Writing a business plan is essential to getting your music business started. However, people involved in creative professions are often repelled by the business side of their craft. Music Business Solutions suggests you think of the business plan for your musical enterprise as a way to, "clear the way for creative thinking" (Reference 1). Writing a business plan is a great way to get back to the music, confident in the direction of your business venture.
Instructions
Developing the Business Plan
1. Understand the industry. The music industry is complicated for a beginner. According to Music Business Solutions, it is important to understand the structure of recording companies and the details of the standard contracts you will encounter (Reference 1). Study music industry contracts and product rights issues. Utilize this information to determine the future operating costs and profitability of your business. Ask professionals working in the music industry to help you learn about the industry issues you need to understand. Take detailed notes for your business plan.
2. Research potential customers for your music business. Think about the kind of customers you want to attract to your business (Reference 2, market analysis). Make a list of artists that reflect the style of your musical interests. Consider the characteristics of people who listen to those artists. Investigate the advertising campaigns that seem to attract them. Analyze the market in your niche of the music industry. Develop an advertising plan to target your market. Think about retailers and music news sites that cater to that niche market and plan ad placement in those locations (Reference 2, market analysis).
3. Write the marketing and financial sections of your business plan. Use market research to write a summary of your plans to reach customers. Explain how the research supports the advertising plans you have developed (Reference 2, market analysis). Estimate the profitability of your music business for the financial section of the plan. Support financial estimates with the demographic analysis of potential customers. Assess the purchasing habits of your target group to develop an estimated annual income (Reference 2, market analysis). Provide details on the amount of capital available to fund your start-up and when the business will become profitable. Include details on expenditures for advertising and equipment. Plan financial projections to cover the next 3 to 5 years of the business (Reference 2, financial reports).
4. Write individual sections for your product description and organizational structure. The Small Business Administration suggests you focus on how your product or service will improve the current market (Reference 2, service or product line). Is your customer service superior to the service offered by your competitors? Does your product address unmet needs in the market? Think about ways your company can answer these questions in this section. Write a section explaining the details of your management structure. Briefly introduce the members of your management team and their qualifications (Reference 2, organization and management). Write an executive summary to interest readers in the entire scope of your plan. This is the correct place to explain the philosophy, purpose and mission of your company (Reference 2, executive summary).
Tags: your business, business plan, market analysis, music industry, Reference market