Some have described it as a gold mine. To others, it’s all about passion and enjoyment. Whatever the reason, the music industry is one of the most productive in the world today, capable of generating profits large enough to curb global poverty. Perhaps you’ve witnessed an upcoming artist getting into recording deals with a certain company, and suddenly living large just a couple of months down the line. Good news is that you too can have a piece of the cake. You could establish your own label. The article describes all the major things you need to consider if you’re to make it big.
Embrace the competition
The industry is so competitive such that a new recording company could take years to find its place. Successful companies are the ones that embrace connections. When you’re deeply connected, people will respect you and want to do business with you. Sitting in studio and waiting for clients won’t work. Attend live shows and performances hosted by other companies. Get to know how they do it. Invite market players-recording artists and publishers to your events as well. It will help build your reputation and fame.
Pay attention to financials
Each and every cent spent should be accounted for. It might appear boring trying to keep the books balanced, but it actually pays. You will be able to note patterns and trends in just about every department. This way, budgeting for the future will be much easier. Keep tabs on artists’ moves, social media developments and the sales market. These matters will be very helpful when making business decisions.
Creativity is key
In a world where there are so many recording companies, a newly established one can find it hard to get by. You should think outside the box. The initial goal should be getting the right artists and professionals on board, as opposed to making immediate supernormal profit. Perhaps you could charge recording artists a lower percentage of their earnings as compared to other companies. Anybody out there would want to make more money. Embrace digital sales. You could learn something from the English rock band, Radio Head. Having fulfilled recording terms with XL records, the band decided to offer their next album online, to fans around the world but did not cap the price at any figure. The results were impressive. Not only did the band save on distributions costs, but they were actually able to make an average of $6 per album. The decision also greatly popularized the band.
Bring in quality, not quantity
Only sign up the best talent for your company. Identifying the best might not be an easy task, but it’s rewarding. You company needs to churn out a few great hits at the beginning. This sends the statement that the company means serious business and it’s bankable. The ancient trick of producing an album with a single hit and having other tracks as “fillers” is outdated and no longer pays. People can compile their own music at home, in which case your music will lose sales volume.
Avoid conflict with the law
You should ensure that the business is registered for tax purposes and has the relevant permits. Establish and adhere to contractual agreements with your artists. Have transparent mechanisms on sharing of profits. Issues like royalties, patents and trademarks should be handled professionally too.
A recording company is likely to give you an opportunity to work on something you love and one that actually pays very well. The important thing is to maintain focus and consult widely. Don’t be afraid to make big decisions, if that is what it takes to succeed. Have a plan and stick to it. There are simply no limits to what you can achieve in music.