How to Start a Local Record Label
Creating your own record label is hard work. To succeed as the owner of a local record label, it is recommended that you have at least a college-level education with a concentration in business, and understanding of the genres of music you intend to distribute. It also would help to have an understanding of computers and how to navigate the Internet. Owning a record label will require you to be in constant contact with many different kinds of people, so if you do not feel confident in your interpersonal skills, it may be necessary to take classes to improve them.
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Instructions
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Decide on a name for your record label and get a business certificate from your local government office. Establish a checking and savings account in the business' name and order company checks.
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Image is everything when creating a record label, so attend to the things that will make you look like a professional organization. Find a small office space that you can afford and rent it. In the beginning, you can use your cellular phone as your business phone until you can afford a separate business phone. No matter how small your office is, decorate it with nice furniture that will give visitors the feeling that you are an organized business. Get letterhead professionally done along with business cards, and always use company letterhead when sending out correspondence to anyone. Hire a website developer to create a professional-looking website and get your company online.
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Begin establishing the music business contacts you will need to make your record label operational. You will be dealing with music industry contracts on a daily basis, so hire a music industry lawyer. Establish relationships with distribution companies that will help you duplicate, package and distribute CDs and other materials to music stores within the geographic area you intend to do business. Interview various recording studios and establish contract relationships with the ones that you would like to do business with. This is important because committing to a contract with a recording studio will get you better hourly rates and keep your recording costs low. Reach out to the major radio stations within your marketing area and establish relationships with the station managers and programming manager. These are the people who will help you get your artists radio air time. Purchase blocks of radio advertising time on these stations to promote your artists and increase the chances that you will get them heard on the air.
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Determine if you will be scouting for talent or if you will be hiring an A&R manager to find and sign new talent. A&R stands for artists and repertoire, and this is the group that will find artists and deal with the day-to-day managing of the artists' careers. To keep costs down, this may be something you want to do yourself in the beginning, but as your roster of artists grows, you will need to hire A&R representatives to help you keep up. A good ratio to use is five artists to every one A&R representative.
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Tips & Warnings
It may help to stay with one particular genre when you first start your label. Staying within a single genre can help you to develop a reputation in the industry, and it can help you focus better on talent.
Avoid working outside of your areas of expertise. If you are not a lawyer and have no legal experience, then have an attorney look at every contract before you commit to it.
