Profit First
CASE STUDY
From Stress to Success:
How ICONAC Transformed a DJ’s Tour with the Profit First Method
Challenge
A U.S.-based touring DJ had just wrapped up a 15-date spring tour, bringing home new memories and the satisfaction of sold-out shows, but without the profit to match. Unforeseen production costs and mismanaged budgeting caused significant cash flow issues, leaving the DJ without profitable earnings at the tour’s end. A few months later, an album tour with more dates, larger venues, and more cities was confirmed. However, before the DJ’s management team could even begin planning the new tour budget, they realized they needed help. The previous tour had been an exhausting lesson in managing production, crew, and logistics costs, all of which led to cash flow problems and the constant frustration of handling late vendor payments. The team knew they couldn’t repeat the mistakes of the last tour, where the DJ ended up with no profit, and the stress of pre-tour planning returned, fearing the same issues could happen again.
The DJ knew he wanted to set money aside for himself, but he just didn’t know how to do it.
We want to make sure you, as the artist, get paid first. With the Profit First Method, we help you get the most out of your career earnings.
Solution
The Profit First Method:
Recognizing the need for a trusted partner with extensive experience in managing cash flow for touring artists, the DJ turned to ICONAC. The DJ outlined his financial goals: to make the upcoming tour profitable, save for a future home, and gain clarity on where his money was going.
To help the DJ regain his finances, ICONAC introduced the Profit First Method. Typically, people see profit as the money that is left over from sales after taking out their expenses. The Profit First Method flips this approach by prioritizing profit first, then budgeting for expenses- putting both profit and the individual first. Using this method, ICONAC recommended allocating:
- 5% Profit
- 10% Owner’s Pay
- 10% Upcoming Tour
- 10% New home savings
- 30% Operations
- 20% Management Commissions
- 15% tax savings
Agreeing upon the personalized budget suited to their needs—in this case, his main goals: personal savings and tour profitability—a new approach to managing his finances began.
Result
With Profit First in place, ICONAC took the reins on cash flow management, ensuring money flowed properly across the necessary accounts through weekly monitoring, while also stepping in to adjust budgets and manage any unforeseen expenses that arose throughout the tour. ICONAC ensured that vendors and crew were paid correctly and on time and conducted weekly check-ins with the DJ’s management team to review the tour budget. They also provided monthly profit and loss statements to keep everyone fully informed about spending and overall financial performance. Relieved of the financial planning burden, the team was able to shift their focus back to preparing for the largest tour of the DJ’s career.
Free from the stress of managing finances, the DJ was able to fully immerse himself in performing, creating music, and enjoying the tour. Months later, as he came up for air from his most exciting tour yet, the DJ and management team sat down to go over the financials. Their jaws were on the floor—this tour was NOT like the last.
Thanks to ICONAC and the implementation of the Profit First Method, the DJ’s savings account had grown, this tour was profitable, and the whole team had built more positive, lifelong partnerships with crew and vendors. Impressed by the impact of the Profit First Method, the DJ was able to set money aside for the next tour, scale further, and save enough for a down payment on his dream home.
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