Financial model & Sustainability
GUSHER hQ’s operations, programming, and creative output are designed to allow it to run independently. While bar revenue and live events play an essential role in keeping us afloat, we don’t rely on them alone. Instead, the space is supported by a full ecosystem—where residencies, cultural programming, and media production feed into each other, generating both income and long-term value.
The financial model ensures that once open, the space generates what it needs to cover its costs through events, memberships, and in-house sales, while also functioning as a studio for music and film production. Beyond ticket sales and bar revenue, it has the potential to generate income through supporter & artist Memberships, Studio Rental, and media releases—ensuring that it is not just a place for gathering, but a creative engine producing and sustaining independent culture.
Setup & Initial Costs
Total Setup Cost: $11 727 (R221 270)
This once-off setup cost will be used to prepare the space and purchase essential equipment. These are start-up costs that will not reoccur in Year 2 aside from year 1’s full rental and utility cost coverage, allowing for an extremely low monthly operations cost from Month 4 onward.
Setup Costs include:
Deposit
Sound equipment
renovations
Studio equiptment for live shows
filmmaking gear
screening area setup
liquor LICENSE
Signage and branding
Setup for live-streaming capabilities
furnishing
Ongoing Annual & Monthly Costs
Total annual Cost: $4 950.54
Our annual fixed costs ensure the long-term sustainability and smooth running of GUSHER HQ* by covering essential services and infrastructural needs. These include the renewal of our liquor license, a vital requirement for event-based revenue generation.
We’re also subscribing to MUBI, a curated streaming platform known for its extensive catalogue of independent and international films. Weekly screenings will feature films from MUBI, selected through community voting—creating a participatory model of engagement while building a direct link with the platform itself. We’ve initiated conversations with MUBI about a potential partnership that could evolve into a distribution opportunity for our in-house productions.
Our annual plan also includes a subscription to LANDR for global music distribution—critical for the artists on our label, including a free LICENSE to Ableton Lite —as well as compliance and tax fees, website hosting, and domain maintenance.
Finally, we aim to cover the full year’s rent upfront. This approach significantly reduces the monthly financial pressure and allows us to focus on programming, community-building, and creative production rather than recurring overheads.
Our monthly operating costs are focused on maintaining a sustainable, community-driven creative space. We’ll be supporting two key part-time roles: a space and project manager to coordinate day-to-day activities and programming, and an operations support manager to help facilitate events, logistics, and overall functionality.
A recurring project and initiatives budget is also built in—supporting independent film and music video productions for artists releasing with us, as well as community-led ideas that will be proposed and voted on via our forum twice a year.
Additional monthly costs include utilities, equipment insurance, and bar stock—covering drinks, snacks, and popcorn for our screenings and gatherings.
We’ve also allocated funds for bar and door staff at events to ensure a smooth and safe experience for everyone. By owning all of our live show infrastructure (sound, lighting, etc.), we reduce external rental costs and retain a higher share of event income—allowing us to fairly split ticket revenue between artists, DJs, and the venue. This model prioritizes sustainability over profit, ensuring the space remains accessible and responsive to the needs of its community.
Total monthly Cost: $1 829
Revenue & Self-Sufficiency
Rather than relying on any single revenue stream, the model is designed for diversity and balance. Events, memberships, and creative production all contribute to sustaining the space:
Memberships provide a base level of ongoing support, helping cover fixed costs.
Ticketed events, such as live shows and film screenings, create dynamic and engaging programming while generating income.
Snacks and beverage sales from the bar at events provide additional revenue, allowing for a revenue to achieve sustainability.
The recording and eventual editing studio, as well as the gear serves as both an artist incubator and a Potential revenue generator, with the potential for:
Studio rentals to non-members & production services for external projects.
Release distribution under GUSHER’s network, whether music, visual media, or multidisciplinary works.
Collaborations with Labels, studios, institutions, and artists to develop new work.
By embedding production into the financial model, the space isn’t just maintaining itself—it’s actively generating new opportunities for artists and creatives, while strengthening GUSHER’s role as a hub for experimental and forward-thinking work.
Breakdown
Revenue Breakdown
Total Revenue for first 2 months = $2 809/month
In the initial phase of operations, we aim to achieve sustainability purely through event and bar sales without relying on subscriptions. The ticketed programming for the first two months includes regular Friday night events, 2 x live shows, and a film premiere.
Each Friday night event has an entry fee of R50 (approximately $2.65 USD), and with an expected attendance of 100–120 people per event, we anticipate generating between R20,000–R24,000 ($1,060–$1,272 USD) monthly. We also plan to host two live shows, where our venue share amounts to 30% of ticket sales. With an average ticket price of R100–R150 (approximately $5.30–$7.90 USD) and an estimated attendance of 100–150 people per show, the monthly revenue from live shows will be around R6,000–R9,000 ($318–$477 USD). Additionally, the film premiere, for which we will receive 50% of the venue share, is expected to bring in R5,000 ($265 USD) for the month.
Bar revenue will contribute a further R20,000 ($1,060 USD), based on attendance. Combined, the revenue from events and bar sales will range from R51,000 to R58,000 ($2,703–$3,074 USD) per month. This will be sufficient to cover monthly operating costs even before reaching our subscription targets.
Revenue from Month 3 Onward
Total Monthly Revenue from Month 3 Onward = $3 642
Starting from month three, we will introduce subscription models to further diversify our revenue streams and ensure ongoing sustainability. The target for subscription members includes 15 Supporters, 10 Standard members, and 3 Advanced members. The monthly revenue from subscriptions is as follows:
15 Supporters at R300 each will generate R4,500 ($239 USD) per month.
10 Standard Members at R700 each will generate R7,000 ($371 USD) per month.
3 Advanced Members at R1,400 each will generate R4,200 ($223 USD) per month.
This brings our total monthly subscription revenue to R15,700 ($833 USD), which will be added to the revenue from events and bar sales.
From month three onward, the total monthly revenue will therefore be R68,700 ($3,642 USD), combining R53,000($2,809 USD) from events and bar sales with the R15,700 ($833 USD) from subscriptions. This model allows for a smoother transition into subscription-based revenue while maintaining a strong community focus, and it reduces the pressure to rely too heavily on subscriptions right away.
Full Year 1 Financial Summary
Total Revenue (Year 1) = ~$41 159
In the first year, we expect a strong financial performance, with revenue coming from both events and subscriptions, while maintaining a manageable level of operating and fixed costs.
Total Event & Bar Revenue (First 2 Months) is projected at R106,000 (~$5,610 USD), primarily from our regular Friday night events and special live shows. This will help us cover initial costs while we build momentum.
For Months 3–12, as we introduce subscriptions, our Event & Bar Revenue is expected to increase to R530,000($28,070 USD), driven by consistent attendance and growing community engagement. Additionally, the Subscription Revenue during this period is forecasted to reach R141,300 ($7,479 USD), which will help support ongoing operations and enhance community-driven content creation.
Total Revenue for Year 1 is expected to reach R777,300 (~$41,159 USD), a combination of event revenue, bar sales, and subscription income.
Our Operating Costs for the year are projected at R414,000 ($21,952 USD), covering daily operations, staff, and logistical expenses. The Annual Fixed Costs are estimated at R93,382 ($4,950 USD), covering long-term expenses such as rent, utilities, and maintenance.
With total revenue and costs factored in, we anticipate a Net Reserve by Year-End of R269,918 (~$14,257 USD). This surplus will be strategically reinvested into the space, funding new equipment, special projects, and continued artist support, ensuring we have the resources to grow sustainably and enrich our community.
This surplus will be reinvested directly into the space—funding new gear, special projects, and continued support for artists.
A MODEL DESIGNED FOR GROWTH
GUSHER HQ* is more than a Space—it’s a creative engine. By embedding production, access, and community-driven programming into the model, we ensure that GUSHER isn’t just breaking even—it’s building momentum.
From Newtown to the networks beyond, GUSHER exists to shape the future of independent culture—sustainably, collaboratively, and creatively.