One of the most commonly asked questions I receive is about radio’s tendency to repeat mistakes and apparent inability to capitalize on new opportunities. Here’s a sampling:

• Why doesn’t radio focus more on local issues and local music tastes?
• Why doesn’t radio sell more multiplatform advertising packages?
• Why doesn’t radio make money off of local events/promotions?
• Why don’t radio stations create social networks?

I’ve come to realize that almost all questions bugging radio today come back to the same answer: Radio stations are using antiquated budget templates that simply do not allow them to change.

Just moving money from one line item to the next is like rearranging the deck chairs on the Titanic. If a New Radio Model is truly the goal, then radio stations need to rip up their old budgets and start over with new ones.

Before you start the 2010 budget process, it is absolutely critical that you create a brand new budget template. I have done this myself lately for radio stations, and the result is staggering. It’s amazing to discover the budgetary line items that radio in 2010 doesn’t need anymore, and even more empowering to add new line items that radio absolutely requires, but never existed before.

What’s more, most radio budgets don’t need more funding, they simply need different line items to fund. In doing so, you will not only find many new ways to grow your station and profitability with a Hyper-Local and Multiplatform new business model, you will also learn that your station can afford external marketing and audience research that is required to push forward against massive competition.

This is not a drill. This is not a test. This is the real deal. Burn your old budget and start over with a new one.

Mike Henry is the CEO, Paragon Media Strategies and a member of The Radio Workout Team.

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