Don’t you think that those sweet melodic sounds you produce deserve better planning and management? Shouldn’t you have a hold of your music business to decide what goes in, what comes out, and what shouldn’t? I think it’s time to take the bull by the horns and make a living from that talent. For this course, this article has covered an outline of the vital information you should know about the music business and how you can start writing a business plan for your music using our unique template below.
We have also made provisions for a pre-made, extensive MBA standard music business plan if you don’t wish to go through the stress of creating one yourself.
What is a Music Business Plan?
A music business plan is a living document in which you state your goals and chart how to achieve them over a period of time. I know you might find this office work overwhelming because music is more like art, right? But you should know that to build a career in music, you will need to have a strong financial foundation, and only your music business plan can help you achieve that.
A music business plan can also be seen as a blueprint for success; it shows the outline of who you are, what you are, what you sell, who you’re selling to, your challenges, the plans you have to overcome them, and how you plan to make profits from creating music. If you have a document that contains this much information, you will find yourself crossing each milestone and paving your path to success. Hence, the need for you to invest more time in writing a unique music business plan using our template below.
Why do you Need a Music Business Plan?
There are multiple reasons why you need a business plan for your music career. Aside from laying out your plans so that you can easily access them, achieve them, or make a few changes, you will also need a business plan when seeking financial support, whether from a bank or an individual lender. Most of the time, the reason most of your lenders seek your business plan is to understand how credible your music business is and to determine if you can make a profit over a given period of time.
Crafting a business plan for your music isn’t something you can pull off in one sitting. That is why I keep stressing the importance of carefully writing your plan with a template so that it will achieve its potential purpose. Knowing this, let’s look at this unique template in question.
How do I Write a Music Business Plan?
A music business plan is usually written in sections or outlines, and each of these sections has specific content that should be attached to it. It is from these specifications that the reader can easily access any information. Meanwhile, writing your music business plan with our unique template will pave the way for your success, and that is why we have taken the time to lay out a basic outline that can help you create one.
#1. Mission Statement
Although an artist’s individual mission statement might be quite specific, every member of a band, production team, or artistic team should have a mission statement that describes why he or she is in business. Hence, a mission statement 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.
#2. Executive Summary
The executive summary of a business plan is a one-page synopsis of your plan. This outline of your music business plan contains an introduction that well describes your endeavors, such as why you are starting a business, what products and services you intend to provide, your competition, and other pertinent information.
Writing a summary of a business plan takes time and considerable effort because you will need to ensure that you’ve covered all the essentials of your entire business plan. Using this executive summary, investors and lenders will be able to decide whether or not they want to request a copy of your entire business plan.
#3. Company Description
As the name suggests, the company overview of your music business plan should be dedicated to your organisation. Questions about your company’s founding date, why you started, its physical location, the name of the company’s proprietor, and near-term goals are all ones for which you should be prepared. Make sure that, as the name suggests, information about your music business is readily available to the reader. Also, ensure that the information you give out stays SMART: specific, measurable, achievable, relevant, and timely.
#4. Market Analysis
In this section of your music business plan, you will need to outline or demonstrate that you understand who your target audience is and how you intend to reach out to them. Market analysis is one aspect of your business that should be given the most attention and importance. It is more like research that has been done to determine recent market trends, understand the music industry and identify who your ideal customers are and how to approach them.
If you’re already performing, teaching, or producing on the side, think about what your fans have in common. If you’re just starting out, you might as well look for a popular artist in the field you wish to enter who has a similar approach and analyze their target market.
#5. Sales and Marketing Plan
How would you market and create an awareness channel for your music business? Your marketing strategies should determine that. In your sales and marketing plan, you will need to spread the word about your music, create marketing channels that will help your campaign, create a strong online presence, and also employ some publicity materials such as flyers, logos, billboards, or photographs. Getting that much exposure will help you grow.
#6. Financial Plan
Your financial plan should include a full account of your current cash flow situation. In this section, you should detail your available funds and projected startup costs. In cases where you’re unsure, it’s better to exaggerate. It’s crucial to factor in the costs of things like studio time, engineering skills, transportation, legal fees, copyrights, and trademarks when creating a budget plan.
How do I start my Own Music Business?
Because the music industry is a very layered and textured business, you will need to take extra care when planning on starting one. When starting a music business, there are some steps that you will need to observe to make sure you start on the right foot, and some of these steps include:
#1. Picking an Area of Expertise
In the music business, you have a lot of options, so it’s essential to narrow your focus. You will need to pick a niche in which you have a strong interest. Choosing a niche in which you have some level of expertise will help you scale through that branch in no time because you have the knowledge it takes to handle it effectively. You can start as a music producer or an audio engineer, depending on the services you can best deliver.
#2. Assemble your Documents and Funds
When starting a business, it is best to plan ahead and do it the right way. This can be achieved by getting the necessary documents that can indicate that your music business is legit. You can also try acquiring knowledge for some courses and getting qualified for them. Aside from these functions, make sure to register your company name, get a business plan, and start executing strategies that would affect your music business in a positive manner.
#3. Engage in Marketing and Networking
For you to scale abruptly in the music industry, you need to spread the word about your new company. You don’t have to be silent; get out there and preach. Let your target audience understand why you are unique and different from other artists. Prove to them that you are not some culture vulture. Sign up for industry events and network with potential clients.
What Type of Music Small Business Can You Start?
There are multiple music genres that you can venture into, and most of these small music businesses are not limited to music producers, music bloggers, music schools, music therapists, music video directors, recording studio owners, record label owners, and music, among others.
How Does the Business of Music Work?
The music industry is made up of a network of partnerships between companies and people who create music (singers, songwriters, and producers), companies and people who interact with customers (streaming platforms, venues, and public performance platforms like radio), and companies and people who connect the two (labels, managers, and publishers).
What are the 4 Main Areas of the Music Industry?
When it comes to the music business, there are popular areas that attract the most traffic in the industry. The top four include live music, recorded music, music publishing, and artist management. Aside from these four main areas, there are other varieties of job roles that are still in existence. They keep expanding as time goes on.
How Much Does 1 Million Spotify Streams Pay?
For every 1 million Spotify streams, it costs about £5,896. The calculation approximately means that 70% of the total revenue collected goes to the artist. Then the remaining half ends up on the platform. This fraction is then used to calculate the overall number of streams and the proportion of each artist’s share.
Which Music Platform Pays the most?
There are many popular music platforms that pay artists according to the number of streams they get from their customers. But the platform that currently pays the most is Spotify, which is rightly considered the leader of the global streaming market. However, other platforms that offer good pay include Apple Music, Deezer, Amazon Music, Napster, and Tidal among others.
How Much Does Drake Make from Spotify?
Drake is a popular Canadian rapper, singer, and actor. According to the number of streams and music he has on Spotify, he has been recognised as the first artist ever to surpass 50 billion streams on Spotify. Meanwhile., he makes over £198 million.
How Much Does Apple Pay Per Stream?
In 2022, Apple Music will pay artists an average of £0.0088 per stream. Most times, these streaming royalties are calculated based on a stream share basis. But that still doesn’t affect the value of each play or stream.
Want a Copy of our Music Business Plan?
Most people won’t tell you this, but creating a business plan can be fun and daunting at the same time, especially when it’s your first time trying.
But because you can’t keep lagging, you have to take the easier route out, and for this reason, we have created a ready-made music business plan for your convenience.
Over the years, businessyield consult has specialised in creating professional business plans and, so far, has helped millions of businesses stand on their feet, and we are happy to help you too. Get started here.
Final Thoughts
Working with a business plan will always give your music business more shape. From there, you’ll probably be recognised by a major record label that can offer you an incredible deal. You never know. That is one more reason why you need to pay attention to every little detail until your success is attained. Having a business plan that works will not only make you feel confident in your ability to make it in a tough industry, but it will also make investors and brands believe in your capabilities. Don’t hesitate to reach out to us here if you experience any difficulties.
FAQs
Is music a good career?Â
If you have been having doubts about venturing into the music industry, then I would advise you to drop your doubts and start now. Aside from music being a career that can earn you a living, it is also an avenue where you get to explore and practice what you love doing without hindrance. All the same, it is not an easy task, so you need to be ready to put in the work.
Do musicians need a business plan?Â
It doesn’t matter what type or form of business you run; as long as you plan on making a profit from it, you need a business plan. As a musician, your responsibility doesn’t end at recording tracks or performing for live audiences. If you wish to make the most of your career and ensure you earn enough to meet your financial goals, you need to make real plans with the help of a music business plan. Remember, we can help you compose one here.
Is the music business hard?Â
Before you start off on this path, you should know that no business comes easy, including the music industry. The industry is highly competitive, but once you set your priorities right and stand out from others, you will make a name for yourself in no time.
