There are two types of record label companies, one is major and the other is indie (independent). Even though the music industry has suffered a lot of changes due to streaming services, record labels are still as relevant now as they were back when Elvis was on top of the world.
If you are a passionate music lover and you have a certain genre in mind that you want to help grow, while also making a serious amount of profit, a record label business can be the right choice for you.
However, starting a business from scratch is never easy. For that reason, we outlined a few valuable tips that can help you out.
What are record labels?
Record labels are the main engine that drives every aspect of the completed work after it was recorded by the artists. The label will pay for all the marketing and promotion of the recorded piece and even pay the artist. Of course, they need to make some kind of profit as well, so that’s why they take a percentage of each sold unit.
If you are looking to get into the record label industry, keep in mind that you will be joining the other independent record labels striving to make a world full of music.
Write a business plan
A business plan is a document where every step of your business decision and operation will be elaborated. It’s safe to say that a business without a plan is destined to fail. You might think that only expert entrepreneurs can write a solid record label business plan, but that’s not the case.
If you aren’t familiar with writing business plans or you are new to the whole industry, you can always use templates that will allow you to have a successful start. A solid business plan will help you find investors, so you can improve and grow your business.
Give your record label a name
As with any business, you will need to come up with a name for your label. Make sure you come up with something that is unique and has never been done before, and at the same time represent the music you are trying to promote.
For instance, don’t name your label “Pink and Bubbly Records”, if you plan on releasing post-punk revival albums.
However, before you decide on a name, make sure it isn’t already taken by another business. Keep in mind that each US state has its own laws, requirements, procedures, and costs for setting up a new business entity. When you decide to create a new business entity, every jurisdiction requires that the company name is different from any other name currently existing on their register.
Check available business names before you file the paperwork. If you had a name in mind that is not already on the list, that’s a good start. Register the name and start working on building a brand.
Choose the music genre
Major labels don’t have to worry about specific genres as they can publish anything they want. However, indie labels usually focus on the specific genres that are helping young and striving artists on the path to stardom.
Which type of business will your label be?
When registering your business, it is important to choose whether you want to become the sole operator of your business or consider working with a partner. If you want to separate yourself individually from your business, you can choose to operate as a Limited Liability Company (LLC).
If you opt to operate as an LLC, your record label will become a separate entity and in the event of it failing, you won’t be responsible for paying off debts.
Build a strong online presence
The majority of the youngsters are online and that’s where you need to be as well. Get a domain name and build a strong website that can allow potential customers to get in touch with you about publishment.
Social media is also a must as you can create a whole strategy that will help you with acquiring new young talent for your record label. If you are interested in growing your indie label fast, you can allow young artists to visit your headquarters and walk them through the whole process, from recording to marketing and touring arrangements.
Final thoughts
Art is everywhere around us, and people that do their best to promote it deserve a medal. If you are one of those that see art in every aspect of life and you want to start a record label, follow these easy steps and watch as you put young talent on the world’s stage. Keep in mind that with the right marketing strategy you can improve and grow your business in no time.
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