If you have always had a love of music, been a musician, or just followed the latest happenings in the music industry, perhaps you’ve considered starting a career in it. Of course, it can be a very intimidating industry, what with all the competition, cut throat tactics, and scam artists masquerading as your best career ally. This is why if you are just beginning to consider a life in the music industry, you know how to best approach it. Below, we take a closer look at the best way to start your own record label company. Yes, it is possible, but you have to know the best way to go about it to avoid the common music blunders already mentioned. Here’s how:
1. Business Plan- The best piece of advice I can offer for those wanting to start their own record label-or anyone looking to start a business venture-is to consider it less a dream and more a business. This means, you have to be able to approach this idea as a business, and set down all the specifics, budgeting, and long and short term objectives of your business in order to have a clear focus on what your business will be and how you will achieve success with it.
The best way, is to create the standard business plan. A simple search online for “how to” on “business plans” will give you a long list of instruction on what you need to include in a business plan. Not only will it make you more aware of just what your plan is, but it will also come in as a necessary if you plan on getting a loan for startup costs.
2. Services- As a part of the business plan, you need to start specifying what this dream of yours will entail. Start brainstorming exactly what kinds of services you will be offering to the world of musicians, how you will achieve this, what kind of staff you will need, and what you expect to be paid per business deal. This gives you a better idea of not only what you are up against but also what kind of investment you should be making to still give yourself a workable profit.
3. Budget- Though the budget will be included in the business plan-as will the following steps-it is a very big step, and should be given adequate focus. Once you have a basic plan of what you will be selling, the types of artists you will be looking for, what you will be offering them, and how much you will get paid-you need to know how much starting this enterprise will cost you and also what the ongoing maintenance overhead will be.
4. Industry Knowledge- If you are new to the industry, you have to consider what sort of industry knowledge you will be expected to have, and to get it. This is central to your representing any client, and the sooner you have this wealth of information, the better. This includes how to network, use music contacts, make records, scout for talent, boost musician image, and market/promote your musicians, just to name a few. Do as much research as possible, and take related courses. The most valuable asset you can offer both your musicians and your career is knowledge.