With the advent of inexpensive HD and even 4K video on Smart phones or Action Cameras like the GoPro , it is now possible for an independent artist to produce a professional music video for a fraction of the cost of what it use to cost. You should again create a budge spreadsheet for the cost of creating these videos. The John Pagano Band used only a Iphone to shoot their latest video, you can read about it here. Additional Revenue As a working musician one of the most important concepts you need to come to terms with if you want to make music your career, is the fact you need to have multiple income streams.
In this section you can outline any additional streams of income you can create using your music. Whether it is acting as a booking agent for other bands, Teaching music even on the road you can teach via skype , Songwriting for other artists, creating music for Local Commercials, Film, Tv, etc.
The more income streams you are able to identify and take advantage of the stronger you business becomes. This also gives you a chance to highlight any sponsorship deals that you have been able to secure. This gives you a chance to show your track record — you could show past sales if they have been strong , successful tours, key gigs, awards and honors, etc Now Be honest with yourself. This section is important because once you have acknowledged what you challenges are you can start to address them.
This is a great tool for you as well to see if you are on track. A detailed timeline should also be included in the appendix.
How did you estimate your sales? What formula did you use? How did you estimate your costs? What key people are necessary to your success? Financial Ok, here comes the scary and most eye opening part of the business plan. If you have been around for awhile and have kept track of your past financial information, you should be including it in this section. Market Analysis Here, you will analyze the current music market, with special focus on your genre of music. Include opportunities, competitors, trends, market size, and growth potential.
Company Description Describe who you are, what you offer, and the audience your business serves. Are you an LLC, corporation, or sole proprietorship? List the key team players, i. List your sales, product pricing, and positioning strategies, marketing channels, ecommerce and communication strategies, as well as distribution and promotion networks. Products or Services Explain the music related products and services your business is offering.
Are you selling physical CDs or only digital downloads? Are you offering merch for sale such as, T-shirts, posters, download cards, and stickers? As the artist, you have the vision and should be leading the whole team. Underneath, you might have your manager, marketing manager, social media people, tour promoter, and then branching out to your lawyer and accountant. As a way to diversify income streams , many independent artists also have side gigs in addition to their own such as graphic designing, producing, songwriting to make extra money.
You can also list all the music products you have for sale — for example, you might have three albums currently on iTunes and Spotify. Do you have a particular pricing strategy for your products or services? Why have you chosen this strategy? How does your target audience value your products or services? Are they a necessity, luxury or something in between? Company founders have had discussions with numerous record labels across the country who are interested in working with REC.
Partnerships with these companies will be dictated by the strength of company management, the quality of both their artist and product and the size of their marketing and promotion budget.
The independent distribution division of the company will be incrementally increased over a three-year period with four independent projects being distributed in , six projects in and twelve projects in Merchandising A lucrative profit center for Reed, merchandising opportunities will be created upon and around company artists and products in concert venues and retail outlets, alike.
Concert merchandise t-shirts, sweatshirts, hats, programs, posters, buttons, etc. REC has several relationships with merchandise managers involved with many national sports franchises and arenas around the country. Retail merchandising strategies will be coordinated and planned with the assistance of advertising agencies and public relations firms.
The chief objective will be to create alliances with apparel manufacturers for Reed artists, similar to the manner in which athletic shoe manufacturers attach an athlete's name or image to a particular shoe. Of course, these opportunities will become more readily available as the artist's reputation increases.
Nonetheless, REC will work to make inroads in this realm early on. The company is preparing to design and release a line of Reed casual wear, including such items as shirts, hats and jackets. Distribution of these products to music related retail outlets will occur through REC's pre-recorded music partner.
Distribution to mainstream apparel outlets will also be secured. Concert Promotion As a related means to increase exposure for the company artists, Reed will plan and promote several live concert shows a month. Shows will be staged at a variety of major concert venues throughout Nevada.
Revenues will be generated from the sale of tickets, concessions and merchandise. Early on, the company will plan and promote two shows per month. This will allow REC the opportunity to attract outside talent to perform in the Las Vegas metropolitan area. It is anticipated that as this division of the company grows, regional promotion contacts will be established allowing for expansion and increased revenues. Independent labels have been described by knowledgeable music industry professionals as "the lifeblood of the business.
Lacking large budgets for project production and marketing, independent record companies have had to be more resourceful over the years. Furthermore, independents cannot rely on the occasional "big hit" record, but rather have established and grown music catalogs to provide streams of revenue. In growing a music catalog it is imperative to compile a reliable group of artists, who are dedicated to producing quality music.
This enables the company to steadily increase the number of unit sales for a particular artist over a two to three album process. Major recording companies frequently invest in independent labels when confidence in the company's roster and management exists. In these strategic alliances and joint ventures, the larger company may invest money to: a assist in completing album projects, b manufacture compact discs and tapes and c assist with marketing and promotion plans.
Thanks again Justin. However, I never provided a sample for two reasons. People like to copy plans instead of learning the steps or hiring a business plan writer like myself. Access the music and distribution network that feeds Heavy Metal artists to the skate culture.Take a look at a query that brought someone to my site… Dude! How much does that suck? But to see it right there like that… Man. It really struck me.
It was the same story I hear time and time again. Being a successful independent artists takes a special type of character. How did you estimate your costs? All of which can lower that traffic requirement even more. Writing the plan using a mind map Just like creating a song, you will never really finish your business plan; you just have to stop and be okay with what you have.
Elements of a good plan Whether you are planning to approach a bank or family member for financing or simply look at ways to improve your business, a good plan includes the five sections that follow. Will you be sending it to third parties like your lawyer and accountant if necessary? Industry Sales Volume in the U. As the artist, you have the vision and should be leading the whole team. I have known artists whose take at their merch table would be double their guarantee for the show.
A plan not only provides you with a framework for growth, but also takes a closer look at the details of your business; ones that are typically over looked without a business plan. Ask yourself: What type of people listen to my music? Initially, distribution, merchandising and concert promotion will be developed. Concert Promotion As a related means to increase exposure for the company artists, Reed will plan and promote several live concert shows a month. You need to again create a budget spreadsheet that includes how much you are going to spend on gas, Rooms yes you are going to need a place to sleep even when you don;t have a gig that night , paying the band, food, strings, sticks for the drummer, wear and tear on the van, Oil Changes, Laundry, and make sure you have a reserve fund just in case you break down or you have to bail someone out. You should be tracking who comes to your shows.
Remember, the only way to eat an elephant is one spoonful at a time, so take a moment to breathe and gather your thoughts. If it is to a bank, you would outline how much you are looking to finance and what the money will be used for. You need to invest in yourself in order to make money. But when I took a look at her stats I saw just the opposite. Moreover, Mr. As the company grows and matures, diversification into other revenue generating opportunities will occur through Reed Ancillary.
What are your costs for manufacturing, distribution, and marketing? Existing affiliations in the video sector of the industry allow the company to produce top quality video productions while minimizing budgets. These funds will be used to: a establish corporate offices, b maintain overhead expenses, c acquire and secure artists, d fund project production budgets, e fund multi-faceted marketing and promotion budgets. Are you doing social media marketing in advance of the show?
Taking personal and professional inventory If you have been in the music business for at least a year, you should have a basic idea how a music business operates. Reed Music's independent promoters will focus their efforts and attention on reporting stations. Merchandising A lucrative profit center for Reed, merchandising opportunities will be created upon and around company artists and products in concert venues and retail outlets, alike.
Will you be funding your recording career yourself or will you have investors? Revenues will be generated from the sale of tickets, concessions and merchandise. Below, we have provided a template on how to create your first business plan, similar to our marketing plan template. It was the same story I hear time and time again. Then create a bulleted list of all the information regarding your business in the corresponding squares.
Nothing can be further from the truth. Artists, start your plan by creating a mind map. Even if you are just using it as a guide to where you want to go and what you feel you need to do to get there. My Inspiration Every time I sit down to write another music business plan I think about all of the starving artists out there who have failed to see the value in the business planning process. There are all sorts of books out there telling people not to plan. Understanding and capitalizing on the close relationship between audio and video entertainment will quickly propel REC's products in the marketplace.