I spent most of my time last week writing up my new report. It’s going to be titled along the lines of this: “How To Design A Winning And Profitable Music Business” and its one of the best pieces of work I’ve ever produced. (I’m releasing it in the first week of September and it’s only for e-mail subscribers). It’s going to blow you away and fill up any of the gaps that my first report left behind. Best of all to you, it’s going to be free.
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A profitable music business is a winning music business. A successful music business needs to be well planned - it needs to have a good operations, marketing and finance plan. Let’s look at each in brief:-
A good operations plan will show what your music business will do to generate revenue - daily, weekly, monthly small gigs, conference and festival gigs, recording and distribution, workshops, teaching, etc. It will also detail your ideal way of operating your music business - will you have an office or will you outsource? It will also answer who you want to have on your music business team - your PR, your booking agent, your online community manager, etc
A good marketing plan is required to show how you get exposure for your music, your gigs and your launch. You should strategize for your online marketing efforts as well as what you will do offline.
A finance plan is all about creating a budget of what you spend and what you’ll make. Without a budget, any decisions made are risky. A good budget lets you see your business on paper so you can take calculated risks and no when to expand or employ staff or interns. My accountant often tells me that the success of my business is equal to how well I can understand the numbers on my cash flow sheet. He is right and I pass this advice on to you.
Although these are three main areas you must plan and execute to have a good music business, the foundation to all of this is having good music. Without good music and hooks, you probably won’t be anywhere near to a profitable music business.
A profitable music business also needs to have a good leader - someone who has a vision, direction and the passion and motivation to move forward and drive a team. A good leader in an independent music career is usually the musician him or herself - the musopreneur.
A musopreneur is simply a music business owner - someone who is in charge of their business and leads the decisions and strategy planning. A music business owner thinks and acts like an entrepreneur. He or she sizes up opportunities when they arise and makes a decision as to whether or not they will be taken on based on how they align with the overall music business strategy.
A profitable music business also needs to know how it is different from the rest. What are the strengths of your music business and what are your weaknesses? What is your niche? What makes you stand out amongst the crowd and what will make people remember you? You’ll need to know and promote what makes you unique from others who do similar work.
Having a winning and profitable music business is testimony to how well you can get ordinary people who love music to love your music. Read that sentence again. There are millions of artists and billions of tracks out there - how does yours hook and retain the attention of your listener and what will you do to aid this process? Once you have raving fans, then word spreads because people like to share things they love with others.
This article is far from complete because as we all continue to learn and grow, we’ll continue to understand the elements that make a business profitable. I want to know your thoughts.
Please share what you feel makes a music business profitable.
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As you’re reading this, I’m celebrating my partner Rupa’s birthday with her on a short trip to Barcelona. Follow us on Twitter. I’ll respond to all comments on this blog when I get back in 4 days.
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Hey Kavit
That sounds great! But what about those of us (and I assume there are many) who have to do it all ourselves? I’d love to have a PA, a booking agent etc. I don’t even have an accountant!!
Maybe that’s where I fall down…..perhaps one needs to invest in these people to GET somewhere! How does one do that though……
Money, a necessary evil….
Still, you’ll be aware I have been complaining of this for a long time now and you’re probably wondering why I haven’t “got it together” yet!!
Things are good though, with or without a lot of cash! =D
Hi Kavit,
Great stuff. You right about first having good music because there is just no room for mediocre talent, indies need to understand that its all about putting together great artists with great songwriters, a great team and great marketing/promotion. Understanding your niche is very important, there is no such thing as ‘my album caters for everyone’, coz I can tell you right now that my 10 year old sister might love the music but certainly not my grandma.
Would love to hear more from you.
Yours in music,
Arnold
Dreamer Music Entertainment
I’ve found that the harder I work and the more pro-active I get with mine and my bands ‘career’ the more people just come to me. We went a few years just booking shows ourselves….I heard a rumour of an agent in town who was looking for acts so I hunted down and annoyed a few people until I got the number and rang her. She came to watch us..Loved it…and took us on. The harder we worked, the harder our agent works to book us some great gigs.
People can smell commitment from a mile away..I’m sure.
Thats why I love reading your stuff Kavit. It’s a constant reminder to keep going and going and going.
Hi Kavit,
I´m in Barcelona.. if you want to meet some cool people in biz here or just need me to hook you up some party for your friends let me know.. I´ll be in and out of the studio. Your upcoming article sounds great.
Best
carlos
you are right in every area!
i can not add or subtract from!
they all become overwhelming to an independent.
that means…they do it all or need the resourses, cash, to have others do it for them.
but if you write out the list of do’s….wow!
there are a plethra….tons……many1
so i look at the first tangible items that i know i can and will need to do!
creative….great songs, great recording and great artwork
web site/my space and youtube…..all done with a touch of present day class!
and to have at least a 20 to 45 minute live set that will mesh with the youtube video…and will help fill in the gaps as an artist.
those three, can be achieved!
but most of the artists i notice and talk to can’t even get the first one done half way…their sound is yuk!
so like you said…they swallow their own hook,line and sinker!
enough for now,
and thanks for the peek!
mark
Kath,
You make a good point. Derek Sivers has started a great service called MuckWork - get others to do the “dirty” work for you by paying them, but its people who know their stuff at low cost. Again cost, so let me think about what you pose and I’ll write soon.
Glenn,
Great work - I’m inspired; and others should be too. I’m a big believer in what goes around, comes around. It’s all fine and dandy finding others to do some work for you but if you don’t put in the energy and drive as the leader, how do you expect them to? Thanks for commenting and the compliment.
Carlos,
Read the message too late. My apologies. I’m back home now. Let me know when you’re in London.
Mark,
It’s a commitment and determination issue, isn’t it? Thanks for pointing it out clearly.
- Kavit
Hi Kavit, you really do inspire with your writings. I personally want to thank you for sharing. I often refer to previous postings and it’s keeping me going as I’d given up once before and would find that impossible to do now.
Keep on doing fellah.
Love and music.
Al.
p.s good luck to all of you, great to be part of this.