I started a so called coffeehouse type venue about 8 years ago in a town of about 5000 people.Actually it was a licenced restaurant and on a slow night (wed) once per month, we would start with an open mike, followed by a schedualed performer. Everything was done on a shoe string budget (cheap flyers, word of mouth and a lot of favours called in on musical friends).
We always tried to pay an honourarium to the schedualed performer, but oft times no one showed up and I'd end up giving them gas money out of my own pocket.
Like the earlier post mentioned, volunteers are hard to come by and even harder to keep interested.
The whole purpose of this was to get some buzz happening and to get seed money to start a proper music festival.

The long and the short of it is, last summer was our 5th festival season. It has always been a "not for profit" registered company, with the only paid personal, being the Artistic Director.The rest of us are all volunteers.
Every year leading up to the festival, I bite my knuckles and pull my rapidly graying hair, muttering something like "this is the last f.....g time".But after its over, we are gleefully planning next year
.Everyone thats ever been to it, agrees its a nice little festival and maybe we,ve helped some young up and comings, or provided a chance for a few old folkies to carry on the traditions and just have a good time.
In any case, I'm not sorry I started it and hope we will always have the people and the where-with-all to continue.
All the best,
Glen