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Whether it’s your neighbour broadcasting from their bedroom about their favourite novels to A-list celebrities with the highest standards of production, the podcast has been increasing in popularity for years.
Today businesses of all sizes and across the sectors are using podcasts in their marketing and engagement strategies. In fact, more and more are having their own bespoke studios installed so they have a dedicated hub from which to create and broadcast high-quality content.
Here we look at the benefits of creating a podcast, why you might want to bring your podcast production in-house, and how you could fund the project in the most cost-effective way.
First things first, why are so many businesses embracing the podcast?
A podcast can be an effective way to share your marketing messages and promote your products to prospects, increasing traffic to your website and social media channels. They can also be a great way to repurpose existing content to maximise its reach as anyone with a smart device can listen to a podcast – even when driving in the car.
Podcasts are a perfect medium to dive into the detail of a topic that is relevant to your industry and customers, and to show off your expertise. In fact, many people find it easier to take in information when it is spoken rather than written down and may feel more connected to your brand. This can lead to deeper customer relationships and higher levels of engagement.
On the topic of engagement, podcasts can also be a useful tool when keeping your staff engaged and motivated. Sharing news and updates with your team in a short podcast can be more interesting than an email or meeting. This is particularly relevant if you have remote workers who may find it hard to feel part of the company culture.
Note: Podcasts don’t always have to be lengthy, complex, or formal – in some situations and for some sectors short, snappy, and informal can be more engaging for their audience.
It’s true that starting a basic podcast doesn’t need to involve anything more sophisticated than a quiet space and a smart phone, and if you’re just dipping your toe into podcasts, that might be the best place to start. Alternatively, you can work with marketing agencies or rent time in a studio on an ad hoc basis.
However, if you are planning on making podcasts a regular and integral part of your operation, it may make more sense to invest in an onsite podcast studio space.
This will not only greatly improve the sound quality of your podcast and therefore your audience’s experience but will also give a more professional impression of your business. It can also enable you to be more creative, collaborative, and innovative in the content you create.
According to Gavin from Kazbar Systems, one of our partner businesses, for a modest setup for a podcast for 1-2 people, the cost could be as little as £500 Ex VAT for a decent audio interface, two pairs of headphones and two microphones (presuming the user already has a host computer to record the progress).
For larger podcasting studio which require room conversion, studio design sound proofing, acoustics, cabling, cameras, additional hardware and installation, the cost can be anywhere from £25,000 Ex VAT and upwards.
Here are some examples of equipment often required in a podcast studio project that could be included in a finance agreement:
Voxpod Podcasting Studio in London - £25,000 Ex VAT project by Kazbar Systems (price included acoustics, design, cabling infrastructure, equipment, and installation but not for shell of the studio or soundproofing isolation).
Kazbar Systems were asked to design and construct the Voxpod Podcasting Studio for James Reynolds – a highly respected mix engineer who has worked with Tinchy Stryder, Paloma Faith and Calvin Harris. The studio allows for up to 8 content creators to not only record audio-based podcasts, but to stream audio, video, and data to anywhere in the world.
Kazbar Systems developed all aspects of the project including:
If you are considering investing in a podcast studio for your organisation, you will need to decide how to fund the project.
Broadly speaking, you have two options: pay for the whole project with cash upfront or spread the cost over time through a finance agreement.
If your organisation does not have the capital available to fund the podcast studio that you need, the benefits of finance are clear, i.e., you can still get the studio you want while spreading the cost of the project over time via affordable, fixed-rate, regular payments.
This means you:
“Financing can play an integral part in the initial phases of creating a podcasting studio whether you are an existing company and require additional capital or a startup. Spreading the costs of the build and equipment along with website costs and marketing over a set period can be essential to the success of the studio.”
Gavin Miller, Kazbar Systems
You might be tempted to pay for it outright. While this is certainly a viable option, it is important to consider the potential tax advantages of financing the project instead.
Here is what tax savings could look like on a £25,000 project*.
SCENARIO A: Tax relief when paying with cash
TOTAL COST OF ASSETS = £25,000
SCENARIO B: Tax relief over a 36-month finance agreement
TOTAL COST OF PROJECT = £29,747.52 – £7,436.88 (TAX RELIEF) = £22,310.64
So, in this illustration using finance rather than a bank loan has unlocked greater tax savings and the total cost of the investment is cheaper than it would have been when paying for it outright with cash by £2,689.36.
Finance can help you get the podcast studio of your dreams without parting with working capital and affecting cashflow and could even unlock tax savings.
But as an ethical and FCA-regulated commercial finance intermediary, it’s our duty to ensure our clients make informed financial decisions, and to do this we need to understand the intricacies of your business.
Contact our team today to discuss funding options for your project or simply to learn more about how we could add value to your financial strategy.
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