Before getting started, there are a few questions you’ll need to ask yourself — and be able to answer truthfully and honestly.
Your answers will define how you go about managing your affairs.
If you simply need some legal protection and benefits for your own musical career, a self-owned record label can be a great way to go.
However, it’s perhaps not the best option if you’ll be signed to the same roster as other acts, as you are likely to favor your own creations and give yourself an unfair amount of resources and not necessarily because of the quality or sales potential. I mean, what do you really want to get out of this venture? Are you looking for a way to break into the music industry and you believe this to be it? If the last choice is what is truly in your heart, I can’t blame you, but a record label might not be the easiest route to your dream destination (as if there was such a thing).
Many who get into the music industry aren’t necessarily known as brilliant business people but if you want to survive, you’re going to need to be smart about everything you do.
When it comes to running a company, the first thing that’s an absolute must is coming up with a business plan.A good, quick guide is to have one strategic objective for each of the 4 areas of The Balanced Scorecard: Financial, Customer, Process, and Employee Learning.An even shorter answer is to keep the number of strategic objectives to less than 6.There are a million things I could tell you about starting a record company and you should do a lot more reading than just this one piece if you’re serious about it, but here are four things you’re going to need (and a few things you’ll need to know) when it comes to starting a record label.Lots of people who either start record labels or who have dreams of doing so don’t necessarily realize what these companies do.Be honest with yourself here because it would be a shame to work hard and commit funds to something only to realize later you were doing it for the wrong reasons.Finally, what will separate your label from the hundreds of thousands of others out there?I can’t quote you an exact figure because it will vary widely based on your goals and aspirations.That said, the amount you’re willing to commit should help give you an idea of what you’ll be able to do, at least at the outset. Sadly, it’s just the way things work and it seems like most things worth doing need you to put up at least a little capital as you begin.Are you unsure as to how you'll even find new investors for your record label?Well, don't get frustrated and give up on your dreams just yet..have your solution!