Do you want to start a music management company from scratch? Or you need a sample music management business plan template? If YES, then i advice you read on.
Experts have said that music is one universal tool that is capable of bringing people together. This is irrespective of the skin colour. There are different music genres and it is the duty of a music management company to manage any artiste that does any type of this music.
What is a music management company and what are the roles expected of this company?
A music Management company simply put, is a company that handles the affairs of a music Artist. The music management company plans and executes all the steps needed for the success of Artiste. It is the music management company that will determine the success and failure of a music Artist.
Furthermore, a music management company earns 15% to 25% of the royalties their artist make and so will do everything possible to ensure that a music artist succeed; because more royalties means more money to them. It is also worthy to note that a music management company is also known as a Record Label.
Some of the duties of a music management company include the following. Recording and production, licensing, etc. Crowd funding, as well as sealing endorsement deals. A record label that is able to do this is such a one that can be said to be a successful one. All over the world, artistes who have the backing of their recording deal in this ramification are termed really successful.
Therefore, if you intend to start a music Management Company of your own, then the following tips would be most appropriate.
Starting a Music Management Company – Sample Business Plan Template
To ensure the success of your music management company, you have to develop a well defined business plan from the outset. The business plan contains every details of how the business will run, how many artists do you wish to start with at first?
Where will the music production and recording take place? Will you build your own studio or will you lease time from other studios to handle recording and mastering? What process will you take to bring your artists to limelight? How much do you estimate will be enough to run the business before the royalties start coming? And how do you intend to raise the capital?
2. Register a Company
As a music management company, you will need to sign deals and agreements with big companies, and most companies prefer to sign business deals with legal entities, not just private individual. The process of company registration is not a strenuous one; the Company Registration Bureau in State is the department responsible for company registration. You need to pay them a visit and find out requirements needed to incorporate a company.
Also, you need to visit the IRS department to acquire your Tax Identification umber (TIN). Some States will not allow your operate your business without a business insurance; visit an insurance company and choose a basic business insurance to cover both your company and third party from liability.
The next step is to secure a location that will serve as the company’s official office. If you have the budget to do so, you can include a studio in your office. With a recording studio in your office, you won’t need to pay for recording time in other studios; you can also make money by commercializing the studio that is permitting other artists that are not in your Record Label to use your studio for a fee. An interior designer will be needed to design the interior of the office to give it a musical theme or feel.
One person cannot effectively run a music management company, you need workers in various departments to effectively do so; you need a receptionist, a voice trainer, a music producer, Music Writer, Public Relations personnel, and accountant to manage the cash flow in the company.
5. Audition Your Artist
You don’t just accept anybody that claims to know how to sing into your Record Label or music management outfit, because as you already know, the success of your company will depend solely on the success of your artistes. You need to carry out an audition to help you choose the best artistes to work with.
Any artiste you choose must have the following qualities. He must be able to motivate himself to keep going even when the green light looks far away. The artist must be creative to come up with songs that the public will love and must have the ability to work with people.
6. Promote the Artist
It is the duty of the music management company to promote the artiste in all ways. Some of the ways include; sending songs to online platforms like www.itunes.com , www.amazon.com and other musical platforms where they can get the best exposures. Others include; giving sound tracks to DJs to play in night clubs and also radio DJs.
These are all the tips that you require for a start to get things rolling. Be sure to always look for other and better ways to get better at what you do. You may also want to take a cue from those who have walked this path before.