Cornwall's 105 to 107 Itchy FM - Ofcom Licensing

FINANCIAL SUSTAINABILITY
The size of the licence means that if the station was solely reliant on traditional local radio income
(predominantly spots), the station would be limited in its marketing activities and overall profitability.
The board have made several plans to ensure that Itchy FM will be sustainable, without being required
to run the station on an overly restrictive budget.
As outlined previously, the station will operate with:
1. Low fixed cost base
2. Emphasis on wide range of commercial activity
3. Access to non–traditional national client-direct sponsorship revenues
Low fixed cost base
The investors have a range of experience of running SME businesses with scalable overheads in line
with revenues. Cautious fixed costs, enhanced and performance related pay to ensure staff motivation
aligned with business success. This is demonstrated at IMD Radio Cornwall through the Commercial
focus and the use of shareholder support (especially the IMD Group structure) to create flexible, on
demand opportunities for revenue growth.
The Launch Team will be in place for four months prior to and six months post-launch date and will
ensure station set up within budget and that revenue targets are achieved. The team’s skills are such
that they will be able to:
• Ensure effective use of partners / outsourcing and group services
• Deliver local sales training and process creation to ensure sales sustainability,
• Develop the Itchy Cornwall brand position for trade and consumer marketing,
• Determine fixed and variable cost levels and ratios,
• Ensure local goodwill and support generated during the bid is harnessed post-award,
• Channel shareholder expertise and knowledge to the management team of the station from
launch.
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