There are a number of record companies today and each one operates differently. Some record labels are huge companies that have hundreds of acts to promote. These are the labels that carry the most popular and commercially viable rock bands and singers. They can offer artists large sums of money to sign with them and they have the experience to promote them heavily. Their business model has dominated the recording industry for years, but that has been constantly changing.
Rock artists and bands have found a way to get around all that record label waiting by self-releasing their own music. The good news for bands is that it’s getting easier to do this. The downside is that it’s not cheap and it’s not easy. It is a serious business venture that can make or break a person financially. Still, if the risks are well calculated, the marketing is done well, and the music is good, there is a strong chance of success.
Starting with a small budget? Okay, you really don’t need to have a gigantic bankroll to get started. With just a few hundred dollars, more than one small record label has sprung up. Investors may also be persuaded to contribute funds to the start-up of a new record label. However, to get them to invest, expect to produce a solid business plan and good future income projections.
Most small record labels start life as a way to promote and sell a single act. The label focuses all its attention on the albums and songs of that artist or band. This narrow-minded approach works well for new labels, giving them time to learn the rules before branching out. Over time, the record label has the potential to expand and grow, accepting new talent to promote.
There are several things that need to be done before a record label can start producing work. This is the time to plan for the future of record labels. All businesses benefit from a comprehensive business plan and a record label is no different. It’s important to write everything down and work out all the details of how the tag will be executed. Setting realistic goals and accurately projecting income and expenses not only steers the business toward its goals, but also helps attract future investors.
An attorney or a trusted source should be consulted to create contracts and other legal documents. Whether it’s documents that will be used by the company or those that need to be signed, have someone experienced review them. These things are nearly impossible for laymen to read and understand, so leave it to a professional and you’ll be less likely to run into problems.
After the business plan has been developed, one of the first things would be to choose a name and maybe even a logo for the record label. It is best to choose a unique, short and snappy name. Consider choosing one that suits the genre of music that will be promoted. It is of utmost importance that any name is thoroughly investigated. If the name is already being used, it’s time to think of something new. Infringing on someone else’s trademarked or copyrighted name is a bad first step that could cost a lot of money.
A unique record label logo or company image can make all the difference. Images speak to people and the record label logo should reflect what the label stands for. Over time, as the record label grows and becomes more public, this logo will become more and more recognizable. Consider how famous the ‘Sun’ record label has become over the years. It’s all about impressing the public.
To set up a bank account for a record label, you need to have legal proof that the business exists. The fastest way to do this is to file what is called a DBA or Doing Business As form. These forms are very short and are available at the courthouse. It’s as easy as filling out a form, signing it, and giving it to an employee to file. DBA forms are usually sufficient as identification for the business and a bank account can be created for the business. Having a business checking account will make paying musicians and vendors much easier. Another benefit is that it will appear more professional from the start.
Once the record label has been created and the financial matters settled, there is nothing left to do but get down to business. One of the main functions of record labels is to promote artists and their music. A small record label has the potential to pick up old numbers from talented acts, just like big musicians do. Unlike big companies, they don’t have millions of dollars to spend. That just means they must be smart entrepreneurs, great leaders, and resourceful marketers.
Almost everywhere there is a local live music scene. This is one of the best places out there to find new talent. Many mega rock stars were discovered while performing in a dark place. Bands that play at this level are hungry for attention and willing to work for it. To find the best talent, a new record label must have representatives everywhere the music they sell is played live.
It’s important to take the time to talk to any up-and-coming singers or bands you come across. Some of them will be under contract to another label, but give them your card anyway, things change. Others won’t be ready to sign with a tag, they get a card too. And then there will be a pair that is ready to sign on the spot and these are gold! Do your job right for these early customers and your record label could get noticed.
Over time, your ability to attract new talent to your label will depend on your performance. Do a fantastic job promoting the artists and their music. Your job is to sell them, period. Send press releases, do interviews and advertise online. Set up a website for your record label and advertise your artists there. Take any and all CDs you produce to independent record stores and anywhere else that accepts them.
Develop a solid marketing strategy that works and works with it. Remember to keep things simple, stick with artists who work in the same genre at first. You can expand as you grow and learn about the business. Get excited about the music your new record label is putting out and tell the world about it.