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Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on January 12, 2022
Updated on July 12, 2024
Investment range
$4,300 - $58,900
Revenue potential
$36,000 - $216,000 p.a.
Time to build
1 - 3 months
Profit potential
$23,000 - $140,000 p.a.
Industry trend
Recovering
Commitment
Flexible
Pay attention to these important factors as you establish your mobile DJ business:
You May Also Wonder:
How much do mobile DJs make?
Your profit will be dependent on how many bookings you can get and how much volume you can handle. If you can get and manage 12 events per month, you can make north of $180,000 in profit per year.
What equipment do mobile DJs need?
You need DJ equipment, lighting equipment, and a laptop. You can buy these things on a budget or spend more for professional equipment.
Do I need an LLC for a mobile DJ business?
You can choose any business entity type that you want to fit your specific needs. An LLC offers much flexibility in terms of management and taxes as well as personal liability protection.
How can I promote my mobile DJ business?
To promote your mobile DJ business, create a professional website and utilize social media platforms to showcase your services and engage with potential clients. Network with event professionals, offer competitive packages and pricing, and leverage client testimonials and reviews to build credibility.
Is DJ business profitable?
The profitability of a DJ business depends on factors such as market demand, reputation, and bookings. It can be profitable if you effectively manage expenses, provide exceptional service, and consistently market yourself.
How can I become a successful DJ?
To become a successful DJ, focus on developing your skills, building a diverse music library, establishing a unique style, networking and collaborating with others in the industry, and effectively marketing yourself.
What does a beginner DJ need?
As a beginner DJ, essential items include a DJ controller or mixer, headphones, a laptop or music source, speakers and amplifiers, cables and connectors, and music software and management tools.
How do I get my first DJ gig?
Getting your first DJ gig requires persistence, networking, showcasing your skills, and utilizing online platforms. Start with smaller events, network with event professionals, create a demo mix, offer special promotions, and actively seek opportunities to perform.
Starting a mobile DJ business requires time and effort. You need to fully understand what is involved before you decide if a mobile DJ business is right for you.
You will be taking a risk, so educating yourself is critical before making the decision to launch your business.
Every business has its pros and cons. You will need to weigh these factors to decide if starting a mobile DJ business is your best choice.
Here are some basic pros and cons of starting and running a mobile DJ business.
One indicator of how the mobile DJ services market is doing is DJ equipment sales.
The industry was severely impacted by the pandemic as weddings and other events were canceled but it started to recover in 2021.
Trends in the mobile DJ industry include:
Challenges in the mobile DJ industry are
The start-up costs for a mobile DJ business can range from $4400 – $28,800. It will depend on the quality of the equipment that you want to start with. You could purchase basic equipment when you are first starting out, and then buy more professional equipment later as your business grows.
You will need to procure a number of different items to successfully launch a mobile DJ business. Here is a list of things to get you started:
| Start-up Costs | Ballpark Range | Average |
|---|---|---|
| Setting up a business name and corporation | $100 - $300 | $200 |
| Business licenses and permits | $200 - $300 | $250 |
| Insurance | $100 - $500 | $300 |
| Business cards and brochures | $200 - $300 | $250 |
| Website setup | $1,000 - $3,000 | $2,000 |
| Initial marketing budget | $1,000 - $2,500 | $1,750 |
| Laptop | $500 - $1,000 | $750 |
| DJ equipment and lighting | $1,000 - $20,000 | $10,500 |
| Music | $200 - $1,000 | $600 |
| Vehicle for transporting equipment | $0 - $30,000 | $15,000 |
| Total | $4,300 - $58,900 | $31,600 |
Your profit will vary depending on how many events you can book per month and how much your expenses are on an ongoing basis.
DJs can charge between $400 to $2,000 per event, the average being $1,000. Your profit margin would be down to about 65%, considering your ongoing expenses for insurance, marketing, new music, fuel costs, and equipment maintenance.
In your first year, if you can book 3 events per month, you will make annual revenue of $36,000 and a profit of more than $23,000. Your bookings could increase to 5 per month in your second year, bringing in $60,000 in annual revenue and nearly $40,000 in profit.
As your brand gains recognition and you begin to get referrals and repeat customers, you could get to a level of up to 12 events per month just working by yourself. You could also start to charge a higher price. If you have 12 events per month at $1,500 per event you will make $216,000 in annual revenue and around $140,000 in profit.
There are very few barriers to entry for a mobile DJ business. Your biggest challenges will be:
Now that you know what is involved in starting a mobile DJ business, you need to hone your idea further in order to be able to enter a new market with tough competition.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Since you will have no track record in the business, you need to find a way to make yourself stand out from the competition. First of all, you need to be entertaining, rather than just play music. Practice your skills by having your own party and entertaining your family and friends. Get their feedback and take it to heart.
To start your marketing process, make a video of yourself DJing at your own party. Post it online and listen to the feedback that you will inevitably hear, both positive and negative.
You also might want to consider having a different “look” to make yourself stand out. Watch videos of other DJs and take note of how they look and how they entertain, and then build your own persona to use as a professional DJ. Again, try it out with your friends and family to get more feedback.
You are not just playing music – you are providing an experience and a show. Think about what you can offer during your show, such as sing a longs or dance competitions. Again, research other DJs and what they provide during their shows.
Make a list of what you can offer to your customers and consider if any of those things can allow you to offer upgraded service packages. You may be able to upcharge for certain services.
When you are just starting out, you may have to charge a lower-than-average price until you have a track record. Average prices range from $400 – $2000 or more for experienced DJs with a larger following. You will need to make a name for yourself to command a price that is at the higher end of the range.
Research other DJ services in your area to determine what prices are in your local market. Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
Your target market will be people who plan to host events, or who host events on a regular basis. A great source of business could be wedding planners who can give you referrals. A good first step to finding customers might be to call local wedding planners to sell yourself.
You could also call local companies that have corporate events and offer your services. The challenge will be getting to the right person within the company who makes those decisions.
In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.
When choosing a commercial space, you may want to follow these rules of thumb:
Here are some ideas for brainstorming your business name:
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Here are the key components of a business plan:
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to mobile DJ services.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your mobile DJ business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
Choose Your State
The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist, and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Bank and SBA loans are probably the best options, other than friends and family, for funding a mobile DJ business. You might also try crowdfunding if you have an innovative concept.
Starting a mobile DJ business requires obtaining a number of licenses and permits from local, state, and federal governments.
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your mobile DJ business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You may want to use industry-specific software, such as Event Master Pro, DJ Intelligence, and VirtualDJ, to manage your bookings, track sales and expenses, mix components of your tracks, and more.
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.
Here are some powerful marketing strategies for your future business:
Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your DJ services meet their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your mobile DJ business could be:
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a mobile DJ business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working as a DJ for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in DJ services. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.
If you’re starting out as a solopreneur from a home office, you may not need any employees. But as your business grows, you will likely need to hire other DJs and other workers to fill various roles. The other DJs have to be as good as you are and represent your brand. But if customers are hiring you for you as an individual performer, you will probably not be able to add more DJs. Potential positions for a mobile DJ business include:
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
You should consider creating a niche market by specializing in certain events, such as weddings. The wedding services industry is expected to increase over the next five years, and mobile DJ services for weddings are a trend as an alternative to live bands.
Having a niche will jumpstart your word-of-mouth marketing. As a mobile DJ, however, you probably will not want to stick with one niche for long. It’s also a good idea to keep up with the latest technology and take advantage of various apps in marketing your services and keeping in touch with your clients. Now, you’re ready to take that first step toward entrepreneurial success!
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