Why Your Show Should Shoot For Recouping in 1 Year Or Less.
There are three main components to a Broadway Budget:
- Production Budget
- Operating Budget
- Recoupment Schedule
They work like a math problem.
#1 + #2 = #3
They aren’t added together exactly. But the Production Budget and the Operating Budget are used to spit out a Recoupment Schedule.
The Recoupment Schedule tells you how long it will take your investors to get their money back at various capacities of your theater (e.g. sold out, 90%, 80%, etc.), at certain ticket prices.
To show a path to recoupment in one year, at a reasonable capacity.
Why a year?
It has nothing to do with my shows.
And all to do with OTHER shows.
See, Broadway is already a competitive industry compared to so many others. You’re competing against all the other shows that have opened before you . . . from last year’s hits to Phantom of the Opera!
But here’s what makes our industry more unique and more competitive.
We have a whole bunch of new shows every single year too.
And that’s why I shoot for a recoupment model of one year or less. Because my show is “new” for 12 months, and then, the new crop of shows come in. And most likely my show will get less press. It won’t be featured in the Tonys. It won’t be talked about as much.
Your show gets a spotlight in its first year. And you need to make sure you can recover your investment before a bright new shinier show comes along.
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Want more information about budgets and recoupment schedules? And want to see an ACTUAL Broadway budget?
We have a course called Breaking Down A Budget along with dozens more in The TheaterMakers Studio. Click here to get access now to learn about how to budget, and strategies on how to make your budget work.
P.S. If you’re ready to speed things up but know you need some help, get on a call with my team. They’ll give you an honest assessment of where you are and if you’re ready to go to the next stage. Click here.
On my morning commute, I scoot past a giant hole…
Ken created one of the first Broadway podcasts, recording over 250 episodes over 7 years. It features interviews with A-listers in the theater about how they “made it”, including 2 Pulitzer Prize Winners, 7 Academy Award Winners and 76 Tony Award winners. Notable guests include Pasek & Paul, Kenny Leon, Lynn Ahrens and more.