People often pose the question, “Which came first…the chicken or the egg?”  Perhaps we’ll never know the answer, but what we do know is that without one (the chicken or the egg) there couldn’t be the other.

It’s the same way with the music business.  Though your drive to be creative is what brought you to the music business, without knowing “the business” your music might as well not exist, because no one may ever get to hear it.

But how do you go from making music, into making music your business?  You plan.  You plan the same way architects build houses, the same way coaches call plays, and the same way musical pioneers before you, like Mozart, The Beatles, Berry Gordy, and "Poppa" Jackson (The Jackson 5), did it.  They all planned their musical roadmap to success.  

What does that roadmap to success include?

·         Good music, artists, musicians and producers. Not the kind of good that makes your grandmother say “that’s good baby,” but the kind of good that makes a perfect stranger who normally doesn’t listen to your type of music stop and tell you “hey that’s a good song.” 

NOTE: Learn the skills it takes to become a good musician, songwriter, engineer and producer.

·         Opportunity.  Opportunity can be elusive in life and in business.  You have to put yourself, your in a position to seize opportunities when presented.  The Music Business Co-op is a huge opportunity.  Maximize the resources available.  Join online chat groups, join fan clubs, enter every music contest you find, send letters to executives at independent records labels and everything else you can think of to create your opportunity for success.

NOTE: Opportunity is elusive so make the best of every chance you get to showcase your talent, artists and company.

·         Planning.  This includes planning your artist selection and development, your marketing, promotions, touring, legal, accounting, publishing and distribution.  Each area requires its own set of considerations that you combine into a business plan.  You create your plan so that you not only reach your goal of success in the music industry, but you maintain your success beyond the time you’re the hot artist or company.

NOTE: Research and study every aspect of the music business.  This isn’t like school where you get a grade after studying, it’s your life and the more you know about the industry you’ve chosen for your life, the better off your life will be.

Why write a business plan?

A business plan will do several things for you and your company:

1. It will help you identify the real costs of starting, marketing and running your company.
2. It will help you define the best opportunities for you to exploit your artists’ talents.
3. It will expose your weaknesses in management, distribution, etc.
4. It will allow you to track your success over time, comparing your planned success to your actual success.
5. It will let investors and bankers know that you are serious about operating a music business and not just cutting records and praying that a song becomes a hit through osmosis.

What are the components of a music business plan?

A music business plan is no different than most business plans, except for the added detail necessary to explain your market, distribution, marketing and promotions.  The plan will consist of:

·         An Executive Summary or overview of the entire plan (usually one to two pages).  You have to “nail” the executive summary or the investor/banker will not bother to read the entire plan.

·         History and Background of your company that describes who owns the company, his/her/their experience, the genre of music, the opportunity you see to enter the industry and why those things will make your company and artists more successful than the next guy.

·         Products and Services. Will you just do Hip Hop? Will you do R & B, Grunge, Country and/or Metal?  For example, your products include the CDs you will produce, artist merchandise and live shows, along with producing, publishing and distribution for other companies.

·         Operations.  Who will run the company, manage the accounting, legal issues, etc.

·         Marketing and Promotions. How will you sell the company and artists to the public and how will you promote the company and artists? 

·         Distribution and Publishing.  Will you start your own distribution and publishing companies or will you rely on an existing company for those critical needs?

·         Financials. You must know, like the back of your hand, your costs down to the nearest penny.  The costs for production, pressing, promotions and artist development.  Ask Hammer about managing costs and understanding his financials, and see what he tells you.   

You should keep in mind, as was stated earlier, that truly successful musicians are successful because they planned for their success in the music business and remember….

“Proper Planning Prevents Poor Performance!” It's true in life and its true in the music business.

Norman D. Roussell, MBA