This gives indie labels complete freedom in selecting, developing and promoting artists based on what a niche customer group wants to hear, rather than developing music for the masses.
Strategic Analysis with current research!
The Record label, Inc. The Company was founded in by John Doe. The business produces artist tracks and downloadable media for each production completed by the business. Most services related to the mixing, engineering, and recording of music will be kept in house, which allows the business to have maximum efficiency of its capital.
To achieve these goals, The Record Label will engage an expansive traditional and online marketing campaign to promote album sales, online sales of downloadable music, and of the artists themselves.
The third section of the business plan will further describe the services offered by the Record Label. The interest rate and loan agreement are to be further discussed during negotiation.
Management will continually strive to supply the market with music that is in style and popular among its targeted demographics. Doe has more than 10 years of experience in the recording industry. Through his expertise, he will be able to bring indie label business plan operations of the business to profitability within its first year of operations.
Doe expects a strong rate of growth at the start of operations. Indie label business plan are the expected financials over the next three years. Doe intends to implement marketing campaigns that will effectively target individuals within the target market. The Company is registered as a corporation in the State of New York.
Below is a breakdown of how these funds will be used: Doe is not seeking an investment from a third party at this time. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Record Label.
Based on historical numbers, the business could fetch a sales premium of up to 3 to 7 times the previous years earnings. The business intends to provide all of the services needed to record, master, and distribute its proprietary music library.
After a new artist or music group is found, the business will actively begin the production of an album and a music video. The most economically viable single s on the album will be released for immediate distribution among iTunes, radio stations, You Tube for videosand for release among prominent industry executives.
The Record Label will also use outdoor street teams as a guerilla marketing tactic. This strategy has been very popular in the music industry and has been met with tremendous success.
Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid, at which point the economy will begin a prolonged recovery period.
However, the Record Label will operate with great economic stability as people will continue to purchase music despite deleterious changes in the economy.
There are approximately 38, people employed by the industry. The industry has had some pullbacks in recent years with the advent of high speed communications, which has substantially increased the piracy of music on a worldwide basis.
The advent of high speed communications has been both a positive and negative for the industry as record labels can now distribute its products much more quickly, but they are now susceptible to music piracy.
However, many companies have developed new technologies that seek to stymie the illegal distribution of recorded music.
In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc. This is primarily due to the fact that there are low barriers to entry for this business. Additionally, with the advent of computers, it is now far easier to open and maintain sound recording and record distribution operations.
As such, the market place for music and musical production has become highly fragmented among small and medium sized market agents. Management estimates there are approximately 30, independent labels that have their own production and distribution capabilities.
High speed Internet and broadband communications have also increased the fragmented nature of the market as many online music sites that specialize in new and upcoming artist distribution have increased significantly over the last five years.
Companies like You Tube, Flixya, Grupo, and Veoh are now catering to the new artist movement by providing a free distribution platform to promote new music and music videos. Below is an overview of the marketing strategies and objectives of the Record Label.
This campaign will include the use of traditional print and media advertising as well as the Internet.This plan for a record company is quite detailed. The company plans to produce artists on four separate record labels.
These labels cover a broad spectrum of the music industry, from Jazz, to Contemporary Christian music, to Rock. Product Mix. Indie labels differentiate themselves by the mix of artists they sign and promote, making this a crucial section of an indie label marketing plan. Free Record Label Business Plan For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials in this complete free business plan are completely fictitious and may not match the text of the business plan below. [For more detailed strategies for becoming a record label of the future, check out the Hip Hop Record Label Business Plan available at nationwidesecretarial.com] Walt Goodridge is the author of several books including Change the Game: How to Launch, Grow and Really Make Money with Your Independent Hip Hop Record Label.
Record Label Business Plan To Start A Successful Music Company! This section helps you define the general purpose of your music company, stating the main reasons it is in business, while it also serves as a reminder to the public and the employees within your company what you and the founders envision.
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