There is always a need for forward- thinking record labels.A successful record label will seek out new talent, pay for the recording and mixing of albums, and provide promotion and marketing services for their stable of artists.
Step 1: Define your idea.
To build your reputation, focus on a particular genre.The focus will be determined by what you want to accomplish.If you want to make a lot of money, you should focus on popular music.If you want to be the go-to label for 21st century post avant jazzcore, your focus and approach will be different.
Step 2: A business plan is needed.
This is needed on a lot of levels.How you plan on finding and developing talent, your marketing and promotion avenues, how you understand the market and the competition are all part of the framework of your label.If you're wealthy, you don't need investors for monetary backing.If you want to build credibility in your market, you may wish to attract investors.If you were able to convince Sir Paul McCartney to invest in your label, that would be a huge win for you.You need a plan that shows Sir Paul that you know what you're doing.If you want an investor to risk his capital on your venture, you need a plan that shows you understand both the rewards and the risks, and that you have been able to determine a way forward.
Step 3: Pick out all the costs associated with your startup.
Everything from electricity to recording and production costs will be included.People will read your plan when they consider becoming involved in your label.Administrative costs include rent, utilities, taxes, and licenses and can be significant.This list should include phone, internet, printers, paper, computers, business cards, and office supplies.You will need a website and someone to maintain it.There are some costs that only happen every year or two.If you create a five-year plan, you should be able to see how these costs will eventually become part of the financial picture.You're going to be making acts as a record label.You need to account for studio time, the fees for the engineer and producer, as well as mixing engineers and studio musicians.A great recording is meaningless until it's in the market.To promote your label, you're going to need to do a lot of different things.To create your logo, packaging standards, and overall design plan, you will need to work with artists and designers.While you're making beautiful music, someone needs to take care of writing legal contracts for your talent and business deals.A qualified attorney who specializes in the music business is what you will want.An accountant will make sure that you are friendly with the tax collector.You need people that you can rely on.
Step 4: Prepare a forecast of cash flow.
It takes skill, savvy, and educated guesswork to plan a cash flow forecast.You will have a good idea of your startup costs already, and you will likely have in mind a few bands who will be the first on your roster.How much you'll be spending and how much these acts will bring in can be determined using this information.Do the bands pack clubs?Their music has a good track record.You will have to do a lot more promotion to get the word out if you have bands that are brand new and don't have a fan base.Your income potential will continue to grow as you add more bands to your roster.You will need to figure out how and when to add more talent and how to promote them as you plan for years three to five.A great band on your roster may make it easier for you to promote all the bands on the roster.A poor-performing band can lead to financial struggles.
Step 5: You should create a team.
Unless you're skilled in sales, marketing, music, business, art, conversation, and moonlight as a lawyer, you won't want to develop a team.The key skill sets that will enable your success are marketing and sales, somebody who can get out there and promote your label, who knows the industry, and people who like to support the arts financially.The person or persons responsible for bringing in talent and getting the word out will be key to your success.The more successful you are, the better they perform.Production.You need someone who understands the recording process inside and out, who can find good engineers, mixers and producers, and who is able to run a recording session.Contract help.Hire other staff on a per-job basis to keep costs down.logo and graphic design, legal, accounting, engineering, and other needs only occur from time to time
Step 6: Make your business formal.
To operate legally and protect yourself, set up the appropriate business entity for your label.You have several options, which may be called different things in different countries, but are functionally the same.This is the place where you do it all.A sole proprietor is easy to start, stop, and maintain.At the end of the day, it's all yours, even if you have consultants or friends who help you out with the many things that need to be done.All the profits and the liabilities are included.Should your business fail, any business debts will come out of your pocket, and it offers little incentive for investors.This is not the best option if you want to hire people or make your label a real business.There is a limited liability corporation.A limited liability company is great for a small business.You can add people to the team as you grow, and you can also offer personal liability protection should the business fail.It gives easy and flexible control over finances, legal and tax issues.This is not a good option if you plan on seeking investors or are international in scope.You, Inc. is a corporation.This is the way to go if you are going to make this a major business venture and you want a formal structure.You are protected from liability for business losses.You can raise investment capital, issue shares of stock, and have legal precedents to call on.Your accountant, as well as your attorney, will be kept busy with taxes, fees, reports, and filings because of strict rules of organization.Unless you are ready to pick up the pace, this is not the best option for you.
Step 7: Bring in the talent.
With your plan in place, your business in order, licenses and permits applied for and granted, and your production art created and approved, it's time to get to work!
Step 8: Listen to live music, but only with a critical ear.
You can watch the audience react to the band.You might be on to something if they are up on their feet from the start.Talk to the band.Find out who they are, how long they've been together, have they released any music, and what their plans are for the future.Find out if they've been signed to a label.For starting a record label, you might want to pick a band that isn't already signed.
Step 9: The press will meet you.
Writers in your town will help you get the word out, but they have to know you.Make contact if you can find them in the local papers.You can keep in touch with them by inviting them to lunch or to your studio.
Step 10: Meet the people.
You can visit the local recording studios.Many studios will be modest one- or two-room affairs with differing equipment standards.The quality of music that comes out of their speakers is more important than anything else.Talk to the engineers about their recording philosophy, how they relate to bands, and what they don't like.If you have a rap artist that you think will be a hit, and the engineer hates rap, this is a good thing.Listen carefully and ask them to play some of their favorite cuts.If you want to be thorough, ask them for a CD of their work so that you can listen to it on your speakers.It's rare, but what sounds mind-blowing in a million-dollar studio might sound like it was recorded in the back seat of a Gremlin.
Step 11: You can visit the record stores.
They are there to sell recordings.They may be willing to sell your recordings when you get to know them.There is no venue that is too small when you are getting started.
Step 12: You should get to know the agents.
These people are in charge of the local music industry.By being professional enough to hire an agent, the bands that have signed one have passed a certain threshold of legitimacy.The next time one of their bands says, "Hey (name), I think we're ready to record an album," that person will say "I know just the place!"
Step 13: Your brand needs to be established.
cultivate and maintain the aesthetic layers of your record label once you've got the practical business matters well in handMake sure you use your logo and look on all stationery, t-shirts, mugs, and other items.There are bands and acts that fit in with the image you want to cultivate.Sub Pop and Matador are examples of brand management who maintain a fiercely independent business model that's also quite diverse.
Step 14: It is possible to market your label creatively.
The internet has changed the way music is bought, listened to, and distributed over the last ten years.If you're using the traditional model of touring and relying on CD sales and radio play, you may face a hard road to success.In order to maintain the success of your brand, pay-what-you- want models and videos are increasingly popular.Printing t-shirts with a download code on the tag is a promotional trick.Goner records, a Memphis-based garage/punk label, even offered free 7-inch records to anyone who got "Goner" tattooed to their body and showed it at the store.
Step 15: You can grow your base.
Sub Pop started by focusing on local Pacific Northwest bands, but now features a variety of more mainstream sounds, like Iron & Wine.Their success and share of the market has grown due to the expansion of sounds they embrace.If you want to fit other sounds and images into your brand, consider taking ways in which you can.Major labels were more willing to take risks on underground acts in the early 90's.Sonic Youth, a noisy independent art band from New York, found themselves in a unique position after being offered a big deal by Geffen, and the signing was applauded by both label executives and music fans.If your label is making money, you should release a project from left field.