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Starting a Record Label – How Much Does It Cost?

Do you want to know exactly how much it cost to start an independent record label? If YES, here is a detailed cost analysis for starting a record label and raising finance.

Having provided you with a:

  1. Record Label Industry Overview
  2. Market Research and Feasibility
  3. Record Label Business Plan
  4. Record Label Marketing Plan
  5. Record Label Name ideas
  6. Record Label Licenses and Permits
  7. Cost of Starting a Record Label
  8. Record Label Marketing ideas

We will consider how much it cost to start a record label from scratch including the operating costs.

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.

How Much Does It Cost to Start a Record Label?

On a 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.

  • For the purchasing of microphones and head phones, you can go for Neumann u87; it will cost you about $2000 or more.
  • For mixers, you can go with Euphonix or any other brand of your choice. But Euphonix seems   great (especially with is sweet sounding preamp and on board compressors). It will cost you about $30,000 or more.
  • On the alternative, you can choose to go for purely digital and skip the mixers altogether. This means you will need a good audio inter face with multiple inputs. 12 stereo pairs minimum. The emu 1820m is a good one.
  • The cables (nothing else but mogami cables), are the best audio cable in the market for now; you can explore other options.
  • You would need to create budget for pre amp. Avalon are perhaps your best bet and you can get it for about $2500 or less.
  • You should also prepare a good budget for monitor; monitor is one of the most important gadgets you would need in starting your own record label / record studio. You can go for a Yamaha monitor; it is simply one of the best you can get in the market.
  • When it comes to acquiring a computer, you just have to budget for a high end computer designed for such purpose. Your computer should of very large memory, high end graphic card, and 2.6 GHz quad core processor and you can search for a good software to work with.

If we are to give an estimate on the amount required to start a record label, then the following figures will apply;

  • Starting a Small Scale Record Label Company will cost an average of $75,000
  • Starting a Medium Scale Record Label Company will cost an average of $120,000
  • Starting a Large Scale Record label will cost an average of $500,000 and above.

Financing your Record Label

When it comes to generating start – up capital for a business, entrepreneurs usually exploit all the avenues available to them. No doubt raising start – up capital for a new business might not be as easy as it sounds, but the truth is that if your business idea is highly workable and promising, you won’t struggle to raise the needed start – up capital.

The first thing to put in place before sourcing for start – up capital for your business is to draft a detailed business plan. With a good business plan, you can easily convince investors to invest in your business. The truth is that no bank gets to give you a loan if you don’t have a good and workable business plan in place. There are several options when it comes to raising money to finance a start – up business. Some of the options are;

  • Raising money from personal savings and sale of personal stocks
  • Raising money from investors and business partners
  • Applying for loan from bank
  • Applying for business grants and seed funding from donor organizations
  • Sourcing for soft loans from family members and friends.
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