Although the music industry is growing, there is a huge demand for forward-thinking labels. A successful record label will aim to seek out new talent to pay for mixing and recording albums, touring and promoting its artists. Find out in this article how to set up a music label.
Define the type of business you want
Most great startups build their reputation by focusing on a specific genre of music. Your focus will play an important role in deciding what your business should specialise in. If your ambition is to make a lot of money, you should focus on popular music. If your dream is to be the biggest progressive jazz brand of the 21st century, your approach and focus will be very different.
Writing your business plan
Writing your business plan is necessary because you need it at different levels. First you need to define the framework for the execution of your label: How do you plan to find and promote talent, what are your advertising channels, how well do you know the market and your competitors, how do you plan to finance your project and finally how do you plan to make a successful business.
If you are rich, you do not need investors, at least not financial help. However, you can attract financial partners who can help you gain credibility in the market.
Outline all costs related to your start-up
You need to include everything you need here, including basic items, electricity and production and registration costs. Be very methodical when you do this, as people who want to be involved in running your business will certainly know this when they hear about your project.
Making a cash flow forecast
Successfully forecasting cash flow for one, two, three or five years requires skill, know-how and expertise. The first year’s project should be a serious one. This way you will already have a good idea of your start-up costs and you will keep in mind the first people on your list. Using this information you will know how much you will need to spend, which will allow you to predict how much these actions will cost you.