Are you about writing a business plan for a record label? If YES, here is a sample record label business plan financial projection, cost, budget & forecast suitable for investors.
- Executive Summary
- Market Analysis
- SWOT Analysis
- Financial Projection
- Marketing Plan
- Marketing ideas & Strategies
Record Label Business Plan – Financial Budget & Expenditure
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.
Record Label Business Plan – Financial Projection Sample
- 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;
- 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
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.