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Business Plan (Record Company) Business Plan: Starting an Independent Record Label Introduction First of all I am setting down the employees of "Les Incompetents(tm)".
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Submitted by curvetm on April 16, 2008
Category: Music and Movies
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Business Plan: Starting an Independent Record Label
Introduction
First of all I am setting down the employees of “Les Incompetents™”.
There are three of us: The Label manager (who is responsible for running the label), an A&R (the talent scout who mentors the artist through to final recording) and a business developer (who is responsible for the business deals). Although every one of us has a specific title, being a small independent label, we all work on every issue.
The funding of the label came from our personal funding (representing 85% of our funding). I, the head of the label brought 55% of the full funding, the two other equally brought 15% each of personal funding into the label. Three of our friends (5% each) came in for the last 15% to help us as we had trouble finding a bank which would loan us the money for an independent record label! There is no interest on this loan and we have an oral agreement that we have five (5) years to pay back the loan.
We have raised a budget of 15000£ to start our record label!
There are no office costs as we all already own a computer and are working in my living room which has been transformed for the occasion into an office.
Our income forecast, which will be more detailed in our cashflow document, comprises:
- Record sales (worldwide and different formats: CD, Vinyl).
- Broadcast Income (income from our records being broadcasted on radio or TV, or played in public places which will be paid to us once we have joined PPL).
- Licensing (giving a license to other companies to put our tracks on compilations or for licensing the whole album on a said territory).
- Synchronisation (which would be great though we can’t directly count on it though we will be pitching as much as possible as there is some important income from this type of licence).
- Merchandising (we take care of the...
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