how to write a music business plan

Music Business Plan Template

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their music businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a music business plan template step-by-step so you can create your plan today.

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What Is a Music Business Plan?

A music business plan provides a snapshot of your music business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Music Business Plan

If you’re looking to start a music business or grow your existing business you need a music business plan. A business plan will help you attract investors and raise money, if needed, and plan out the growth of your music business in order to improve your chances of success. Your music business plan is a living document that should be updated annually as your company grows and changes.

Source of Funding for Music Businesses

With regards to funding, the main sources of funding for a music business are bank loans and angel investors. With regards to bank loans, banks will want to review your music business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will want to see a professional music business plan. Such a plan will give them the confidence that you can successfully and professionally operate a music business.

The second most common form of funding for a music business is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan. Venture capitalists will not fund a music business.

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How to write a music business plan.

Your music business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your music business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the type of music business you are operating and the status; for example, are you a startup, do you have a music business that you would like to grow, or are you operating a chain of music businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the industry. Discuss the type of music business you are operating. Detail your direct competitors. Give an overview of your target audience. Provide a snapshot of your marketing plan. Identify the key members of your team, and offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of music business you are operating.

For example, you might operate one of the following types:

• Recorded Music – This type of music business sells music that has been recorded in a studio.
• Music Licensing – This type of music business licenses music for films, TV shows, video games, advertisements, online videos, etc.
• Live Music – This type of music business sells tickets to live concerts and tours. They might also operate a school that teaches people how to become successful musicians, or they might sell memorabilia such as T-shirts and posters.
• Music Publishing – This type of music business is in the rights business; they represent songwriters. If someone wants to use a song by a songwriter that is represented by the music publishing company, they need to get permission and then pay a royalty.
• Music Production – This type of music business provides a service for musicians and recording artists. They might produce and record an album and then provide marketing services such as radio promotion and public relations.
• Music Business Consulting – This type of business is in the business of providing advice to musicians on how to become successful. For example, they may offer consulting on how to promote your music and how to book gigs.
• Music Artist – This type of business operates as an individual musician or music group. For example, they might be solo artists, bands looking for a record deal, or groups of musicians hoping to become successful together.
• Music Education – This type of music business offers music lessons, either in-person or online.
• Retail Music Store – This type of music business sells instruments, sheet music, and other music-related items.

In addition to explaining the type of music business you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the music business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards more people purchasing music online, you may want to focus your marketing efforts on digital platforms.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your music business plan:

• How big is the music business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your music business. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your music business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments for a retail music store:

• Adult beginning guitar players
• Teenage/college-aged students who want to learn how to play the electric guitar and will commit time and money to do so
• Middle-aged adults who want to learn how to play acoustic guitars for their own enjoyment
• Vintage guitar enthusiasts who are looking for specific instruments that are considered rare or valuable.

The following are examples of customer segments for a music education business:

• Parents who want their children to have a well-rounded education and believe that music is an important part of that
• Children who want to learn to play an instrument because they enjoy music
• Adults who want to improve their skills at playing an instrument they already know how to play

As you can imagine, the customer segment(s) you choose will greatly depend on the type of music business you are operating. Clearly, baby boomers would want a different atmosphere, pricing, and product options, and would respond to different marketing promotions than millennials.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. 

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers or clients.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other music businesses within the same niche.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes physical stores, online stores, and even locally owned retail shops that sell instruments.

Here are some examples of indirect competitors within the music education niche: 

• Local music store selling instruments
• Online retailer selling musical instruments
• The public school system offering a music program to students in grades K-12 or college offering a music ed program as a minor.

You need to mention such competition to show you understand that not everyone in the market is your direct competitor. Furthermore, including a SWOT analysis of your business in this section will demonstrate how you plan to compete against them.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products/services do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to reach out to customers of your competitors and ask them what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior services?
• Will you provide amenities that your competitors don’t offer?
• Will you make it easier or faster for customers to book your own studio?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a music business plan, your marketing strategy and plan should include the following:

Product : in the product section, you should reiterate the type of music that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to selling instruments, you may also offer music lessons, CD recordings of the lessons, and other merchandise related to your business.

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections, you are presenting the options you offer and their prices.

Place : Place refers to the location of your music business. Document your location and mention how the location will impact your success. For example, is your music business located in a commercial district with a lot of foot traffic? If not, will you offer delivery or online sales?

Promotions : the final part of your marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Partnerships with local organizations (e.g., partner with vendors to provide recording packages at a discount over a la carte services)
• Local radio stations advertising
• Banner ads at local music venues
• Social media advertising

Operations Plan

While the earlier sections of your music business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your music business such as serving customers, cleaning, ordering supplies, and so on. This section should list the specific tasks that will need to be completed each day and who will be responsible for them.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 25th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your music company’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a music business.

Ideally, you and/or your team members have direct experience in the music business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in music and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, how many customers will you serve? How much does it cost to provide your service/product? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your recording studio, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your music business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a music business:

• Location build-out including design fees, construction, etc.
• Cost of equipment like studio gear, instruments, amps, inventory, etc.
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your studio design blueprint or location lease.

Music Business Plan Summary

Putting together a business plan for your music business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the music business, your competition, and your potential customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful music business.

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A step-by-step guide to developing a music business plan

April 19, 2021

Why you need a music business plan

Where to start, the main components of a music business plan, the importance of multiple income streams, subscribe to greenlight by thimble..

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Making a living in the music business is the ultimate dream of every serious musician. But out of the countless individuals with a passion for music, only a select few will make a profitable business out of it. That doesn’t mean reaching your goals is impossible. If you want to earn reliable income from your music career, you need to treat it like any other business. That means making a detailed blueprint that will take you from passionate hobbyist to successful professional. This step-by-step guide to developing a music business plan will set you on the right path.

Whether your goal is to have a career as a professional musician, recording artist, producer, or music teacher, documenting the path you’ll take with a music business plan will be helpful to your cause. Your business plan outlines your goals, identifies the practical methods you’ll take to achieve them, and lists the resources you have and will need.

Not only will a concrete business plan keep you on course, it will also demonstrate your credibility in the eyes of others. Potential clients and business partners will see you as a professional and not another starving artist. If you ever need to take out a business loan or raise money for investors, a business plan is a must-have.

Crafting your music business plan isn’t something you can do in one sitting. You’ll need more than an afternoon to get this right. Take your time, bite off piece-by-piece, and chew your thoughts over thoroughly.

Our first piece of advice is as old as time:  know thyself.

You need some clarity of purpose before you can craft a useful music business plan. Ask yourself:

• Who is my audience?
• What is my ultimate goal?
• Why do I want to do this?

Having this understanding will make it easier for you to explain your vision to others and convey your enthusiasm. It will also establish the framework for your music business. This step is crucial if you’ll need people to buy in to help you reach your goals.

The content of your music business plan will vary depending upon whether you’re aiming to start a music school, be a producer, or work as an artist. But the fundamental components are the same either way. Here’s what you’ll need:

• Mission Statement
• Executive Summary
• Audience Analysis
• SWOT Analysis
• Marketing Plan
• Financial Considerations

Let’s look at each of these in turn.

Mission Statement:

This can be as short as a few sentences, as long as it adequately describes who you are as an artist or a musical entrepreneur and what you’re trying to accomplish. While this might sound simple, think things through a bit before you try to draft your statement. Everything that follows here will hinge upon it.

Executive Summary:

The executive summary is a one-page synopsis of your plan. It should include an introduction as well as a description of your endeavors. Details about the funding you already have and what you’ll need in addition to a brief accounting of your plans for putting all of it into play are important too.

Most experts recommend saving the drafting of this part for last. It’s essentially a digest of all the other parts of your plan. Doing it last allows you to draw upon the information you’ve drafted for all of the other steps.

Audience Analysis: 

Here’s where you’ll demonstrate your understanding of your target audience. If you’re already performing, teaching, or producing on the side, think about what traits the people who follow you have in common.

If you’re just getting started, find someone doing what you want to do whose style and circumstances are similar to yours, and analyze their target market. Create a demographic sketch of your target audience based on gender, age, location, musical tastes and favorite venues.

Strengths, Weaknesses, Opportunities & Threats:

Think about the qualities that make you unique. List everything that comes to mind, from technical mastery and creative spark to teaching older demographics and networking. Your skills might not seem extraordinary on an individual level, but combine all your best qualities and you’ll find there isn’t anyone quite like you on the market.

Don’t forget about your weaknesses. Identity these not as qualities to promote, but as areas to work on in the future. Being aware of your shortcomings will also help guide your decision on potential business partners in the future. Let your inner critic loose, but realize that this is an exercise in personal growth, not tearing yourself down.

Had enough reflecting? Let’s take a look at the marketplace. Think about potential gaps in the industry you can exploit. Perhaps your competitors are overlooking a key value and you see a way to provide it both efficiently and effectively. These are your opportunities.

Threats could include technological shifts, cultural changes, the emergence of new artists, competition, and new trends. The music world moves fast, and today’s hot act can end up as yesterday’s news before your can say “more cowbell!” Brainstorm any roadblocks you picture yourself facing over the next few years and strategies you can use to overcome them.

Marketing plan:

Your marketing plan will detail how you’ll spread the word about yourself. Consider how much money you can reasonably invest into marketing and work out how you’ll spend it to reach as many of the right people as possible. Think about how you’ll grow your online presence—including social media, a press kit, and publicity materials such as a logo and photography.

Get a full account of your current cash flow situation. List how much capital you currently have and estimate how much it’ll take to get your operation up and running. When in doubt, overestimate. Studio time, engineering talent, transportation, legal fee, copyrights and trademarks are all important considerations when projecting your budget.

Measuring your progress:

At what intervals will you go over the financials to see how you’re advancing? What are the milestones by which you’ll mark your achievements?

You’ll also need a method for measuring your impact on the market in terms of the reputation you build. Social media outlets provide analytical tools to help you track these metrics. They can also help you pinpoint the demographics of your audience.

Establishing your key performance indicators (KPIs) can help you set the standards by which you will gauge your success. Sharing this information with others makes you accountable because they can look at your projections and see how much progress you’ve made toward achieving them.

Summarizing your music business plan

As we mentioned above, once you have all of these areas covered, you can then condense the information each section contains to create your executive summary. After all, how will you know what to put in it until you’ve examined all of these other areas first?

Success in the music industry takes a lot of work and a little luck, but you can stack the deck in your favor by building multiple income streams. That way, if one area slows down, you’ll have another one in play to keep you rolling until the next opportunity presents itself. Revisit your strengths and opportunities and start brainstorming ideas. If you get stuck, here’s a quick list to get you started:

Give music lessons. Chances are if you’ve got the chops to play paid gigs, you’ve got enough skills to pass on to some novice students. Giving music lessons can be a great way to add some extra recurring income.

Start a YouTube channel. With over 2 billion active users, YouTube might just be your biggest source of untapped attention and potential. 1 The platform offers users a chance to learn or be entertained, and as a musician you’re well-positioned to offer both. You could upload instructional videos or footage of yourself performing. You’ll get to keep a portion of any ad revenue your videos make. And if the right person sees your content, it could open the doors to even greater opportunities.

Explore the marketing world. If composition is your thing, you might be overlooking a potentially huge money-maker—marketing and advertising. Brands are in constant need of good video content to market their products, and those videos need music to truly capture attention. If you’ve got a knack for putting together atmospheric instrumentals, creating music for ads could seriously help stabilize your income.

Open your own studio. If you have the capital to invest and live in an area underserved by recording studios, you might want to consider opening your own. While you’re not using it for your own projects, you can rent it out to other local musicians and producers. If there’s enough demand, you could cover the costs of equipment and rent and even have a little profit left over.

Explore session work. Sure, your band is your baby, but if you’ve got time on your hands and musical versatility to boot, why not offer your services as a session musician? Session work is an effective way to boost your income, make new connections and get your name out there as a legit professional. If an artist is truly enamoured with your work, they could invite you to join them on tour.

Another important consideration in your music business plan is protecting your livelihood from the consequences of unintentional accidents. General liability insurance is key to helping you stay focused on your business. Carrying a policy also demonstrates to potential clients that you are a serious professional — whether you’re a musician, DJ , or another kind of entrepreneur in the entertainment industry.

• Hootsuite. 25 YouTube Statistics that May Surprise You: 2021 Edition .

Our editorial content is intended for informational purposes only and is not written by a licensed insurance agent. Terms and conditions for rate and coverage may vary by class of business and state.

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Music Business Plan: A Guide for Music Industry Professionals

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A music business plan is crucial for any music industry professional looking to launch or grow their business. It provides a snapshot of the current state of the business and lays out a clear growth plan for the next five years. This is essential for understanding where the business is at and setting achievable goals for the future.

Check out our article below to learn more about creating an awesome music business plan and get a template.

What is a Music Business Plan?

A music business plan is a comprehensive and detailed document that outlines the goals, strategies, and financial projections for a music-related business. Whether it's a record label, music production company, artist management firm, or any other music-related venture, a business plan provides a roadmap for success. It helps to attract investors, secure loans, and guide overall operations.

From market analysis and competitive research to marketing and distribution strategies, a music business plan covers every aspect of the business to ensure clarity, direction, and long-term viability. It is an essential tool for anyone looking to establish or grow a music-related business in the highly competitive and dynamic music industry.

Why is it important to have a music business plan?

A music business plan is crucial for an artist's success in the industry for several key reasons.

It serves as a blueprint for the artist's career, outlining their goals, strategies, and financial projections. This document helps attract investors by showcasing the artist's vision, potential for return on investment, and realistic plans for reaching their target audience.

A well-crafted business plan guides decision-making by providing a clear direction and framework for the artist's activities and investments. Furthermore, it defines the artist's brand, including its image, style, and target market, which is essential for standing out in the competitive music industry.

In summary, a music business plan is instrumental in attracting investors, guiding decision-making, and defining an artist's brand, making it essential for achieving success in the music industry. Therefore, having a solid and comprehensive business plan is crucial for any aspiring musician or band looking to establish a successful and sustainable career.

How to Fill Out Your Lean Music Business Plan

In this guide, we will walk you through the steps of filling out your lean music business plan, from identifying your target audience to mapping out your marketing and sales strategies. 

We'll be referencing sections of the US Small Business Administration's ( SBA ) lean business plan template . Despite its generality, it works as a music business plan template. 

Aspects of this guide relate to the traditional business plan, which we will discuss later in the article. 

Business identity

A business identity helps your business specify exactly what you offer. Both the single-page lean plan and the traditional plan place importance on your identity. Let's say, for example, you're a business-owning musician who provides audio for creatives in the media industry. Here's how your identity might look:

Our business identity revolves around providing high-quality music and sound effects for TV programs, film industries, commercials production companies, video game developers, corporations, and event organizers. 

Through the lean template, try to identify your business in under one paragraph. Then, using the traditional template (see below), expand on that identity. Things like your mission statement, which we visit later, are an aspect of this.

The problem you're trying to solve

All businesses are problem solvers. Record labels help musicians with distribution, while music teachers help provide the next generation of musicians with a strong foundation. 

Naturally, you might wonder how this applies to musicians. Just saying "entertainment" feels a bit weak. There are bands, like Rage Against the Machine, who make music to push a movement. But if you're not part of that crowd, what do you put?

So, think about why you got into music-making in the first place. Any professional musician should think about who their music appeals to and what they want people to feel when hearing their music. You can then say your music solves that problem in a cheesy reminder that you think about more than what shows up on your financial statements. 

If you don't want to get too corny, think about who your music will most appeal to. Then, you can say what your target audience is. Think of something like this:

Creating music for young men and women that will entertain them and inspire them to explore challenging topics.

This problem-solving might feel generic, but you'll know your fans and why you make music. So, stay focused on that.

Solution your business presents

Once you consider the problem your business solves, you need to state how you solve that problem. Again, this is much easier for music industry professionals who work in support roles. Music distributors solve the problem by having direct connections with other distributors, while music marketers help bands reach out to fans via multiple social media platforms. 

As someone who makes music, your solution is the creation of music. So, ask yourself how the creation of your music solves this problem. Here's an example based on our situation above:

Our band writes music that delves into mental health struggles based on personal experiences and how we overcame them.

You might think that doing this as a musician feels silly, but think of it as a reminder. One of the reasons famous musicians like David Bowie and Tom Morello were so successful is focusing on how their music helps people. 

Competition 

Competitive market data varies depending on the territory you plan to target. For musicians and bands, this might involve bands in the local area and those in future touring locations. For musicians, the competition can also be a list of potential collaborators.

For everyone else not making music, other record labels and music production companies are just competition. Whether you can collaborate with them or not, you'll want to differentiate yourself from all the other options out there. Being another "me too" music business will make it easier to forget you. 

Using the lean small business plan, you'll want to stick this to two or three sentences. Be very general, knowing you can also expand using the traditional business plan. Here's an example of a made-up Tennesse company: My Music Production & Management: 

The competitive landscape for music production companies in Tennessee includes My Music Production & Management, Genre Music, and Retro Recording & Productions. My Music Production & Management offers a wide range of services, including music production, artist management, and music distribution. 

Revenue streams

Revenue streams come from various sources. A business plan reminds you of those sources so you can stay focused. As a musician, your income can come from many sources. Below is an example you can use under the lean business plan:

As a musician, my income comes from paid gigs, teaching music lessons, instrument repair services, and recording sessions. To ensure financial stability and growth, I plan to diversify my income by capitalizing on these different opportunities.

Your revenue streams will differ as a record label or other kind of music business. Like musicians, your revenue streams can vary. However, as a young business, you may specialize in specific areas. You might work on creating merch or distributing digital releases. 

Marketing activities

Marketing activities focus on how you plan on reaching out to different sources. For many new music businesses, this involves outreach through social media platforms. Here's an example of what you might include in your business plans:

Our marketing activities will primarily focus on building a strong online presence through social media and regional publications. We plan to utilize platforms such as Instagram, Facebook, Twitter, and TikTok to engage with our audience and share regular updates about our music and upcoming events. Additionally, we will work on developing a press kit to distribute to regional publications and media outlets to garner publicity and reach a wider audience.

Bands can create electronic press kits (EPKs) that are prebuilt for members of the media. This makes it easy for journalists and members of the media to share content about you, such as a new album release. You can also consider how much you might pay for advertising. Digital marketing activities like those above are the first choice, as this activity uses advanced targeting tools based on what people search for and their demographics.

Marketing traditionally focuses on the four Ps: product, price, place, and promotions. The first two Ps delve into your product line, which you'll learn about later. Promotions indicate the type of marketing you choose, and Place usually refers to the platforms your target audience uses. 

The lean business plan gives you a simple overview of your likely expenses, which can be detailed in your longer business plan. Part of these expenses include music taxes. Read our guide on music taxes for more details.

Expenses vary depending on the type of music business you run. You could pay to rent a studio for recording sessions, purchase recording equipment, access manufacturers, or pay for other expenses. These expenses can result in tax deductions .

Here's an example of what your expenses section might look like:

To get my music business up and running, I need to budget for several key expenses. Studio time would be required for recording and producing music, averaging around $50-$100 per hour. I'd also need to allocate funds for engineering talent, which could cost between $50-$200 per hour, depending on experience. Transportation costs for getting to and from recording studios or performance venues should be factored in, estimating around $200-$500 per month.

Legal fees for business formation are also deductible. When listing your expenses and considering deductions, ask yourself what your type of company would normally deduct. Reach out to Augur CPA if you'd like a comprehensive review.

The key roles section provides a list of high-ranking authorities in the business and explains the responsibilities and functions those roles bring to the business. Here's an example of what that might look like in your business plan:

1. Chief Executive Officer (CEO): Responsible for overall strategic direction and leadership of the organization, making key decisions and representing the company to the public and stakeholders.

2. Human Resources Department: This department is responsible for recruiting, training, and managing employees, as well as ensuring legal compliance and promoting a positive work environment.

3. Marketing Department: Responsible for promoting the organization's products or services, conducting market research, and developing marketing strategies to attract and retain customers.

4. Finance Department: This department is responsible for managing the organization's financial resources, including budgeting, accounting, and financial reporting.

5. Operations Department: This department is responsible for overseeing the organization's day-to-day activities, optimizing processes, and ensuring efficient production and service delivery.

As a new business, you might not need all of this detail in your roles. A new business owner wears many hats, handling all of this themselves.

As your business grows and you fill roles like those above, you'll want to create an operating agreement . Operating agreements dictate the roles, holding groups responsible for their actions. This can dictate things like voting rules, which are vital when making high-risk business decisions that require more input.

Your milestones tell readers, yourself, and business partners of the important milestones you've already taken or plan to take. Your lean business plan is a single sentence telling people what you generally plan to do. Larger business plans might look something like this:

Milestone 1: Lease Finalization

- Task: Negotiate and finalize the lease agreement for the studio space

- Deadline: by May 15th

Milestone 2: Personnel Contracts

- Task: Draft, review, and finalize contracts for hired personnel

- Deadline: by May 20th

Milestone 3: Studio Build-out and Equipment Purchase

- Task: Begin construction and build-out of the studio space, purchase necessary equipment

- Deadline: Construction to be completed by June 30th

Milestone 4: Networking and Marketing Plan Implementation

- Task: Develop and implement a networking and marketing plan to attract clients

- Deadline: Marketing plan to be in place by June 1st

Each milestone outlines specific tasks and deadlines to ensure a smooth and successful opening of a recording studio. A musician or distribution company should take a similar approach, focusing on initiatives that help them grow their business.

Filling Out Longer, Traditional Business Plans

The SBA's traditional business plan, which you can find here , is a multi-page document. It's an expanded version of the lean business plan, which you can provide upon request. When applying for business loans or bringing on business partners, this plan can help communicate your vision.

Traditional business plans might use a bit more jargon, like executive summaries and mission statements. Below, you'll learn a bit more about some of the more complex aspects of writing your detailed business plan.

Executive summary

Executive summaries summarize the main points of a business plan. The summary points include the purpose of the business, the business name, the target market, your business location, and how your business solves its target audience's problem. Here's an example you can use for inspiration:

The Executive Summary of my music business plan showcases my artist bio, mission statement, and unique selling proposition. As a musician, I bring a unique blend of classical training and modern influences, with a strong foundation in jazz, pop, and R&B. My mission is to create music that transcends genres and connects with audiences on a deeper level, aspiring to inspire and uplift through my art.

My unique selling proposition lies in my ability to blend diverse musical styles and deliver powerful, emotionally resonant performances. I have achieved recognition in local music scenes, including winning the Best New Artist award at a prominent music festival. My aspirations include reaching a global audience and collaborating with industry-leading producers to create music that leaves a lasting impact. What sets me apart from others in the industry is my unwavering dedication to authenticity and artistry, always prioritizing substance over trends.

For bands and musicians, the executive summary is a great way to showcase your passion for music. Notice the "unique selling proposition," which indicates how you plan on differentiating yourself compared to other companies.

Other companies, like music publishing companies, might focus a little less on the creative aspects of their business. An executive summary can differ slightly between companies. However, if you're new, start with the template until you get comfortable writing these plans.

Company description and mission statement

Your company description, based on the traditional plan, includes the mission statement, members, legal structure, and location of the company. It might also include the executive summary.

Here's an example of the description for a made-up company: SoundWave Entertainment:

Our company, SoundWave Entertainment, is structured as a Limited Liability Company (LLC) and has been in business for ten years. We specialize in providing top-quality live music entertainment, event production, and artist management services. Our diverse range of offerings includes wedding bands, corporate event entertainment, and music festivals. Our customer demographics range from engaged couples looking for the perfect wedding band to event planners seeking unique and memorable entertainment experiences. In the past decade, we have experienced significant growth, expanding our roster of talented artists and achieving a strong presence in the events industry. Our primary business goal is to continue providing exceptional musical experiences and to further expand our reach in the entertainment industry.

The description is simple enough, but the mission statement is arguably the most important aspect of your business plan. It's a few sentences long but shares the overall mission of your company, dictating where it goes and how it makes decisions. Mission statements are emotionally driven and connected to the morals and heart of the company's stakeholders. Here's how it might look:

At SoundWave Entertainment, we are committed to delivering unforgettable musical experiences and fostering the growth of talented artists. We strive to exceed our client's expectations by curating exceptional live entertainment and providing a platform for artists to showcase their skills. Our goal is to leave a lasting impression through the power of music, creating moments that inspire and connect people.

Market conditions and research

The traditional business plan offers a bit more room for reviewing your market conditions and researching your competition. Doing your own research helps you understand the market. Sharing your research on a business plan provides proof of your knowledge of market conditions. Here's a short example of market conditions:

The current market conditions in the music industry are characterized by several industry trends, including the shift towards streaming services, the resurgence of vinyl records, and the increasing importance of live performances for artists' revenue. Consumer behavior has also changed significantly, with more music fans opting for subscription-based streaming services over traditional album or single purchases. Key competitors in the industry include major streaming platforms like Spotify and Apple Music, as well as record labels and live event promoters.

Additional sections of your business plan include a detailed description of your customers, how your company outperforms the competition, and regulations that might impact your company.

Regarding regulations in the music industry, it helps to have a general understanding of the Digital Millennium Copyright Act ( DMCA ), fair use , and current communication laws. Knowledge of these laws or working with a music attorney can help you with this aspect of your business plan.

Service line and pricing structure

Your service line includes a complete list of your services and their costs. For musicians, this might include gigs, music lessons, and anything else you do to advance your career in music. It then breaks down the pricing of your services, including some potential for how that pricing can flex.

Services can vary heavily depending on your company and the services you offer. When you first start your business, you might specialize in a few areas. One milestone could be expanding to include additional features, like a record company offering email marketing services.

The service line section also includes your product lifecycle. For example, albums tend to make more money during their first year of release, and your lifecycle dictates how long you might make albums. If you go on a tour during the album, you might stop creating new albums or merchandise sales during this time. 

Service line information can also include information on intellectual property rights and how your band and albums will be copyrighted. You can also work to trademark your company (or band) logo.

Marketing, sales, and growth strategy

While your marketing research section details information about the market and industry, your marketing, sales, and growth section dictates how you plan on reaching target customers. The lean plan mentioned above briefly addresses this area.

The three areas you'll want to consider are your growth strategy, how you want to communicate with customers, and how you plan on selling your products.

Let's say you plan on creating your own Shopify e-commerce store for your business, which is a huge investment. This means your growth strategy, product sales, and customer communications will wrap around this tool. If you want to start simpler, mention how you plan on talking with fans and setting up merch tables at local shows.

Here, you'll see some examples of how you could write this section:

Our music business aims to market, sell, and grow by implementing a combination of online and offline strategies. Our marketing efforts will include targeted social media campaigns, SEO optimization for our website, and collaborations with music influencers and bloggers. We will also explore opportunities for live performances, partnerships with local venues, and utilizing traditional advertisement methods.

To drive sales, we will offer unique packages for our music services, including special promotions for first-time customers and loyalty rewards for returning clients. Our pricing strategy will be competitive while still maintaining the quality of our services.

In terms of customer retention, we will focus on delivering exceptional customer service and providing personalized experiences for our clients. Our unique selling proposition lies in our ability to offer customized music solutions tailored to different occasions and preferences.

Moving forward, our plans for growth and expansion include branching out to new markets and offering additional services such as music production and event management. We will also invest in building brand loyalty and expanding our customer base through strategic partnerships and collaborations within the music industry.

Why Should I Care About A Business Plan?

A business plan is a crucial tool for any musician or music industry professional looking to advance their career in the music industry. It serves as a roadmap for your career, helping you set goals, make strategic decisions, and stay on track for success.

One of the most significant benefits of having a business plan in the music industry is its ability to attract investors. A well-thought-out plan demonstrates to potential investors that you are serious about your music career and have a clear direction for success. It outlines your financial projections, marketing strategies, and potential for growth, making it more likely for investors to see the value in supporting your music endeavors.

Additionally, a business plan guides decision-making by providing a framework for evaluating opportunities and making informed choices. It forces you to consider all aspects of your music career, from marketing and promotion to touring and merchandising, ensuring that you have a comprehensive strategy in place.

Furthermore, a business plan helps define your brand identity and outline your unique selling points, target audience, and marketing message. This is crucial in the music industry, where standing out and connecting with fans is essential for success.

To learn more about how taxes can apply to a financial plan for your business, contact Augur CPA today .

This content is for informational purposes only and does not constitute legal, business, or tax advice. You should consult your own attorney, business advisor, or tax advisor regarding matters mentioned in this post. We take no responsibility for actions taken based on the information provided.

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Music Business Plan Template

Written by Dave Lavinsky

Music Business Plan

You’ve come to the right place to create your music business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their music businesses.

Below is a template to help you create each section of your Music business plan.

Executive Summary

Business overview.

Musicians First Studio is a startup music company located in Nashville, Tennessee. The company is founded by Michael Smith, an experienced musician who has gained valuable knowledge on how to manage a music business during the past ten years while working at My Music Production & Management, another local music company. Now that Michael has experienced managing a music company, he is ready to start his own business, Musicians First Studio. Michael is confident that his skills as a musician, combined with his understanding of business management, will enable him to run a profitable music company of his own. Michael is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a music studio – sales and marketing, production, artist management, music instruction, financial reporting, studio equipment maintenance, and client relations.

Musicians First Studio will provide a full suite of music production, management, and instruction services for both novice and professional musicians in the Nashville area. Musicians First will be the go-to music studio in Nashville for its client-focused services and dedicated professionals who are experienced in all aspects of the music industry. The company will be the ultimate choice for the needs of aspiring and professional musicians.

Product Offering

The following are the services that Musicians First Studio will provide:

• Artist Management
• Music Recording, Production, & Post-Production
• Private Music Lessons & Group Classes
• Venue Booking & Live Event Management
• PR & Marketing for New Artists

Customer Focus

Musicians First Studio will target new and experienced musicians in Nashville who are looking for professional production, management, or marketing services. The company will also target aspiring musicians and children looking for music lessons taught by industry veterans. No matter the customer, Musicians First Studio will deliver the best communication, service, and professionalism.

Management Team

Musicians First Studio will be owned and operated by Michael Smith. Michael is a graduate of Tennessee University with a degree in music. He has over ten years of experience working as a manager for another local music studio. Michael will be the company’s chief executive officer. He will oversee the recording/production process, music equipment, and studio staff’s activities.

Michael has recruited his former administrative assistant, Jessica Garcia, to be the company’s chief operating officer and help oversee the studio’s operations. Jessica will handle the day-to-day operations, including budgeting, scheduling, client relations, and logistics.

Michael and Jessica have recruited an experienced marketing director, John Brown, to become a member of the Musicians First Studio management team. John is a graduate of the University of Washington with a bachelor’s degree in sales and marketing. Michael and Jessica rely on John’s expertise to execute the company’s marketing plan and advertising strategies.

Success Factors

Musicians First Studio will be able to achieve success by offering the following competitive advantages:

• Skilled team of music production technicians and veteran musicians who will work one-on-one with clients to reach their individual music goals whether they’re looking to record a new album or learn a new instrument.
• Musicians First Studio is one of the only studio’s in the area that offers a wide range of services for musicians of all skill levels and goals.
• The company offers competitive pricing and discounts for referrals.

Financial Highlights

Musicians First Studio is seeking $800,000 in debt financing to launch its music business. The funding will be dedicated towards securing the studio and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

• Studio build-out: $340,000
• Music equipment, supplies, and materials: $280,000
• Three months of overhead expenses (payroll, utilities): $160,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Musicians First Studio.

Company Overview

Who is musicians first studio.

Musicians First Studio is a newly established music company in Nashville, Tennessee. Musicians First will be the first choice for aspiring, novice, and experienced musicians in Nashville and the surrounding communities for its full-suite of professional services provided by industry veterans. The company will provide a wide range of services including recording/production, music lessons, artist management, and marketing for new musicians.

Musicians First Studio will be able to guarantee high quality production thanks to the latest and most innovative music technology operated by expert music production technicians. The company’s team of highly qualified professionals experienced in music, production, and marketing will manage the suite of services offered at the studio. In addition to customized services for musicians, customers will be able to book studio time that comes with use of equipment by the hour.

Musicians First Studio History

Musicians First Studio is owned and operated by Michael Smith, an experienced musician who has gained valuable knowledge on how to manage a music business during the past ten years while working at My Music Production & Management, another local music company. Now that Michael has experienced managing a music company, he is ready to start his own business, Musicians First Studio. Michael is confident that his skills as a musician, combined with his understanding of business management, will enable him to run a profitable music company of his own. Michael is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a music studio – sales and marketing, production, artist management, music instruction, financial reporting, studio equipment maintenance, and vendor relations.

Since incorporation, Musicians First Studio has achieved the following milestones:

• Registered Musicians First Studio, LLC to transact business in the state of Tennessee
• Has identified an ideal location for the studio that is available for lease
• Reached out to numerous contacts to include local musicians, production technicians, and venue managers to help spread the word about the new studio
• Began recruiting a staff of musicians, music instructors, production technicians, marketing experts, and office personnel to work at Musicians First Studio.

Musicians First Studio Services

Industry analysis.

The global music industry is an estimated $60B market and is expected to grow by 8% by 2026. The broad music industry can be categorized into three primary segments; recording, live music, and music publishing. In the United States, the recording segment generated approximately $8B in revenues last year, while the live music segment brought in an estimated $9.5B, and the publishing segment totaled $1.8B. A majority of revenues generated in the recording segment come from streaming (28% of total industry revenue), with digital downloads and physical media coming in much lower (6.7% and 7.5% respectively). Revenue for the live music segment is generated primarily through ticket sales (37.1%) and sponsorships (10.3%). Publishing accounts for approximately 8.9% of total industry revenue.

Music streaming is one of the most significant trends in the industry, with the number of Americans who pay for streaming subscriptions at approximately 82.1M, up from 7.9M in 2014. Another trend is the emergence of independent artists and small record labels. These groups are earning more revenue than in years past and their percentage of revenue increase year over year is growing faster than that of larger record labels. With more options open to them when it comes to where and how to get their music out to consumers, artists, managers, and record labels have more opportunities for success than ever before.

Customer Analysis

Demographic profile of target market.

The precise demographics for Nashville, Tennessee are:

Customer Segmentation

Musicians First will primarily target the following customer profiles:

• Novice-to-experienced musicians looking for recording/production services
• Aspiring musicians of all ages looking for music lessons
• Musicians looking for artist management, booking, and representation services

Competitive Analysis

Direct and indirect competitors.

Musicians First Studio will face competition from other companies with similar business profiles. A description of each competitor company is below.

My Music Production & Management

My Music Production & Management is one of the largest commercial music studios in Tennessee. The company was established in 1997 and offers professional music recording and production services for local musicians. My Music Production & Management also handles the business management activities for musicians including marketing, booking, and legal representation services. The company is well known for providing high quality production for some of the top artists in the region and has been recognized in various publications and music industry associations for its outstanding work in the local music community.

Genre Music

Founded in 2018, Genre Music is a small music company catering to local musicians in Nashville, Tennessee and surrounding areas. Genre Music is owned and operated by a veteran musician who has over 40 years of experience in the music industry. The company specializes in artist branding, marketing, and representation in addition to its top notch recording services. Genre Music has worked with a variety of up and coming artists in multiple genres and has a loyal customer base of regular musicians who use the company’s services.

Retro Recording & Productions

Retro Recording & Productions is a trusted Nashville, Tennessee-based music company that provides superior production and recording services for Nashville and the surrounding areas. The company is able to provide a wide variety of recording, production, and post-production services using its state-of-the-art music recording equipment. Retro Recording & Productions serves local musicians and national musicians. The company prides itself on being the number one choice for classic sound produced through modern technology. Retro Recording & Productions also manufactures its own collectible vinyl records in limited quantities.

Competitive Advantage

Musicians First Studio will be able to offer the following advantages over their competition:

• The company offers competitive pricing on studio rentals and discounts for referrals.

Marketing Plan

Brand & value proposition.

Musicians First Studio will offer the unique value proposition to its clientele:

• Musicians First Studio provides a full suite of services tailored to the individual musician’s needs. Professionals are equipped to provide services for all skill levels from the aspiring and novice musician, the the industry veteran.
• The company’s studio is expertly designed for the clearest sound quality. The equipment is carefully selected to ensure the best sound possible.

Promotions Strategy

The promotions strategy for Musicians First Studio is as follows:

Social Media Marketing

The company’s marketing director will create accounts on social media platforms such as Linkedin, Twitter, Instagram, Facebook, TikTok, and YouTube. He will ensure Musicians First maintains an active social media presence with regular updates and fun content to get customers excited about using the studio’s services.

Professional Associations and Networking

Musicians First Studio will become a member of professional associations such as the Nashville Music Association, American Music Educators Society, and the Tennessee Music Production Association. The leadership team will focus their networking efforts on expanding the company’s artist and vendor network.

Print Advertising

Musicians First Studio will invest in professionally designed print ads to display in programs or flyers at industry networking events. The company will also send direct mailers to local residents advertising the services it provides.

Website/SEO Marketing

Musicians First Studio will utilize the in-house marketing director that designed the print ads to also design the company website. The website will be well organized, informative, and list all the services that Musicians First is able to provide. The website will also list information on the company’s events and featured artists.

The marketing director will also manage Musicians First’s website presence with SEO marketing tactics so that when someone types in a search engine “music company” or “music studio near me”, Musicians First Studio will be listed at the top of the search results.

The pricing of Musicians First Studio will be on par with competitors so customers feel they receive value when purchasing the company’s services.

Operations Plan

The following will be the operations plan for Musicians First Studio.

Operation Functions:

• Michael Smith will be the CEO of the company. He will oversee the music production technicians, production process, and the music equipment maintenance. Michael has spent the past year recruiting the following staff:
• Jessica Garcia – Chief Operating Officer who will manage the day-to-day operations, client relationships, scheduling, and logistics.
• Nancy Johnson – Chief Financial Officer who will provide all accounting, budgeting, tax payments, and monthly financial reporting.
• John Brown – Marketing Director who will oversee all marketing strategies for the company and manage the website, social media, and outreach.

Milestones:

Musicians First Studio will have the following milestones complete in the next six months.

12/1/2022 – Finalize lease to rent the studio facility

12/15/2022 – Finalize personnel and staff employment contracts for the Musicians First Studio management team

1/1/2023 – Begin build-out of the studio, purchase equipment, and test the acoustics

1/15/2023 – Begin networking at industry events and implement the marketing plan

2/15/2023 – Finalize contracts for musicians, instructors, production technicians, and marketing professionals

3/15/2023 – Musicians First Studio officially opens for business

Financial Plan

Key revenue & costs.

The revenue drivers for Musicians First Studio are the fees charged to customers in exchange for the company’s services and fees charged to book studio time by the hour.

The cost drivers will be the overhead costs required in order to staff a music company. The expenses will be the payroll cost, utilities, equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average hours booked per month: 120
• Average fees per month: $30,000
• Overhead costs per year: $640,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Music Business Plan FAQs

What is a music business plan.

A music business plan is a plan to start and/or grow your music business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your music business plan using our Music Business Plan Template here .

What are the Main Types of Music Companies?

There are a number of different kinds of music companies , some examples include: Recorded Music, Music Licensing, Live Music, Music Publishing, Music Production, Music Business Consulting, and Retail Music Store.

How Do You Get Funding for Your Music Business Plan?

Music companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

How to Write a Business Plan for Musicians

Want a copy of ours?

Pre-Written music business plan template available! This 25-page music business plan is fully written and includes example verbiage from a musician. Use it as a template to write your own.

Creative entrepreneurs have a responsibility to themselves (and their families where applicable) to make good financial decisions for their present and their future. Whether you’re full-time, part-time, or aspiring; being financially savvy is both good for business and good for your overall morale. However, for musicians, it’s way too easy to get distracted with making music and art while neglecting other important parts of being in business like taxes , legal considerations, insurance, and finances. If you’re hoping to build a strong financial foundation for your music business, starting with a Music Business Plan is highly recommended.

Anytime an aspiring business person applies for a business loan, banks usually ask for a business plan. That’s because they want to see if you have a solid plan for making money and staying in business so they can get their money back and get a return on their investment. Likewise, if you’re hoping to achieve any amount of financial success as a musician, it’s important to start with a plan so you can make your money and get a return on your time investment.

A business plan is basically a blueprint for success. It outlines who you are, what you are, what you’re selling, who you’re selling it to, what your challenges are, how you plan to overcome them, and finally, how you plan on earning money to cover your expenses and produce a profit. Putting together a business plan for your music business forces you to ask and answer these tough questions and pave a path to success.

Your business plan should include the following sections:

Executive Summary

The executive summary is a quick synopsis of your business. It provides the who, what, and where. It’s sort of like a cover letter that you would include with a resume. It’s useful if you’re giving your business plan to someone such as a potential partner, investor, etc. It includes…

• Your stage name and location (where you’re based)
• Types of music related services and products you’ll offer (think live entertainment, sound engineering, sync licensing, songwriting, merchandise, etc.)
• Mission and vision statement briefly explaining your reasons for being a musician. If you need help putting together a mission statement for your music, check out our post, The Musician’s Guide to Creating a Meaningful Mission Statement
• The purpose of your plan (optional if you’d like to share this with others for the purposes of raising capital, support, or asking for help.)

Watch Me Walk You Through Writing Your Music Business Plan…

Customize this template and make it your own. Includes all sections that are already pre-written for a musician or band. Just plug in your information and go.

Business Description

This is an overarching description of your business and its structure. It should include…

• How your business is structured legally. Is it a corporation, a sole proprietorship, or an LLC?
• How long you’ve been in business (or why you’re doing music if you’re just starting out), a brief summary of what types of business you will engage in, and what consumer needs you plan to meet.
• A brief description of your services and/or products and who your customers/clients are.
• An overview of any growth highlights you’ve achieved since you started such as expanding your fanbase, adding team members and their achievements, or increasing earnings.
• Business goals and how you’re going to make a profit from your business endeavors.

Do you have a business plan for your music business? I just updated my plan and this next year is going to be fire!!! pic.twitter.com/J31yG04455 — The Crafty Musician (@IndieArtistsDIY) December 10, 2021

Service or Product Offerings

In this section, you’ll describe in detail what you’re offering including the various types of services you offer (live entertainment, lessons, session work, etc) as well as any products you sell such as merchandise, books, etc.

• List a description of each of your services along with its benefits.
• List a description of each of your products or product types.
• Share how you’ll stand out among fellow artists and how you’ll niche yourself, especially in your local area if you’re planning on making a splash locally.
• Any service or product expansion initiatives that you are planning in the future such as starting a band, doing larger shows at larger venues, touring expansions, etc.

Market Analysis

The Market Analysis provides a snapshot of your fanbase and how you’ll reach them. The standout portion of this section is the research you’ll do into your potential base of fans. Learning all you can in this area will help you make effective marketing and promotions decisions that save you time and money. Most importantly, it will help you build a solid following with loyal followers.

• A description of your fans or ideal fans.

Pro Tip: If you haven’t done any research or identified who your ideal fans are, check out How to Identify and Reach Your Ideal Fans here .

• A summary of music industry trends related to how you do business.
• How do people find new music?
• What types of music-related products are people buying right now ie. live entertainment, music merch, digital music, etc.
• A detailed description of similar acts in your area and how you’ll stand out.

Your Business Model

This section provides details regarding how you will make your money. It describes the nuts and bolts of your operation such as how you market your music in order to acquire new fans and how you get your fans/listeners to spend money with you. This section should include…

• An explanation of how you’ll promote your music to current fans and potential fans and how you gain exposure with your music.
• Information about your price points as it relates to each of your service offerings, products and merchandise items.
• Information about how you plan to distribute your music and make it available for people to purchase.
• A summary of your supply chain if applicable. This includes how you plan on producing your music, what professionals or studios you plan on working with, if you have a supply chain for creating your merchandise (check out my article about an easy way to create tons of merch items without having to stock an inventory here )
• An explanation of how you’ll market your services and products

The last bullet point on this list (how you’ll market your services and products) is the factor that will determine your financial growth. Each of these considerations is equally important. However, if you don’t address how you’ll market your services and products in order to earn an income, it will be very difficult to meet your financial goals. You have to be intentional about how you’ll earn your money and be willing to make these offers to your listeners, followers, and fans. In other words, simply putting your music “out there” is not enough. If you want to earn a significant income from your music endeavors, you have to start thinking like a business. This means actively engaging in sales and marketing efforts. These include…

• Hosting sales events for new merchandise items
• Promoting a special entertainment service like a singing telegram or a custom song
• Promoting your guitar lessons on your mailing list, website, and blog
• Encouraging your fans to buy your new album
• Encouraging your fans to host a house concert
• A campaign to get listeners to pre-order your upcoming release

Pro Tip: Check out our 30 Day New Release Promotions Bundle for an easy, plug-and-play way to market your upcoming release. It includes a pre-written press release, email, and pitch letter templates in addition to pre-written social media content for 30 days and more. It provides everything you need to market your upcoming release. Learn more about our 30 Day New Release Promotions Bundle here .

These are just a few examples to illustrate what actual sales and marketing initiatives look like. There are tons more ways to promote your products and services. Start paying attention to some of your favorite small businesses and how they promote their products and services. It might give you some ideas!

Organization and Management Team

This section lists who your main players are. In this section, you’ll list who facilitates the operations of your business starting with yourself at the top and then moving down the hierarchy.

• Who is the owner? Who is making high-level decisions for your business?
• Is there a management team?
• Is there a booking agent?
• Is there a PR person or team?
• Administrative professionals?
• List job responsibilities of each position.
• If you don’t have anyone currently functioning in these positions, that’s totally fine. You could choose to describe how these functions will be executed instead. For example, when you need a PR person, you’ll hire someone on a case-by-case basis. You could also use this opportunity to do a brief search for potential PR providers and list them in this section.
• You could also list potential mentors and music career coaches here as well.

Financial Outlook

This is the final section of your business plan. It describes the financial health of your music business. In this section, you’ll illustrate how your business is doing financially by providing historical financial data (if you’ve been doing business for a while) and/or financial projections for the future. When illustrating financial projections make sure it is realistic! This section includes…

• Income statements, Profit and Loss Statements , and cash flow data from the past three to five years.
• A snapshot of projected revenue and expenses for the next five years.
• A description of new potential business opportunities and how you plan to increase revenue in the future. Check out our article 18 Ways Musicians are Actually Making Money for ideas.

This section is very useful if you’re trying to apply for a business loan, business credit card, acquire investors, or show your business financials for other purposes such as taxes, insurance, rental/mortgage applications, or financial programs. It’s also great to see how you’ve done in the past and what you have to look forward to in the future.

Get the Music Business Plan Template for Musicians.

Free for members! Login or become a member below! Memberships start at just $5/month. Cancel anytime! Once you log in, you’ll see a link to the template in the exclusive members-only section below.

Preparing a business plan for your music business helps you build a solid blueprint to achieve success as a musician. It helps you create a map that will get you from starting with nothing to building your financial empire.

More Resources…

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Hi Anitra, great blog! I came across this article by watching your YT series on the same topic and wondered if by becoming a member, I could not only access the very helpful business plan template, but would it also include the August, Lately insert for contextual purposes? Or is the latter only accessible via your biweekly YT episodes?

Thanks Uasuf. The Music Business Plan Template that is available for members is pre-loaded will all of the August, Lately content. As of right now, the template only has the sections that have been covered in the YT series thus far. Let me know if you have any other questions and thanks for reading/watching!

I’m a member but it won’t let me access the music business plan template.

Hi Mars. I sent you a welcome email with all the information you need to access it along with all of your other perks. Did you get it?

I just had to be more patient! I’m good. You’re the best, thank you so much!

Ok great! Let me know if you have any questions or need help with anything!

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Music Business Plan

Music can unite individuals, inspire social change, and strengthen communities & it is satisfactory for many musicians too. Plus the financial and creative rewards are great. Therefore, want to start your own music studio or band? Then planning everything priorly is the priority.

Need help writing a business plan for your music studio business? You’re at the right place. Our music business plan template will help you get started.

Free Business Plan Template

Download our free music business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Music Business Plan?

Writing a music business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Introduce your business: Start your executive summary by briefly introducing your business to your readers.
• This section may include the name of your music business, its location, when it was founded, the type of music business (E.g., record labels, music publishers, live music industry), etc.
• Market opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Product and services: Highlight the services you offer your clients. The USPs and differentiators you offer are always a plus.
• For instance, you may include music recordings and albums as services.
• Marketing & sales strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• Business description: Describe your business in this section by providing all the basic information:
• Record labels
• Music publishers
• Live music industry
• Music streaming services
• Describe the legal structure of your music company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the names of your music company’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Business history: If you’re an established music service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.
• Additionally, If you have received any awards or recognition for excellent work, describe them.
• Future goal: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Target market: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.
• For instance, music lovers, music directors, movies, younger audiences, etc can be the ideal market for the music business.
• Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.
• Competitive analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your music services from them. Point out how you have a competitive edge in the market.
• Market trends: Analyse emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.
• For instance, the demand for rap and pop music is increasing; explain how you plan on dealing with this potential growth opportunity.
• Regulatory environment: List regulations and licensing requirements that may affect your music company, such as copyright laws, advertising regulations, etc.

Here are a few tips for writing the market analysis section of your music production business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Music stores
• Music licensing services
• Music promotion services
• Music education services
• Describe each service: Provide a detailed description of each service you provide, including how it works, what it does, and any technical specifications or features.

In short, this section of your music plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique selling proposition (USP): Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.
• For example, exclusive content, high-quality production, niche market focus, etc, could be some of the great USPs for a professional music company.
• Pricing strategy: Describe your pricing strategy—how you plan to price your services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers.
• Marketing strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, email marketing, influencer marketing, etc.
• Sales strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include online sales, partnering with other businesses, live shows, etc.
• Customer retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts on annual membership, personalized service, etc.

Overall, this section of your music studio business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your music business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & training: Mention your business’s staffing requirements, including the number of employees or music professionals needed. Include their qualifications, the training required, and the duties they will perform.
• Operational process: Describe the steps taken to produce and distribute music-related products and services. It ought to contain details regarding any technological innovations employed in the production process, as well as any outsourcing of work or joint ventures with outside providers.
• Equipment & Instrument: Include the list of equipment and machinery required for music, such as musical instruments, sound equipment, recording equipment, etc.
• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your music business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founder/CEO: Mention the founders and CEO of your music company, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.
• It should include, key executives(e.g. COO, CMO.), senior management, and other department managers (e.g. operations manager, music director.) involved in the music business operations, including their education, professional background, and any relevant experience in the industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.
• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your music business services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance sheet: Create a projected balance sheet documenting your music business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the music industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your music business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample music business plan will provide an idea for writing a successful music plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our music business plan pdf .

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Frequently Asked Questions

Why do you need a music business plan.

A business plan is an essential tool for anyone looking to start or run a successful music business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your music company.

How to get funding for your music business?

There are several ways to get funding for your music business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your music business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your music business plan and outline your vision as you have in your mind.

What is the easiest way to write your music business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any music business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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A music business plan: Why you need one and how to create it

• Best Practices

Can’t wait to become a musician and hang up your business casual wear? We get it. But there’s just one more administrative task to accomplish before you can do that: creating your music business plan . 

A career in music allows you to put your passion to work by recording tracks or performing for live audiences. But in order to make the most of it (and ensure you earn enough to meet your financial goals), you’ll want to start out with an artist business plan .

What is a business plan ? Essentially, it’s a document in which you state your goals and chart how to reach them. Think of it like manifesting, even if it seems more like office work. 

If you’re about to start a career in music, we’d venture to guess you have a dream. A solid business plan can help you get there. Stay with us in a corporate (okay, semi-corporate) mindset a few minutes longer while we explain the importance of a business plan for musicians . 

Why do you need a music business plan ?

We hope a major record label stumbles upon your music and offers you an incredible deal. 

But until you make your big break , you should plan to drive your own success with a business plan that maps out where you hope to be in five years. You’ll determine whether you’ll need to raise money to get started, how much you’ll need to earn, and what revenue streams you’ll have to help you get there. You may be starting your business plan now, but you can continue to modify it as your career develops and changes. 

Creating a music business plan: what do you need?

Ready to get to work? Start by outlining the following sections or use a music business plan template to help you stay organized.

1. Executive summary

Writing an executive summary might seem easier said than done, but trust us, it’s doable. In your own words, explain who you are, what kind of music you make, and why you do what you do. That’s right, this is your mission statement! An executive summary is a high-level view of your work, which is why it’s sometimes tricky to write. Don’t get lost in the details. If you get stuck, try creating this summary after you’ve finished the rest of your plan. 

2. Business description

Unlike the executive summary, which is your would-be elevator pitch, a business description gets down to brass tacks. Imagine you score a meeting with a music mogul who thinks you have what it takes to be a star. They’ll have questions about how your business is structured and registered, and they’ll also want to see some stats on your earnings, fan base, and growth. Provide all this information in your business description. 

3. Offerings

If you offer services like music for events, backup singing, or play-for-hire gigs, include a section in your business plan that lists out all that you provide. It’s important to diversify your income streams, so if you play solo gigs but also provide freelance songwriting or music production services, be sure to list all that here.

4. Audience analysis

Everyone has a target demographic. If you have a hard-core metal band, you’re probably not trying to attract pop fans. Or, maybe you have some serious crossover potential that you must mention in your audience analysis. In this section, highlight who your listeners or future clients are. If you plan to jam at weddings, then your target clients are brides- and grooms-to-be. If your goal is to become popular on streaming apps with your bassy house tunes, then your target audience is club-goers, say, from ages 18-30. 

5. Market analysis

A market analysis exists more for you than it does for anyone who reads your business plan. It helps you familiarize yourself with the industry. Do some research, and outline how much money is in the industry to determine what’s trending (aka what’s profitable). How’s the industry projected to fare in the next three, five and 10 years? Get to know your competition and figure out what businesses or platforms you can depend on to support your work. If you plan to become a recording artist, familiarize yourself with the big labels and major distribution platforms. 

6. Marketing plan

Until you have a record label or a team behind you, you’ll likely be in charge of your own marketing strategy. In this section of your business plan, outline your ideas for social media and any other type of online or print marketing you plan to do. If you hope to get your latest track out to music lovers around the world, build your reach on social media by opening accounts on all major platforms and posting consistent content that’s coherent with your “brand.” If you want to reach local audiences, perhaps an ad in regional papers or magazines is a good idea. Don’t forget to link to your merch site and streaming outlets, too, by putting a Linktree multi-URL in your social bios. 

7. Operations 

You know what you hope to achieve, but how are you going to get it done? Think of the operations section of a business plan as a generalized to-do list. Write out the tasks you’ll have to do every day to keep your music career up and running. If you can’t do it all yourself, think of whom you could outsource the work. This is also a good space in which to plan how you intend to reach your long-term goals, like accruing 10,000 social media followers. 

8. Finances

If the idea of creating financial statements makes your head spin, here’s where you may want to hire an accountant. In this section of your business plan, you’ll provide an income statement, cash flow statement and a balance sheet. Creating this section will help you identify the costs of running your music business and make more accurate financial projections. 

Having a business plan gives your career some shape. Not only will you feel more confident in your ability to make it in a tough industry, but investors and brands will believe in your potential as well. 

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How to grow as a Music Artist: Create an Effective Musician Business Plan

• Post author: alyssavillagrana
• Post published: December 3, 2022
• Post category: For Students / Business / For Teachers / Music Business
• Post comments: 2 Comments

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Why do you need a Musician Business Plan?

As a music teacher as well as student and performer, I have had countless conversations with musicians looking to “make it.” While the goal might look different for everyone, I can tell you that the road to “making it” as a musician looks surprisingly similar from person to person. Or, I should say, that the action steps don’t vary as much as you might expect.

Becoming a professional musician takes a little luck, but more hard work and planning than anything. Especially in a world where entrepreneurs have so many resources directly at their fingertips (thank you, internet!), that hard work and planning can take you farther than luck ever will.

All this to say, I have seen too many aspiring musicians burn out and give up because they are either unfocused, or focusing on the wrong things. This is where a musician business plan comes in.

A musician business plan, like any business plan, helps you focus your energy on things that serve you and your business well, giving you both purpose and actionable steps – the key to avoiding burnout.

In this post, we are going over the attributes that make up a good musician business plan, as well as elements to include to help you hone your vision, plan, and action steps, and set you up for success as a musician! For some extra help, C&S has a free musician business plan pdf template you can download to guide you through the process – click here to skip straight to downloading your music business plan template.

How to create your Musician Business plan

Smart goals.

When it comes to setting goals ( any goals, not just musician goals), there are some elements that give you higher success rates – when they are applied correctly. The acronym “SMART” is used: goals are easier to achieve when they are specific, measurable, attainable, realistic, and time-bound.

Vague goals are problematic for a number of different reasons, but the most important being that you don’t know when you’ve achieved them . Figure out exactly what you want to achieve that will have easy-to-identify results.

For example: instead of “I want to make money as a musician,” get more specific with something like:

“I want to support myself as a musician”

“I want to be able to quit [my current job]”

“I want to teach [x number of] private students”

“I want to join [a band or musical group]”

Fun thing: Specific and Measurable go hand in hand! When you’re setting your goal, make sure that you have data you can point to to show that your goal is completed.

My favorite way to make a goal measurable is by including a number (playing 20 gigs this year, signing 1 student per month) . It can also be a one-and-done task – the kind of thing you can cross off a checklist ( writing a marketing plan, setting up a website, signing up for a class) .

Is this goal realistic? Do you have the resources you need to make it happen?

“Little by little” is an excellent goal mentality to include when writing your musician business plan. Choosing unrealistic goals will absolutely cause disappointment and will probably lead to burnout. Like everything else, becoming a professional musician doesn’t happen overnight.

Some hard truth: I know that a lot of people pursue music for fame. I know that a lot of you will start your musician business plan with the goal, “I want to become a famous musician.” The thing is, becoming a famous musician isn’t a realistic goal for most people, especially when you are just starting out. Not only is it an incredibly competitive field, but the lifestyle is really far from what most people expect. Pursuing your craft and being flexible in the ways that you get to express it is the best advice I can give to young musicians wanting to build a career in music.

Is this goal relevant to my end goal?

We’ll get into it, but your musician business plan won’t include just one goal. You’ll have an overarching goal, but your plan will be made up of smaller steps, smaller goals that will help take you to that final goal.

For example: if your final goal is to grow as a musician, goals involving education, lessons, and practicing are incredibly relevant. Income goals won’t help you improve as a musician, so they aren’t as relevant. Leave those out of your plan.

When will you complete this goal?

Too often, we forget to put time constraints on our goals. And when we do that, we lose some of that fire under us to achieve them (and that typically means we don’t). So – when will you achieve this goal? The end of the year? 2 years? 5 years?

Another way to make a goal time-bound is to take recurring goals and give them a time frame (1 new student per month, 20 gigs each year, etc.)

Important things to include in your Musician Business Plan

Now that we’ve covered what makes a good goal, let’s talk about what elements you need to have an effective musician business plan!

Side note: a business plan should comprise of many goals! Your overarching goal or two, and smaller goals, or action steps, that will bring you closer to achieving those main goals.

Purpose Statement

Arguably the most important element of your musician business plan, a purpose statement outlines your “why.” Why do you want to be a musician? The deeper and more specific you can go, the clearer your goals and action steps will become.

For my goals, I use a year-long goal planner . It isn’t music-specific, but is more universal so I can use it for more than just one aspect of my life, and it includes prep work to help me flesh out my “purpose statement” for the year. I can’t tell you how helpful those prep pages are to focus my vision for the year!

So this purpose statement should drill down on the question – “Why do you want to be a musician?” Explore facets of this question like your skill level, passion, and character traits that set you apart from the competition – what makes you uniquely equipped?

Answer those questions as in-depth as possible and you’ll be surprised at how clearly your goals will stand out.

Continued Music Education

I don’t care what level of musician you are – you are never done growing. Even the great Celine Dion has a voice coach.

There should be some form of continued learning in your musician business plan. Maybe that’s finding a coach, maybe that’s learning music theory ( we have a great course for beginners wanting to dip their toes into the theory world ), maybe it’s learning a new instrument, or maybe it’s learning some of the business side of things – social media, web design, or marketing specifically for musicians. This is a musician business plan, after all!

Varied Revenue Streams

One of the realities of the music business is the need for various sources of income. Many, many musicians (most that I know) piece a living together doing a combination of things – paid gigs, teaching lessons, instrument repair or tuning, mixing, recording, leading worship, whatever. There is actually a huge diversity in options for income as a musician , as long as you’re open to things other than performing.

Marketing Plan

Unfortunately, music is not a “build it and they will come” kind of industry. When you’ve decided what your end-goal is and what kind of revenue streams you want to build, you can look into marketing yourself, your lessons, or whatever other services you want to offer.

There are so many marketing options available to us, thanks to the internet! Social media alone has changed the game for many a musician. Click here for a guide to the most popular marketing avenues for musicians. (that post was written directly to private music teachers, but the principals can apply to any music marketing you want to do!)

Again, though, play to your strengths. I personally have some social media channels, but that kind of content is not my forte (though I am continuing education to try and grow in that area!) – however my writing skills are above average, so most of my marketing goes through this blog and email list. Working smarter, not harder, will help prevent burnout.

Success Metrics

This hearkens back to the “M” in SMART: how will you measure your success? What numbers do you want to hit? What pieces of your business do you want complete, and by what time? Make a list of action items that you can check off as you complete them.

Summary: Your 5-year plan as a Musician

After you’ve completed the other pieces of your musician business plan, write a summary. This summary should be one page or less, and give the reader a complete picture of your 5-year plan as a musician. Where do you, as a musician, want to be in 5 years? What will you look like, what will your business look like, and how will you get there?

Grab your Musician Business Plan PDF Template

Whew, that’s a lot! It can feel overwhelming, but I don’t want to let that stop you – that’s why I’ve made a Musician Business Plan PDF Template, free for you to download. It outlines these steps and has some guiding points to help you think through and flesh out your business plan!

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This post has 2 comments.

I click the big yellow download now button and it just takes me back to the top of the page. Disappointing, after a great lead up in the article.

So sorry, Eric! The link is now fixed – thank you for bringing it to my attention!

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Tip Jar: How To Write A Music Business Plan

The biggest mistake artists make when it comes to procuring financing for their music ventures is the lack of a business plan. Artists and musicians must understand that music is a business and should run like one. Once you’ve decided that music is your business, you must set aside time to write out a solid business plan if you want to grow as a business, attract investors, increase your fan base, market and sell music or launch a crowdfunding campaign.  Here are the essential elements you’ll need to begin your process of establishing a business plan:

1. Write it down (the rough draft)

Whether it’s temporarily written down on a napkin or typed in Microsoft Office, you need to get your plan from out of your head. Start by considering where you are currently in your music career and where you want to be. Give yourself a realistic time frame and work backwards, citing the steps and resources required to reach each milestone in your plan.

2. Take yourself seriously

This is not a joking matter. If you don’t take yourself seriously, no one else will, so include pertinent information regarding your music business. Before you complete your plan, make sure you’ve captured the essence of your music business with the same passion you have for your music.

3. Before you dive in headfirst

Creating a music business plan can be an overwhelming task if you allow it to be. Remember, the only way to eat an elephant is one spoonful at a time, so take a moment to breathe and gather your thoughts.

4. 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. In fact, you are most likely implementing core business principles and practices at your current level. Now take it a step further by conducting a SWOT analysis.

A SWOT analysis is a simple assessment of your personal or professional Strengths, Weaknesses, Opportunities and Threats as they apply to your music business. Begin by taking a piece of paper and folding it into four equal squares. At the top of each square going clockwise, write each component of the SWOT analysis in its own square. Then create a bulleted list of all the information regarding your business in the corresponding squares. Once completed, you will have the framework to create a formal business plan.

5. Understand what should be included in your plan

At a minimum, your plan should include the following:

A ) Executive Summary - An overview of your company, including an executive summary, mission statement, goals and objectives and a brief artist history.

B ) 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.

C ) Company Description - Describe who you are, what you offer and the audience your business serves.

D ) Organization & Management Structure - A layout of your organizational structure. Are you an LLC, corporation or sole proprietorship? List the key team players, i.e. management, promotions, legal, accounting, etc.

E ) Marketing & Sales - How do you plan to market your music to the consumer (fans)? List your sales, product pricing and positioning strategies, marketing channels, ecommerce and communication strategies, as well as distribution and promotion networks.

F ) 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? Do you have your own website outside of your social network that also serves as an online store for your music and merch?

G ) Funding Request or Needs - How much money do you need to get your operation off the ground? How much will you need for operation costs such as fixed and non-fixed expenses? Are you or your staff taking a salary? What are your costs for manufacturing, distribution and marketing?

H ) Financial Projections - How will your music business make money? What are the current and future revenue streams of your business? Be as clear as possible, investors hate ambiguity.

I ) Appendix (if needed) - If you already have an existing music business, use this section to add documents such as: revenue model, resume of owners (founders), cash flow statement, income statement, balance sheet and any other information that can help you stay on plan and attract the right people to your business.

6. 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. A business plan should evolve in sync with your business.

As a creative type, this is probably more than what you signed up for, but I assure you that it is a well worthwhile venture. Begin by creating an outline using the parameters I mentioned early. Some business plans are far more granular than what I have offered here, but use this information as a guide to establish the basic elements.

Artists, start your plan by creating a mind map. A mind map is a diagram that visually outlines information. Draw a circle in the center of a piece of paper and write the main idea or concept in the middle. Use lines to connect smaller circles with related ideas or subtopics. Once you’ve jotted down your thoughts, use the mind map to create an outline.

7. Pulling it all together

Once you have the first draft of your business plan, put it down and walk away for a few days. After a short mental vacation, review your plan and make corrections where necessary. Make sure it is properly formatted and free of errors.

Keep in mind that your music business plan is a living document that will serve as the roadmap for your career, but it should be fluid enough to adjust to changes in the market. Visit my website http://musicbusi nessguruacademy.com/businessplantemplate and download my free Word doc Music Business Plan template.

8. Distributing your music business plan (the final draft)

Once the final draft of your business plan is ready, distribute it across your organization and discuss it. Does the plan provide the reader with the key goals of your business? If so, your business plan can be used to help you launch a crowdfunding campaign, find an investor or take on business partners.

SAHPREEM A. KING is a Multiplatinum music producer, DJ, music industry journalist and author of several music industry books, including Dude, I Can Help You! 18 Mistakes Artists Make and How To Fix Them . King has used the knowledge he acquired as an artist, producer and educator to create an online music business course that he will offer from his website http://musicbusinessguruacademy.com in early 2014. He can be contacted at [email protected] .

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Music Business Plan Template [Updated 2024]

Music Business Plan Template

If you want to start a music business or expand your current business, you need a business plan.

The following business plan template gives you the key elements to include in a winning music business plan. It can be used to create a music production company business plan, a business plan for a music artist, or business plans for a music teacher and/or music management.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Music Business Plan Example

I. executive summary, business overview.

[Company Name], located at [insert location here] is a new, independent music business focusing on alternative rock music.

We seek to find and sign up-and-coming alternative rock bands based in the New York region. By finding underground talent and improving their marketing and appeal to a broader music audience, we will be able to build a stable of artists with significant customer bases. This will translate into significant sales of music (CDs, MP3s), concert tickets, and related products (e.g., merchandise).

Products Served

[Company Name]will provides both a product and a service to two distinct audiences.

To alternative music artists which provide talent agent and artist representation functions. That is, we find and recruit talent. And then we manage our bands and provide the creative and marketing resources they need to develop music and sell music and merchandise.

To fans of our bands, we will sell music, concert tickets and merchandise.

Customer Focus

[Company Name] will primarily serve alternative rock fans in the greater NY region. Simmons Research has found that these fans display the following demographic characteristics:

• Gender skew is fairly balanced…56% males, 44% females.
• Listeners tend to be well-educated, 41% more likely than the average adult to have attended or graduated from college.
• Listeners tend to be 40-50% more likely than the average adult to be a heavy radio listener.
• The majority of the audience remains firmly lodged in the 18-44 age range.

In addition to end-customers, we serve the needs of alternative rock bands. We will focus on currently unsigned bands. Typically, the members of these bands are in their 20s and have getting signed, generating revenues and becoming famous as their primary goals.

Management Team

[Company Name]is led by [Founder’s Name] who has been in the music business for 3 years. While [Founder] has never run an independent music businesshimself, he has been active in the industry for many years as a listener and as an intern at Alternative Rock Station WCDS in New York City.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• There is currently no independent music businessin the NY metro area focused exclusively on up-and-coming alternative rock bands.
• There has been a significant growth in alternative rock listeners in the area. Music stations catering to this market have been thriving.
• The management team has a track record of success in the independent music business.
• Our business model will be profitable if we can grow in the metro-NY area. If any of our artists thrive nationally, then we will be even more successful.

Financial Highlights

[Company Name] is currently seeking $100,000 to launch.Specifically, these funds will be used as follows:

• Build-out and Startup costs: $25,350
• Salaries: $45,000
• Marketing: $20,000
• Lease expenditures: $12,000

II. Company Overview

Who is [company name].

We seek to find and sign up-and-coming alternative rock bands based in the New York region. By finding underground talent and improving their marketing and appeal to a broader music audience, we will be able to build a stable of artists with significant customer bases. This will translate into significant sales of music (CDs, MP3s), concert tickets, and related products (e.g., merchandise.

[Company Name]’s History

[Founder’s Name] conceived [Company Name] on [Date] after years of attending alternative rock concerts in the New York metro region and seeing the massive increase in attendance to most events.

[Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].

The business is currently being run out of [Founder’s Name] home office, but once the lease on [Company Name]’s retail location is finalized, all operations will be run from there.

Since incorporation, the company has achieved the following milestones:

• Found office space and signed Letter of Intent to lease it
• Developed the company’s name, logo and website located at www…
• Created the mission statement
• Determined equipment requirements
• Began discussions to sign key alternative rock bands

[Company Name]’s Products& Services

[Company Name] will develop the following products for sale to consumers:

• Music (CDs, MP3s)
• Merchandise (shirts, hoodies, posters, etc.)
• Concert tickets

To the music artists it signs, [Company Name] will primarily offer the following services.

• Marketing support (to build each band’s customer base)
• Distribution (to sell music, merchandise and concert tickets)
• Tour support (arranging and managing tours)
• Promotions (working with radio stations and other entities to promote each band).

III. Industry Analysis

[Company Name]directly competes within the music market, and particularly within the independent music business market.

Industry Statistics & Trends

The following industry size facts and statistics bode well for [Company Name].

The music market is clearly vast. According to IFPI, which represents the recording industry worldwide, global music sales were $33.5 billion last year, with the U.S. accounting for $12.3 billion of that amount.

Within this market, consider the following key statistics:

• 30% of the global music market belongs to independent labels
• Independent labels sell 900 million units annually
• Artist signed by a major record lable earn approximately $1 per copy sold
• Artist signed by an independent music business earn approximately $5 per copy sold

Because independent music business artists earn 5 times the revenue per unit sold, [Company Name] is at an advantage in signing many up-and-coming alternative music bands versus major labels.

Other key information from IFPI includes the following:

• The digital music business internationally saw a sixth year of expansion last year, growing by an estimated 25 per cent to $3.7 billion in trade value. Digital platforms now account for around 20 per cent of recorded music sales, up from 15 per cent last year. Recorded music is at the forefront of the online and mobile revolution, generating more revenue in percentage terms through digital platforms than the newspaper (4%), magazine (1%) and film industries (4%) combined.
• Single track downloads, up 24 per cent to 1.4 billion units globally, continue to drive the online market, but digital albums are also growing healthily (up 36%).
• A-la-carte music downloads continue to grow, with AmazonMP3 joining the European market, broadening consumer choice. An increasing number of stores are licensed to sell DRM-free music tracks.
• Music companies are also increasingly licensing music to third parties. One notable success is the games sector, where music games were responsible for 15 per cent of overall game sales in the US in the first half of the year (NPD Group). Guitar Hero and its sequels have sold more than 23 million copies in three years, generating more than US$1 billion in North America alone (PWC).

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will primarily serve the alternative rock bands and fans in the New York metro area. Over time, we expect that our bands will gain regional and national attention.

Simmons Research has found that alternative rock fans display the following demographic characteristics:

Customer Segmentation

With regards to alternative rock bands, we will focus on currently unsigned bands, independent artists and internet stars . Typically, the members of these bands are in their 20s and have getting signed, generating revenues and becoming famous as their primary goals.

V.Competitive Analysis

Direct & indirect competitors.

The following independent alternative rock music businesses most directly compete with [Company Name]:

Fueled By Ramen

Fueled By Ramen is a music business based in New York City with an office in Tampa, Florida.

In 1998, Fueled By Ramen released a self-titled EP from Jimmy Eat World, a five-song collection that proved a breakthrough for both the label and the Arizona-based band. With increased distribution demands and a rise in radio play, Fueled By Ramen set up its first real office space that same year.

Fall Out Boy’s Pete Wentz introduced Fueled By Ramen to fellow Chicago rock outfit The Academy Is… who released their acclaimed debut album Almost Here, the following year.

The label opened an office in midtown Manhattan and that same year Paramore’s album Riot! debuted in the Billboard Top 20, was certified gold and has recently gained platinum status. Panic at the Disco’s second album enjoyed similar success, debuting at number #2 on Billboard’s Top 200 chart, selling over 139,000 copies its first week and making it the fastest-selling album in the label’s history.

The following artists are currently signed to Fueled By Ramen:

• The Academy Is…
• Cobra Starship
• Cute Is What We Aim For
• Fall Out Boy
• Forgive Durden
• The Friday Night Boys
• Gym Class Heroes
• The Hush Sound
• Panic at the Disco
• A Rocket to the Moon
• This Providence
• VersaEmerge

Caroline Records

Caroline Records started out as a subsidiary of Richard Branson’s Virgin Records label during the early to mid 1970s. The label originally specialized in putting out budget price LPs by mainly progressive rock and jazz artists generally not considered to have a great deal of ‘mainstream’ or commercial appeal, but were often however creatively of great interest.

The first release on the label, and the artist who gave it its name, was Carol Grimes’ ‘Warm Blood’ LP, released in 1974. The original label was a photographic style variation on that of the Virgin label’s “Twins” logo designed by Roger Dean.

Both the U.S. and U.K. branches of Caroline Records are subsidiaries of Caroline Music, which includes Caroline Distribution and is in turn owned by EMI. Caroline has or had a number of subsidiary labels including Astralwerks, Gyroscope, Caroline Blue Plate, Rocks the World, Scamp, and Passenger.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Location: [Company Name]’s location is within New York City giving it better proximity to NY alternative rock bands and the throngs of customers who enjoy this genre of music.
• Management: Our management team has years of business and marketing experience that allows us to market and serve both music artist and consumers in a much more sophisticated manner than our competitors.
• Relationships: Having been a part of the local alternative rock community for the past 5 years, [Founder’s Name] knows all of the local leaders, media and other influencers. As such, it will be relatively easy for us to build branding and awareness of our independent music business.

VI.Marketing Plan

The Marketing Plan describes the type of brand [Company Name] seeks to create and the Company’s planned promotions and pricing strategies.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

• Offering high-quality service to independent alternative rock bands.
• Offering high-quality bands and music to alternative rock fans.
• Providing excellent customer service and allowing fans to get exciting experiences with their favorite independent alternative rock bands.

Promotions Strategy

[Company Name] expects to reach consumers through the following tactics:

Direct E-Mail

[Company Name] will collect physical email addressat alternative rock concerts and via the websites of the bands it signs. It will market music (CDs, MP3s), concert tickets and merchandise to these consumers via email.

Public Relations

We will contact all local and area newspapers and television stations to tell them about each of our artists.

Advertising

[Company Name] will advertise in local newspapers and sponsor community events in order to gain awareness of our bands.

[Company Name] will provide free tracks to customers to enable them to hear samples of our bands.

Ongoing Customer Communications

[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products and more.

Pricing Strategy

[Company Name]’s pricing will be moderate so customers feel they receive great value when purchasing items from the bands we represent.  

VII.Operations Plan

Functional roles.

In order to execute on [Company Name]’s business model, the Company needs to perform many functions including the following:

Administrative Functions

• General & Administrative functions including legal, marketing, bookkeeping, etc.
• Hiring and training staff

Artist Representation Functions

• Finding/recruiting bands
• Negotiating contracts
• Promoting band events and products
• Managing concerts and tours
• Music development (recording studio management, etc.)

Retail Functions

• Product development (e.g., manufacturing merchandise)
• Product sales (direct via internet, and recruiting distributors)
• Customer support functions

[Company Name] expects to achieve the following milestones in the following [] months:

VIII. Management Team

Management team members.

[Company Name]is led by [Founder’s Name] who has been in the music business for 3 years. While [Founder] has never run an independent music business himself, he has been active in the industry for many years as a listener and as an intern at Alternative Rock Station WCDS in New York City

[Founder] graduated from the University of ABC where he majored in Communications.

Hiring Plan

[Founder] will supported by a team of experienced music professionals. As the Company grows, we will need to hire the following personnel:

• Director of Operations
• Director of Marketing
• General Manager
• Assistant Manager

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come from the sale of:

• Music (CDs/MP3s)
• Merchandise

The major costs for the company will be music and merchandise production costs, distribution costs and staff salaries of the staff.

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $370,000 to launch its store. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.

[Company Name] is currently seeking $100,000 to launch. Specifically, these funds will be used as follows:

Key Assumptions & Forecasts

Below please find the key assumptions that went into the financial forecast and a summary of the financial projections over the next five years.

5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement

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Writing a business plan for your music career

For all the creativity needed to sustain a career in music, having a business plan is one way to stay grounded, define your goals, and keep you reaching for the stars.

Artists of all stripes grapple with the struggle of art versus commerce. We need time to make music and concoct our visions, but we also need to eat, pay the rent, and have clothes to wear. Musicians who become famous when they are young often have to learn business acumen and skills as they go along, usually learning the price of ignorance by being ripped off.

For those of us on ground level, having a plan can mean the difference between being able to make a living as a musician and being a weekend warrior with a day job for eternity. Here are a few suggestions on how to make a business plan as a musician. The most important suggestion: take it one step at a time! This kind of work can be overwhelming for creatives. I left my last day job by working on a business plan 15 minutes a day at lunch for a year. Slow and steady wins the race!

How to start

There’s a ton of resources online — including articles, courses, and software you can purchase — to help write a business plan. But where to begin? A good place to start is to define what a business plan is and why you might need one.

A business plan is an outline of your goals, the practical methods you will take to achieve them, and the resources that you have and will need. The plan will help you take your goals from disembodied ideas to concrete actions.

There’s a number of reasons to have a business plan, not the least of which is the basic idea that planning always helps. When you go to the grocery store, you go with a list. When you head on a cross-country drive from New York to California, you plan your route. Having a business plan will give you clarity, focus, and a sense of forward motion in your music career by identifying realistic, achievable, and action-based short-term goals.

It’s also worth noting that you will absolutely need a business plan if you seek to attract investors or loans. It can also help to show potential managers, booking agents, and record labels that you are serious about what you’re doing. There is value in making long-term (10 year), medium-term (five year), and short-term (one year) business plans. You might also want to make a business plan for a specific project/album to have structure for the process from recording to releasing to marketing.

Writing a business plan requires research. You’ll need to understand your audience, your market, and where/how you will find resources and people to join your professional team. If you’re writing the plan for yourself, this step is still important to provide guidance and clarity. If you are writing a business plan to attract investment, a thorough understanding of your field and your plan is crucial.

First, you need to clarify your vision and craft a mission statement. Who are you, what do you want to do, and why? These are weighty questions and worth pondering in depth: the clearer you are about who you are as an artist, the easier it will be to explain what you do to others and sell your project/products. The mission statement doesn’t have to be long, just a short paragraph describing who you are as an artist and what you are trying to achieve.

The meat of the plan

There is no set business model for a career in music, but there are some essential components to any business plan, and no matter what your objectives or what kind of outline you use, it’s a good idea have the following categories included.

Executive summary. You should actually write this after you’ve finished the entire plan. This is a one page summary of your business plan that includes an introduction, a description of your project/goals, an account of the funding you have and/or are seeking, and a synopsis of your plans for implementation. This will be the first thing prospective investors read, so it’s important to make it thorough and compelling.

Analysis of your audience. It’s a bad idea to try to appeal to everyone. To define your demographic, start by understanding who comes to your shows. What is the gender breakdown, age, and geographical location of your fans generally? What other artists do they listen to? How do they purchase music? What other events do they attend? Where do they shop and could you work with those retail outlets on cross-promotion?

SWOT analysis. This is a standard part of any business plan in any field. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The first two categories, Strengths and Weaknesses, are internal to your music and music business: they are things you can control. For example, the people on your creative/business teams, musical skills and abilities, your location.

The second two categories, Opportunities and Threats, are external, based on what happens in the larger market. You can take advantage of opportunities and protect against threats, but you can’t change them. Examples would include recordings and success of your competitors, prices of gear and equipment, and technology shifts (streaming vs physical product). Most SWOT analysis templates would have you list at least three items per category. Once completed, this will provide new perspectives on ways you can leverage what you already possess to take advantage of opportunities and protect yourself from marketplace threats.

Marketing plan. Creating a comprehensive marketing plan is a separate exercise requiring as much research and detail as a full business plan itself! For the purposes of the business plan, though, you will at least need to demonstrate awareness of your market and have an idea of some solid steps you are going to take to generate revenue and get your products and services into the marketplace.

What kinds of promotion will you do? What will it cost? What kind of return do you expect to achieve on your marketing investment? How will you track your progress? All these questions should have answers within your business plan. The music business specifics you’ll want to address in this section are your web page, your social media plans, touring, radio promotion, press kit, what merchandise you’ll sell, what your logo will look like, etc. Get as detailed as possible; your plans may change once you begin to execute, but if you have a blueprint, your chances of success will be much higher.

Financials. There should be detailed financial breakdowns of your estimated income and expenses. It’s not important that you have a lot of money to start with; you need to show how judiciously you would use investment funds and what kind of return you would expect you and your investors to get. If you’re doing a recording project, you should have a clear breakdown of all the costs involved in the recording, mixing, mastering, and replication processes. This section will likely require significant research. Include a category for legal expenses, as it’s vital to copyright your songs and trademark your logo. The better your estimates are of income and expenses, the easier following your plan will be, so be thorough!

Metrics. You are going to need to demonstrate to investors (and yourself) how you will measure your progress. Will you have weekly or monthly check-ins with your business team for accountability? Social media accounts and websites have multiple analytical tools to measure page hits, likes, demographic info of your fans, and where your page/account can improve. If you choose to advertise on Facebook or Google, there are tools to track the progress of those as well. Use them. Set yourself a very specific timetable and make yourself accountable to someone else, even if you are not seeking investors and just doing this for yourself.

A word about income

In any creative business plan, you should have multiple revenue streams. Business coach Gary Ryan Blair suggests that anybody in business for themselves should have at least 10 revenue streams at all times. This ensures that if one stream dries up, another can cover the gap until you rebuild it. In writing your business plan, you’ll examine your skills and abilities (SWOT analysis) and figure out where those revenue streams could come from.

In looking for those 10 revenue streams, keep the definition of what you do broad. One of my heroes and good friends, the artist Rex Ray, was an artist, a teacher, a graphic designer, and designer of housewares (wallpaper, rugs, furniture). He straddled the line between art and commerce better than anyone I know. He designed album covers, book covers, rock posters, and also made high art that hangs in museums. He followed his interests and saw how he could contribute and also survive as an artist.

There are multiple options out there for a business plan framework. LivePlan is an excellent piece of software, and there are books available, including Business Plans For Dummies which also offers a kit you can purchase with templates to craft plans. Find something that works within your budget. The format you use is irrelevant as long as it is comprehensive and detailed.

As Casey Kasem, the great DJ who hosted American Top 40 for many years, would say: “Keep your feet on the ground and keep reaching for the stars.” Dream big, but think practically and build a business plan. Break down your goals into smaller, more achievable goals. Become clear on what the costs will be. You’ll find that the very act of creating a business plan will set things in motion and center you in a place of clarity. This opens the door for synchronicity and fate to intervene. But it all starts with formulating and having a plan.

Chris Huff has been a professional singer, multi-instrumentalist, songwriter, and producer for over 20 years. He has worked as a sideman with Peter Yarrow (Peter, Paul, and Mary), Echo and the Bunnymen, Chuck Hammer (David Bowie, Lou Reed), and Tom Kitt (Broadway composer of Next To Normal). Chris also wrote liner notes for David Bowie’s Live And Well CD, and has two full-length albums of original music available on iTunes .

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About Chris Huff

5 thoughts on “ writing a business plan for your music career ”.

this is just like starting any type of business, isn’t it ? Even though as a new old musician I don`t think of being a business person. How many people start in business for themselves without a business plan. This article opens my eyes about how far I want to go in music & the ground steps. thanks

Really good post! Thanks so much for sharing this.

Great mr thanks for your good handover, all the best

Amazing Post Chris, Very helpful for Musician. I am also a musician i learnt a lot also having difficulties to break through into the industry why because i don’t have manager and publisher’s. So I manage it all alone for now. But in future, I am definitely going to expand business.

Every successful career came up with a good plan. Thanks for this informative information. Well done!

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Music Production Business Plan Template & Guidebook

Are you trying to make a successful company out of your love of music? Starting a business in music production may be exciting and successful. However, to assure its success, just like any business, a sound plan must be in place. We can assist you with our Music Production Business Plan Template & Guidebook. This thorough manual offers detailed advice on how to write a business plan that specifies your objectives and aids in their accomplishment. In order to make sure your strategy is comprehensive and successful, it also offers useful advice and examples. You can easily draft a strong business plan for your music production company using our template and how-to manual.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Music Production Business [11 Steps]
• 25 Catchy Music Production Business Names:
• List of the Best Marketing Ideas For Your Music Production Business:

How to Write a Music Production Business Plan in 7 Steps:

1. describe the purpose of your music production business..

The first step to writing your business plan is to describe the purpose of your music production business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a music production business:

At our music production company, our mission is to provide high-quality music production services to a wide range of clients in the music industry. We are committed to using the latest technology and techniques to record, mix, and master music for our clients, and to delivering superior results that meet or exceed industry standards. We strive to be a trusted partner for our clients, offering them reliable and cost-effective solutions that help them bring their music to life and reach their audiences. We are dedicated to providing exceptional customer service and support, and to helping our clients achieve their musical goals and aspirations.

2. Products & Services Offered by Your Music Production Business.

The next step is to outline your products and services for your music production business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your music production business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your music production business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your music production business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a music production business?

To run a music production business, you'll need a range of equipment and supplies, as well as a few permits. Here's a quick rundown of what you'll need:

• A physical location for your business, such as a dedicated recording studio or a space within an existing music or recording facility
• Audio and recording equipment, such as microphones, mixers, and soundboards
• Musical instruments, such as guitars, keyboards, and drums, for use in recording sessions
• Software for editing and producing music, such as digital audio workstation (DAW) software
• Depending on your location and the services you offer, you may need to obtain a business license and other permits, such as a permit to operate a recording studio.

Overall, running a music production business requires a mix of equipment, supplies, and permits to ensure that you can provide high-quality recording and production services to your clients.

5. Management & Organization of Your Music Production Business.

The second part of your music production business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your music production business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Music Production Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a music production business varies based on many different variables, but below are a few different types of startup costs for a music production business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your music production business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your music production business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your music production business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Music Production Business Plans:

Why do you need a business plan for a music production business.

A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and tactics that will be used to achieve those goals. It is important to have a business plan for your music production business because it helps to focus the efforts of the company, communicate the business's goals and objectives to potential investors, and provide a roadmap for the business to follow. Additionally, a business plan can be used to help secure funding from investors or lenders, who will want to see that the business has a solid plan in place before they provide funding.

How to write a business plan for your music production business?)

To build a business plan for your music production business, start by researching your industry, competitors, and target market. Use this information to define your business's goals and objectives, as well as the strategies and tactics that you will use to achieve those goals. Next, create a financial plan that outlines your projected income, expenses, and profit. This should include a projected income statement, cash flow statement, and balance sheet. Once you have all of this information, you can use it to create a comprehensive business plan that outlines the goals and objectives of your business, as well as the strategies and tactics that you will use to achieve those goals. A well-written music production business plan contains the following sections: Purpose, Products & Services, Marketing Plan (including Marketing Strategy), Operations/Management Plan (including Operations/Management Strategy), Financial Plan (including Financial Forecasts), and Appendixes.

Can you write a music production business plan yourself?

Yes, you can write a music production business plan yourself. Writing a business plan is a valuable exercise that can help you clarify your business idea, identify potential challenges and opportunities, and develop a roadmap for success. While there are many resources and templates available to help you write a business plan, the process of creating one is ultimately up to you.

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Music Business Plans Sample

Published Dec.29, 2020

Updated Sep.14, 2024

By: Jakub Babkins

Average rating 5 / 5. Vote count: 3

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Table of Content

Music Business plan for starting your own building firm

Do you want to start a music business? Well, that’s a really alluring and one of the most profitable businesses.

To run a music business, you need to hire the services of music artists, musicians, record producers, and composers on a temporary or permanent basis. The business can include creating songs, music sheets, stock music, and theme music. And can also be extended to cover events, ceremonies, and concerts.

The business is exciting, however, due to the large competition in the market, one has to put very much effort in the beginning to earn recognition. Like any other business, the first step would be to create a business plan for music industry. The professional business planning should cover all aspects of the business like workforce, work area, expenses, services, sales strategy, etc.

To give you an idea of how your business plan should look like, we are giving here the business plan of a music business startup, Hymns & Beats.

Executive Summary

2.1 the business.

Hymns & Beats will be a licensed music business based in Atlanta. The business will comprise artists and musicians who will work to create new music pieces. The business will utilize the talent of various singers to release stock music, record labels, and theme music for corporates, events, TV shows, movies, and game developers.

2.2 Management of Music Business

A music company needs efficient management in all the areas such as reaching out to singers, making arrangements for concerts, making sure that the edit effects are perfect, etc. Realizing that she would not be able to supervise everything on her own, Amelia decided to hire a manager to help her.

If you are looking for how to start a music business you should study different music business plans. While exploring business plans on how to set up a music business, try to also explore the ways others use to manage multiple tasks of a business at the same time.

2.3 Customers of Music Business

Our primary customers will be the television shows and film industries who will seek our services for creating tunes, theme music, and songs. Besides, corporate, institutes, companies, game developers, and event organizers will also be our customers.

2.4 Business Target

Our target is to become one of the most renowned music businesses. We aim at releasing at least 10 albums within six months of the launch. We also aim at achieving a rating above 4.7 within a year of the launch. Our profit goals to be achieved within the three years of our launch are summarized here:

Company Summary

3.1 company owner.

Amelia Stiles will be the owner of Hymns & Beats. Amelia got her degree in Bachelor of Music from the Oberlin Conservatory of Music, Ohio.

During her schooling, she composed two music pieces that earned her national level fame.

3.2 Why the music business is being started

Amelia wanted to become a playback singer. She learned and practice music all her life and still couldn’t succeed in getting more than a few singing projects. Owing to her optimistic nature, she decided to find new ways to invest her passion for music. She decided not to sing but just compose the music pieces.

Realizing her creativity and skills in the music composing area, she decided to start her own music business. Now Amelia hires music artists and glorifies people’s lives with exceptional tunes and melodic voices.

3.3 How the music business will be started

Since there are many already established music industries in Atlanta, you should study different examples of music business plans. Exploring as many examples of music business plans as you can, will enable you to come up with unique ideas. Analyzing various music business plan samples will allow you to identify the areas where demand is high despite the large competition.

Hymns & Beats will be started in one of Amelia’s properties in Atlanta. Amelia will hire a home renovating professional to turn her property into a structure for the music business. Meanwhile, she will hire a professional business plan writer to make a comprehensive plan for her business.

Then Amelia will purchase the required musical instruments and other equipment like speakers, cables, amplifiers and microphone stands, etc. After which the startup will start its hiring phase. Staff like audio engineers, musicians, and DJs will be employed after strict testing and interviewing. Meanwhile, the company will ensure to establish a strong web and social media presence to get introduced to the target audience.

The costs for startup are as follows:

The startup requirements are as follows:

Before making a music business plans template, you should be very clear about the services you are going to provide your customers. In this sample plan, we are listing the services of Hymns & Beats. However, to get a broader idea of services that can be provided in this domain, you should study many other music industry business plans too.

1.Creating Production Music

Our primary service will be to produce music pieces that can be used in television, movies, and other media platforms after getting licensed to the buyers. Those music pieces will cover nearly all music genres such as classical, electronic dance, folk, and disco, etc.

This service will also include producing specific music pieces according to the client’s requirements.

2.Record Labels

We will also release albums and songs made with the collaboration of our team with top-class singers and songwriters.

3.Theme Music For TV Shows, Movies, Trailers & Video Games, Commercials

Our third primary service will be to create instrumental and theme music to be used in the background of movies, trailers, video games, commercials, and reality shows, etc.

4.Corporate Background Music

We will also create professional music themes to be used by companies and corporates in their presentations.

5.Hosting Concerts, Music Festivals & Parties

This will be one of our major services. We will host music nights, concerts, events, and parties. We will also offer the service of presenting music and songs in ceremonies according to the nature of the gathering.

Marketing Analysis of Music Business

The most important component of starting a music studio business plan is marketing analysis. It includes a detailed study of your target market to understand the areas where competition is high or to identify the domains where the demand for your services can be more.

Thus, before you start a music business you should study the dynamics of the marketplace where you will be offering your services. In this music business plan concept pdf we are listing market analysis and market segmentation done by Hymns & Beats for their business. If you are looking for how to write a music business proposal or how to create an efficient marketing plan, you can take help from here.

5.1 Marketing Trends

According to IBISWorld, the average growth that has been reported in the music industry in the last five years is 5.5%. Moreover, Statista reports that the annual revenue generated by the U.S. music industry was recorded to be $21.5 billion in 2019 alone. Simply put, the music industries have always been in demand. To succeed, you just need to be proactive in reaching target customers and creative enough to meet their expectations.

Business plan for investors

5.2 marketing segmentation.

The detailed marketing segmentation of our target audience is as follows:

5.2.1 TV Programs & Film Industries: Our primary customers will be the television shows and programs that need different background music for different segments and for transitions of one segment to another.

Besides, film producers will require our services to create music pieces for trailers and songs. We also expect this group to avail of our services of producing background and themed instrumental music.

5.2.2 Commercials (TV ads) Production Companies: The second group of our target customers will comprise of commercials producing companies. We expect to get projects from this category from the very beginning as video ad creators usually don’t need music producers with past experience.

5.2.3 Video Game Developers, Corporates & Event Organizers: The third category of our target customers consists of video game developers who need music to be played in the background. This category also includes corporates who need professional background music for their presentations.

Apart from them, we also expect to be called by events and party organizers for playing music, singing songs, and setting up musical nights. We also look forward to being invited to cultural ceremonies for displaying the skills and talent we have.

5.3 Business Target

Our business targets are:

• To achieve the net profit margin of $9.1k per month by the end of the first year
• To release at least 10 albums hitting a ranking of above 4.8 by the end of the first six months
• To host at least 10 concerts within six months of the launch
• To achieve an average ranking above 4.75 within a year of the launch.
• To balance the initial cost of the startup with earned profits by the end of the second year

5.4 Product Pricing

Since we are not selling any discrete products therefore we can’t define a strict product pricing strategy. Our prices will vary with the required mastery, the difficulty level of the track and music, etc.

However, in the beginning, we will offer massive discounts on our services of hosting musical events and ceremonies and also in our theme music creation service.

Marketing Strategy

Like marketing analysis, sales strategy for business is also an important component of a music business marketing plan. Sales strategy enables you to attract your potential customers, and compete with your already-established competitors.

From this music business proposal sample, you can learn the competitive aspects and advertisement strategy of Hymns & Beats.

6.1 Competitive Analysis

Although we have tough competition, we have entered the market with several competitive aspects. Firstly, we have an excellent team that will help us develop unique music pieces. Secondly, we are collaborating with top singers and songwriters to come up with exclusive albums.

Moreover, we will be offering background music production services for video games and trailers online. So that will enable us to reach a wider audience.

6.2 Sales Strategy

• We will establish a strong web and social media presence through SEO optimization
• We will advertise our services through Google Local Services ads, local newspapers, and magazines
• We will arrange a themed musical night for the young people on the day of launch for an entry ticket of just $3
• We will offer a 20% discount on our theme music production services for the first three months of the launch
• We will offer a 50% discount on our offering of playback wedding music by our singers and musicians

6.3 Sales Forecast

6.4 Sales Monthly

6.5 Sales Yearly

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Personnel plan

Your business is just a collective representation of your staff and managers. So before proceeding to other steps, you should create your personnel plan in a template for writing a music business plan.

Here we are only listing the permanent staff of the company. The singers and songwriters whose services will be hired temporarily for record albums are not mentioned in this list.

7.1 Company Staff

• 1 General Manager to manage the overall operations
• 1 Cashier to maintain financial records
• 2 DJs to assume musical responsibilities in concerts and events
• 4 Musicians to play musical instruments
• 1 Audio Engineer to regulate music effects
• 2 Software/ IT Experts to ensure web and social media presence
• 1 Sales Executive to promote the company’s sales
• 2 General Assistants for routine works
• 1 Receptionist

7.2 Average Salary of Employees

Financial Plan

Making a music business plan is a little tricky as you have to devise a plan to manage your permanent as well as temporary resources. For example, while creating a financial plan for the music business, you have to consider fluctuations in the price of services. The albums that need to be sung or written by high paid singers and songwriters will require you to reserve a bigger than usual budget.

It is recommended to seek professional help in creating the financial plan for your business. To give you an example of how it would look like, we are providing here the sample financial plan of Hymns & Beats.

8.1 Important Assumptions

8.2 Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 Business Ratios

Download Music Business Plans Sample in pdf

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OGSCapital’s team has assisted thousands of entrepreneurs with top-rated document, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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How to Write a Record Label Business Plan (Free Template)

Your business plan should set realistic goals, address any issues early on, and develop a clear path for the future of your record label. A solid business plan is also essential when you come to secure loans or new investment in the future.

But what should you include in a record label business plan? For starters, it should include: ‍

- An overview of your business idea

-Your aims and goals

- How you’ll earn/spend money

- Any potential problems

- How you’ll measure progress ‍

We’ve created a free-to-use Record Label Business Plan Template, to help budding entrepreneurs get started writing their plan. You can access the template below, but before you dive in, you can scroll down a little further to learn more about some of the topics you’ll need to include.

If starting your own label isn't for you, then why not check out our top tips on how to get signed to a record label instead?

Free record label business plan template

How to start a record label

What should a record label business plan include.

History and experience

What is your music industry experience? Do you have a track record of discovering and breaking new bands, or a string of successful previous releases? Make sure to sell yourself and demonstrate your value when setting up a record label .

You’ll need to write an executive summary – in other words a short, inspiring pitch designed to showcase and create interest in your business. What are the unique selling points of your label? What makes it different, potentially profitable and more exciting than the other independent labels out there?

Strengths, weakness, opportunities, threats

Set out your strengths, weaknesses, opportunities and threats – known as a SWOT analysis.

Your strengths could include the following and reputation of your artists or access to studios and influential contacts, while weaknesses could include a current lack of funding. Your opportunities could be any events or deals you’ve already secured, while threats could be strong competition from other labels, or a limited music scene in your local area. These are just some examples, so your SWOT analysis will depend entirely on your own situation

Your aims and how you’ll measure progress

What are the main aims of your record label? You’ll want to plan at least 1 to 3 years ahead, explaining your fundamental goals and how’ll you achieve them.

It’s also important to demonstrate how you’ll measure your achievements by identifying your Key Performance Indicators (KPIs). KPIs could include your expected profits margins, streaming and download targets, or expected media coverage.

Operations and management

Who’ll be running the day-to-day operations of your label? Will you be taking on any staff or partners to help you run the business? Make sure you’re realistic about what you and your team can achieve.

Also, do you have access to a studio or any other facilities to help your label thrive? What useful equipment do you currently own or have access to? ‍

Your marketing strategy and analysis ‍

You’ll want to set out a solid strategy for making your label a success. How will you promote and market your artists, events and releases? Have you carried out any market research, and do you have any opportunities, clients or deals already lined up?

‍ Financial forecasts and sales

How will your label turn a profit? What are your areas of incomes and expenses? If you already have a financial history, make sure to set it out clearly and make realistic projections for the future.

Long term, short term & contingency plan

A good way to sum up your business plan is with a short-term, long-term and contingency plan, to demonstrate foresight and the ability to adapt to new challenges.

A few more things to keep in mind

Keep it concise If you’re trying to attract funding and investment , make sure would-be investors can quickly and easily decipher the aims and opportunities of working with your label. Give them plenty of good reasons to invest!

Be professional Make your plan look and feel professional. This could include a front cover, contents page, detailed charts and forecasts, as well as a clear and inspirational executive summary or mission statement at the very beginning. Print out your plan and present in an eye-catching folder or binder.

Understand your market Demonstrate a clear understanding of the music industry and your target market. Who are your competitors and where are your opportunities for success?

Understand your finances Whether you’re in it for the money or not, understanding your financial limitations and objectives is extremely important, especially if you’re hoping to grow and develop your label, or attract investment now or in the future.

 Don’t forget to access the free Record Label Business Plan Template above and get started writing your own business plan!

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Do you have any questions about your business plan we’ve not covered here? Let us know in the comments and we’ll get to back you.

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Writing a business plan for your music.

July 25, 2018

The Indie Artists Guide to Writing a Business Plan

When it comes to the independent musician, the music business can be a strange, frustrating and scary concept. A good first step for any indie artist who is serious about creating a career in music, is to create a business plan. The Business plan will act as a roadmap to help the Indie Artist negotiate the music business and help them identify their strengths and weakness and more importantly, once identified, learn how to address them.

What is a Business Plan?

The mere mention of a business plan can make many of you freeze in fear. It sounds like a some mystical book of numbers and formulas that will take a business degree to understand. Nothing can be further from the truth. A  business plan is a simple outline your goals, how you can achieve those goals and outlines the resources that you have or need to get to reach those goals. It is basically a roadmap of your career and your business. It is the plan that takes you from the Dream to what actions you need to take to get there.

Why Write a Business Plan?

Basically the business plan will allow you to focus and set a realistic plan with realistic goals!  The business plan can be used to help bring in key people and companies you would like to make part of your team, such as prospective managers, agents, labels. Having a business plan will shows these people that you have thought about your career, planned how you want to achieve your goals and treat your career seriously. You can also use the business plan if you are looking to secure some financing for new equipment or to underwrite a tour.

Getting ready to write a Business Plan

Do your research, This article will give you a good framework to work from, but get a good book on the subject of writing a business plan  or you can get an Audio book to listen to while you are on the road. Second, BE REALISTIC AND HONEST WITH YOURSELF! Nothing will sink your business plan faster than unrealistic goals and an over estimation of your resources. If your goal is to be a star and make 2 Million a year writing songs from your mansion, keep in mind the amount of musicians that are out there trying to make it vs the small percentage of artists in that top tier. You would be better setting your goals to creating a sustainable income that will allow you make music your career.

Make an outline of your goals, Resources and needs. You will use this outline as you start to write your business plan.

Parts of a Business Plan

Your Business plan is a “Living Document”, it will change over time. It will also change depending on who you are presenting this plan to. 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. The reality is, as your band moves towards it’s goals, your resources will change and your goals will change, so your plan will change as well. Breaking it down to basic sections will allow you to update your plan easily. You would add or subtract sections depending on what you are doing or who you are presenting it to.

1. Executive Summary

The executive Summer should be single a page that introduces the band and provide a synopsis of your marketing plan. This would also be where you would personalize the plan to who giving this to. If it is to a bank, you would outline how much you are looking to finance and what the money will be used for.

2. Introduction

This is where you would have a more extensive bio of the band. If the plan is for a specific project (ie: Recording a CD, Setting up a tour, etc.) this is where you would outline that project.

3. Mission Statement

This is a short statement that explains who you are as an artist.

4. Vision Statement

Again this is a short statement outlines your goals as an artist.

5. Music Industry Overview

This would be a section that you would include if you are presenting your plan to someone who is not educated in the Music Business. A simple page that explains how you or your band fits within the Music Business. For example what is a Recording and touring artist, what does a booking agent do, what does a radio promoter do, etc.

6. Band/Artist Bio, History, and Functions

This would be more a resume of the band, accomplishments, key moments and it’s here that you would introduce the bio of the individual band members. You should also indicated who is doing what jobs for the band, For Example you can indicate the Bass player is working as a booking agent and the drummer is also producing and editing the bands music videos. You can also list any additional team members in this section, such as your PR Person, Booking agent, Radio Promoter, etc. This is also a good way to outline who is doing what within your business.

7. Your Market

This is THE most important aspect of your marketing plan, knowing your market. It is the artist who really knows who their audience is, stands out!

You should be tracking who comes to your shows. Do you have more women or men that show up at a gig? Are these people with disposable income, or do they nurse that beer all night. What other artists do they listen to, or go to see live. How do they get their music, CD’s, Downloads, Streaming? The more information you have about your market the better you can understand how to get them at your show. This also applies to markets you want to attract! For example, If you are looking to attract more women under 28 to your shows, then you need to know what women under 28 need to attract them to your show.

Keep in Mind your music is not going to be for everyone, but with a good understanding of your target market the better chance you will be able to expose them to your music.

8. Graphics and Branding

How you present yourself as an artist or band will determine the market that will be attracted to your shows. Your graphics and branding are an important part of your marketing plan. You should also determine how you are going to describe your music, the genre you are going to identify with. How you identify your music Genre can determine your market as well. If you are a “ Country” artist, you will attract a very specific market, or you can us other identifiers to create curiosity or interest with younger markets such as “Alt Country” or “Indie Blues”  .

9. Recording Project

If you are using the business plan for a recording project this is where you would put in the information about the project. Include information on who is producing this project, The engineer, any sessions players you are using, the studio you are going to use. Add bios of any additional players, producers and engineers. What is your timeline for the project.

This is also a good place to establish a budget for this project. Create a spreadsheet that allows you to input how many hours (and cost) of the actual recording, Mastering costs, Musician costs, pressing and packaging, radio promotion, packaging for mailings, postage for mailing to reviewers and radio stations, posters, ads, digital agrregators etc. You should also keep track of all sales of the CD as well once it is released.

You may decide to purchase the hardware and software to create your own studio to record your music. Here is where you would also outline the cost of this equipment. Sometimes this can be more cost effective then paying the hourly fee at a studio free you from the stress of watching the clock.

This will help you determine your “Return on Investment” or how many copies of your new project you have to sell before you recoup the cost of it’s production and marketing. This will reveal pretty quickly if you are making good business decisions on any recording project.

10. Press Kit

Here you can outline what is to be included in your press kit. Whether you are going to have a physical kit or an electronic press kit or both. Again what are the costs of producing each kit and the cost of sending that kit to any prospective buyer.

11. Additional Merchandise

Let’s face it, your CD is most likely the least profitable item on your merch table. Once you have sold a CD to someone, they will not purchase it again, You will quickly saturate your market and your merch table will be very quite, very quickly if you don’t have an well stocked merchandise plan. As any band with extensive touring experience will tell you, it’s all about the merch. I have known artists whose take at their merch table would be double their guarantee for the show. Again keep good records on what items you have on your merch table, how much it costs and how many you sold and for how much.

You will be able to see what sells good and what does not, what sizes sell the most and which ones sit for a while, etc. The bottom line it’s all about keeping good records and know what works and what does not. This is Good Business!

If you are looking for good ideas on how to merchandise your band check out this article. 

12. Touring Plans

Okay, here is a reality check. The Job of Musician is touring! If you don’t spend more time in your van then you do on stage then you are doing something wrong. Going on tour is not easy, and it’s not something you go into without good planing.

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. See Tips for the Touring Musician

As you book the shows, with a good budget you can quickly see if you will make money or lose money on the tour.

Its here you will also outline your “Tour Support” marketing. Are you sending posters to the venues in advance of the show? Are sending a press release to the press outlets in the area of the venue? Are you doing social media marketing in advance of the show? Do you need to setup interviews with the local radio stations? Have you established a mailing list for this market?

13. Connecting with your Fan Base

Your Fan base is your biggest asset as a touring artist. They are the what makes your business profitable. They scome to the shows, buy your merch and help spread the word about your and your music. With today’s access to social media platforms such as facebook, instagram, snapchat, twitter, etc., it is important to keep your fan base engaged with you and your music.

You need to outline your plan to keep your fan base informed of what you are doing, news of any upcoming shows or releases. Who is going to be responsible for posting and interacting with your fans, what are you posting and when? You should also keep an eye on your fan base to see what platforms they are using to get their information. We all know how fast the social media technology changes and you have to change with it.

You can post a instragram photo of you in front of the venue when you arrive to loadin .. do a facebook live video of the band on the road. Some behind the scenes pics and videos can help your fan base feel engaged and invested in your and your music.

14. Web site

As old school as you may think this is, having a really professional looking website is VERY important! This is your first impression to the music industry. It is the hub where your social media, Electronic Press Kit, Pictures, Tour Schedule, Branding, video’s, streaming players all come together to promote your band and music.

Have a good website development plan that keeps your site up to date and establish who is going to take on this responsibility. Are you going to use Reverbnation for your tour schedule or are you going to input the dates directly on your site. How often are you going to post new content (pics, videos, tour dates)?

Are you going to setup a merch store to sell your merchandise online and if so, how are you going to accept payment, and fulfill those orders.

Are you going to have an area that allows your fans to interact with your site? Are you going to have  newsletter and how are you going to capture email addresses. How can you capture demographic information from your fans from your website?

Here is a great review of the Themify Themes and Builder for WordPress

15. Partnerships with Other Artists

Do you have relationships with other artists or do you tour as a supporting act to a larger act? This is a great place to add what artists you have toured with or have opened for while on tour.

16. Video Production

What was once a luxury reserved for only the top selling artists now has become a necessary part of any independent musicians business plan. The good news is the cost of doing a music video has dropped significantly! 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.

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You should create a timeline for at least 3 or 4 Videos for each release you record. You should also consider creating a “Pre-Release” “making of” video as well.

You should again create a budge spreadsheet for the cost of creating these videos. Either hiring someone to shoot and edit the video’s for you, or purchase the equipment to do your own.

The John Pagano Band used only a Iphone to shoot their latest video, you can read about it here.  You can also learn How to Create Music Video on a Budget Here!

17. 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.

18. Sponsors/Investors

Most investors would like to know if there are other sponsors and investors involved in the project. They seem to feel more assured if there are other investors involved. This also gives you a chance to highlight any sponsorship deals that you have been able to secure. You don’t need to get into the details of how much investors have put in (this will show up in your financial statements) but you should list them.

19. Strengths/Past Successes

This is really your chance to get out there and strut your stuff.  Let the reader know what the strong points about the band/artists are. List key past successes and milestones that you have already achieved. You definitely want the reader to be excited about the project, the band and where you have already been. 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

20. Challenges

Here is where you can list any challenges that you are currently facing. Now Be honest with yourself. This may include financial concerns, band member relations, weak business skills. More importantly, you should show how you are working to address and solve those particular problems and challenges. This section is important because once you have acknowledged what you challenges are you can start to address them.

Here is where you set your goals for the next 6 months, 1 year, 3 years and five years. For each goal, you should be stating what you want to achieve, when you want to achieve and how you will measure your success. 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. Make sure you reference to it in the business plan. The best format for this is a calendar or a chart where you can plot all your dates and what you need to have achieved by then.

22. Assumptions/Scenarios

This is important for traditional investors. Here is where you state what assumptions you are using to base your success and financial statements on. 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? What events/actions are key in your marketing plan to be successful? More importantly, you should indicate what alternatives you have considered if your estimates and assumptions fall through in order to ensure success.

23. Financial

Ok, here comes the scary and most eye opening part of the business plan. This is where you put all those costs and estimate spreadsheets together and create your cost/profit financial report. Now, if your sales and costs are estimates, you should be basing it on past successes or a really thought out formula. Really look at what other artists are selling and ask yourself if you are really being realistic? Call to ensure that the costs that you have set out for yourself actually make sense. If you have been around for awhile and have kept track of your past financial information, you should be including it in this section.

The most common forms of financial reports are Balance Sheet, Income Statement and Cash Flow/Budget. These do not need to be included specifically in the business plan (they can be put in the appendices); however, they should be summarized in your financial section. What are your costs, sales and do you know when you will need the most money?

Finally, some institutions/investors will require that you provide a list of collateral that will go towards the loan. You can list your tour van, Pa System, Recording Equipment, etc.

24. Conclusions

Your conclusion should sum up the band, the project, your request, and why you believe that this is a successful project and why your reader should invest in it. Keep it short, no more than a page should do it.

25. Appendices All your appendices come at the end of the document and they should be used to provide any supplemental information, but the business plan should be able to stand alone.

You don’t need to have all the sections outlined in here. It was created to cover a variety of genres, situations and career levels. Choose sections and develop your business plan to fit your needs.

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How To Write a Winning Music Artist Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for music artist businesses that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every music artist company should include in their business plan.

Download the Ultimate Business Plan Template

What is a Music Artist Business Plan?

A music artist business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Music Artist Business Plan?

A music artist business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Music Artist Business Plan

The following are the key components of a successful music artist business plan:

Executive Summary

The executive summary of a music artist business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your music artist company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your music artist business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your music artist firm, mention this.

You will also include information about your chosen music artist business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a music artist business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the music artist industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the clients of a music artist business may include booking agents, music venues, and festivals.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or music artist services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your music artist business may have:

• Unique music artist style
• Strong industry presence
• Extensive music artist repertoire
• Innovative music artist techniques
• Highly experienced management team

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or, you may promote your music artist business via word-of-mouth, referrals, or by exhibiting at trade shows.

Operations Plan

This part of your music artist business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a music artist business include reaching $X in sales. Other examples include:

• Signing a major artist
• Opening a new location
• Hiring key personnel

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific music artist industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Music Artist Firm

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Music Artist Firm

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup music artist business.

Sample Cash Flow Statement for a Startup Music Artist Firm

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your music artist company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

Remember to keep your business plan updated as your company grows and changes. Review it at least once a year to make sure it is still relevant and accurate.  

Finish Your Music Artist Business Plan in 1 Day!

Record Label Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Entertainment Industry » Music Industry » Record Label

Are you about starting a record label online ? If YES, here is a complete sample record label business plan template & feasibility report you can use for FREE .

Are you a music lover? Did you know that even if you do not have an appealing voice to sing and make money that you can still make money from the industry? If you are an entrepreneur and you love music, one of the easiest ways of making money from the music industry is to start your own music label; and the truth is that it is not difficult to start your own music label from the scratch in any part of the world.

As mentioned earlier, one of the very things that you would be required to bring to the table is to first and foremost have the knack for music.

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And then all other things would fall in place as it were. Those who already have a thriving business in the musical scene know that talent is very key in making it big. This is irrespective of whether you are a performing musician, a studio manager, a disc jockey, et al.

Owning a record label is basically about helping recording artists release their music album or singles to the general public and the process starts with agreeing on a deal or contract and then writing out the music lyrics before entering the studio to start work. Below for a sample record label business plan.

A Sample Record Label Business Plan Template

1. industry overview.

In recent time in the music industry, a larger percentage of recording artists have become increasingly dependent on record labels to promote them and increase their consumer base. It is easier for a record label to attract influx of upcoming artists if the record label is well established and recognized.

Record label that are just starting out would have to go out there to search for music talents that can help launch them out. The truth is that it is a win – win situation when a record label discovers a good music talent. The music label will help promote the recording artist and the recording artist also will give publicity to the record label.

The global revenue of the music industry is estimated at 15 billion U.S. dollars in 2013, and that is about the lowest revenue recorded since 2002; of course it is an indication that the record label industry needs to become more creative and leverage on the changing tides in the world of technology.

Even the strong growth in streaming revenues was not enough to stop the music industry globally from experiencing income dropping below US $15bn for the first time in recent years in 2014.

Statistics has it that in 2013 the three largest markets in the music industry, measured by the revenue they generated were the united states of America, Japan and Germany. Hence it is no surprise that the top three record labels who dominate the music industry in the globe are all headquartered in The United States of America.

Recent statistics from the IFPI revealed that overall global record industry revenues dipped by just 0.4% last year – but that was enough to pull the annual tally down from $15.03bn to $14.97bn.

The biggest offenders for the fall were an 8.1% decline in revenues from physical format sales (to around $6.89bn, according to MBW calculations) and an 8.0% decline in download sales (to around $3.56bn).Single track downloads declined by 10.9% in the year, while digital albums sales saw revenues drop by 4.2%.

In the early years of the recording industry, record labels were just the leverage any music artistes need to become successful in the music industry. This is why upcoming artistes or music band sourced for good recording label to sign a contract with.

Well it is important to note that most upcoming artistes or even establish artists ensures that they engage the services of an entertainment lawyer to help them negotiate the terms and condition of the contract. From past experience, no artist wants to sign a contract that will enslave them.

With the advent of the internet, it has now become pretty much easier for music labels to increase their range of operations. A music label with a large follower on social media platforms can easily promote artists under their label. All they need to do is to release free downloads on their website.

If the music is good it wouldn’t be too long before it trends on a global stage. Good example is the famous 2012 dance pop single – the ‘PSY -gangnam style’ from far away South Korea.

One good thing about starting a record label is that even if you decided to start it in the United States of America, your market will not be restricted to artists in the U.S.; the world will be your target market. Many thanks to the internet that has made the world a global village. All you need to do is to strategically position your record label brand on the internet.

2. Executive Summary

Dexterity® Record Label Company is a standard record label company that proposes to be based in 500 Madison Avenue New York, NY 10011, USA.

Our aim of starting this business is to work in tandem with both established and upcoming music artist in the United States of America and other countries of the world to help to launch their musical career or take their musical career to the next level as the case maybe.

Our Head Office will be located in New York City, but we will have our branch offices in major cities in all regions of the United States of America – with the first two years of operation we would have set up our offices in the following locations; Las Vegas, Los Angeles, Dallas, Texas and Boston.

Dexterity® Record Label Company is going to be a self-administered and a self-managed record label / musical company. We will work towards becoming one of the largest managers of reigning musical artist in the United States of America and other parts of the world with musical album hits back to back in the music industry.

We are quite aware that record label / music business requires huge capital base- especially for the purchase of world – class studio equipment and music / artist promotion, which is why we have perfect plans for steady flow of cash from private investors who are interested in working with us.

We can confidently say that we have a robust financial standing and we are ready to take on any challenge that we encounter in the industry.

As part of our plans to make artists under our label and our customers our number one priority and to become one of the leading record label company in New York City, we have perfected plans to work with our clients to deliver music projects that can favorably compete with the best in the industry at an affordable and reasonable price, within the stipulated completion date barring any unforeseen circumstance and also to help artistes under our record label gain international recognition within a short period of time.

Dexterity® Record Label Company is to become a specialist in turning upcoming musical artists into starts / celebrities and already made music artists / starts into mega – super stars. Dexterity® Record Label Company will at all times demonstrate her commitment to sustainability, both individually and as a record label, by actively participating in our communities and integrating sustainable business practices wherever possible.

Dexterity® Record Label Company will be owned majorly by Dexter Clinton and Mack Hamilton. This duo have been able to cut their teeth in the musical industry both at national level and international level. They have appreciable year of experience working with some of the leading international record label companies in the United States of America prior to start their own record label company.

3. Our Products and Services

Dexterity® Record Label Company is going to offer varieties of services within the scope of the music industry in the United States of America. Our intention of starting our record label company is to make profits from the music industry and we will do all that is permitted by the law in the US to achieve our aim and ambition.

Our business offering are listed below;

• Music Recording
• Music Video Shoots
• Promotion of Music Artists / Music Tours
• Sound Production
• Studio Session
• Production of Jingles for Organizations
• Marketing and Sales Music
• Managing of Music Artist
• Setting up of Recording Studios for Clients
• Sell of Musical Equipment
• Music Consulting Services

4. Our Mission and Vision Statement

• Our vision is to help upcoming music artists to become stars and to help established music artists to become mega – super stars
• Our mission as a record label is to build a business that will help our clients achieve their highest dreams within the shortest time possible and to be listed amongst the top 10 record label companies in the world.

Our Business Structure

The fact that we are set to compete with other leading record label companies in the world, means that we must build a business structure that can support our business goal. Dexterity® Record Label Company will build a solid business structure that can support the growth of our business.

We will ensure that we hire competent hands to help us build the business of our dream. Below is the business structure that we will build Dexterity® Record Label Company;

• Chief Executive Officer

Entertainment Lawyer / Legal Secretary

• Talent Hunt Manager

Studio Manager

Music / Record Producer

Sound / Recording Engineer

Admin and HR Manager

Marketing and Sales Executive

Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

• Responsible for providing direction for the firm
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for handling high profile clients and deals
• Responsible for fixing prices and signing business deals
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board
• Responsible for drawing up contracts and other legal documents for the company
• Advise artists and the organization accordingly before signing any musical artists under the company’s label
• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Produces information by transcribing, formatting, inputting, editing, retrieving, copying, and transmitting text, data, and graphics; coordinating case preparation.
• Provides historical reference by developing and utilizing filing and retrieval systems; recording meeting discussions; maintaining transcripts; documenting and maintaining evidence.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.

Tour Coordinator / Talent Hunt Manager

• Responsible for sourcing for music talents and grooming them
• Responsible for coordinating music tours for the company
• Assists in writing music lyrics for music artists
• Handles any other responsibility as assigned by the Chief Executive Officer
• Responsible for tracking hours during studio session and billing clients.
• Responsible for managing the company’s recording studio
• Part of the team responsible for selecting the songs that will be promoted and the songs that will be sold as singles.
• Responsible for recording and producing music and jingles for music artists and clients
• Helps to decide the order the songs will play in throughout the album (i.e. the songs’ track numbers).
• Responsible for choosing top notch album cover for music artists
• Responsible for handle any sound related job for the company; helps achieve certain specific sounds or feelings to portray through that matches with the lyrics.
• Responsible for mixing and producing beats and sounds for our clients; mix the songs into the final version for the music album.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of studio equipment by completing preventive maintenance requirements; calling for repairs.
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Facilitates and coordinates strategic sessions.
• Works directly with clients in a non-advising capacity, such as answering questions, scheduling appointments and making sure all training concerns are properly taken care off
• Oversee the smooth running of the daily office activities.
• Once the album is ready, then the marketing team will go out to market and promote the album
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies business opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of music projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients and music artists
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Receives Visitors / clients on behalf of the organization
• Receives parcels / documents for the company
• Handles enquiries via e-mail and phone calls for the organization
• Distributes mails in the organization
• Handles any other duties as assigned my the line manager

6. SWOT Analysis

Dexterity® Record Label Company engaged the services of a core professional in the area of record label and music consulting and structuring to assist the organization in building a standard record label company that can favorably compete with other leading record label company in the United States of America.

Part of what the business consultant did was to work with the management of the company in conducting a SWOT analysis for Dexterity® Record Label Company. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Dexterity® Record Label Company;

Our core strength lies in the power of our team and the state of the art music studio equipment that we have. We have a team that can go all the way to give our clients value for their money; a team that can make an upcoming music artist a star within a short period of time. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

As a new record label company, it might take some time for our organization to break into the market and attract some well – established music artists to sign under our label; that is perhaps our major weakness.

• Opportunities:

The opportunities in the music industry are massive and we are ready to take advantage of any opportunity that comes our way.

Technology and the internet which of course is a major tool for the advancement and gains achieved in the music industry can also poses a threat to the industry. The truth is that with the advancement of technology, it is now easier for new record labels to come into the industry and compete with existing record label.

The internet and social media platforms now makes it pretty easier for record labels both legally registered and un – registered to promote their company and attract new artist as well. Just like any other business, government unfavorable government policies and also economic downturn can pose a threat and challenge to the survival of a record label company.

7. MARKET ANALYSIS

• Market Trends

Entrepreneurs who are venturing into the music industry are coming in with creativity and good business skills. The fact that revenue is nose – diving in the industry does not in a way stop some record label from declaring profits year in year out.

The factors that is responsible for encouraging entrepreneurs to start their own music recording label is the fact that they can easily become an instant celebrity on the global stage if they can successfully produce a world class music artist.

The trend in the music industry is that most recording label companies are now leveraging on the internet to spread their tentacles and increase their revenues; they know that it pays not to concentrate only in the U.S. market. They are now more concern in spreading the marketing of their record label to the rest part of the world.

8. Our Target Market

When it comes to music, there are no exemptions to who you can sell to. Different genre of music appeals to different group of people. Christians generally will prefer gospel music, older people naturally prefer countryside music and highlife, youths prefer pop, reggae, rhythm and blues et al. That is basically how the market is segmented.

But when it comes to sourcing for recording artist to sign on to your record label, you will probably get a good catch from the 16 – 35 age bracket. They are the group of people that are that are ready to music career. People outside that age bracket are either too old to start pursuing a music career or they are too young to consider pursuing a career as a musician.

Over and above, our target market cuts across people of different class and people from all walks of life. We are coming into the industry with a business concept that will enable us work with both established music artists and upcoming music artists in the United States and in other countries of the world. In other words, our target market is the musicians and aspiring musicians in the United States of America and subsequently other parts of the world.

Our competitive advantage

The level of competition in the record label industry is on the increase as the years roll by. Which is why in the 1970s and 1980s, there were consolidation in the record industry which led to almost all major labels being owned by a very few multinational companies. The development led to CDs production to flow through a handful of sources, with the majority of the sales going through the “big three” record labels.

Dexterity® Record Label Company might be a new entrant into the record label / music industry in the United States of America, but we are coming into the industry with core professionals and of course a standard world – class recording studio with the best equipment in the industry. We will ensure that we give all artists under our label good value for their money, time and talent; these are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups consulting firm) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Dexterity® Record Label Company is established with the aim of maximizing profits in the music industry and we are going to go all the way to ensure that we do all it takes to attract music artists that will sign under our record label. Dexterity® Record Label Company will generate income by offering the following services;

10. Sales Forecast

One thing is certain when it comes to music; music never dies and the demand for good music will continue to grow. This goes to show that any record label that is known to always produce good music will continue to attract talented music artists and that will sure translate to increase in revenue generation for the record label.

We are well positioned to take on the available market in the U.S. and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond New York City, New York to other states in the U.S. and even the global market.

We have been able to critically examine the business consulting market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in New York.

Below is the sales projection for Dexterity® Record Label Company, it is based on the location of our business and other factors as it relates to record label start – ups in the United States;

• First Year-: $75,000
• Second Year-: $250,000
• Third Year-: $750,000

N.B : This projection is done based on facts and figures that are obtainable in the music industry.

• Marketing Strategy and Sales Strategy

We are aware that when one commences a record label, the profits might not come in immediately, but if there is continuity in the business, it wouldn’t be too long before one gains fame and fortune. All it takes to gain recognition in the music industry is to nurture a world – class music artist under your label.

We are mindful of the fact that there is stiffer competition amongst record labels in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the music industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent music production / top class music speaks for us in the market place; we want to build a standard record label company that will leverage on word of mouth advertisement from satisfied clients / artists.

Our business goal is to grow our record label to become one of the top 10 record label company in the United States of America, which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the U.S but in the world stage as well.

Dexterity® Record Label Company is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our business by sending introductory letters alongside our brochure to organizations and key stake holders in the music industry in New York and other parts of the U.S.
• Organize music talent hunt shows to source for raw music talents
• Advertise our business in relevant magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local music expos, seminars, and concerts et al
• Create different packages for different category of music artists (clients) in order to work with their budgets and still produce top notch music for them
• Leverage on the internet to promote our business and to sell or music
• Engage in direct marketing approach
• Encourage word of mouth marketing from our loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with brand and publicity specialist to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the music industry by storm which is why we have made provisions for effective publicity and advertisement of our record label company.

Below are the platforms we intend to leverage on to promote and advertise our record label company;

• Place adverts on both print and electronic media platforms
• Sponsor relevant TV shows and radio programs
• Maximize our official website to promote our business
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Badoo, Google+ and other platforms (music online forums) to promote our business.
• Offer Pro Bono services as part of our community social responsibility (Organize community based musical talent hunt shows)
• Ensure that our banners are well positioned during our musical tours
• Brand all our official cars / buses and ensure that our trademark label is boldly printed in all our music album covers and CDs et al

List of Equipment Needed to Start a Record Label

Here is some of the key equipment and musical gadgets that we would need to set up our record label company;

• Mixing console
• Multi – track recorder
• Microphones
• Reference monitors, which are loudspeakers with a flat frequency response
• Acoustic drum kit
• Digital audio workstation
• Music workstation
• On Air or Recording Light
• Outboard effects, such as compressors, reverbs, or equalizers
• Audio interfaces
• Effects racks
• CD duplicator
• Supply of CD

12. Our Pricing Strategy

It is important to point out that, though, record studio charge by the hour billing, so it is the responsibility of the record producer to ensure that set target are met within the stipulated time. The more time you spend on the studio, the more money you would have to pay.

No doubt, hourly billing for music studios is a long – time tradition in the industry. However, for some types of music / record contracts, flat fees are adopted. As a result of this, Dexterity® Record Label Company will charge our old clients (artists) a flat fee and charge new clients (new music artists) hourly when they make use of our music studio to record their music or produce music beats for their albums.

At Dexterity® Record Label Company, we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to start – ups, nonprofits, cooperatives, and small social enterprises who engage our services to help to produce musical jingles for advert purposes.

• Payment Options

Dexterity® Record Label Company, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

The cost of setting up a recording label company to a larger extent has reduced from what it used to be; many thanks to the advancement of technology and perhaps the internet. These days it is now easier to see people set up a recording studio in their house. All they need to do is to register a recording label and pronto! They’ll be in business.

Basically, it is not expensive starting a record label company in the United States of America. The amount required to start a record label company may vary slightly from country to country and from states to states. Part of the factors that can influence the start – up cost of a record label is the amount needed to rent or lease a facility, the cost of the equipment you would need and the money needed to brand your business et al.

On more serious note, starting your own record label is to a large extent dependent on your preference and budget. You could budget and spend millions of dollars, or you could choose to spend moderately; far below a million dollar. When it comes to purchasing microphones and head phones, we will go for Neumann u87; it will cost us about $2000 or more.

For mixer, we will opt for the Euphonix or any other brand of our choice. But Euphonix is great (especially with is sweet sounding preamp and on board compressors). It will cost us about $30,000 or more. On the alternative, we can choose to go for purely digital and skip the mixer altogether. This means that we will need a good audio inter face with multiple inputs. 12 stereo pairs minimum. The emu 1820m is a good one.

Then cables (nothing else but mogami cables. these are the best audio cable in the market for now; although we may explore other options). We would need to create budget for pre amp. Avalon is perhaps our best bet and we can get it for about $2500 or less.

We have also prepared a good budget for monitor; monitor is one of the most important gadgets we would need in starting our own record label and record studio. We have made provision for a Yamaha monitor; it is simply one of the best we can get in the market.

When it comes to acquiring a computer, we just have to budget for high end computer designed for such purpose. It is important for computer to have a very large memory, high end graphic card, and 2.6 GHz quad core processor and we will search for good software to work with.

Essentially, this is the area we are looking towards spending our start – up capital on;

• The Total Fee for incorporating the Business in New York – $750.
• The budget for Liability insurance, permits and license – $2,500
• The Amount needed to acquire a suitable Office facility with enough space for standard music studio in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
• The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $2,000
• The cost for equipping the music studio with the required gadgets – $100,000
• The Cost of Launching your official Website – $600
• Budget for paying at least 5 employees for 3 months and utility bills – $100,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Miscellaneous – $1,000

Going by the report from the research and feasibility studies, we will need about $300,000 to set up a small scale but standard record label company in the United States of America.

Generating Funding / Startup Capital for Dexterity® Record Label Company

Dexterity® Record Label Company is going to start as a private business that will be solely owned by Dexter Clinton and Mack Hamilton. Both of the will be the financial of the business, but may likely welcome other partners later which is why they have decided to restrict the sourcing of his start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $100,000 (Personal savings $60,000 and soft loan from family members $40,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

It is easier for businesses to survive when they have steady flow of business deals / customers patronizing their products and services. We are aware of this which is why we have decided to offer a wide range of music services and also to work with both upcoming music artists and well established music artist.

We know that if we continue to produce hit songs and albums, there will be steady flow of income for the organization. Our key sustainability and expansion strategy is to ensure that we only hire competent employees, create a conducive working environment and employee benefits for our staff members.

We know that if we implement our business strategies, we will grow our record label / music business beyond New York City, New York to other states in the U.S in record time.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Renting of Office Facility: Completed
• Building of Music Studio: In Progress
• Intellectual Property Protection and Record Label Trademark: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed studio / musical gadgets, furniture, office equipment, electronic appliances and facility facelift: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry: In Progress