How to Start Your Own Music Production Business

Wednesday, April 17, 2013

How to Start Your Own Music Production Business

Starting a music production company requires experience, skill, a talent for analyzing music, and an investment in recording equipment and studio space. Production companies offer many services, so you must understand what a production company does and define your business objectives. A music production company records music and manages the process from start to finish for artists they contract with. This differs from a standard recording studio in that the producer provides artistic and technical input, and may also provide recording and production services free or at reduced studio rates in return for a share of future music sales.

Step 1
Gain production and recording knowledge by taking degree or certificate courses in music production, or securing a job or internship at a recording studio. Expertise in every facet of the recording process and music business is vital to your success.

Step 2
Register your business with local and state government offices, and obtain a business permit and tax registration certificate. Check with your local town zoning office and inquire about legalities if you plan to build a studio in your home. No special business license is required for music production companies.

Step 3
Set up your office with computer, phone, fax and office supplies.

Step 4
Purchase recording equipment and set up your recording studio space. It is recommended that you consult a recording studio designer or consultant, as studios and equipment can be enormously complex depending on the type and size of your operation.

Step 5
Purchase printed marketing aids from a local printer, such as business cards, brochures and stationery. You may also wish to design a website and purchase a web hosting package and domain name for your business from a web hosting provider.

Step 6
Purchase production contracts from a music contract company or have an entertainment attorney draft contracts for you.

Step 7
Create a list of music industry contacts, which will include online and physical music retailers, distributors, record companies and radio stations. You will use these contacts to make inquiries into selling and marketing music you've produced.

Step 8
Contact local and regional recording artists and market your music production services. When you find an interested artist, negotiate the production terms and execute a production contract.

Step 9
Contact CD manufacturers and purchase market-ready CDs of your completed recordings.

Step 10
Send completed recordings to the music industry contacts on your list, as well as music magazines and online music sites for reviews. Your goal is to promote the music and ultimately secure a deal with a record company, who will take care of the distribution to retail outlets and radio stations.

Things Needed

Formal education or real-world experience in music production
Office with computer, phone, fax and office supplies
Recording equipment and studio space
Printed marketing aids (business cards, brochures, stationery)
Website and domain name
Producer contracts
Contact list

Tips

Music production companies primarily work with other artists, but some produce their own original music. Decide on which business tact you prefer, or you may work both angles.
If you lack the funds for equipment and space for recording, partner with a local recording studio for your projects. You will perform the same production functions, but will benefit by limiting your monetary investment.
The music business is market-driven. It may be tempting more enjoyable to produce musical styles you prefer, but it makes better business-sense to deal with music that is marketable.

Warnings

It is very important to know exactly how the music business works. Even the most talented production company risks rejection and business income loss by not going through the proper business channels. Courses and books are available to help you navigate this complicated business.
Avoid trying to offer too many services beyond the scope of a production company. One the recording is finished, and music sale and broadcast contacts are made, you are entering into record label, promotion and distribution business territory. While it is possible to function in these capacities with knowledge and experience, concentrate only on production aspects at first to avoid over-extending yourself.

References (4)

Resources (4)

Photo Credits(2)

Mixing Desk image by peterord from Fotolia.com
Music Production

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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Wednesday, April 17, 2013

How to Start Your Own Music Production Business

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