I’ve summarized below the proforma financials for a 14 by 48 billboard which is in a good location.
Revenue of $1,500/month if the billboard is one sided. Rents can be higher if the billboard is next to a freeway in a big city and lower if it is on a less frequented road.
Land lease expense of $300/month or 20% of gross revenue.
Insurance of $50/month.
Electricity of $100/month.
Sales commissions (if you don’t sell the sign yourself) of 20% of revenue or $300/month.
That leaves cashflow of $750-1,050/month depending on whether you sell the ad yourself of pay a sales rep. It’s easy to like a business with a 50-75% cashflow margin.
