ADDRESS: So You Want To Start a Drum Corps? Bill Cook If you are a person who wants to form committees, share power, and make joint decisions, please do not waste your time by reading this discussion. Before beginning, I will define several terms that will vary from normal dictionary descriptions. DEFINITIONS Drum Corps -- A group of individuals banded together by a precise, musical genre. The style (idiom, or genre) is specifically defined by the musical arrangements that are played on brass and percussion instruments. The musical arrangements are visually enhanced through the use of precision motion (marching) and props including colorful flags, rifles, and backdrops. DISCUSSION -- The idiom is expressed through the arrangement of the music, the brass and percussion instruments used, and the visual elements provided to interpret the music. A drum corps performance is designed by the arrangers and designers to be exciting or to arouse emotion. The idiom may be performed in parades, football fields, theaters, or any area large enough to enable movement within the corps. It may be competitive but not necessarily. Committee -- A group of indecisive individuals formed to collectively make decisions. DISCUSSION -- Because consensus of several individuals is difficult (impossible) to reach and because the obvious or safe decision is accepted with little insight or vision, lethal when starting a drum corps. Committees are comprised of a few dedicated individuals and a few 'experts' who are rarely committed. Committees create divisiveness and perpetuate a loss of vision. They exist only because individuals are taught that consensus is more important than making the right decision. Dictator -- An individual with implied or absolute authority--sometimes called an executive director or sponsor. DISCUSSION -- A dictator is responsible for all decisions and acts of a drum corps. He/she has a vision where the organization is going and how to get the organization to the destination. A dictator must be benevolent or ruthless, keeping in mind that survival of the organization is more important than any individual. A dictator cannot share power; he/she consolidates it. Executive Director -- A person who has implied or absolute authority--a dictator. DISCUSSION -- An executive director governed by a board of directors is doomed to failure. For legal purposes, an executive director must have his/her acts approved by a board of directors but only once a year. An executive director should select his/her board of directors and not the reverse. An executive director governs all matters of a drum corps. Fund Raising -- An act, occupation, or activity that is perpetual and never ending. DISCUSSION -- Fund raising for a drum corps includes solicitation of money and more importantly, the generation of wealth through a complex of business ventures. A drum corps can not exist without long term sponsors and income generators. Bingo -- The life-blood of drum corps. DISCUSSION -- Most drum corps do not exist without bingo. Bingo must be controlled and operated by any corps that expects to survive. Other Sources of Income -- Besides bingo, there are only two other primary sources of income for a drum corps: 1) sponsors and 2) business enterprises totally unrelated to the drum corps. DISCUSSION -- A drum corps can never be allowed go into debt. If income sources are not available from the beginning of a corps, the corps will go broke. 501c3 -- a not for profit corporation DISCUSSION -- The term implies that no profit-making venture can be utilized by a corps to create wealth. 501c3 corporations should only be used to shelter the income of profit making ventures. The only purpose of a 501c3 corporation is to create wealth for the drum corps. Lessons from History With few exceptions, successful drum corps are created and maintained by individuals who consolidate power for themselves. Consider Santa Clara Vanguard, Blue Devils, Scouts, Cavaliers, and Cadets--successful corps with present and former chieftains who have a vision for their organization, who raise funds for the perpetuation of their organization, and who govern their organizations with implied or absolute power. On the other hand, consider DCI, an organization that in the past has been governed by committee. It is ironic that the marketing and governing arm of the activity is run by committee while successful drum corps are run by individuals having implied or absolute authority. Could a lesson be learned from history on how DCI could better be governed? A new drum corps, founded and operated by a group or commitee, will not be successful over the long term. Businesses to Finance a Drum Corps As previously mentioned, the best source of income for drum corps are businesses that exist for the purpose of financing corps activities. In 1984, I had to start several businesses that would eventually support Star of Indiana. The first business was a bus company that used Star's buses during the off season. The Star of Indiana Bus Line was started from scratch utilizing the three MC-8 coaches purchased by the corps for $135,000 total. It was obvious from the start that professional management was needed to run a company of this kind. A transportation manager was hired; he eventually secured the Interstate Commerce License, registered with states where Star Bus would travel, established a budget, and also drove charters. In the later eighties, the bus line required one operation manager and one business manager. By 1996, the line was running with 16 buses. From reinvested earnings the company was able to purchase one bus per year and in 1990 two buses. In 1993, Star Bus had sufficient cash flow to contribute to the corps. If I were to give two words of caution, I would suggest that: 1) organization should not try to operate a bus company without professional management and 2) don't be in a hurry to siphon funds from a bus company because this business is capital intensive during the early years. Bus companies need good equipment and management to operate efficiently. The second business started on behalf of Star was a travel agency. We purchased a travel agency for $75,000 cash. In the beginning, this business was not making money; however it did not appear to be managed well. The travel business is very competitive but if the management has contacts, there is money to be made. Star Travel has been profitable since 1990 and now contributes annually to Star's well being. Having been a pilot since 1951, I knew something about the aviation industry, aircraft, and pilot needs. The aviation business can be profitable, particularly when there is a fuel monopoly contract for airport fuel sales. Many airports in the USA have monopoly contracts with one fixed base operator, and this was the case at Monroe County Airport that services Bloomington, Indiana. Consequently, we purchased the fixed base operation at the airport. After purchase, we eliminated some services such as flying instruction and aircraft maintenance. These operations were farmed out to other companies. Today Cook Aviation provides aircraft charter and fuel sales. Like the bus line, our aircraft charter business and fuel business are based upon service and rely upon referrals for its continued profitability. Today, we utilize one 727, one BAC-111, two Astrajets, and two Conquest propjets to fulfill the needs of the aircraft charter business. I discuss this business as an opportunity to start something novel to provide income to a drum corps; it is unlikely that any drum corps manager will be interested in this type of business because of the front-end capital requirements. I mention it only to point out that there are businesses that have a high front end load and businesses that do not. Aircraft charters cost money to start, and even today our aviation operation does not contribute to the corps--but it will in the future. Another business mentioned above is very practical for any corps to operate. It is called the cash cow of drum corps--the name, BINGO. To me, every corps should own a bingo game; unfortunately when we started Star, bingo was illegal in Indiana. The most impressive drum corps in DCI are bingo corps, and I attribute these corps' competitive successes to bingo. Blue Devils and Santa Clara Vanguard both operate very profitable games as do the Scouts, Spartans, and Colts. It is obvious that a competitive edge can be determined by the success of the bingo games. Outside and Inside Capital Sources Many people inside and outside the activity believe that a drum corps exists because of ticket and souvenir sales. Please let the record speak for itself--ticket and souvenir sales account for only 15% to 20% of an open class corps' income. The income balance must come from other sources. When managing a corps, it is important to remember that people who have never heard of the activity give corps the largest part of their financial resources. These are people who frequent the bingo halls, who purchase airline tickets, who charter buses, or who purchase aviation fuel. Some may know about the charitable activity that they support, but for the most part, they buy services because of convenience and not because of a charitable purpose. Individual Charitable Donors Charitable donors have not been continual supporters of drum corps and there is a reason why this is the case. When donors make a contribution, they normally want recognition and results. Drum corps and drum corps management have never had the opportunity to learn that donors want recognition and a result from their donation. If any donors give, they would like to have their names on something tangible, like a building. Would any drum corps ever let a donor name their corps-- the Smith Drum and Bugle Corps? Donor solicitation is very competitive. Corps have to compete with organizations such as university foundations whose only job is to raise capital, or with the Red Cross, the Salvation Army, churches, and thousands of other worthwhile causes. Some members of corps management believe that small donations are a practical way to raise funds but these financial resources are siphoned off by family living expenses and other forms of entertainment such as professional basketball, movies, or a thousand other pastimes. Suffice it to say, individual donors do not return sufficient funds to justify investing time in nurturing them. Corporate Donors Since 1984, I have invested many hours in trying to interest corporate donations for the drum corps activity. I have been successful locally for Star because of contacts with people within the community. But when venturing out over the US, I was never able to raise much except for the DCI Championship. I have never found a sponsor for a drum corps even though I continue to try. There is also a reason why I believe that public, corporate sponsorship is not a viable place to invest time. I believe that public corporations will not invest in drum corps because there are few financial or public relation results. In addition, their management fears shareholder disfavor. Even though drum corps exists to help youth, public corporations are more likely to give to visible and well-known charities. In addition, if you work for a public company, consider the fact that your company asks YOU to give to United Way, but then consider how much your company gives to United Way. The answer probably will be zero. Why? Managers do not want to irritate shareholders by donating their funds in an organization that they may or may not favor. There are potential corporate donors out there but few have ever been identified. When asked how to find a corporate donor, I always give the same suggestion: "Find a private corporation that has a manager or corporate head who loves music, who is willing to risk company funds for little recognition and possibly adverse recognition. Please remember that Star was financed by a private company that really asked for nothing in return. I did not realize in 1984 that Star would be criticized because it had a corporate sponsor or perhaps because Star was 'prematurely' successful. Suffice it to say, the company gained little except the satisfaction that 500 young people had an opportunity to participate in the marvelous activity we call drum corps. If asked why I made the commitment, I can only answer that the pleasure of giving to youth far outweighed the criticism. Would other sponsors view Star's perception within the activity as a negative reason for participation? I have to answer that I don't know but I doubt it. So you want to start a drum corps? The activity called drum corps is not defined by the instruments played or by a board of directors. Drum corps is what each person participating wants it to be in their own minds. There is diversity of opinion within every corps; in some instances, the diversity is good and in other instances not so good. Drum corps is not an activity for fans or to perpetuate jobs for management. Drum corps is for participants who desire challenge, hard work, victory, defeat, and memories. When starting a drum corps, please remember that the task is massive, thankless, and demanding. Drum corps is the master and you are the slave. In the end, it will be worth the result--young people with life-long memories of achievement and friends. Is starting a drum corps worth the trouble? You damn right it is worth the effort. Don't talk about it--do it!