A new recording company may experience unprecedented challenges in its attempt to curve out a niche for itself. Other companies that are already established are likely to have more trust, more clients and a major say in pricing negotiations. However, there are a couple of helpful tips that a new company can employ in order to wrestle part of the market share from rivals:
- Be prepared- No one will come looking for you if they don’t know who you are or have never heard about you. For this reason, a newly established recording company should market itself aggressively. To begin with, it should have a website, email address and active social media accounts. Business cards should be printed and shared with prospective clients and the general music community.
- Favorable rhetoric- Talk about the company with pride. The key thing is to highlight all the benefits you shall offer your clients in a clear persuasive manner. Avoid discussing rival companies. It demonstrates insecurity and unprofessionalism. To convince recording artists that you’re the best, you have to be knowledgeable and demonstrate unmatched expertise in your chosen genre.
- Be flexible during price negotiations- Nothing turns clients off more than taking hard lines during negotiations. Instead be open and flexible. At this point, it may be wise to charge less compared to established labels. Price is a useful tool that can make your company gain market share first, if used wisely.
- Leave no loose ends in contracts- The contracts you sign with recording artists should clearly articulate all major issues including sharing of profits, royalties, naming rights, patents and trademarks. Failure to deal with these issues at the onset may bring about harsh realities later on. You might find your company embroiled in court cases that might damage your reputation permanently.
- Trying to accommodate everyone- The company should not aim at bringing everyone in the music industry on board. Rather, specify your targets and make your move at the right time. It’s also very important to concentrate on one music genre, leaving the door to expansion wide open.
- Trying to mimic everything a competitor does- while it’s wise to borrow a few ‘good leaves’ from other companies, it’s absolutely unnecessary to try and conform to trends that are no longer relevant. Instead, try to be creative and approach the market with an open mind.
- Lack of a clear vision- Artists will want to deal with someone who has a clear plan and vision about their careers. While trying to bring in talent, ensure that you lay down a clear plan of what you want your client to accomplish. Let them soak in your dreams. It’s the only way to convince them to join.
- Trying to dodge established legal issues- There’s no point trying to argue with the law, especially when you’re just starting up. The law might not be favorable but it’s better to conform first and possibly raise the issue with the authorities. For instance, if you deem work permits to be too expensive, make no attempt to establish your company without one. You should do everything possible to obey the law, just like everyone else.
Establishing a strong recording company is as tricky as it is demanding. But with the right tools, advice and a determined attitude, there is no limit to what you can achieve.