During the How to Run Your Own Record Company panel at the SMES Music Conference in Myrtle Beach, speakers were sharing their experiences and information on how to run an independent record label. As the moderator, I was asked to facilitate a systematic way of starting and running a record label. Throughout the panel I stressed the importance of three basic stages for increasing your chances for business success:
- THINK –consider what, when, why, where and how you’ll do what you
- PLAN –write down what you’ve thought about in outline form
- EXECUTE –do what you’ve written down
We also discussed the importance and how to get your paperwork in order. These steps included:
- Applying for a business license
- Setting up either an LLC or Corporation
- Getting a U.S. Post Office Box
- Getting an E.I.N. or federal tax i.d.
- Opening a business checking account
- Hiring a C.P.A. (certified public accountant) or buying accounting software
- Hiring an competent entertainment attorney
- Creating a business plan
- Setting up your own website like GOJAWAR.COM (myspace is not your space)
After reviewing this vital information one of the panelists chimed in and suggesting that you didn’t really need this paperwork initially. He continued by saying that what you have to do is “get it hot,” implying that you must create awareness and grow a buzz about your music as your first objective.
While I agree that you have to get hot by creating a buzz and awareness, I think that one must also address the two phases of this concept. The first part is the test-market phase. During test-marketing your goal is to see if you actually have a single that people will like. For example if you have a club record, you’ll want to service it to DJ’s and get their feedback about how well your single is received by their listeners. The second phase is to work the single. This phase should only be pursued after you’ve tested your music to confirm that it is indeed hot with your core listeners and buying audience. I speak about this in-depth in both the Atlanta Music Industry Connection and Los Angeles Music Industry Connection Books.
Unfortunately many independent music labels often skip the thinking and planning stages and go right to the execution part, getting it hot, often setting themselves up for failure. There’s no shortage of musical talent, but what often lacks is creative business talent and music industry consultants that will help set up and run a successful independent music label. Additionally, many independent music labels invest so much money into the music that when it’s time to market, promote and hire business talent they’ve exhausted and spent all of their financial resources.
Give your company the best opportunity for long-term success by filing your paperwork and/or hiring a company that will do it on your behalf. In order for your music label to succeed you’ll need star musical talent, creative business professionals and money. Study any successful music label, one that was in business developing star talent, making money and hits for over 10 years, and you’ll find that they had these three ingredients.
JaWar is a Motivational Speaker and Business Consultant. He speaks and consults on Internet marketing, making money online, SEO (search engine optimization), book publishing and the music business. He has authored and published over 20 paperback, audio and ebooks including the Music Industry Connection Book Series, while maintaining over 60 websites, blogs and social networking profiles. He has spoken and appeared in over 50 conferences, radio shows and publications.
Schedule JaWar as a Featured Motivational Speaker and a Business Consultant call either 678-887-4656 or 800-963-0949.
Starting & Running Your Record Company first appeared in Streettalk Newspaper, Q4 2008, Published by Streettalk Marketing and P. Brown.MORE MUSIC BUSINESS BLOGS
Music Business Promotions
Africa's Music Business Grows
Real Music Business Education
Music Business Videos
Music Business Economy
Music Business Career Goals
Passing Up Music Business Money
Music Business Remember Me
Truth about Music Conferences
Saving the Music Business
Are You in the Music Business?
5 Music Business Mistakes by Kevin Black
Music Business Profit Don't Be Ashamed
Music Business Trends, Does Music Suck?
