Music Business

Independent Record Labels: The Essential Steps to Successful Entrepreneurialism (6)

The Music Telegraph | Text 2020/04/15 [11:17]
Music Business

Independent Record Labels: The Essential Steps to Successful Entrepreneurialism (6)

The Music Telegraph| 입력 : 2020/04/15 [11:17]

© Giphy

 

 

Independent Record Labels: The Essential Steps to Successful Entrepreneurialism (6)

 

© 2001 Music Business Journal (by JoJo Gould)

 

 

The Following then is a summary overview of some of the key elements to be considered by those who wish to pursue the setting up of their own independent record label:

 

(Continued from previous article) 

Regardless of the uneven impact of the internet and broadband technology, it is clear that the digital medium is here to stay. As a result, small labels must consider setting up a website, thus ensuring that they have an online presence. Websites can be used as information and promotional tools, as well as for e-commerce. Product can also be sold by mail order, or even by direct Mp3 digital download. Labels should also try to retail their product on the many third party retail websites which are available - such as Amazon or Jungle.

 

 

Like any other small business, it is important to get the papaerwork right. The tax office will not be interested in the quality of your music. They will however demand their formal returns every year. Consequently, all invoices and receipts should be kept for a minimum of 5 years after submission. The label owner (if a sole trader or partner) should register their activities with the  local tax office. This will allow them to participate in the self assessment scheme for annual accounting returns. Limited companies must submit returns to the government at regular intervals. These accounts will usually be available to the public.

 

 

Likewise, in territories such as the UK, it will be necessary to register for national insurance contributors, and VAT if your turnover is over the VAT threshold. Those with low profits can claim exemption from national insurance contributions. To facilitate this accounting process, the label should therefore set up a proper business bank account. This will also allow personal income to be kept separate from business income. Most record labels will qualify for free banking for at least the first year. Terms and conditions vary from bank to bank, so once again the best deals should be sourced out locally.

 

 

A business plan is another fundamental requirement. This professional document could provide the key to some local funding from your council, enterprise agency or other awarding body in your area. Banks and funding bodies will also wish to consider a formal Business Plan before agreeing to back any new or developing venture. There are guides available which explain the essentials of Business Plan production. Key elements to consider may for example include: an executive summary, the product or service idea, the marketing mix, PEST analysis, SWOT analysis, analysis of competitors, start up costs, pricing policy, cashflow, balance sheet, the path to profitability, information on the background of the entrepreneur(s), contingency plans and a summary.

 

 

Sponsorship may also provide additional resources. Some private business may be interested in providing financial support or otherwise for advertising opportunities.

 

 

 

 

 

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