How to Build a Business Plan for a Musical Artist

Approach your musical career as a business and develop a plan.

As a musical artist, a business plan will help you stay afloat and build your musical brand. Look at your music business as a whole and write a plan that includes realistic steps and timelines toward specific goals in several areas. Incorporate into your plan a solid approach to releasing and promoting your music online. A business manager or attorney can help you figure out the costs of implementing your plan.

Instructions

1. Write your end goals. Why are you launching a musical career? Evaluate exactly where you want to be in your career in the next year, in three years and five years. Write down a description of each of your career goals. Do you want to win a Grammy someday? Do you want to end up "signed" to a major record label? Do you want to stay independent for as long as possible?

2. Write your business plan from the perspective that you are a musical brand. A major record deal builds the artist as a brand, allowing the record label to invest in, and profit from, as many areas of an artist's career as possible. This is called a 360-deal, referring to the fact that deals like this take a 360-degree approach to an artist's value and profitability. Plan your career the way a record label would and you'll be more likely to compete effectively or eventually get signed to a major label.

3. Divide your plan into sections including marketing, legal, human resources, financing and management. Write a marketing section that includes a description of your fan base and the various social media and mobile device opportunities you can use to reach your fans. Choose an attorney and legally register your band name as a business. Write the responsibilities of each of your band members and anyone else you'll work with such as the band manager, photographer or music producer. Create a financial section in your business plan to outline and project the flow of money through the band.

4. Research and write plans to develop several income streams from your music and your brand. Music publishing, touring, merchandising, promotions and "other" opportunities are your main profit centers. Selling CDs generates publishing revenue, as does digital download sales online and licensing music to television, video games and other media. Ticket sales and corporate sponsors generate touring revenue. Selling items with your name and likeness on them, such as T-shirts or posters, is merchandising. Paid appearances at events or licensing your name and likeness to other companies for their product lines are examples of promotions. Appearing in a TV show and co-producing a song with another artist are examples of "other" opportunities.

References

• "The New York Times"; The New Deal: Band as Brand; Jeff Leeds; November 2007
• Artistshouse Music: Be Prepared: Develop a Business Plan for Your Band; Jerry Goolsby; July 2006