Right from the very beginning of the music record industry, independent record labels have been present. “Starting a record company”, was one of the biggest problems in the past, but now these problems seem distant, due to the information age.
Now before we are about to start any thing, we need to learn a few skills required for that. Learning to start a record company was difficult in the past, but has become gradually easier than the past days due to the advancement of technology. Considering the equipment plays a major role in starting a record company. The equipment in the late 80’s & early 90’s used be lot of bulky, used to cost more money wise. Because of availability of newer methods & technology, the equipment size has shrunk & the cost reduced so that it can be well within reach.
After the equipment is sorted out, where would you start your record company? There are two options for consideration, one is your home & other is a rented space. “Starting a record company” from your home itself can cut down your costs substantially, but you have to see how is the setup of your house, also make sure that you don’t disturb your neighborhood. If the option of starting a record company at home doesn’t suit you then renting a place as your studio will be feasible.
As you are learning to start & manage a record company, you also need to know the side of your label as a business & contracts. You have to look for contracts with artists, musicians, composers etc. Also you need to offer them a few commitments required from their part. Also you will define how many solo’s or albums you will release. Calculate the royalties which can be split between the owner & the artists.
Funding is the most key aspect for the start of any business, is also required for starting a record company. You can use your own capital or savings, obtain overdraft from the bank, take a loan from the bank, relatives or friends. Loans can be easy enough to obtain, if you are able to convince enough that you will be starting a record company.
Initially during the start up of a record company you have to make sure that you have a solid business plan, and make sure that your starting budget is not very huge, keep it low, the lower the better. A few questions of prime concern are : how do you manage your expenses? Where from can income be generated? However, getting educated is the key during which one gets to know the ins & outs of this & you will be a step closer to success.
Networking forms the very base of starting up record company, make sure that you pour a solid foundation in this regard. It is known that “It’s not what you know, but who you know?” which forms the key. Make contacts worldwide, they always pay off in the long run.
Introduction & positioning for your record along with producing & selling your records will be time consuming in the beginning. How quickly things progress for you will depend on the total time inputs which you will be able to provide for the record label. It will also depend on what quality & what genre of music you produce.
Once you have done the most important things as above nothing can stop your success.