As more musicians, artists
and songwriters are navigating the music industry landscape as “independents,”
it has become important for them to think of themselves not simply as
artists, but as entrepreneurs and industry professionals. To be successful as independents,
they have to think like the “majors” and institute strategic action plans to
ensure that their creative endeavors will become successful ones.
Music entrepreneurs need
to think smarter to achieve their goals. They will need to research the industry,
learn its nuances and strategize how they will be able to rise above the
thousands of other music entrepreneurs seeking that same slot on Billboard,
that same placement in “Grey’s Anatomy” or a monetized featured spot on
YouTube.
Image:
www.musiclessonsresource.com
One approach to initiating
that strategy is to formulate a business plan. According to Peter Spellman,
Director of Career Development at Berklee College of Music, a business plan is
“a map to the fulfillment of your goals. Whether you're a band, soloist,
production house or some other business, a plan can turn foggy notions into
operational strategies, hunches into actions, dreams into reality.”
Mr. Spellman, who is a
musician himself and drummer for the band Friend Planet, is familiar with the
struggles of the besieged musician, and is dedicated to helping musicians get a
handle on the business side of the music business. He has written a
number of books, including “The Musician's Internet: Online Strategies for
Success in the Music Industry,” “The Self-Promoting Musician:
Strategies for Independent Music Success” and a number of other music
business develop journals.
Image:
www.berkleepress.com
His blog, Music Business
Solutions, outlines techniques for writing business plans that meet
the needs of music business professionals. He emphasizes the need
“to have a grasp of … record company structures, music publishing, recording
contracts, distribution and music media, and how all of these work together to
bring music to people.” In other words, do your research and learn all aspects
of your business. Next, he suggests that you find your “niche.”
What sets you, your music or your company apart from the competition? Why
would an investor, sponsor or benefactor choose you and not the other
guy? According to Spellman, “The answers to these questions will help you
‘position’ yourself to most effectively promote what you're selling.”
Noor Shawwa, who
taught business strategy at Concordia University in Montreal before creating a
program for aspiring entrepreneurs at Bayt.com in Dubai, tries to simplify his
approach in his blog, Expert Enough.
“A business plan
has three essential building blocks,” he says. “There is the analysis (market,
industry, competition), action plan (people, operations, sales &
marketing), and projections (traction & financials). You and
your investors will want to have a balanced coverage of all these parts to
ensure that your business does well.”
He agrees with
Spellman on the importance of research. “The more you understand your
customers, business, and competitors, the better your success chances are,” he
says. “Make it super clear who your target customers are… know how your
industry works… and know how you stack up against your competitors in the eyes
of the customer - differentiate yourself.”
Financial projections
are a key component in any business plan, and both experts emphasize an honest
and realistic assessment of financial projections, although Shawwa adds “make
smart projections. Whatever you do, don’t make top-down projections.
Instead, find out how many potential customers out there are relevant to
you, and then incorporate customer build-up into your plan.”
Kevin English of Music
Think Tank added an item particularly noteworthy when discussing the music
business – marketing. He advises, “Take
your time on this section, because these programs will make or break your
release. Marketing is the act of raising awareness. If no one is aware, no one
will buy. That being said, the majority of your total budget should be spent on
a variety of marketing tactics that make you more visible to radio, press, live
venues, retail outlets and on the internet.”
Take a moment to
learn more about business plans, and how to utilize them in your ultimate
business strategy.
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