Do you want to start your own record label but don't know where to start?Are you worried that by not having a professional looking business plan for your record label, you will not attract investors?A good, quick guide is to have one strategic objective for each of the 4 areas of The Balanced Scorecard: Financial, Customer, Process, and Employee Learning.
Will you stick to a certain city or geographic location?
Perhaps you want to be known for promoting the best new acts in a certain genre?
I can’t quote you an exact figure because it will vary widely based on your goals and aspirations.
That said, the amount you’re willing to commit should help give you an idea of what you’ll be able to do, at least at the outset. Sadly, it’s just the way things work and it seems like most things worth doing need you to put up at least a little capital as you begin.
If you simply need some legal protection and benefits for your own musical career, a self-owned record label can be a great way to go.
However, it’s perhaps not the best option if you’ll be signed to the same roster as other acts, as you are likely to favor your own creations and give yourself an unfair amount of resources and not necessarily because of the quality or sales potential. I mean, what do you really want to get out of this venture? Are you looking for a way to break into the music industry and you believe this to be it? If the last choice is what is truly in your heart, I can’t blame you, but a record label might not be the easiest route to your dream destination (as if there was such a thing).
Instead, they are often music lovers who simply want to help promote great music that isn’t receiving the attention they believe it deserves.
While it’s a wonderful and admirable goal, it doesn’t necessarily make for a solid business plan — just ask the thousands of label owners who have seen their companies disintegrate not long after creating them.
There are a million things I could tell you about starting a record company and you should do a lot more reading than just this one piece if you’re serious about it, but here are four things you’re going to need (and a few things you’ll need to know) when it comes to starting a record label.
Lots of people who either start record labels or who have dreams of doing so don’t necessarily realize what these companies do.