin services ensure that they are always able to remain profitable and cash flow positive in any economic climate. Even during times of economic recession, individuals and businesses are still going to need to file regular tax returns to state and federal revenue authorities. As such, demand may only waiting very slightly as it relates to the need for a highly competent accountant or certified public accountant. Additionally, one of the other strengths is that these businesses are able to generate highly recurring streams of revenue by being able to provide bookkeeping services to the general public as well. The startup costs are considered to be moderately low, and an accounting firm can be started for as little as $10,000 as simply an office is needed along with a website and a simple marketing plan. For accounting firms that offer certified public accounting services, they enjoy very high barriers to entry is the individual must be properly licensed by the state in order to render the services to the general public.

For weaknesses, in any small-town, suburban area, or major metropolitan market – there are always a number of accounting firms, auditing firms, and bookkeeping practices they’re going to create a very competitive market space. However, once a client base is established – most people stay with that account for a substantial period of time. As such, the competitive risks related to operating a.m. accounting firm are somewhat limited. One of the other weaknesses it is faced by these businesses is that there are now a number of online services and software services that can allow an individual to file their taxes without having to visit an accountant. However, these types of services are really limited only to people I have a very straightforward way in which they make income. Small businesses and corporations almost always require the services of an accounting firm in order to properly fill out all the documentation that needs to be seen by taxing authorities.

For opportunities, accounting firms can rapidly expand by hiring additional accountants, certified public accountants, and bookkeepers that will boost the ongoing billable hours of the business on a yearly basis. Additionally, many accountants will become certified financial planners or receive similar credentials and allows them to provide investment services and advice as part of their overall service menu. This can be a substantial opportunity for an account given that they can receive a fee equal to 50 basis points to 1% of all capital raised and assets under management. Some accounting firms will also undergo an acquisition., In which they acquire similar companies in order to boost their client base.

For threats, there is a risk that automation in technology will take the job of bookkeepers. However, the advice of a competent and qualified certified public accountant will always be in demand. Additionally, when an individual or business is audited – they will almost always be the services of a certified public accountant or a similarly licensed professional in order to ensure that the audit go smoothly and that the taxing authorities have an understanding of all receipts, revenues, and expenses that were incurred by these third parties. Overall, the landscape for the continued development and expansion of accounting firms is very positive. Minor pieces in legislation may change the way an accounting firm works in regards to fiduciary obligations, but that risk is somewhat limited and if it were to occur it would simply only modestly change the way in which an accounting firm operates. The demand for specialized services is going to continue to expand as specialization in the economy continues to change. As such, the threat risk faced by an accounting firm is very limited.

Radio Station SWOT Analysis

Radio stations have remained popular even as the explosion of online media via the Internet has occurred. This is primarily due to the fact that radio stations are a low-cost way to reach hundreds of thousands if not millions and millions of people with music, news, political commentary, and entertainment for the general public. One of the key strengths to a radio station is that they are expected to remain popular even as technology advances. In fact, many emergency service providers frequently use radio stations given that they can reach numerous people very quickly. Other strengths that involve radio stations focuses attention on the fact that there are very high but once an operator receives their licensed the only competition that they have to face is from other radio stations that are providing similar content. The startup costs associated with the new radio station range anywhere from $150,000 all the way to $10 million depending are whether or not the license were timeslots are going to be leased rather than purchased.

For weaknesses, very much like the strengths – the weakness for radio station is that it is facing ongoing competition from online content providers. This includes major video streaming services, Internet websites, and related platforms where people can receive information on an ongoing basis. The ongoing operating expenses associated with a radio station are considered to be moderately low given that it only takes a few people to successfully produce and distribute a radio program. Payroll and advertising tend to be the largest cost associated with the development and expansion of a radio station.

For opportunities, most radio stations – beyond acquiring additional licenses – will hire top talent that will drive a significant number of listeners to the radio station. Beyond this, there are very few ways for a radio station to expand their operations. Of course, many of these businesses have taken to streaming their fate this is pretty much a necessity these days as many people will use their mobile devices and Internet platforms to listen to specific radio stations.

For threats, changes in regulation are always a modest issue for most radio stations. However, been around for over 100 years – there’s very little in the way of what is expected to change in regards to radio programming content or its distribution. This is a highly established technology that will not change moving forward. The principal threat faced by radio station is the substantial amount of competition that these businesses face on an ongoing basis. Radio stations must have substantial talent on staff in order to ensure a repeat listener base. However, once a listener base is established is pretty easy to maintain revenue from an advertising standpoint. The gross margins generated for radio station are very high in typically range anywhere from 80% although it in 95% depending on what type of advertising agency is used to promote specific products and services. These firms often will take a small percentage of the total amount of advertising placed with these businesses.