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Music Business Plan: A Guide for Music Industry Professionals

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A music business plan is crucial for any music industry professional looking to launch or grow their business. It provides a snapshot of the current state of the business and lays out a clear growth plan for the next five years. This is essential for understanding where the business is at and setting achievable goals for the future.

Check out our article below to learn more about creating an awesome music business plan and get a template.

What is a Music Business Plan?

A music business plan is a comprehensive and detailed document that outlines the goals, strategies, and financial projections for a music-related business. Whether it's a record label, music production company, artist management firm, or any other music-related venture, a business plan provides a roadmap for success. It helps to attract investors, secure loans, and guide overall operations.

From market analysis and competitive research to marketing and distribution strategies, a music business plan covers every aspect of the business to ensure clarity, direction, and long-term viability. It is an essential tool for anyone looking to establish or grow a music-related business in the highly competitive and dynamic music industry.

Why is it important to have a music business plan?

A music business plan is crucial for an artist's success in the industry for several key reasons.

It serves as a blueprint for the artist's career, outlining their goals, strategies, and financial projections. This document helps attract investors by showcasing the artist's vision, potential for return on investment, and realistic plans for reaching their target audience.

A well-crafted business plan guides decision-making by providing a clear direction and framework for the artist's activities and investments. Furthermore, it defines the artist's brand, including its image, style, and target market, which is essential for standing out in the competitive music industry.

In summary, a music business plan is instrumental in attracting investors, guiding decision-making, and defining an artist's brand, making it essential for achieving success in the music industry. Therefore, having a solid and comprehensive business plan is crucial for any aspiring musician or band looking to establish a successful and sustainable career.

How to Fill Out Your Lean Music Business Plan

In this guide, we will walk you through the steps of filling out your lean music business plan, from identifying your target audience to mapping out your marketing and sales strategies. 

We'll be referencing sections of the US Small Business Administration's ( SBA ) lean business plan template . Despite its generality, it works as a music business plan template. 

Aspects of this guide relate to the traditional business plan, which we will discuss later in the article. 

Business identity

A business identity helps your business specify exactly what you offer. Both the single-page lean plan and the traditional plan place importance on your identity. Let's say, for example, you're a business-owning musician who provides audio for creatives in the media industry. Here's how your identity might look:

Our business identity revolves around providing high-quality music and sound effects for TV programs, film industries, commercials production companies, video game developers, corporations, and event organizers. 

Through the lean template, try to identify your business in under one paragraph. Then, using the traditional template (see below), expand on that identity. Things like your mission statement, which we visit later, are an aspect of this.

The problem you're trying to solve

All businesses are problem solvers. Record labels help musicians with distribution, while music teachers help provide the next generation of musicians with a strong foundation. 

Naturally, you might wonder how this applies to musicians. Just saying "entertainment" feels a bit weak. There are bands, like Rage Against the Machine, who make music to push a movement. But if you're not part of that crowd, what do you put?

So, think about why you got into music-making in the first place. Any professional musician should think about who their music appeals to and what they want people to feel when hearing their music. You can then say your music solves that problem in a cheesy reminder that you think about more than what shows up on your financial statements. 

If you don't want to get too corny, think about who your music will most appeal to. Then, you can say what your target audience is. Think of something like this:

Creating music for young men and women that will entertain them and inspire them to explore challenging topics.

This problem-solving might feel generic, but you'll know your fans and why you make music. So, stay focused on that.

Solution your business presents

Once you consider the problem your business solves, you need to state how you solve that problem. Again, this is much easier for music industry professionals who work in support roles. Music distributors solve the problem by having direct connections with other distributors, while music marketers help bands reach out to fans via multiple social media platforms. 

As someone who makes music, your solution is the creation of music. So, ask yourself how the creation of your music solves this problem. Here's an example based on our situation above:

Our band writes music that delves into mental health struggles based on personal experiences and how we overcame them.

You might think that doing this as a musician feels silly, but think of it as a reminder. One of the reasons famous musicians like David Bowie and Tom Morello were so successful is focusing on how their music helps people. 

Competition 

Competitive market data varies depending on the territory you plan to target. For musicians and bands, this might involve bands in the local area and those in future touring locations. For musicians, the competition can also be a list of potential collaborators.

For everyone else not making music, other record labels and music production companies are just competition. Whether you can collaborate with them or not, you'll want to differentiate yourself from all the other options out there. Being another "me too" music business will make it easier to forget you. 

Using the lean small business plan, you'll want to stick this to two or three sentences. Be very general, knowing you can also expand using the traditional business plan. Here's an example of a made-up Tennesse company: My Music Production & Management: 

The competitive landscape for music production companies in Tennessee includes My Music Production & Management, Genre Music, and Retro Recording & Productions. My Music Production & Management offers a wide range of services, including music production, artist management, and music distribution. 

Revenue streams

Revenue streams come from various sources. A business plan reminds you of those sources so you can stay focused. As a musician, your income can come from many sources. Below is an example you can use under the lean business plan:

As a musician, my income comes from paid gigs, teaching music lessons, instrument repair services, and recording sessions. To ensure financial stability and growth, I plan to diversify my income by capitalizing on these different opportunities.

Your revenue streams will differ as a record label or other kind of music business. Like musicians, your revenue streams can vary. However, as a young business, you may specialize in specific areas. You might work on creating merch or distributing digital releases. 

Marketing activities

Marketing activities focus on how you plan on reaching out to different sources. For many new music businesses, this involves outreach through social media platforms. Here's an example of what you might include in your business plans:

Our marketing activities will primarily focus on building a strong online presence through social media and regional publications. We plan to utilize platforms such as Instagram, Facebook, Twitter, and TikTok to engage with our audience and share regular updates about our music and upcoming events. Additionally, we will work on developing a press kit to distribute to regional publications and media outlets to garner publicity and reach a wider audience.

Bands can create electronic press kits (EPKs) that are prebuilt for members of the media. This makes it easy for journalists and members of the media to share content about you, such as a new album release. You can also consider how much you might pay for advertising. Digital marketing activities like those above are the first choice, as this activity uses advanced targeting tools based on what people search for and their demographics.

Marketing traditionally focuses on the four Ps: product, price, place, and promotions. The first two Ps delve into your product line, which you'll learn about later. Promotions indicate the type of marketing you choose, and Place usually refers to the platforms your target audience uses. 

The lean business plan gives you a simple overview of your likely expenses, which can be detailed in your longer business plan. Part of these expenses include music taxes. Read our guide on music taxes for more details.

Expenses vary depending on the type of music business you run. You could pay to rent a studio for recording sessions, purchase recording equipment, access manufacturers, or pay for other expenses. These expenses can result in tax deductions .

Here's an example of what your expenses section might look like:

To get my music business up and running, I need to budget for several key expenses. Studio time would be required for recording and producing music, averaging around $50-$100 per hour. I'd also need to allocate funds for engineering talent, which could cost between $50-$200 per hour, depending on experience. Transportation costs for getting to and from recording studios or performance venues should be factored in, estimating around $200-$500 per month.

Legal fees for business formation are also deductible. When listing your expenses and considering deductions, ask yourself what your type of company would normally deduct. Reach out to Augur CPA if you'd like a comprehensive review.

The key roles section provides a list of high-ranking authorities in the business and explains the responsibilities and functions those roles bring to the business. Here's an example of what that might look like in your business plan:

1. Chief Executive Officer (CEO): Responsible for overall strategic direction and leadership of the organization, making key decisions and representing the company to the public and stakeholders.

2. Human Resources Department: This department is responsible for recruiting, training, and managing employees, as well as ensuring legal compliance and promoting a positive work environment.

3. Marketing Department: Responsible for promoting the organization's products or services, conducting market research, and developing marketing strategies to attract and retain customers.

4. Finance Department: This department is responsible for managing the organization's financial resources, including budgeting, accounting, and financial reporting.

5. Operations Department: This department is responsible for overseeing the organization's day-to-day activities, optimizing processes, and ensuring efficient production and service delivery.

As a new business, you might not need all of this detail in your roles. A new business owner wears many hats, handling all of this themselves.

As your business grows and you fill roles like those above, you'll want to create an operating agreement . Operating agreements dictate the roles, holding groups responsible for their actions. This can dictate things like voting rules, which are vital when making high-risk business decisions that require more input.

Your milestones tell readers, yourself, and business partners of the important milestones you've already taken or plan to take. Your lean business plan is a single sentence telling people what you generally plan to do. Larger business plans might look something like this:

Milestone 1: Lease Finalization

- Task: Negotiate and finalize the lease agreement for the studio space

- Deadline: by May 15th

Milestone 2: Personnel Contracts

- Task: Draft, review, and finalize contracts for hired personnel

- Deadline: by May 20th

Milestone 3: Studio Build-out and Equipment Purchase

- Task: Begin construction and build-out of the studio space, purchase necessary equipment

- Deadline: Construction to be completed by June 30th

Milestone 4: Networking and Marketing Plan Implementation

- Task: Develop and implement a networking and marketing plan to attract clients

- Deadline: Marketing plan to be in place by June 1st

Each milestone outlines specific tasks and deadlines to ensure a smooth and successful opening of a recording studio. A musician or distribution company should take a similar approach, focusing on initiatives that help them grow their business.

Filling Out Longer, Traditional Business Plans

The SBA's traditional business plan, which you can find here , is a multi-page document. It's an expanded version of the lean business plan, which you can provide upon request. When applying for business loans or bringing on business partners, this plan can help communicate your vision.

Traditional business plans might use a bit more jargon, like executive summaries and mission statements. Below, you'll learn a bit more about some of the more complex aspects of writing your detailed business plan.

Executive summary

Executive summaries summarize the main points of a business plan. The summary points include the purpose of the business, the business name, the target market, your business location, and how your business solves its target audience's problem. Here's an example you can use for inspiration:

The Executive Summary of my music business plan showcases my artist bio, mission statement, and unique selling proposition. As a musician, I bring a unique blend of classical training and modern influences, with a strong foundation in jazz, pop, and R&B. My mission is to create music that transcends genres and connects with audiences on a deeper level, aspiring to inspire and uplift through my art.

My unique selling proposition lies in my ability to blend diverse musical styles and deliver powerful, emotionally resonant performances. I have achieved recognition in local music scenes, including winning the Best New Artist award at a prominent music festival. My aspirations include reaching a global audience and collaborating with industry-leading producers to create music that leaves a lasting impact. What sets me apart from others in the industry is my unwavering dedication to authenticity and artistry, always prioritizing substance over trends.

For bands and musicians, the executive summary is a great way to showcase your passion for music. Notice the "unique selling proposition," which indicates how you plan on differentiating yourself compared to other companies.

Other companies, like music publishing companies, might focus a little less on the creative aspects of their business. An executive summary can differ slightly between companies. However, if you're new, start with the template until you get comfortable writing these plans.

Company description and mission statement

Your company description, based on the traditional plan, includes the mission statement, members, legal structure, and location of the company. It might also include the executive summary.

Here's an example of the description for a made-up company: SoundWave Entertainment:

Our company, SoundWave Entertainment, is structured as a Limited Liability Company (LLC) and has been in business for ten years. We specialize in providing top-quality live music entertainment, event production, and artist management services. Our diverse range of offerings includes wedding bands, corporate event entertainment, and music festivals. Our customer demographics range from engaged couples looking for the perfect wedding band to event planners seeking unique and memorable entertainment experiences. In the past decade, we have experienced significant growth, expanding our roster of talented artists and achieving a strong presence in the events industry. Our primary business goal is to continue providing exceptional musical experiences and to further expand our reach in the entertainment industry.

The description is simple enough, but the mission statement is arguably the most important aspect of your business plan. It's a few sentences long but shares the overall mission of your company, dictating where it goes and how it makes decisions. Mission statements are emotionally driven and connected to the morals and heart of the company's stakeholders. Here's how it might look:

At SoundWave Entertainment, we are committed to delivering unforgettable musical experiences and fostering the growth of talented artists. We strive to exceed our client's expectations by curating exceptional live entertainment and providing a platform for artists to showcase their skills. Our goal is to leave a lasting impression through the power of music, creating moments that inspire and connect people.

Market conditions and research

The traditional business plan offers a bit more room for reviewing your market conditions and researching your competition. Doing your own research helps you understand the market. Sharing your research on a business plan provides proof of your knowledge of market conditions. Here's a short example of market conditions:

The current market conditions in the music industry are characterized by several industry trends, including the shift towards streaming services, the resurgence of vinyl records, and the increasing importance of live performances for artists' revenue. Consumer behavior has also changed significantly, with more music fans opting for subscription-based streaming services over traditional album or single purchases. Key competitors in the industry include major streaming platforms like Spotify and Apple Music, as well as record labels and live event promoters.

Additional sections of your business plan include a detailed description of your customers, how your company outperforms the competition, and regulations that might impact your company.

Regarding regulations in the music industry, it helps to have a general understanding of the Digital Millennium Copyright Act ( DMCA ), fair use , and current communication laws. Knowledge of these laws or working with a music attorney can help you with this aspect of your business plan.

Service line and pricing structure

Your service line includes a complete list of your services and their costs. For musicians, this might include gigs, music lessons, and anything else you do to advance your career in music. It then breaks down the pricing of your services, including some potential for how that pricing can flex.

Services can vary heavily depending on your company and the services you offer. When you first start your business, you might specialize in a few areas. One milestone could be expanding to include additional features, like a record company offering email marketing services.

The service line section also includes your product lifecycle. For example, albums tend to make more money during their first year of release, and your lifecycle dictates how long you might make albums. If you go on a tour during the album, you might stop creating new albums or merchandise sales during this time. 

Service line information can also include information on intellectual property rights and how your band and albums will be copyrighted. You can also work to trademark your company (or band) logo.

Marketing, sales, and growth strategy

While your marketing research section details information about the market and industry, your marketing, sales, and growth section dictates how you plan on reaching target customers. The lean plan mentioned above briefly addresses this area.

The three areas you'll want to consider are your growth strategy, how you want to communicate with customers, and how you plan on selling your products.

Let's say you plan on creating your own Shopify e-commerce store for your business, which is a huge investment. This means your growth strategy, product sales, and customer communications will wrap around this tool. If you want to start simpler, mention how you plan on talking with fans and setting up merch tables at local shows.

Here, you'll see some examples of how you could write this section:

Our music business aims to market, sell, and grow by implementing a combination of online and offline strategies. Our marketing efforts will include targeted social media campaigns, SEO optimization for our website, and collaborations with music influencers and bloggers. We will also explore opportunities for live performances, partnerships with local venues, and utilizing traditional advertisement methods.

To drive sales, we will offer unique packages for our music services, including special promotions for first-time customers and loyalty rewards for returning clients. Our pricing strategy will be competitive while still maintaining the quality of our services.

In terms of customer retention, we will focus on delivering exceptional customer service and providing personalized experiences for our clients. Our unique selling proposition lies in our ability to offer customized music solutions tailored to different occasions and preferences.

Moving forward, our plans for growth and expansion include branching out to new markets and offering additional services such as music production and event management. We will also invest in building brand loyalty and expanding our customer base through strategic partnerships and collaborations within the music industry.

Why Should I Care About A Business Plan?

A business plan is a crucial tool for any musician or music industry professional looking to advance their career in the music industry. It serves as a roadmap for your career, helping you set goals, make strategic decisions, and stay on track for success.

One of the most significant benefits of having a business plan in the music industry is its ability to attract investors. A well-thought-out plan demonstrates to potential investors that you are serious about your music career and have a clear direction for success. It outlines your financial projections, marketing strategies, and potential for growth, making it more likely for investors to see the value in supporting your music endeavors.

Additionally, a business plan guides decision-making by providing a framework for evaluating opportunities and making informed choices. It forces you to consider all aspects of your music career, from marketing and promotion to touring and merchandising, ensuring that you have a comprehensive strategy in place.

Furthermore, a business plan helps define your brand identity and outline your unique selling points, target audience, and marketing message. This is crucial in the music industry, where standing out and connecting with fans is essential for success.

To learn more about how taxes can apply to a financial plan for your business, contact Augur CPA today .

This content is for informational purposes only and does not constitute legal, business, or tax advice. You should consult your own attorney, business advisor, or tax advisor regarding matters mentioned in this post. We take no responsibility for actions taken based on the information provided.

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Music Business Plan

Music can unite individuals, inspire social change, and strengthen communities & it is satisfactory for many musicians too. Plus the financial and creative rewards are great. Therefore, want to start your own music studio or band? Then planning everything priorly is the priority.

Need help writing a business plan for your music studio business? You’re at the right place. Our music business plan template will help you get started.

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How to Write a Music Business Plan?

Writing a music business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Introduce your business: Start your executive summary by briefly introducing your business to your readers.
• This section may include the name of your music business, its location, when it was founded, the type of music business (E.g., record labels, music publishers, live music industry), etc.
• Market opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Product and services: Highlight the services you offer your clients. The USPs and differentiators you offer are always a plus.
• For instance, you may include music recordings and albums as services.
• Marketing & sales strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• Business description: Describe your business in this section by providing all the basic information:
• Record labels
• Music publishers
• Live music industry
• Music streaming services
• Describe the legal structure of your music company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the names of your music company’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Business history: If you’re an established music service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.
• Additionally, If you have received any awards or recognition for excellent work, describe them.
• Future goal: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Target market: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.
• For instance, music lovers, music directors, movies, younger audiences, etc can be the ideal market for the music business.
• Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.
• Competitive analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your music services from them. Point out how you have a competitive edge in the market.
• Market trends: Analyse emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.
• For instance, the demand for rap and pop music is increasing; explain how you plan on dealing with this potential growth opportunity.
• Regulatory environment: List regulations and licensing requirements that may affect your music company, such as copyright laws, advertising regulations, etc.

Here are a few tips for writing the market analysis section of your music production business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Music stores
• Music licensing services
• Music promotion services
• Music education services
• Describe each service: Provide a detailed description of each service you provide, including how it works, what it does, and any technical specifications or features.

In short, this section of your music plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique selling proposition (USP): Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.
• For example, exclusive content, high-quality production, niche market focus, etc, could be some of the great USPs for a professional music company.
• Pricing strategy: Describe your pricing strategy—how you plan to price your services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers.
• Marketing strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, email marketing, influencer marketing, etc.
• Sales strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include online sales, partnering with other businesses, live shows, etc.
• Customer retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts on annual membership, personalized service, etc.

Overall, this section of your music studio business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your music business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & training: Mention your business’s staffing requirements, including the number of employees or music professionals needed. Include their qualifications, the training required, and the duties they will perform.
• Operational process: Describe the steps taken to produce and distribute music-related products and services. It ought to contain details regarding any technological innovations employed in the production process, as well as any outsourcing of work or joint ventures with outside providers.
• Equipment & Instrument: Include the list of equipment and machinery required for music, such as musical instruments, sound equipment, recording equipment, etc.
• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your music business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founder/CEO: Mention the founders and CEO of your music company, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.
• It should include, key executives(e.g. COO, CMO.), senior management, and other department managers (e.g. operations manager, music director.) involved in the music business operations, including their education, professional background, and any relevant experience in the industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.
• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your music business services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance sheet: Create a projected balance sheet documenting your music business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the music industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your music business plan should only include relevant and important information supporting your plan’s main content.

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This sample music business plan will provide an idea for writing a successful music plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our music business plan pdf .

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Frequently Asked Questions

Why do you need a music business plan.

A business plan is an essential tool for anyone looking to start or run a successful music business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your music company.

How to get funding for your music business?

There are several ways to get funding for your music business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your music business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your music business plan and outline your vision as you have in your mind.

What is the easiest way to write your music business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any music business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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How to create a music management company?

As the music industry has become increasingly complex, the need for music management companies has grown. These companies help artists navigate the music business, connect with the right people, and get their music out to the public. If you’re passionate about music and want to help others achieve success in the industry, starting a music management company may be the right step for you. Here’s a guide to starting your own music management company.

1. Write a business plan. Include what type of music you want to manage, what services you will offer and what your company’s goals are.

2. Register your company with the state and obtain any necessary business licenses.

3. Find artist to represent. You can find unsigned artists by attending concerts, listening to music online and networking with industry professionals.

4. Promote your artists. Get your artists gigs and press coverage to help them build a following and further their careers.

How much does it cost to start a music management company?

When starting a new musical career, it is important to have a good understanding of the time and money required to make it successful. Start-up costs can range from a few thousand dollars to over ten thousand dollars. The majority of these funds will be invested in travel, networking and marketing. It may take six to twelve months to see any return from the investment, but it is important to be patient and persistent. With a little planning and dedication, a musical career can be a very rewarding experience.

There are a few things to keep in mind when building your artist roster:

1. Sign a contract – this will protect both you and the artist.

2. Don’t quit your day job just yet – you need to be able to support yourself and the artist financially.

3. Get organized – work with an entertainment accountant to keep track of your finances and hiring an entertainment lawyer to protect your interests.

4. Make a name for yourself – get involved in the music industry and build a reputation for being a great manager.

5. Get the artist exposure – help them book gigs and get their music out there.

What does a music management company do

Music managers play an important role in the music industry by helping artists achieve success. They often help clients book gigs, plan album projects, orchestrate record releases and tours, create marketing and merchandising strategies, get paid for their work, and establish and pursue long-term career goals. By providing guidance and support, music managers help their clients navigate the often-competitive and ever-changing music business.

Starting a record label can be a very rewarding and exciting business venture. However, there are several things you need to do in order to get started. Here are a few tips:

1. Create a record label business plan. This will help you determine your business goals and how you plan on achieving them.

2. Choose your record label’s business structure. Will you be a sole proprietor, partnership, or corporation?

3. Determine your business costs. How much will you need to start and operate your business?

4. Create a unique name for your record label. This will help you stand out from the competition.

5. Register your business and open financial accounts. This will help you keep track of your finances and stay organized.

6. Purchase equipment for your record label. This may include recording equipment, software, office supplies, etc.

7. Market your record label. This can be done through online marketing, print marketing, or word-of-mouth.

How do music managers make money?

Music managers typically work on commission, which means they receive a percentage of their clients’ revenue. This model is similar to that of other artist managers, like those in the film industry.

Music managers typically work with a variety of clients, each of whom may have different sources of income. For example, a client may earn income from record sales, live performances, merchandise sales, and so on. The manager’s job is to help the client earn as much income as possible and to keep track of all the different sources of income.

The commission that a manager receives is typically a percentage of the client’s total income. For example, a manager may receive 10% of the client’s total income. This means that if the client earns $100,000 in a year, the manager would earn $10,000.

The average music manager in the United States earns $85,400 annually. This figure can vary depending on the size of the music organization that they manage and the number of years of experience that they have in the field. Music managers typically have a bachelor’s degree in music business or a related field, and many also have a master’s degree.

Should I get an LLC as an artist?

There are a few key reasons why musicians should form an LLC:

1. LLCs offer limited liability protections. This means that if the LLC is sued, the members’ personal assets will not be at risk.

2. LLCs can help resolve disputes between band members. If there is a disagreement about how profits should be divided, for example, the LLC can help mediate the situation.

3. LLCs can make it easier to open a business bank account. This can be helpful if you want to keep your business finances separate from your personal finances.

Overall, LLCs can be a great way for musicians to protect themselves and their assets. If you’re considering forming an LLC, be sure to consult with a lawyer to ensure that you’re taking the right steps.

Artist’s typically receive a lower percentage of their total income when compared to other music industry professionals, such as producers and songwriters. This is because managers typically take on a larger role in an artist’s career, and are responsible for a greater portion of an artist’s success. In exchange for their services, managers typically receive a commission of an artist’s total income. The percentage of income that a manager receives can vary depending on the level of the artist and the bargaining power of each party. However, commissions typically range from 15-20% of an artist’s total income.

Should you create an LLC for artist

An LLC is a business structure that can combine the features of a corporation and a partnership. LLCs are popular among small businesses because they offer the limited liability protection of a corporation, but they are easier to set up and require less maintenance than a corporation. For a majority of rising artists, an LLC will make the most sense.

Can anyone be a music manager?

Music managers are responsible for all the legal and business aspects of an artist’s career. They usually must have a bachelor’s degree in the music business (or business in general) to be able to effectively manage an artist’s career. Several schools offer music management or business management degrees which can give you the skills you need to be a successful music manager.

Music managers typically get 10-20% of an artist’s income, regardless of the type of royalty. This percentage often goes towards taxes, expenses (marketing, music production, mixing, etc.), and other fees.

Do music companies make money

There are all kinds of royalties that a record company can collect when a record is played. These royalties can come from things like airplay, public performances, or even from digital downloads. All of these things can add up and help the record company make money.

There are a few different ways that musicians can make money:

1. By earning streaming royalties through digital distribution – this can be done by making your music available on platforms like Spotify, Apple Music, etc.

2. By playing gigs – this can involve both performing live as well as DJing at events.

3. By selling band merchandise online – this can include selling items like t-shirts, CDs, posters, etc.

4. By collaborating with brands and other musicians – this can involve creating music for ads, working with other artists on joint projects, etc.

5. By selling beats and samples – this can be done either online or in person.

6. By teaching music classes and selling lessons – this can involve teaching private lessons, leading group classes, etc.

Is the music business profitable?

The US music industry is booming, with a 229% increase in earnings in 2021. This is great news for the global music industry, which is worth a whopping $259 billion. The US is the largest music market within that, so its continued growth is crucial. Let’s hope that this trend continues in the years to come!

If you want to get a music manager to notice you, the best thing you can do is make sure you’re ready. release quality music, have a dedicated following, and make sure you’re able to tour. You can also try to find less experienced managers who are willing to take a chance on you. The most important thing is to find someone with the right skillset for you. If you have the right relationship mindset, you’ll be able to build a strong fan base and have a successful career in music.

What qualifications do you need to be a music manager

The media production and communication industry is one of the most competitive industries out there. To be successful, you need to have a strong understanding of the media landscape and be an excellent communicator. You also need to be able to use your initiative to sell products and services. Strong business management skills are essential to success in this industry. Finally, you need to be able to organise your time and workload and be detail orientated.

The most common percentage for management fees in North America is 15 to 20% of gross artist revenue. This number can vary depending on the size and scope of the management company, as well as the experience and success of the manager.

To create a music management company, you’ll need to establish your business and obtain the necessary licenses and permits. You’ll also need to create a business plan and secure funding. Once you’ve done all of that, you’ll need to hire staff, build a clientele, and keep everything running smoothly.

Now that you know the ins and outs of starting a music management company, you are ready to get out there and make your mark in the music industry! Be sure to do your research, build a strong team of experts, and always keep your clients’ best interests at heart. With hard work and dedication, you can turn your music management company into a success story.

Wallace Jacobs

Wallace Jacobs is an experienced leader in marketing and management. He has worked in the corporate sector for over twenty years and is a driving force behind many successful companies. Wallace is committed to helping companies grow and reach their goals, leveraging his experience in leading teams and developing business strategies.

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Music Business Plan Template

Written by Dave Lavinsky

Music Business Plan

You’ve come to the right place to create your music business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their music businesses.

Below is a template to help you create each section of your Music business plan.

Executive Summary

Business overview.

Musicians First Studio is a startup music company located in Nashville, Tennessee. The company is founded by Michael Smith, an experienced musician who has gained valuable knowledge on how to manage a music business during the past ten years while working at My Music Production & Management, another local music company. Now that Michael has experienced managing a music company, he is ready to start his own business, Musicians First Studio. Michael is confident that his skills as a musician, combined with his understanding of business management, will enable him to run a profitable music company of his own. Michael is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a music studio – sales and marketing, production, artist management, music instruction, financial reporting, studio equipment maintenance, and client relations.

Musicians First Studio will provide a full suite of music production, management, and instruction services for both novice and professional musicians in the Nashville area. Musicians First will be the go-to music studio in Nashville for its client-focused services and dedicated professionals who are experienced in all aspects of the music industry. The company will be the ultimate choice for the needs of aspiring and professional musicians.

Product Offering

The following are the services that Musicians First Studio will provide:

• Artist Management
• Music Recording, Production, & Post-Production
• Private Music Lessons & Group Classes
• Venue Booking & Live Event Management
• PR & Marketing for New Artists

Customer Focus

Musicians First Studio will target new and experienced musicians in Nashville who are looking for professional production, management, or marketing services. The company will also target aspiring musicians and children looking for music lessons taught by industry veterans. No matter the customer, Musicians First Studio will deliver the best communication, service, and professionalism.

Management Team

Musicians First Studio will be owned and operated by Michael Smith. Michael is a graduate of Tennessee University with a degree in music. He has over ten years of experience working as a manager for another local music studio. Michael will be the company’s chief executive officer. He will oversee the recording/production process, music equipment, and studio staff’s activities.

Michael has recruited his former administrative assistant, Jessica Garcia, to be the company’s chief operating officer and help oversee the studio’s operations. Jessica will handle the day-to-day operations, including budgeting, scheduling, client relations, and logistics.

Michael and Jessica have recruited an experienced marketing director, John Brown, to become a member of the Musicians First Studio management team. John is a graduate of the University of Washington with a bachelor’s degree in sales and marketing. Michael and Jessica rely on John’s expertise to execute the company’s marketing plan and advertising strategies.

Success Factors

Musicians First Studio will be able to achieve success by offering the following competitive advantages:

• Skilled team of music production technicians and veteran musicians who will work one-on-one with clients to reach their individual music goals whether they’re looking to record a new album or learn a new instrument.
• Musicians First Studio is one of the only studio’s in the area that offers a wide range of services for musicians of all skill levels and goals.
• The company offers competitive pricing and discounts for referrals.

Financial Highlights

Musicians First Studio is seeking $800,000 in debt financing to launch its music business. The funding will be dedicated towards securing the studio and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

• Studio build-out: $340,000
• Music equipment, supplies, and materials: $280,000
• Three months of overhead expenses (payroll, utilities): $160,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Musicians First Studio.

Company Overview

Who is musicians first studio.

Musicians First Studio is a newly established music company in Nashville, Tennessee. Musicians First will be the first choice for aspiring, novice, and experienced musicians in Nashville and the surrounding communities for its full-suite of professional services provided by industry veterans. The company will provide a wide range of services including recording/production, music lessons, artist management, and marketing for new musicians.

Musicians First Studio will be able to guarantee high quality production thanks to the latest and most innovative music technology operated by expert music production technicians. The company’s team of highly qualified professionals experienced in music, production, and marketing will manage the suite of services offered at the studio. In addition to customized services for musicians, customers will be able to book studio time that comes with use of equipment by the hour.

Musicians First Studio History

Musicians First Studio is owned and operated by Michael Smith, an experienced musician who has gained valuable knowledge on how to manage a music business during the past ten years while working at My Music Production & Management, another local music company. Now that Michael has experienced managing a music company, he is ready to start his own business, Musicians First Studio. Michael is confident that his skills as a musician, combined with his understanding of business management, will enable him to run a profitable music company of his own. Michael is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a music studio – sales and marketing, production, artist management, music instruction, financial reporting, studio equipment maintenance, and vendor relations.

Since incorporation, Musicians First Studio has achieved the following milestones:

• Registered Musicians First Studio, LLC to transact business in the state of Tennessee
• Has identified an ideal location for the studio that is available for lease
• Reached out to numerous contacts to include local musicians, production technicians, and venue managers to help spread the word about the new studio
• Began recruiting a staff of musicians, music instructors, production technicians, marketing experts, and office personnel to work at Musicians First Studio.

Musicians First Studio Services

Industry analysis.

The global music industry is an estimated $60B market and is expected to grow by 8% by 2026. The broad music industry can be categorized into three primary segments; recording, live music, and music publishing. In the United States, the recording segment generated approximately $8B in revenues last year, while the live music segment brought in an estimated $9.5B, and the publishing segment totaled $1.8B. A majority of revenues generated in the recording segment come from streaming (28% of total industry revenue), with digital downloads and physical media coming in much lower (6.7% and 7.5% respectively). Revenue for the live music segment is generated primarily through ticket sales (37.1%) and sponsorships (10.3%). Publishing accounts for approximately 8.9% of total industry revenue.

Music streaming is one of the most significant trends in the industry, with the number of Americans who pay for streaming subscriptions at approximately 82.1M, up from 7.9M in 2014. Another trend is the emergence of independent artists and small record labels. These groups are earning more revenue than in years past and their percentage of revenue increase year over year is growing faster than that of larger record labels. With more options open to them when it comes to where and how to get their music out to consumers, artists, managers, and record labels have more opportunities for success than ever before.

Customer Analysis

Demographic profile of target market.

The precise demographics for Nashville, Tennessee are:

Customer Segmentation

Musicians First will primarily target the following customer profiles:

• Novice-to-experienced musicians looking for recording/production services
• Aspiring musicians of all ages looking for music lessons
• Musicians looking for artist management, booking, and representation services

Competitive Analysis

Direct and indirect competitors.

Musicians First Studio will face competition from other companies with similar business profiles. A description of each competitor company is below.

My Music Production & Management

My Music Production & Management is one of the largest commercial music studios in Tennessee. The company was established in 1997 and offers professional music recording and production services for local musicians. My Music Production & Management also handles the business management activities for musicians including marketing, booking, and legal representation services. The company is well known for providing high quality production for some of the top artists in the region and has been recognized in various publications and music industry associations for its outstanding work in the local music community.

Genre Music

Founded in 2018, Genre Music is a small music company catering to local musicians in Nashville, Tennessee and surrounding areas. Genre Music is owned and operated by a veteran musician who has over 40 years of experience in the music industry. The company specializes in artist branding, marketing, and representation in addition to its top notch recording services. Genre Music has worked with a variety of up and coming artists in multiple genres and has a loyal customer base of regular musicians who use the company’s services.

Retro Recording & Productions

Retro Recording & Productions is a trusted Nashville, Tennessee-based music company that provides superior production and recording services for Nashville and the surrounding areas. The company is able to provide a wide variety of recording, production, and post-production services using its state-of-the-art music recording equipment. Retro Recording & Productions serves local musicians and national musicians. The company prides itself on being the number one choice for classic sound produced through modern technology. Retro Recording & Productions also manufactures its own collectible vinyl records in limited quantities.

Competitive Advantage

Musicians First Studio will be able to offer the following advantages over their competition:

• The company offers competitive pricing on studio rentals and discounts for referrals.

Marketing Plan

Brand & value proposition.

Musicians First Studio will offer the unique value proposition to its clientele:

• Musicians First Studio provides a full suite of services tailored to the individual musician’s needs. Professionals are equipped to provide services for all skill levels from the aspiring and novice musician, the the industry veteran.
• The company’s studio is expertly designed for the clearest sound quality. The equipment is carefully selected to ensure the best sound possible.

Promotions Strategy

The promotions strategy for Musicians First Studio is as follows:

Social Media Marketing

The company’s marketing director will create accounts on social media platforms such as Linkedin, Twitter, Instagram, Facebook, TikTok, and YouTube. He will ensure Musicians First maintains an active social media presence with regular updates and fun content to get customers excited about using the studio’s services.

Professional Associations and Networking

Musicians First Studio will become a member of professional associations such as the Nashville Music Association, American Music Educators Society, and the Tennessee Music Production Association. The leadership team will focus their networking efforts on expanding the company’s artist and vendor network.

Print Advertising

Musicians First Studio will invest in professionally designed print ads to display in programs or flyers at industry networking events. The company will also send direct mailers to local residents advertising the services it provides.

Website/SEO Marketing

Musicians First Studio will utilize the in-house marketing director that designed the print ads to also design the company website. The website will be well organized, informative, and list all the services that Musicians First is able to provide. The website will also list information on the company’s events and featured artists.

The marketing director will also manage Musicians First’s website presence with SEO marketing tactics so that when someone types in a search engine “music company” or “music studio near me”, Musicians First Studio will be listed at the top of the search results.

The pricing of Musicians First Studio will be on par with competitors so customers feel they receive value when purchasing the company’s services.

Operations Plan

The following will be the operations plan for Musicians First Studio.

Operation Functions:

• Michael Smith will be the CEO of the company. He will oversee the music production technicians, production process, and the music equipment maintenance. Michael has spent the past year recruiting the following staff:
• Jessica Garcia – Chief Operating Officer who will manage the day-to-day operations, client relationships, scheduling, and logistics.
• Nancy Johnson – Chief Financial Officer who will provide all accounting, budgeting, tax payments, and monthly financial reporting.
• John Brown – Marketing Director who will oversee all marketing strategies for the company and manage the website, social media, and outreach.

Milestones:

Musicians First Studio will have the following milestones complete in the next six months.

12/1/2022 – Finalize lease to rent the studio facility

12/15/2022 – Finalize personnel and staff employment contracts for the Musicians First Studio management team

1/1/2023 – Begin build-out of the studio, purchase equipment, and test the acoustics

1/15/2023 – Begin networking at industry events and implement the marketing plan

2/15/2023 – Finalize contracts for musicians, instructors, production technicians, and marketing professionals

3/15/2023 – Musicians First Studio officially opens for business

Financial Plan

Key revenue & costs.

The revenue drivers for Musicians First Studio are the fees charged to customers in exchange for the company’s services and fees charged to book studio time by the hour.

The cost drivers will be the overhead costs required in order to staff a music company. The expenses will be the payroll cost, utilities, equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average hours booked per month: 120
• Average fees per month: $30,000
• Overhead costs per year: $640,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Music Business Plan FAQs

What is a music business plan.

A music business plan is a plan to start and/or grow your music business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your music business plan using our Music Business Plan Template here .

What are the Main Types of Music Companies?

There are a number of different kinds of music companies , some examples include: Recorded Music, Music Licensing, Live Music, Music Publishing, Music Production, Music Business Consulting, and Retail Music Store.

How Do You Get Funding for Your Music Business Plan?

Music companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

Music Business Plan Template [Updated 2024]

Music Business Plan Template

If you want to start a music business or expand your current business, you need a business plan.

The following business plan template gives you the key elements to include in a winning music business plan. It can be used to create a music production company business plan, a business plan for a music artist, or business plans for a music teacher and/or music management.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Music Business Plan Example

I. executive summary, business overview.

[Company Name], located at [insert location here] is a new, independent music business focusing on alternative rock music.

We seek to find and sign up-and-coming alternative rock bands based in the New York region. By finding underground talent and improving their marketing and appeal to a broader music audience, we will be able to build a stable of artists with significant customer bases. This will translate into significant sales of music (CDs, MP3s), concert tickets, and related products (e.g., merchandise).

Products Served

[Company Name]will provides both a product and a service to two distinct audiences.

To alternative music artists which provide talent agent and artist representation functions. That is, we find and recruit talent. And then we manage our bands and provide the creative and marketing resources they need to develop music and sell music and merchandise.

To fans of our bands, we will sell music, concert tickets and merchandise.

Customer Focus

[Company Name] will primarily serve alternative rock fans in the greater NY region. Simmons Research has found that these fans display the following demographic characteristics:

• Gender skew is fairly balanced…56% males, 44% females.
• Listeners tend to be well-educated, 41% more likely than the average adult to have attended or graduated from college.
• Listeners tend to be 40-50% more likely than the average adult to be a heavy radio listener.
• The majority of the audience remains firmly lodged in the 18-44 age range.

In addition to end-customers, we serve the needs of alternative rock bands. We will focus on currently unsigned bands. Typically, the members of these bands are in their 20s and have getting signed, generating revenues and becoming famous as their primary goals.

Management Team

[Company Name]is led by [Founder’s Name] who has been in the music business for 3 years. While [Founder] has never run an independent music businesshimself, he has been active in the industry for many years as a listener and as an intern at Alternative Rock Station WCDS in New York City.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• There is currently no independent music businessin the NY metro area focused exclusively on up-and-coming alternative rock bands.
• There has been a significant growth in alternative rock listeners in the area. Music stations catering to this market have been thriving.
• The management team has a track record of success in the independent music business.
• Our business model will be profitable if we can grow in the metro-NY area. If any of our artists thrive nationally, then we will be even more successful.

Financial Highlights

[Company Name] is currently seeking $100,000 to launch.Specifically, these funds will be used as follows:

• Build-out and Startup costs: $25,350
• Salaries: $45,000
• Marketing: $20,000
• Lease expenditures: $12,000

II. Company Overview

Who is [company name].

We seek to find and sign up-and-coming alternative rock bands based in the New York region. By finding underground talent and improving their marketing and appeal to a broader music audience, we will be able to build a stable of artists with significant customer bases. This will translate into significant sales of music (CDs, MP3s), concert tickets, and related products (e.g., merchandise.

[Company Name]’s History

[Founder’s Name] conceived [Company Name] on [Date] after years of attending alternative rock concerts in the New York metro region and seeing the massive increase in attendance to most events.

[Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].

The business is currently being run out of [Founder’s Name] home office, but once the lease on [Company Name]’s retail location is finalized, all operations will be run from there.

Since incorporation, the company has achieved the following milestones:

• Found office space and signed Letter of Intent to lease it
• Developed the company’s name, logo and website located at www…
• Created the mission statement
• Determined equipment requirements
• Began discussions to sign key alternative rock bands

[Company Name]’s Products& Services

[Company Name] will develop the following products for sale to consumers:

• Music (CDs, MP3s)
• Merchandise (shirts, hoodies, posters, etc.)
• Concert tickets

To the music artists it signs, [Company Name] will primarily offer the following services.

• Marketing support (to build each band’s customer base)
• Distribution (to sell music, merchandise and concert tickets)
• Tour support (arranging and managing tours)
• Promotions (working with radio stations and other entities to promote each band).

III. Industry Analysis

[Company Name]directly competes within the music market, and particularly within the independent music business market.

Industry Statistics & Trends

The following industry size facts and statistics bode well for [Company Name].

The music market is clearly vast. According to IFPI, which represents the recording industry worldwide, global music sales were $33.5 billion last year, with the U.S. accounting for $12.3 billion of that amount.

Within this market, consider the following key statistics:

• 30% of the global music market belongs to independent labels
• Independent labels sell 900 million units annually
• Artist signed by a major record lable earn approximately $1 per copy sold
• Artist signed by an independent music business earn approximately $5 per copy sold

Because independent music business artists earn 5 times the revenue per unit sold, [Company Name] is at an advantage in signing many up-and-coming alternative music bands versus major labels.

Other key information from IFPI includes the following:

• The digital music business internationally saw a sixth year of expansion last year, growing by an estimated 25 per cent to $3.7 billion in trade value. Digital platforms now account for around 20 per cent of recorded music sales, up from 15 per cent last year. Recorded music is at the forefront of the online and mobile revolution, generating more revenue in percentage terms through digital platforms than the newspaper (4%), magazine (1%) and film industries (4%) combined.
• Single track downloads, up 24 per cent to 1.4 billion units globally, continue to drive the online market, but digital albums are also growing healthily (up 36%).
• A-la-carte music downloads continue to grow, with AmazonMP3 joining the European market, broadening consumer choice. An increasing number of stores are licensed to sell DRM-free music tracks.
• Music companies are also increasingly licensing music to third parties. One notable success is the games sector, where music games were responsible for 15 per cent of overall game sales in the US in the first half of the year (NPD Group). Guitar Hero and its sequels have sold more than 23 million copies in three years, generating more than US$1 billion in North America alone (PWC).

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will primarily serve the alternative rock bands and fans in the New York metro area. Over time, we expect that our bands will gain regional and national attention.

Simmons Research has found that alternative rock fans display the following demographic characteristics:

Customer Segmentation

With regards to alternative rock bands, we will focus on currently unsigned bands, independent artists and internet stars . Typically, the members of these bands are in their 20s and have getting signed, generating revenues and becoming famous as their primary goals.

V.Competitive Analysis

Direct & indirect competitors.

The following independent alternative rock music businesses most directly compete with [Company Name]:

Fueled By Ramen

Fueled By Ramen is a music business based in New York City with an office in Tampa, Florida.

In 1998, Fueled By Ramen released a self-titled EP from Jimmy Eat World, a five-song collection that proved a breakthrough for both the label and the Arizona-based band. With increased distribution demands and a rise in radio play, Fueled By Ramen set up its first real office space that same year.

Fall Out Boy’s Pete Wentz introduced Fueled By Ramen to fellow Chicago rock outfit The Academy Is… who released their acclaimed debut album Almost Here, the following year.

The label opened an office in midtown Manhattan and that same year Paramore’s album Riot! debuted in the Billboard Top 20, was certified gold and has recently gained platinum status. Panic at the Disco’s second album enjoyed similar success, debuting at number #2 on Billboard’s Top 200 chart, selling over 139,000 copies its first week and making it the fastest-selling album in the label’s history.

The following artists are currently signed to Fueled By Ramen:

• The Academy Is…
• Cobra Starship
• Cute Is What We Aim For
• Fall Out Boy
• Forgive Durden
• The Friday Night Boys
• Gym Class Heroes
• The Hush Sound
• Panic at the Disco
• A Rocket to the Moon
• This Providence
• VersaEmerge

Caroline Records

Caroline Records started out as a subsidiary of Richard Branson’s Virgin Records label during the early to mid 1970s. The label originally specialized in putting out budget price LPs by mainly progressive rock and jazz artists generally not considered to have a great deal of ‘mainstream’ or commercial appeal, but were often however creatively of great interest.

The first release on the label, and the artist who gave it its name, was Carol Grimes’ ‘Warm Blood’ LP, released in 1974. The original label was a photographic style variation on that of the Virgin label’s “Twins” logo designed by Roger Dean.

Both the U.S. and U.K. branches of Caroline Records are subsidiaries of Caroline Music, which includes Caroline Distribution and is in turn owned by EMI. Caroline has or had a number of subsidiary labels including Astralwerks, Gyroscope, Caroline Blue Plate, Rocks the World, Scamp, and Passenger.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Location: [Company Name]’s location is within New York City giving it better proximity to NY alternative rock bands and the throngs of customers who enjoy this genre of music.
• Management: Our management team has years of business and marketing experience that allows us to market and serve both music artist and consumers in a much more sophisticated manner than our competitors.
• Relationships: Having been a part of the local alternative rock community for the past 5 years, [Founder’s Name] knows all of the local leaders, media and other influencers. As such, it will be relatively easy for us to build branding and awareness of our independent music business.

VI.Marketing Plan

The Marketing Plan describes the type of brand [Company Name] seeks to create and the Company’s planned promotions and pricing strategies.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

• Offering high-quality service to independent alternative rock bands.
• Offering high-quality bands and music to alternative rock fans.
• Providing excellent customer service and allowing fans to get exciting experiences with their favorite independent alternative rock bands.

Promotions Strategy

[Company Name] expects to reach consumers through the following tactics:

Direct E-Mail

[Company Name] will collect physical email addressat alternative rock concerts and via the websites of the bands it signs. It will market music (CDs, MP3s), concert tickets and merchandise to these consumers via email.

Public Relations

We will contact all local and area newspapers and television stations to tell them about each of our artists.

Advertising

[Company Name] will advertise in local newspapers and sponsor community events in order to gain awareness of our bands.

[Company Name] will provide free tracks to customers to enable them to hear samples of our bands.

Ongoing Customer Communications

[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products and more.

Pricing Strategy

[Company Name]’s pricing will be moderate so customers feel they receive great value when purchasing items from the bands we represent.  

VII.Operations Plan

Functional roles.

In order to execute on [Company Name]’s business model, the Company needs to perform many functions including the following:

Administrative Functions

• General & Administrative functions including legal, marketing, bookkeeping, etc.
• Hiring and training staff

Artist Representation Functions

• Finding/recruiting bands
• Negotiating contracts
• Promoting band events and products
• Managing concerts and tours
• Music development (recording studio management, etc.)

Retail Functions

• Product development (e.g., manufacturing merchandise)
• Product sales (direct via internet, and recruiting distributors)
• Customer support functions

[Company Name] expects to achieve the following milestones in the following [] months:

VIII. Management Team

Management team members.

[Company Name]is led by [Founder’s Name] who has been in the music business for 3 years. While [Founder] has never run an independent music business himself, he has been active in the industry for many years as a listener and as an intern at Alternative Rock Station WCDS in New York City

[Founder] graduated from the University of ABC where he majored in Communications.

Hiring Plan

[Founder] will supported by a team of experienced music professionals. As the Company grows, we will need to hire the following personnel:

• Director of Operations
• Director of Marketing
• General Manager
• Assistant Manager

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come from the sale of:

• Music (CDs/MP3s)
• Merchandise

The major costs for the company will be music and merchandise production costs, distribution costs and staff salaries of the staff.

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $370,000 to launch its store. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.

[Company Name] is currently seeking $100,000 to launch. Specifically, these funds will be used as follows:

Key Assumptions & Forecasts

Below please find the key assumptions that went into the financial forecast and a summary of the financial projections over the next five years.

5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement

Comments are closed.

Music and Entertainment Business Plan Templates

Written by Dave Lavinsky

In the vibrant and ever-changing landscape of the music and entertainment industry, a solid business plan is not just a formality, but a cornerstone of strategic development and sustainable success. It serves as a critical roadmap for navigating the unique challenges of this industry, including rapidly evolving technology, shifting consumer preferences, and intense competition.

Our collection of business plan examples represent various facets of the music and entertainment sector, ranging from record labels and music production companies to entertainment venues and digital streaming services. Each plan is expertly crafted to address essential elements such as talent acquisition, content production, distribution strategies, marketing initiatives, and financial management. These plans are indispensable tools for entrepreneurs and business owners in the industry, offering a comprehensive guide to establishing a robust presence, capitalizing on market opportunities, and building a resilient, profitable entertainment enterprise. They emphasize the importance of meticulous planning in balancing creative vision with commercial viability in the dynamic world of music and entertainment.  

Music & Entertainment Business Plans

Film Business Plan Music Business Plan Party Bus Business Plan Podcast Business Plan Production Company Business Plan Record Label Business Plan Recording Studio Business Plan  

Get Going → Events & Entertainment

A step-by-step guide to developing a music business plan

April 19, 2021

Why you need a music business plan

Where to start, the main components of a music business plan, the importance of multiple income streams, subscribe to greenlight by thimble..

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Making a living in the music business is the ultimate dream of every serious musician. But out of the countless individuals with a passion for music, only a select few will make a profitable business out of it. That doesn’t mean reaching your goals is impossible. If you want to earn reliable income from your music career, you need to treat it like any other business. That means making a detailed blueprint that will take you from passionate hobbyist to successful professional. This step-by-step guide to developing a music business plan will set you on the right path.

Whether your goal is to have a career as a professional musician, recording artist, producer, or music teacher, documenting the path you’ll take with a music business plan will be helpful to your cause. Your business plan outlines your goals, identifies the practical methods you’ll take to achieve them, and lists the resources you have and will need.

Not only will a concrete business plan keep you on course, it will also demonstrate your credibility in the eyes of others. Potential clients and business partners will see you as a professional and not another starving artist. If you ever need to take out a business loan or raise money for investors, a business plan is a must-have.

Crafting your music business plan isn’t something you can do in one sitting. You’ll need more than an afternoon to get this right. Take your time, bite off piece-by-piece, and chew your thoughts over thoroughly.

Our first piece of advice is as old as time:  know thyself.

You need some clarity of purpose before you can craft a useful music business plan. Ask yourself:

• Who is my audience?
• What is my ultimate goal?
• Why do I want to do this?

Having this understanding will make it easier for you to explain your vision to others and convey your enthusiasm. It will also establish the framework for your music business. This step is crucial if you’ll need people to buy in to help you reach your goals.

The content of your music business plan will vary depending upon whether you’re aiming to start a music school, be a producer, or work as an artist. But the fundamental components are the same either way. Here’s what you’ll need:

• Mission Statement
• Executive Summary
• Audience Analysis
• SWOT Analysis
• Marketing Plan
• Financial Considerations

Let’s look at each of these in turn.

Mission Statement:

This can be as short as a few sentences, as long as it adequately describes who you are as an artist or a musical entrepreneur and what you’re trying to accomplish. While this might sound simple, think things through a bit before you try to draft your statement. Everything that follows here will hinge upon it.

Executive Summary:

The executive summary is a one-page synopsis of your plan. It should include an introduction as well as a description of your endeavors. Details about the funding you already have and what you’ll need in addition to a brief accounting of your plans for putting all of it into play are important too.

Most experts recommend saving the drafting of this part for last. It’s essentially a digest of all the other parts of your plan. Doing it last allows you to draw upon the information you’ve drafted for all of the other steps.

Audience Analysis: 

Here’s where you’ll demonstrate your understanding of your target audience. If you’re already performing, teaching, or producing on the side, think about what traits the people who follow you have in common.

If you’re just getting started, find someone doing what you want to do whose style and circumstances are similar to yours, and analyze their target market. Create a demographic sketch of your target audience based on gender, age, location, musical tastes and favorite venues.

Strengths, Weaknesses, Opportunities & Threats:

Think about the qualities that make you unique. List everything that comes to mind, from technical mastery and creative spark to teaching older demographics and networking. Your skills might not seem extraordinary on an individual level, but combine all your best qualities and you’ll find there isn’t anyone quite like you on the market.

Don’t forget about your weaknesses. Identity these not as qualities to promote, but as areas to work on in the future. Being aware of your shortcomings will also help guide your decision on potential business partners in the future. Let your inner critic loose, but realize that this is an exercise in personal growth, not tearing yourself down.

Had enough reflecting? Let’s take a look at the marketplace. Think about potential gaps in the industry you can exploit. Perhaps your competitors are overlooking a key value and you see a way to provide it both efficiently and effectively. These are your opportunities.

Threats could include technological shifts, cultural changes, the emergence of new artists, competition, and new trends. The music world moves fast, and today’s hot act can end up as yesterday’s news before your can say “more cowbell!” Brainstorm any roadblocks you picture yourself facing over the next few years and strategies you can use to overcome them.

Marketing plan:

Your marketing plan will detail how you’ll spread the word about yourself. Consider how much money you can reasonably invest into marketing and work out how you’ll spend it to reach as many of the right people as possible. Think about how you’ll grow your online presence—including social media, a press kit, and publicity materials such as a logo and photography.

Get a full account of your current cash flow situation. List how much capital you currently have and estimate how much it’ll take to get your operation up and running. When in doubt, overestimate. Studio time, engineering talent, transportation, legal fee, copyrights and trademarks are all important considerations when projecting your budget.

Measuring your progress:

At what intervals will you go over the financials to see how you’re advancing? What are the milestones by which you’ll mark your achievements?

You’ll also need a method for measuring your impact on the market in terms of the reputation you build. Social media outlets provide analytical tools to help you track these metrics. They can also help you pinpoint the demographics of your audience.

Establishing your key performance indicators (KPIs) can help you set the standards by which you will gauge your success. Sharing this information with others makes you accountable because they can look at your projections and see how much progress you’ve made toward achieving them.

Summarizing your music business plan

As we mentioned above, once you have all of these areas covered, you can then condense the information each section contains to create your executive summary. After all, how will you know what to put in it until you’ve examined all of these other areas first?

Success in the music industry takes a lot of work and a little luck, but you can stack the deck in your favor by building multiple income streams. That way, if one area slows down, you’ll have another one in play to keep you rolling until the next opportunity presents itself. Revisit your strengths and opportunities and start brainstorming ideas. If you get stuck, here’s a quick list to get you started:

Give music lessons. Chances are if you’ve got the chops to play paid gigs, you’ve got enough skills to pass on to some novice students. Giving music lessons can be a great way to add some extra recurring income.

Start a YouTube channel. With over 2 billion active users, YouTube might just be your biggest source of untapped attention and potential. 1 The platform offers users a chance to learn or be entertained, and as a musician you’re well-positioned to offer both. You could upload instructional videos or footage of yourself performing. You’ll get to keep a portion of any ad revenue your videos make. And if the right person sees your content, it could open the doors to even greater opportunities.

Explore the marketing world. If composition is your thing, you might be overlooking a potentially huge money-maker—marketing and advertising. Brands are in constant need of good video content to market their products, and those videos need music to truly capture attention. If you’ve got a knack for putting together atmospheric instrumentals, creating music for ads could seriously help stabilize your income.

Open your own studio. If you have the capital to invest and live in an area underserved by recording studios, you might want to consider opening your own. While you’re not using it for your own projects, you can rent it out to other local musicians and producers. If there’s enough demand, you could cover the costs of equipment and rent and even have a little profit left over.

Explore session work. Sure, your band is your baby, but if you’ve got time on your hands and musical versatility to boot, why not offer your services as a session musician? Session work is an effective way to boost your income, make new connections and get your name out there as a legit professional. If an artist is truly enamoured with your work, they could invite you to join them on tour.

Another important consideration in your music business plan is protecting your livelihood from the consequences of unintentional accidents. General liability insurance is key to helping you stay focused on your business. Carrying a policy also demonstrates to potential clients that you are a serious professional — whether you’re a musician, DJ , or another kind of entrepreneur in the entertainment industry.

• Hootsuite. 25 YouTube Statistics that May Surprise You: 2021 Edition .

Our editorial content is intended for informational purposes only and is not written by a licensed insurance agent. Terms and conditions for rate and coverage may vary by class of business and state.

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Tip Jar: How To Write A Music Business Plan

The biggest mistake artists make when it comes to procuring financing for their music ventures is the lack of a business plan. Artists and musicians must understand that music is a business and should run like one. Once you’ve decided that music is your business, you must set aside time to write out a solid business plan if you want to grow as a business, attract investors, increase your fan base, market and sell music or launch a crowdfunding campaign.  Here are the essential elements you’ll need to begin your process of establishing a business plan:

1. Write it down (the rough draft)

Whether it’s temporarily written down on a napkin or typed in Microsoft Office, you need to get your plan from out of your head. Start by considering where you are currently in your music career and where you want to be. Give yourself a realistic time frame and work backwards, citing the steps and resources required to reach each milestone in your plan.

2. Take yourself seriously

This is not a joking matter. If you don’t take yourself seriously, no one else will, so include pertinent information regarding your music business. Before you complete your plan, make sure you’ve captured the essence of your music business with the same passion you have for your music.

3. Before you dive in headfirst

Creating a music business plan can be an overwhelming task if you allow it to be. Remember, the only way to eat an elephant is one spoonful at a time, so take a moment to breathe and gather your thoughts.

4. Taking personal and professional inventory

If you have been in the music business for at least a year, you should have a basic idea how a music business operates. In fact, you are most likely implementing core business principles and practices at your current level. Now take it a step further by conducting a SWOT analysis.

A SWOT analysis is a simple assessment of your personal or professional Strengths, Weaknesses, Opportunities and Threats as they apply to your music business. Begin by taking a piece of paper and folding it into four equal squares. At the top of each square going clockwise, write each component of the SWOT analysis in its own square. Then create a bulleted list of all the information regarding your business in the corresponding squares. Once completed, you will have the framework to create a formal business plan.

5. Understand what should be included in your plan

At a minimum, your plan should include the following:

A ) Executive Summary - An overview of your company, including an executive summary, mission statement, goals and objectives and a brief artist history.

B ) Market Analysis - Here you will analyze the current music market, with special focus on your genre of music. Include opportunities, competitors, trends, market size and growth potential.

C ) Company Description - Describe who you are, what you offer and the audience your business serves.

D ) Organization & Management Structure - A layout of your organizational structure. Are you an LLC, corporation or sole proprietorship? List the key team players, i.e. management, promotions, legal, accounting, etc.

E ) Marketing & Sales - How do you plan to market your music to the consumer (fans)? List your sales, product pricing and positioning strategies, marketing channels, ecommerce and communication strategies, as well as distribution and promotion networks.

F ) Products or Services - Explain the music related products and services your business is offering. Are you selling physical CDs or only digital downloads? Are you offering merch for sale such as T-shirts, posters, download cards and stickers? Do you have your own website outside of your social network that also serves as an online store for your music and merch?

G ) Funding Request or Needs - How much money do you need to get your operation off the ground? How much will you need for operation costs such as fixed and non-fixed expenses? Are you or your staff taking a salary? What are your costs for manufacturing, distribution and marketing?

H ) Financial Projections - How will your music business make money? What are the current and future revenue streams of your business? Be as clear as possible, investors hate ambiguity.

I ) Appendix (if needed) - If you already have an existing music business, use this section to add documents such as: revenue model, resume of owners (founders), cash flow statement, income statement, balance sheet and any other information that can help you stay on plan and attract the right people to your business.

6. Writing the plan using a  mind map

Just like creating a song, you will never really finish your business plan; you just have to stop and be okay with what you have. A business plan should evolve in sync with your business.

As a creative type, this is probably more than what you signed up for, but I assure you that it is a well worthwhile venture. Begin by creating an outline using the parameters I mentioned early. Some business plans are far more granular than what I have offered here, but use this information as a guide to establish the basic elements.

Artists, start your plan by creating a mind map. A mind map is a diagram that visually outlines information. Draw a circle in the center of a piece of paper and write the main idea or concept in the middle. Use lines to connect smaller circles with related ideas or subtopics. Once you’ve jotted down your thoughts, use the mind map to create an outline.

7. Pulling it all together

Once you have the first draft of your business plan, put it down and walk away for a few days. After a short mental vacation, review your plan and make corrections where necessary. Make sure it is properly formatted and free of errors.

Keep in mind that your music business plan is a living document that will serve as the roadmap for your career, but it should be fluid enough to adjust to changes in the market. Visit my website http://musicbusi nessguruacademy.com/businessplantemplate and download my free Word doc Music Business Plan template.

8. Distributing your music business plan (the final draft)

Once the final draft of your business plan is ready, distribute it across your organization and discuss it. Does the plan provide the reader with the key goals of your business? If so, your business plan can be used to help you launch a crowdfunding campaign, find an investor or take on business partners.

SAHPREEM A. KING is a Multiplatinum music producer, DJ, music industry journalist and author of several music industry books, including Dude, I Can Help You! 18 Mistakes Artists Make and How To Fix Them . King has used the knowledge he acquired as an artist, producer and educator to create an online music business course that he will offer from his website http://musicbusinessguruacademy.com in early 2014. He can be contacted at [email protected] .

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How to Write a Business Plan for Musicians

Want a copy of ours?

Pre-Written music business plan template available! This 25-page music business plan is fully written and includes example verbiage from a musician. Use it as a template to write your own.

Creative entrepreneurs have a responsibility to themselves (and their families where applicable) to make good financial decisions for their present and their future. Whether you’re full-time, part-time, or aspiring; being financially savvy is both good for business and good for your overall morale. However, for musicians, it’s way too easy to get distracted with making music and art while neglecting other important parts of being in business like taxes , legal considerations, insurance, and finances. If you’re hoping to build a strong financial foundation for your music business, starting with a Music Business Plan is highly recommended.

Anytime an aspiring business person applies for a business loan, banks usually ask for a business plan. That’s because they want to see if you have a solid plan for making money and staying in business so they can get their money back and get a return on their investment. Likewise, if you’re hoping to achieve any amount of financial success as a musician, it’s important to start with a plan so you can make your money and get a return on your time investment.

A business plan is basically a blueprint for success. It outlines who you are, what you are, what you’re selling, who you’re selling it to, what your challenges are, how you plan to overcome them, and finally, how you plan on earning money to cover your expenses and produce a profit. Putting together a business plan for your music business forces you to ask and answer these tough questions and pave a path to success.

Your business plan should include the following sections:

Executive Summary

The executive summary is a quick synopsis of your business. It provides the who, what, and where. It’s sort of like a cover letter that you would include with a resume. It’s useful if you’re giving your business plan to someone such as a potential partner, investor, etc. It includes…

• Your stage name and location (where you’re based)
• Types of music related services and products you’ll offer (think live entertainment, sound engineering, sync licensing, songwriting, merchandise, etc.)
• Mission and vision statement briefly explaining your reasons for being a musician. If you need help putting together a mission statement for your music, check out our post, The Musician’s Guide to Creating a Meaningful Mission Statement
• The purpose of your plan (optional if you’d like to share this with others for the purposes of raising capital, support, or asking for help.)

Watch Me Walk You Through Writing Your Music Business Plan…

Customize this template and make it your own. Includes all sections that are already pre-written for a musician or band. Just plug in your information and go.

Business Description

This is an overarching description of your business and its structure. It should include…

• How your business is structured legally. Is it a corporation, a sole proprietorship, or an LLC?
• How long you’ve been in business (or why you’re doing music if you’re just starting out), a brief summary of what types of business you will engage in, and what consumer needs you plan to meet.
• A brief description of your services and/or products and who your customers/clients are.
• An overview of any growth highlights you’ve achieved since you started such as expanding your fanbase, adding team members and their achievements, or increasing earnings.
• Business goals and how you’re going to make a profit from your business endeavors.

Do you have a business plan for your music business? I just updated my plan and this next year is going to be fire!!! pic.twitter.com/J31yG04455 — The Crafty Musician (@IndieArtistsDIY) December 10, 2021

Service or Product Offerings

In this section, you’ll describe in detail what you’re offering including the various types of services you offer (live entertainment, lessons, session work, etc) as well as any products you sell such as merchandise, books, etc.

• List a description of each of your services along with its benefits.
• List a description of each of your products or product types.
• Share how you’ll stand out among fellow artists and how you’ll niche yourself, especially in your local area if you’re planning on making a splash locally.
• Any service or product expansion initiatives that you are planning in the future such as starting a band, doing larger shows at larger venues, touring expansions, etc.

Market Analysis

The Market Analysis provides a snapshot of your fanbase and how you’ll reach them. The standout portion of this section is the research you’ll do into your potential base of fans. Learning all you can in this area will help you make effective marketing and promotions decisions that save you time and money. Most importantly, it will help you build a solid following with loyal followers.

• A description of your fans or ideal fans.

Pro Tip: If you haven’t done any research or identified who your ideal fans are, check out How to Identify and Reach Your Ideal Fans here .

• A summary of music industry trends related to how you do business.
• How do people find new music?
• What types of music-related products are people buying right now ie. live entertainment, music merch, digital music, etc.
• A detailed description of similar acts in your area and how you’ll stand out.

Your Business Model

This section provides details regarding how you will make your money. It describes the nuts and bolts of your operation such as how you market your music in order to acquire new fans and how you get your fans/listeners to spend money with you. This section should include…

• An explanation of how you’ll promote your music to current fans and potential fans and how you gain exposure with your music.
• Information about your price points as it relates to each of your service offerings, products and merchandise items.
• Information about how you plan to distribute your music and make it available for people to purchase.
• A summary of your supply chain if applicable. This includes how you plan on producing your music, what professionals or studios you plan on working with, if you have a supply chain for creating your merchandise (check out my article about an easy way to create tons of merch items without having to stock an inventory here )
• An explanation of how you’ll market your services and products

The last bullet point on this list (how you’ll market your services and products) is the factor that will determine your financial growth. Each of these considerations is equally important. However, if you don’t address how you’ll market your services and products in order to earn an income, it will be very difficult to meet your financial goals. You have to be intentional about how you’ll earn your money and be willing to make these offers to your listeners, followers, and fans. In other words, simply putting your music “out there” is not enough. If you want to earn a significant income from your music endeavors, you have to start thinking like a business. This means actively engaging in sales and marketing efforts. These include…

• Hosting sales events for new merchandise items
• Promoting a special entertainment service like a singing telegram or a custom song
• Promoting your guitar lessons on your mailing list, website, and blog
• Encouraging your fans to buy your new album
• Encouraging your fans to host a house concert
• A campaign to get listeners to pre-order your upcoming release

Pro Tip: Check out our 30 Day New Release Promotions Bundle for an easy, plug-and-play way to market your upcoming release. It includes a pre-written press release, email, and pitch letter templates in addition to pre-written social media content for 30 days and more. It provides everything you need to market your upcoming release. Learn more about our 30 Day New Release Promotions Bundle here .

These are just a few examples to illustrate what actual sales and marketing initiatives look like. There are tons more ways to promote your products and services. Start paying attention to some of your favorite small businesses and how they promote their products and services. It might give you some ideas!

Organization and Management Team

This section lists who your main players are. In this section, you’ll list who facilitates the operations of your business starting with yourself at the top and then moving down the hierarchy.

• Who is the owner? Who is making high-level decisions for your business?
• Is there a management team?
• Is there a booking agent?
• Is there a PR person or team?
• Administrative professionals?
• List job responsibilities of each position.
• If you don’t have anyone currently functioning in these positions, that’s totally fine. You could choose to describe how these functions will be executed instead. For example, when you need a PR person, you’ll hire someone on a case-by-case basis. You could also use this opportunity to do a brief search for potential PR providers and list them in this section.
• You could also list potential mentors and music career coaches here as well.

Financial Outlook

This is the final section of your business plan. It describes the financial health of your music business. In this section, you’ll illustrate how your business is doing financially by providing historical financial data (if you’ve been doing business for a while) and/or financial projections for the future. When illustrating financial projections make sure it is realistic! This section includes…

• Income statements, Profit and Loss Statements , and cash flow data from the past three to five years.
• A snapshot of projected revenue and expenses for the next five years.
• A description of new potential business opportunities and how you plan to increase revenue in the future. Check out our article 18 Ways Musicians are Actually Making Money for ideas.

This section is very useful if you’re trying to apply for a business loan, business credit card, acquire investors, or show your business financials for other purposes such as taxes, insurance, rental/mortgage applications, or financial programs. It’s also great to see how you’ve done in the past and what you have to look forward to in the future.

Get the Music Business Plan Template for Musicians.

Free for members! Login or become a member below! Memberships start at just $5/month. Cancel anytime! Once you log in, you’ll see a link to the template in the exclusive members-only section below.

Preparing a business plan for your music business helps you build a solid blueprint to achieve success as a musician. It helps you create a map that will get you from starting with nothing to building your financial empire.

More Resources…

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Hi Anitra, great blog! I came across this article by watching your YT series on the same topic and wondered if by becoming a member, I could not only access the very helpful business plan template, but would it also include the August, Lately insert for contextual purposes? Or is the latter only accessible via your biweekly YT episodes?

Thanks Uasuf. The Music Business Plan Template that is available for members is pre-loaded will all of the August, Lately content. As of right now, the template only has the sections that have been covered in the YT series thus far. Let me know if you have any other questions and thanks for reading/watching!

I’m a member but it won’t let me access the music business plan template.

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Artiste Management Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Entertainment Sector » Music Sector

Are you about starting an artiste management business? If YES, here is a complete sample artiste management business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting an artiste management business. We also took it further by analyzing and drafting a sample artiste management business marketing plan template backed up by actionable guerrilla marketing ideas for artiste management businesses. So let’s proceed to the business planning section .

Do you know that with your good music and perhaps talent hunt skills, you can make millions from the entertainment industry without being an artiste? Without a doubt, you can make mega bucks from the entertainment industry by managing artistes or running an artiste management business.

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As an artiste manager, you are expected to work on behalf of groups or artistes to promote their careers and run their business affairs. Basically, your job is to secure the best work for your clients, for the best fee. The truth is that an artiste management company can be started in any country of the world as long as you have access to a pool of talented artistes.

If you have made up your mind to start an artiste management company, you are expected to sit down and map out strategies on how to a raise startup capital, how to run the business, as well as how to make profits. That is basically what your business plan document should contain.

It might take you a month or so to come up with a workable business plan, however, you just have to do it. The truth is that your business plan is the blueprint with which you can successfully run your business and you are not expected to handle it with levity. It is always advisable to contract the writing of your business plan to professionals if you know that you can’t possibly do it yourself.

Here is a sample artiste management business plan template that can give you the needed direction to successfully write your your own.

A Sample Artiste Management Business Plan Template

1. industry overview.

Artiste management business is under the musical groups and artistes industry and this industry is composed of musicians, recording artistes and songwriters that produce music professionally, either in front of a live audience, in a recording studio or both.

Musicians in this industry may earn revenue from songwriting, producing or recording, but they primarily operate as performers. Please note that this industry excludes musical theater, opera and other professions involved in the creation of records, such as engineers.

If you take a closer look at the musical groups and artistes industry, you will realize that over the past decade, the industry has been subjected to a series of massive shakeups due to the popularity of mp3 players, music piracy, internet radio and online streaming.

The steady replacement of physical albums with digital songs has slashed revenue from recordings over the current five-year period, largely due to digital music selling at a lower price point. The transition to digital and a large drop in federal funding for the creative arts have caused industry revenue to grow minimally over the five years to 2017.

The Musical Groups and Artistes industry is indeed a thriving and viable business in most countries of the world. Statistics have it that in the united states of America alone, the industry generates over $6 billion annually from more than 54,723 registered and licensed big artiste management companies scattered all around the United States of America.

The industry is responsible for the employment of over 88,626 people. Experts project the music groups and artiste industry to grow at a 1.1 percent annual rate. No single establishment can boast of having a lion share of the available market in this industry.

A recent report published by IBISWorld shows that the Musical Groups and Artistes industry is in the mature phase of its life cycle. The industry experiences complete market acceptance, which is a key indicator of maturity, since music is a popular form of entertainment for most Americans.

The report indicated that over the 10 years to 2022, industry value added (IVA), a measure of the industry’s contribution to the overall economy, is expected to grow at an annualized rate of 1.9 percent. US GDP is forecast to grow at an annualized rate of 2.0 percent during the same time.

The industry’s relatively stable value added is further evidence that despite the changing nature of the industry, it remains a mature and stable segment of the economy

One good thing about starting an artiste management company business is that even if you decided to start it in the United States of America, your market will not be restricted to artistes in the U.S.; the world will be your target market, many thanks to the internet that has made the world a global village.

All you need to do is to strategically position your artiste management brand on the internet and you will be amazed at the rate people interested in signing under your management will be calling you from all parts of the world.

2. Executive Summary

Halley Bent® Artiste Management Company is a registered artiste management business that intends having a footprint in the music group and artiste management industry. We have been able to secure a well – positioned office facility in Colorado Boulevard, Pasadena – California.

Halley Bent® Artiste Management Company is going to engage in the management of various artistes. Part of our plans is to work towards becoming one of the leading artiste management companies in the whole of Pasadena – California and in the nearest future compete with the leaders in the artiste management line of business not only in the United States but also in the global stage.

We are quite aware that starting a standard artiste management business from the scratch requires reasonable capital base especially for the purchase of world – class studio equipment and promoting artistes under your management, which is why we have perfected plans for steady flow of cash from private investors who are interested in working with us.

We can confidently say that we have a robust financial standing and we are ready to take on any challenge that we encounter in the industry. Our workers are going to be selected from a pool of talented and highly creative people with eyes for spotting raw talents.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with other players in the artiste management line of business in the United States and throughout the globe.

At Halley Bent® Artiste Management Company our client’s best interest comes first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Halley Bent® Artiste Management Company will be owned majorly by Halley Bent and his immediate family members. Halley Bent has a Degree: B.S. in Computer Engineering from the University of Illinois. Halley a native Californian who originally attended college to become a video game developer.

He later became senior manager at PayPal before launching Halley Bent® Artiste Management Company. Halley Bent is known for his management style: instead of an office, he sits at a desk among his employees.

3. Our Products and Services

Halley Bent® Artiste Management Company is going to offer varieties of services within the scope of the artiste industry in the United States of America. Our intention of starting our artiste management company is to make profits from the music industry and we will do all that is permitted by the law in the US to achieve our aim and ambition.

Our business offerings are listed below;

• Rock, dance, country and pop bands writing, recording or performing
• Independent musicians or vocalists writing, recording or performing
• Jazz artistes and groups writing, recording or performing
• Choir recording or performing
• Musical groups (except theatrical musical groups) writing, recording or performing
• Chamber musical groups and orchestras writing, recording or performing
• Symphony orchestras writing, recording or performing
• Classical musical groups writing, recording or performing

4. Our Mission and Vision Statement

• Our vision is to become one of the top 10 artiste management companies in the United States of America.
• Our mission is to build an artiste management company that will become the number one choice for music artistes when it comes to choosing an artiste management company.

Our Business Structure

The fact that we are set to compete with other leading artiste management companies in the United States of America means that we must build a business structure that can support our business goal. We will ensure that we will hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. Below is the business structure that we will build Halley Bent® Artiste Management Company;

• Chief Executive Officer

Entertainment Lawyer/Legal Secretary

Artiste Manager

Sound/Recording Engineer

Admin and HR Manager

Marketing and Sales Executive

• Customer Service Executive/Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

• ensures management’s effectiveness by employing, choosing, orientating, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Accountable for fixing prices and signing business deals
• Answerable to providing direction for the business
• Fashions, interconnects, and implements the organization’s vision, mission, and verall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for drawing up contracts and other legal documents for the company.
• Advises artistes and the organization accordingly before producing their music album or singles.
• Produces information by transcribing, formatting, inputting, editing, retrieving, copying, and transmitting text, data, and graphics; coordinating case preparation.
• Provides historical reference by developing and utilizing filing and retrieval systems; recording meeting discussions; maintaining transcripts; documenting and maintaining evidence.
• Accountable for negotiating contracts and fees, finding and booking events and venues that match the artiste’s career strategy, advising on career decisions, publicity and promotion, helping them on career decisions such as which record producer to work with, or which songs to perform, and managing media relations on their behalf
• Accountable for building a strong reputation for good client services, and attracting more top performers onto their books.
• Represents a roster of artistes, and cultivate relationships with music industry decision makers on their behalf. They will negotiate deals, and support and guide their clients’ careers.
• Keeps up to date with what’s happening in the industry, and spend a lot of time establishing and maintaining relationships, using contacts to source work for her clients.
• Promotes clients’ work, and will often be involved in liaison during the music recording process. May also organize and negotiate contracts for release and publishing, and communicate with the press.
• Handles any other responsibility as assigned by the Chief Executive Officer
• In charge of handle any sound related job for the company; helps achieve certain specific sounds or feelings that match with the lyrics.
• Responsible for mixing and producing beats and sounds for our clients; mix the songs into the final version for the music album.
• Part of the team responsible for selecting the songs that will be promoted and the songs that will be sold as singles.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Defined job positions for recruitment and managing interviewing process
• Carrirs out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Facilitates and coordinate strategic sessions
• Works directly with clients in a non-advising capacity, such as answering questions, scheduling appointments and making sure all training concerns are properly taken care off
• Oversees the smooth running of the daily office activities
• Once the album is ready, then the marketing team will go out to market and promote the album
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies business opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of music projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients and music artistes
• Develops, executes and evaluates new plans for expanding sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Accountable for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

Halley Bent® Artiste Management Company engaged the services of a core professional in the area of consulting and business structuring to assist the organization in building a standard artiste management company that can favorably compete with other leading music production companies in the United States of America.

Part of what the business consultant did was to work with the management of the company in conducting a SWOT analysis for Halley Bent® Artiste Management Company. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Halley Bent® Artiste Management Company;

Our core strength lies in the power of our team and the location of our business. We have a team that can go all the way to give our clients value for their money; a team that can effectively manage artistes to become celebrities. We are well positioned and we know we will attract loads of clients from the first day we open our company for business.

As a new artiste management company, it might take some time for our organization to break into the market and attract some well – established music artistes to sign under our label; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.

• Opportunities:

The opportunities in the artiste industry are massive and we are ready to take advantage of any opportunity that comes our way.

Technology and the internet which of course is a major tool for the advancement and gains achieved in the music group and artiste industry can also pose a threat to the industry. The truth is that with the advancement of technology, it is now easier for artistes to promote their works especially via social media platforms.

So also, just like any other business, one of the major threats that we are likely going to face is economic downturn. Another threat that may likely confront us is the arrival of a new music production company in same location where our target market exists and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

Entrepreneurs that are venturing into the artiste management industry are coming in with creativity and good business skills. The fact that revenue is nose – diving in the industry does not in a way stop some artiste management companies from declaring profits year in year out.

The trend in the industry is that most music production companies are trying as much as possible to recreate themselves on a regular basis and also to be on top of their game.

8. Our Target Market

When it comes to artiste management business, there are no exemptions to who you can market your services to. There are loads of people (music artiste and other performing artiste) out there who are interested in working under a well – structured artiste management company.

Over and above, our target market as an artiste management company cuts across music artistes and other performing artistes of different class and from all walks of life.

In view of that, we have created strategies that will enable us reach out to various clients within our target market. We have conducted our market research and survey and we will ensure that our artiste management company is well accepted in the marketplace.

Our Competitive Advantage

We are mindful of the fact that there are stiffer competitions in the industry in the United States of America, hence we have been able to hire some of the best business developers to handle our sales and marketing.

Halley Bent® Artiste Management Company is launching a standard artiste management company that will indeed become the preferred choice for music artistes and other performing artistes in and around Pasadena – California and other cities all across the world.

Another competitive advantage for Halley Bent® Artiste Management Company is the quality and robust wealth of experience of its management team. The management team comprises of professionals who have worked with some of the leading international brand in the music groups and artiste management industry.

Our unique style of attracting gifted artistes also counts towards our advantage especially when it comes to competing with other artiste management companies within the same category that we operate.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Halley Bent® Artiste Management Company is established with the aim of maximizing profits in the music groups and artiste industry and we are going to go all the way to ensure that we do all it takes to attract music artistes and other performing artiste that will sign under our brand.

Halley Bent® Artiste Management Company will generate income by offering the following services;

• Choirs recording or performing

10. Sales Forecast

One thing is certain when it comes to music; music never dies and the demand for good music will continue to grow. This goes to show that any artiste management company that is known to always produce good music will continue to attract talented music artistes and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in the U.S. and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation and grow the business and our clientele base beyond Pasadena – California to other cities in the U.S. and even the global market.

We have been able to critically examine the artiste management market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Pasadena – California.

• First Year: $120,000
• Second Year: $350,000
• Third Year: $750,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Artiste management business is not a business that you have to retail products which is why we must do all we can to maximize any opportunity that comes our way.

Our sales and marketing team will be recruited base on their vast experience in the music industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent artiste and management style speaks for us in the market place; we want to build a standard artiste management company that will leverage on word of mouth advertisement from satisfied clients/artistes.

Our business goal is to grow our artiste management company to become one of the top 10 artiste management companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in the U.S but in the world stage as well.

Halley Bent® Artiste Management Company is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our business by sending introductory letters alongside our brochure to music artistes, performing artistes and key stake holders in the music industry in Pasadena -California and other parts of the U.S.
• Advertise our business in relevant entertainment magazines, newspapers, TV and radio stations.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local talent hunts, music expos, seminars, and concerts et al
• Leverage on the internet to promote our business
• Engage in direct marketing approach
• Encourage word of mouth marketing from our loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with a brand and publicity specialist to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the music groups and artiste management industry by storm which is why we have made provisions for effective publicity and advertisement of our artiste management company.

Below are the platforms we intend to leverage on to promote and advertise our artiste management company;

• Place adverts on both print and electronic media platforms
• Sponsor relevant TV shows and radio programs
• Maximize our official website to promote our business
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, 4Share, Google+ and other platforms (music online forums) to promote our business.
• Offer Pro Bono services as part of our community social responsibility
• Ensure that our we position our banners and billboards in strategic positions all around Pasadena – CA
• Brand all our official cars / buses and ensure that our trademark label is boldly printed in all our music album covers and CDs et al.

12. Our Pricing Strategy

When it comes to the artiste management line of business, you may not automatically start making money, as a matter of fact, you will be expected to invest your money on an artiste, you are expected to groom the artiste until he or she becomes popular and well – sought out for. After that, you will be able to agree on percentage of the fee paid to the artiste to perform.

At Halley Bent® Artiste Management Company we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to upcoming artistes who engage our services.

• Payment Options

The payment policy adopted by Halley Bent® Artiste Management Company is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Halley Bent® Artiste Management Company will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards/Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to pay for our services.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget for achieving our aim of establishing a standard and world class company. Essentially, these are the areas we are looking towards spending our startup capital on;

• The total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Halley Bent® Artiste Management Company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580 .
• The total cost for hiring business consultant – $2,500.
• The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of lease for a small but standard office facility for 24 months – $150,000
• Cost for remodeling the office – $20,000
• The amount required for the purchase of musical related equipment- $40,000
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $250,000
• The cost for start-up inventory – $10,000
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs – $5,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of launching a website – $600
• The cost of our opening party – $5,000
• Miscellaneous – $5,000

We would need an estimate of $300,000 to successfully set up our artiste management company in Pasadena – California.

Generating Startup Capital for Halley Bent® Artiste Management Company

Halley Bent® Artiste Management Company is a family business that is solely owned and financed by Halley Bent and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the Bank

N.B: We have been able to generate about $100,000 (Personal savings $60,000 and soft loan from family members $40,000 ) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

It is easier for businesses to survive when they have steady flow of business deals/customers patronizing their products and services. We are aware of this which is why we have decided to offer a wide range of artiste management services and other related services and also to work with both music artistes, and other performing artistes.

We know that if we continue to manage artiste who are great performers or who are known to release hit songs back to back, then there will be steady flow of income for the organization.

Our key sustainability and expansion strategy is to ensure that we only hire competent employees, create a conducive working environment and employee benefits for our staff members. We know that if we implement our business strategies, we will grow our artiste management business beyond Pasadena – California to other states in the United States of America in record time.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Renting of Office Facility: Completed
• Building of Music Studio: In Progress
• Intellectual Property Protection and Trademark: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the startup capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed studio / musical gadgets, furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress

Entertainment Business Plan for Music Artist and Producers

Download this Entertainment Business Plan for Music Artists and Music Producers free for easy editing in Google Docs, Microsoft Word or Apple Pages:

Table of Contents

Entertainment & Music Business Plan Template

1.0 entertainment & music business plan executive summary.

1.1 COMPANY & INDUSTRY

DJA Records Corp. (DJA) will capitalize on the growing music entertainment market across the world through the production and promotion of high quality entertainment. Located in Miami, Florida , the company will become highly profitable through the sale of pre-recorded music product, and ancillary profit centers. DJA will own and control the masters (master copies), copyrights and licenses of its product, which will enable DJA to create immediate revenue streams while growing its music catalog into a multi-million dollar asset.

1.2 PRODUCTS & SERVICES

The company has established four record labels to handle a variety of music genres including Pop, Rhythm & Blues, Alternative Rock, Jazz, Gospel, Urban and New Adult Contemporary. DJA has compiled an exciting and diverse roster of recording artists. Selected over the past year, these highly talented veteran and debuting artists will enable DJA to quickly penetrate the music marketplace.

1.3 MARKET ANALYSIS

DJA will distinguish itself from other independent record companies through its music marketing and promotional plan. Intense, calculated and relentless promotional campaigns will enable DJA to earn massive revenues through the growing popularity of “singles”, as well as traditional full-length albums. DJA will utilize the success of its pre-recorded music to develop profit centers in independent distribution, merchandise and concert promotion.

1.4 STRATEGY & IMPLEMENTATION

It is important to note in this music business plan that DJA maintains strong affiliations in the music industry. DJA has been offered international distribution with Cook Distributing (a distribution arm of Cook) and the Smith Group. This provides DJA the opportunity to generate revenue from the world’s largest music markets including Japan, Germany, the United Kingdom and South America.

1.5 MANAGEMENT

1.6 FINANCIAL PLAN

DJA will generate over $5.7 million in sales revenue next year, and $26.3 million in the following year. DJA will reach positive cash flow by the end of our second year, while netting profits of $4.5 million in three years and $6.6 million in four years.

1.7 FUNDS REQUIRED & USE

DJA’s founders are seeking $4.5 million in equity investment capital for this exciting company. These funds will be used to: a) establish corporate offices, b) maintain overhead expenses, c) acquire and secure artists, d) fund project production budgets, e) fund multi-faceted marketing and promotion budgets. A staged infusion of capital over the course of the first 10 months of operations will provide DJA with the necessary financial resources. A linked offering composed of common stock, preferred stock and debentures is being offered by DJA.

2.0 Music Producer Company Summary

2.1 COMPANY & INDUSTRY

DJA Records Corp. is a multimedia entertainment company, which will supply profitable, positive, audio and visual entertainment to a diverse, international consumer group. DJA is committed to wholesome entertainment across the board and firmly believes that quality palatable entertainment can be realized without compromising commercial appeal.

DJA is composed of three internal divisions: DJA Music, DJA Video, and DJA Ancillary. The company will compete and earn revenue immediately through the creation of several lucrative profit centers, beginning with pre-recorded music. Additional income will be produced from distribution, video, merchandising and concert promotion.

Each of the albums that DJA produces and owns will create valuable short-term streams of revenue. Owning and controlling the rights to each of its albums will enable DJA to grow its music catalog into a valuable asset, one of several-hundred revenue producing titles.

2.2 LEGAL ENTITY & OWNERSHIP

2.3 MUSIC STUDIO BUSINESS PLAN FACILITIES & LOCATION

The majority of the DJA projects will be produced at Sharp Recorders, in Miami. A multi-million dollar facility, the quality of Sharp’s equipment, the architecture of the studio and its atmosphere are conducive to creating the highest quality projects in a cost and time effective manner. By pre-purchasing large blocks of studio time, DJA will have access to the two studios in this facility at a heavy discount.

2.4 ENTERTAINMENT BUSINESS PLAN KEY ASSETS

DJA’s Chairman, Brian Chapple, has created, produced and marketed over thirty albums throughout his career. These albums have generated over $100 million in revenue for such companies as Cook, Simpson, Star, Edwards and Taxi Records.

DJA has also identified and signed several successful music recording artists, which have already had combined sales of over 2 million units over the last 3 years.

3.0 Music and Artist Products and Services

3.1 PRODUCT DESCRIPTION

DJA Music is DJA’s primary thrust for the first several years of operations as outlined in this entertainment and music business plan. Responsible for the cultivation of talent, the production of pre-recorded music product and its marketing, the success of DJA Music will lay the groundwork for additional DJA profit centers.

Four Record labels comprise the company’s music division. Each division has been created with a distinct and specialized reputation of its own, and will be responsible for a separate genre of music.

New River Records produces and promotes mainstream Pop, Dance, Alternative Rock and R&B. Swell Records is responsible for Jazz and new Adult Contemporary products. Urban Records will create and produce Urban, Rap and Hip Hop genres. Sun Records is designed and created to produce and promote inspirational and gospel Recordings.

3.2 MUSIC STUDIO BUSINESS PLAN COMPETITION

DJA distinguishes itself through the commitment it undertakes with each of its artists. Contrasting the typical scenario in which a record company spends more money producing the music than they do in its marketing and promotion, DJA will utilize a stable of experienced and resourceful producers to ensure the highest quality product within established production budgets. This, in conjunction with the financing and expertise necessary to stage intense, relentless marketing campaigns will guarantee the impetus necessary to create “winning” products in the marketplace.

3.3 COMPETITIVE EDGE/BARRIERS TO ENTRY

DJA has a distinct advantage over new labels as it has already signed several well-known, successful artists, which will ensure early on success. Additionally, its strategic alliances with distribution partners and its experienced management team lead to an advantage for the company.

3.4 DEVELOPMENT

DJA Music and its associated labels will produce and release four projects from each label in each of the first two years of operations. A second phase consisting of sixteen productions for music artist follow-up albums and newly acquired artists will begin in 12 months.

During the course of the next two years, DJA Music’s Artist and Repertoire Department will locate, assess and consider additional Recording artists. DJA Music has begun discussions with a variety of known Recording artists who are interested in signing with DJA Music.

4.0 Music Studio Market Analysis Summary

4.1 TARGET MARKET

4.2 MARKET SIZE

Independent labels have been described by knowledgeable music industry professionals as “the lifeblood of the business.” In fact, in 2005, independents accounted for over 19.2% of the music industry’s market share, equating to sales of approximately $2 billion and 180 million units.

4.3 MARKET TRENDS

The U.S. record business, which grossed four billion dollars in 1990, exploded to eight billion dollars in sales by the end of 1995, with a unit volume of 726 million records sold. Sales fell sharply over the course of the next six years, mainly due to the popularity of file sharing on the internet. File sharing has been curbed, but the internet has taken a key role in the music landscape. Recent figures show industry sales of more than 10 billion dollars, most of which has been generated online.

The industry has evolved considerably, and now digital distribution has become the primary method for selling music to consumers. This has opened the door for smaller record labels to compete with major labels on an equal footing.

5.0 Entertainment and Music Business Plan Strategy & Implementation

5.1 PRODUCT DEVELOPMENT

A plethora of options are available to satisfy DJA’s requirement for quality manufacturing and reproduction of compact discs. DJA will outsource this function to one of many manufacturing outfits in the industry. These vendors will be selected based upon quality of product, ability to meet delivery deadlines, payment terms, inventory and storage options, as well as price. Several manufacturers that DJA is currently considering are: Brume Manufacturers, Inc., Pearl Manufacturing, and Jam Manufacturing.

DJA has been offered international distribution of its product through Cook Distributing and the Smith Group. A working relationship with either of these companies will allow DJA to readily expose its music products to the world’s largest music markets, while generating $8.50 -$9.50 per unit sold.

5.2 INTERNET STRATEGY

5.3 MUSIC PRODUCER MARKETING STRATEGY

DJA has formulated a simple but successful approach to market its products. The chief marketing objective for DJA’s pre-recorded music, video and programming products centers on the design and implementation of a strategy that will cost-effectively deliver that product to the intended target market.

This will be achieved through a marketing plan consisting of the following tools: publicity, community outreach, advertising, art direction, radio promotion, independent promoters, broadcast music videos, touring, retailer co-op advertising, motion picture tie-ins, alternate distribution outlets, Internet, dance club promotions, mailings & telephone follow-ups.

5.4 SALES STRATEGY

Considering the onslaught of product released to the music/video market each month (1,200 new releases) worldwide, it is crucial to ensure the visibility of each project. The financial success of an album can be guaranteed through the establishment of proper marketing and promotion budgets. With properly established budgets, DJA Music will generate large streams of profits from each of its projects. The marketing and promotion budget will be divided into twelve to fifteen-month campaigns, each consisting of three phases: “single” promotion through music video and airplay; media exposure through radio, television, and online; and full length album release and promotion.

5.5 STRATEGIC ALLIANCES

DJA Music will utilize its distribution network to allow for the distribution of projects for smaller, independent record labels. A key factor affording DJA the opportunity to capitalize on this is the company’s close, personal relationships with both Cook Distributing and the Smith Group. DJA’s ability to claim top dollar from these international distribution companies will enable it to earn a middleman fee on the distribution and manufacturing of other companies’ products. DJA will earn between $2.50 and $3.00 for each unit manufactured and distributed.

Company founders have had discussions with numerous record labels across the country that are interested in working with DJA. Partnerships with these companies will be dictated by the strength of company management, the quality of both their artist and product and the size of their marketing and promotion budget.

5.6 OPERATIONS

Each of the label Vice Presidents will be directly responsible for all of the functions within their particular label, including Marketing/Sales, Artist Development, Publicity, Promotion, Artist Relations, Artist &Repertoire, and Creative Services. Label Vice Presidents will solely handle the majority of these functions for their particular label with the assistance of shared administrative staff. As each label grows in terms of sales revenue and the number of recording artists, additional staff will be added to provide necessary support. Wherever possible and feasible, staff will be shared between labels in an effort to minimize unnecessary overhead.

• Build a profitable, reputable and stable entertainment company.
• Achieve profitability and month-to-month positive cash flow by the end of 2010.
• Fulfill required fiduciary responsibilities to investment partners
• Position the company to allow investment partners, founders and employees the opportunity to financially capitalize on DJA’s profitability.

5.8 EXIT STRATEGY

As DJA reaches profitability and becomes a stable operation, several lucrative exit scenarios become viable. DJA may be acquired by a major record company, or the shareholders may liquidate their ownership positions through sale of shares to management or outside investors.

6.0 Music Producer Business Plan Management Summary

6.1 ORGANIZATIONAL STRUCTURE

DJA follows a typical hierarchical structure with each label’s Vice President reporting to the President, who in turn reports to the Board of Directors.

6.2 LEADERSHIP

Brian Chapple, President and Chairman of the Board, provides the vision for DJA’s future. A renowned producer, and recording artist, and employee with such major companies and labels as Cook Distributing, Simpson, Star and Edwards, Mr. Chapple has directly produced and contributed to over $100 million of revenue for major record companies throughout his career.

Jason Dove will operate as DJA’s COO/CFO. Mr. Dove, a graduate of the Smith Center, in the Business School at the University of Florida, provides DJA with a wealth of tangible business experience.

Sean Hertel, Senior Vice President (New River), provides an impressive blend of entertainment and general business which will be instrumental in leading New River. Most recently, Mr. Hertel served as the Executive Vice President for Star, in Nashville. In this capacity, Mr. Hertel was responsible for artist development, artist negotiation and music production. Currently, Sean Hertel is the Director of Gospel Music, for Share Music, also located in Nashville.

Erik Tylor, Senior Vice President (Sun), has developed a multi-faceted background with experience in finance and banking, in addition to comprehensive experience in the entertainment industry. Mr. Tylor honed and developed his management and production skills with New Sounds Productions. Working in the realm of Christian music, Erik has developed a cadre of affiliations. Relationships with artists, concert promoters, program directors (radio stations) and ministries across the United States will be beneficial to his role as the Senior Vice President of Sun Records.

Max Roland, Senior Vice President (Swell), has developed a varied background of experience in the industry. Most recently, he has concentrated on his solo career which has produced four Jazz albums for Star. Due to his experience in the Jazz niche of the music market, Max has developed a solid network of personal contacts with radio promoters, musicians, producers, and executives. These affiliations are invaluable to DJA and will allow the company to make an instant impact in the marketplace.

6.3 STAFF MEMBERS

A qualified, experienced and talented staff has been selected to operate DJA Music and its associated labels. Staff members have honed their skills in the areas of project production, artist & repertoire, marketing and artist promotion. In fact, these individuals have produced and marketed projects which have earned nominations for Grammy and Stellar Awards. This assemblage is poised to utilize its combined skills to ensure the growth and profitability of DJA.

7.0 Financial Plan

7.1 REQUIREMENTS

Phase 1 of the Offering

Phase 1 is composed of 500,000 shares of common stock and 500,000 debentures (12.5%). Phase 1 is a linked offering meaning that for each share of $1.00 common stock purchased, a $1.00 debenture must also be purchased. DJA possesses the right to re-purchase the debentures at $1.00 within a five-year period from allotment.

Phase 2 of the Offering

Once Phase 1 has been fully subscribed, DJA will issue 1,500,000 shares of common stock at $1.50. Additionally, 1,000,000 shares of $1.50 preferred stock will be available. The preferred shares will carry 13% dividend to be paid annually. The shares in the second phase will also be linked offering: two common shares linked together with one preferred share. DJA will hold the right to redeem the preferred shares from holders at $2.50. This action can take place within eight years from issuance.

7.2 USE OF FUNDS

Funds will be used to establish corporate offices, maintain overhead expenses, acquire and secure artists, fund project production budgets, and fund multi-faceted marketing and promotion budgets.

7.3 INCOME STATEMENT PROJECTIONS

DJA projects revenues of over $5.7 million in its initial year, growing to $26.3 million in two years. Profits at that time are expected to be $4.5 million.

DJA will generate the majority of its revenue from the sale of pre-recorded music product. This includes compact discs (CDS), CD singles, enhanced CDs and digital music formats. For purposes of revenue forecasts, management has projected varying unit volumes for each of its projects. Sales will occur within a fifteen-month time frame from the release date. Based upon the intensity of DJA’s marketing plan/budget for its projects, the following unit projections will be quickly attained and surpassed.

NEW RIVER – 250,000 units/release

URBAN – 250,000 units/release

SWELL – 125,000 units/release

SUN – 125,000 units/release

DJA will gross approximately $8.75 for each full-length compact disc sold. The current retail price averages approximately $14.72. Revenue will also be earned from the sales of digital music through iTunes and other online retailers. DJA will release and promote three to four singles from each full-length album project. Revenue projections in the financial model of this music business plan are based upon the following estimates of “single” sales.

NEW RIVER – 3 Singles – 51,000 units/single release

URBAN – 2 Singles – 51,000 units/single release

SWELL – 2 Singles – 25,000 units/single release

SUN – 3 Singles – 25,000 units/single release

Additional DJA profit centers will include distribution services, video sales revenue, merchandise sales revenue and concert promotion revenue. Initially representing less than 5% of the company’s revenues, the magnitude and scope of these areas will increase as DJA and its artists’ reputations grow.

7.4 CASH FLOW PROJECTIONS

After 23 months, DJA will become cash flow positive and self-sustaining. The company will maintain a cash balance of at least nine months of operating expenses to ensure an adequate buffer for collecting receivables and unforeseen costs associated with this industry.

7.5 BALANCE SHEET

After four years it is projected that DJA will hold approximately $20 million in cash and liquid assets, with a total assets equating to over $28 million. With only $1.7 million in liabilities, retained earnings are projected to grow quickly, leading to higher net worth for stockholders.

7.6 ASSUMPTIONS

Inventory – Inventory for album releases and upcoming product has been conservatively projected. Despite the fact that lead times for manufactured products are approximately two weeks, DJA’s financial model calculates inventory purchases in the following manner: 30%-60 days prior to sale and 70% – 30 days prior to sale. The majority of the pre-Recorded music product will be stored with the manufacturer and shipped directly to the distributor’s fulfillment/distribution centers. A small amount of sample (1,000-2,000 units) and promotional products will be kept on hand at DJA corporate offices.

Accounts Payable – For purposes of this financial model, A/P is separated into two categories: Manufacturing A/P, and Artist Royalty/Mechanical A/P. Adhering to the conservative approach, the model is constructed with Manufacturing A/P being paid in the same month that the expense is incurred. Artist Royalties will be accumulated and paid bi-annually, in August and February.

Project Production Budgets – These vary depending on the genre of the project. Established relationships and affiliations in the industry enable DJA to produce its projects over a ninety-day period, for approximately half the typical cost paid by a major label record company. Projects produced through New River and Swell require $121,000, Sun Recording’s projects (Inspirational/Gospel) require $80,000 and Urban projects (Rap/Hip Hop) require $45,000.

Marketing & Promotion Budgets – These vary depending on the particular genre of music. Projects produced and released from New River will be allocated approximately $781,000 while $390,000 will be slotted for Urban projects. Projects from both Swell and Sun will utilize approximately $240,000. Marketing budgets will be expired through the course of twelve-month marketing campaigns.

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More From Forbes

A guide to management in the music industry.

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Monika Ilieva is the co-founder/CEO of Cafe De Anatolia (Record Label & Artists Management Agency & Media News Agency).

The music industry is a vast and complex landscape, with many different moving parts. At the heart of it all is the music itself, but there are also the managers who help to guide artists' careers, the labels that release and promote their music, and the live venues and promoters who stage their concerts. All these different elements come together to create an ecosystem in which each player has a role to play. And while there can be conflict and competition between those different players, they ultimately share a common goal: to make great music and get it out into the world.

In recent years, we've seen a number of changes in how the music industry works. The rise of streaming platforms like Spotify and Apple Music has upended traditional models of how music is consumed and distributed. And while this has created new opportunities for artists, it has also made it more difficult for them to earn a living from their work. This has put even more pressure on managers to help their clients find success in an increasingly challenging environment. But at the same time, it's given managers more power than ever before when it comes to shaping artists' careers.

In this article, I explore the role of management in the music industry and how their decisions can make or break an artist's career. If you are planning to enter this industry in a managerial role, know that these roles can be demanding; however, a good manager can also be one of the most important pieces of the puzzle on an artist's road to success.

The Different Types Of Management In The Music Industry

Managers play an important role in helping their clients make decisions about their careers. They offer advice on what opportunities to take and which ones to pass on. They also help negotiate contracts and manage finances. In some cases, managers may even be involved in the creative process, offering suggestions on how a song should be arranged or what type of image an artist should project.

There are a number of management roles that exist in the music industry, and each has their own type of impact on decision-making.

• Label Executives: These are responsible for the business side of a music company, making decisions about what type of music to release and how to market it. In this role, you would also negotiate contracts with artists and other businesses.

• Artist and Repertoire (A&R) Executives: Those in this role are responsible for finding new talent and developing the careers of existing artists. You make decisions about which artists to sign and what types of material they should record.

• Product Managers: These oversee the production process for albums and other releases, ensuring that they are completed on time and within budget. They also work with marketing teams to devise strategies for promoting products.

• Radio Promoters: Promoters work to get songs played on radio stations, often by paying or offering other forms of persuasion. You can have a significant impact on an artist's career if you are successful in getting their records played.

• Tour Managers: A tour manager coordinates all aspects of an artist's live performances, including booking venues, hiring staff and handling logistics. They play a vital role in ensuring that concerts run smoothly and safely. Tour management can be one of the most important and hands-on types of management in the music industry, as it brings artists in direct contact with their fans. If you want to become a tour manager, focus on making horizontal and vertical connections with people who work in all aspects of the industry. I recommend that as you start out, you focus less on money and more on increasing your value and connections.

How To Be An Effective Manager

Every artist is a brand in his or her own right. This brand needs to be carefully managed and curated for it to come to fruition and become a global sensation. With that in mind, here are some of the core skills and job expectations you should develop to be an effective manager.

• Connections: A manager should be able to provide social and professional connections and contacts that can translate into professional relationships and a larger audience for the artist as they advance their career.

• Feedback: Managers should give candid and honest feedback and help artists brainstorm decisions and the growth arcs of their careers. This doesn't mean that artists cannot chart out their own path and grow independently, but being able to have a second opinion that is based on facts and industry experience is a valuable thing for a budding artist.

• Arbitration: Managers can act as arbitrators in a team of artists. For example, in a band of musicians, a manager can help settle disagreements and keep the team in sync for their performances.

Hiring a skilled music manager is one of the most sound investments that artists can make, but the timing of the hiring, and what kind of management is sought by the artist, also matters. An artist may not need a professional music manager at the very early stages of their career because they may be able to develop their own name better alone—so be aware, if you are coming in at a later point in their career, that your services may cause financial losses without a solid return on investment. But if you provide value as a strong source of connections, feedback and arbitration, your partnership with the artist can be successful and lead to greater financial returns down the road.

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How To Write a Winning Musician Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for musician businesses that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every musician company business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Musician Company Business Plan?

A musician company business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Musician Company Business Plan?

A musician company business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Musician Company Business Plan

The following are the key components of a successful musician company business plan:

Executive Summary

The executive summary of a musician company business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your musician company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your musician business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your musician firm, mention this.

You will also include information about your chosen musician company business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a musician company business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the musician industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the clients of a musician company may include booking agents, music venues, and corporate event planners.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or musician services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your musician business may have:

• Specialized experience and knowledge
• Proven business model
• Strong customer base and loyalty
• Robust marketing strategy
• Established industry presence

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or, you may promote your musician business via word-of-mouth marketing or referrals.

Operations Plan

This part of your musician business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a musician business include reaching $X in sales. Other examples include adding new employees or opening a new location.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific musician industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Musician Firm

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Musician Firm

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup musician business.

Sample Cash Flow Statement for a Startup Musician Firm

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your musician company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

Remember to keep your business plan updated as your company grows and changes. Review it at least once a year to make sure it is still relevant and accurate.  

Finish Your Musician Business Plan in 1 Day!