5 Things to Keep in Mind When Starting Your Record Label
When starting a record label, potential clients may run into day-to-day considerations that they don’t think about until they are in the thick of it. To avoid these pitfalls, here are 5 things to keep in mind when starting your record label.
1.Have Something To Offer. When starting a record label, you don’t need to be so far advanced that you don’t sign anyone until you have amazing connections or distribution. You can get started now.
Solving problems for musicians is valuable and goes a long way. If an artist doesn’t know how to get their music out there and you come along and help them with that, that makes your record label that much more attractive. What we’re doing is helping artists solve problems, build their team, and grow their music careers.
What is going to be appealing to artists is the hustle and work you put in to help them. Your blood, sweat, and tears is extremely valuable.
2. Know What’s Going On With Your Money. It’s important to note that not keeping an eye on your money can tank your business. You need to make sure what money is going out and to where, and also how much money you’re making from the label. Stay in the know by learning what you need to track your finances. It’s all about getting you to think strategically about your finances.
3. Take It Seriously From The Beginning. Have Formal Contracts for everything, and don’t simply rely on handshake deals or verbal agreements. You want to get everything in writing, which helps establish you in a professional manner. Formal contracts show that you’re not going to be taken advantage of and you’re going to be clear about what the terms are.
Be careful who you bring into the label. You may have some friends who are interested in what you’re doing, but you know that they may not be good for the business. Also, don’t give away company ownership to others right out the gate. You need to always act like you are going to be successful, so treat everything seriously from the beginning.
4. Don’t Overcommit. If you are a brand-new record label and you’re still learning the ins and outs of the business, be careful of how many artists you initially sign. If you are struggling with one artist, then 10 artists will more than likely overwhelm you. You have a responsiblity to your artists, whether its scheduling studio sessions or music videos, and you want to make sure that you can deliver on what you promised. You want to do all you can to help your artists be successful and for you to be profitable, so remember to not stretch yourself out too thin in the beginning.
5. Don’t Make Promises You Can’t Keep. You have a responsibility to your artists. Artists think you have the ability to make them big stars without much effort, so you need to make sure to communicate with them the logistics and reality of what you’re going to be able to do for them. Be honest with your artist and help avoid frustration and discouragement by not setting unrealistic expectations. Don’t overpromise, be realistic, and then overdeliver.
So as you’re getting ready to launch your label, be sure to keep these 5 things in mind so you can avoid these common record label pitfalls.