STArTInG A LOCAL RADiO stAtiOn - Nai

Section 6: Financial managementChecklist for preparing and monitoring a budget1) Compare your budget for the coming year against your statement of income and expenditure forlast year. Is your new budget realistic? Does it acknowledge the station’s true needs?2) Does the budget allow you to reach your goals? Does it allow you to produce the programs you planto produce? Will you be able to maintain your staff?3) Do you need new staff members? Did you include their salaries?5) Does your station generate income? Has this been calculated properly? Is it realistic?6) Have you budgeted the station’s tax payments?7) Have all of the people in the organization who are responsible for managing resources reviewed thebudget? Do they understand its contents and what is expected of them?8) Have you carefully considered how the budget is going to be funded? Have you minimized the risks?What are the timing implications?9) How do you plan to monitor and control your budget? Have you considered what to do if somethingunexpected happens? For instance, if a source of income is lost?10) Have you considered the long-term endurance of your station? How will it sustain itself? Is this reflectedin your budget?DEVELOPING YOUR BUSINESS PLANA business plan is a thorough description of the radio station and its goals for the next two or three years.It explains who you are, what you do, how you do it, how you generate income and why your radio stationis an important part of the community. It should specify how much money the station already has,and how much more money it will need to accomplish each of its goals. A concise, well-researched,convincing and honest business plan helps your station keep moving toward its goals. It can convinceincome sources, such as advertisers and donors, that the station is prepared to do what it proposes to do,and that it will manage income and contributions responsibly.A basic business plan for your community radio station has three main sections:1. Executive Summary2. Business Model3. Marketing Strategy1. The Executive Summary is the first page of your business plan. It gives a snapshot of how the radiostation operates, and summarizes the main points of the rest of the business plan. Although theexecutive summary appears at the beginning, it should be written only after you have completed allother sections of your plan.2. The Business Model of your station is the foundation of your business plan. It explains what is happeningnow, rather than what you expect (plan) to do. Your business model explains how you makeyour money.STARTING A LOCAL RADIO STATION: A MANUAL FOR AFGHANISTAN67