Record label idea, let me know what you think

**EXEKutive** · 01-15-2008 04:39 PM

I have been longing to start a record label for quite some time. I will be the first one to tell you I dont know the first thing about record producing or music engineering, but I do have an ear for good music and some ideas on managing, marketing and talent search. Parts of my business plan is to outsource the producers. Outsourcing will be beneficial
to me by making sure the correct coaching and guidence is given to the specific needs of each artist. It will also help keep my hands free to search and promote new talent which is vital to survival. I also believe I have a method of finding quality talent AND promoting rolled into one.

There are a few things a do not really alot know about. One is mass distribution, alot of distributors will not take you on if you dont have a major label. Another is large scale promoting and booking. What I have learned is that unless you know someone "BIG" in the business, it can be very difficult to get your artist(s) name out there. And as for legal info, what would we do with out lawyers...

Let me know what you guys think and/or could improve on.

EXEK.

**rogercbryan** · 01-15-2008 11:26 PM

Originally Posted by EXEKutive

I have been longing to start a record label for quite some time. I will be the first one to tell you I dont know the first thing about record producing or music engineering, but I do have an ear for good music and some ideas on managing, marketing and talent search. Parts of my business plan is to outsource the producers. Outsourcing will be beneficial
to me by making sure the correct coaching and guidence is given to the specific needs of each artist. It will also help keep my hands free to search and promote new talent which is vital to survival. I also believe I have a method of finding quality talent AND promoting rolled into one.

There are a few things a do not really alot know about. One is mass distribution, alot of distributors will not take you on if you dont have a major label. Another is large scale promoting and booking. What I have learned is that unless you know someone "BIG" in the business, it can be very difficult to get your artist(s) name out there. And as for legal info, what would we do with out lawyers...

Let me know what you guys think and/or could improve on.

EXEK.

It sounds like you need to gain some more experience first. Have you ever managed a performer or done any producing? Have you thought about interning an established record studio? You need to find a way to gain the knowledge that you are lacking.

You may want to write a business plan now that you will continually update as you learn more. This will be an excellent resource for you in the future.

**EXEKutive** · 01-16-2008 05:51 AM

I have been looking for an internship, with not much luck. One of the main problems is pay. I have no debt, but I do have monthly bills that 7-8 dollars an hour as an intern will not pay.

**akula** · 01-16-2008 09:28 AM

exek, the partial solution to your problem is to redefine your opportunity selection
targeting "to start a record label" as an opportunity is the wrong approach. the right approach is to target "I want to sell music" as an opportunity

now, if you redefine your opportunity matrix in this way, you open your self up to anything from working at a record store, to throwing up dance parties, doing light production at concerts, selling web services to artists, flogging ipod peripherals, setting up people's home media systems, doing a music reviews content play, or backing new music distribution channels and recommendation engines like pandora.com, lastfm or amiestreet...or even cooler stuff like music AI (i.e. platinumblueinc.com)

that said, you've never formally studied music, or ever tried selling the stuff...which basically means that your interest in the subject is probably a passing teenage-type "phase". study the stuff, enroll at a music school and take a part time job flogging records. if you enjoy doing that stuff, it'll be a great start for your future in this biz...which is rapidly changing and disintermediating. In other words, you've gotta start positioning your self for the future in this industry, and it's pretty much a fact that the future of music doesn't have a place for yet another "record label"

at the end of the day your job is to sell music and there's a great many opportunities for doing that which are better than setting up a traditional artist marketing agency (i.e. a record label). opportunities where you can find differentiation, scale, defensibility, competitive advantage and ultimately a great exit

**MASapparel** · 01-16-2008 10:56 AM

labels are hard to start, I have worked with some start ups and it is a tough industry to get into.

Now is harder then ever since most of your profit should come from cd sales which are low now due to the internet so even the existing labels are still trying to figure out ways to make money.

I would suggest getting into band management/booking. Start a small Band Management company and get some bands, help them out and it will be good practice for starting a label in the future. This way there are no costs/risk for you but you are still getting the skills you need.

**EXEKutive** · 01-16-2008 11:44 AM

If I really think about it, I dont want a full on record company. I believe MASapparel and akula have hit it right on the nose. I am more interested in starting a band managment company. I would enjoy finding new unsigned artists' and bands more then actually starting a label, dealing with mass production, distribution and the all the problems that go along with a new label. It would be much easier to cut a DEMO and find a label willing to market then making a record and trying to mass distribute it.

EXEK.

**akula** · 01-17-2008 09:59 AM

EXEK, that's nice.
my role here is to help make you sucessful.
success starts with picking good opportunities.
in your 20 yr career as a founder you're only gonna get 4-5 swings at the ball, so it pays to make each one count

a good opportunity is one that passes objective criteria such as scalability, competitive advantage, contribution margins over 70%, defensibility and M&A fit
however, right now you're making your opportunity selection based on subjective criteria such as "I am more interested in etc"
i'd encourage you to correct this problem
the result of you correcting this problem is very beneficial
by applying an objective screen to your opportunity selection you will be able to convince other stakeholders to help you in commercializing the project

on another hand, if you ignore the advice and target the opportunity because it's some sort of a wet dream, or caus you wanna be a mack daddy or the next dr dre, then you will encounter problems with aggregating resources from other people who you need to get this chop shop of the ground
you dig what i'm saying?

**Heather48DD** · 01-17-2008 07:14 PM

Originally Posted by EXEKutive

I have been longing to start a record label for quite some time. I will be the first one to tell you I dont know the first thing about record producing or music engineering, but I do have an ear for good music and some ideas on managing, marketing and talent search. Parts of my business plan is to outsource the producers. Outsourcing will be beneficial
to me by making sure the correct coaching and guidence is given to the specific needs of each artist. It will also help keep my hands free to search and promote new talent which is vital to survival. I also believe I have a method of finding quality talent AND promoting rolled into one.

There are a few things a do not really alot know about. One is mass distribution, alot of distributors will not take you on if you dont have a major label. Another is large scale promoting and booking. What I have learned is that unless you know someone "BIG" in the business, it can be very difficult to get your artist(s) name out there. And as for legal info, what would we do with out lawyers...

Let me know what you guys think and/or could improve on.

EXEK.

HI, I own a recording studio and Manage Jordan Rivers , one of the Top new Guitar Players in the world today.
I hope you don't think I am picking on you........but every time I heard someone say they are going to start a record lable because they have an ear for music, I know they are not going to succeed.
First you better be able to read, write and play music or you just can't talk the language. Next you better have at least 10 years of running professional studio sound gear,and know how to run everything and do it fast without thinking.
A great sound engineer knows so much about mixers,multi-tracks,sound effects,how they work and what eq setting are best under 1000's of different circumstances.

I'm sorry to tell you this but you can't just go in and run the show.

Next why would anyone want you to manage them?.....why take a chance with you, when other professionals know their craft and have been doing it for years and are greatly rspected?
What makes you better...again I am not cutting you down....I am telling the truth.
Great Managers and studio owners are super stars in their own right. They are genius Masterminds who could build a NASA Space space stuttle.
One guy I know who's a great sound man, use to work designing Nuclear weapons before he retired, I know he's moved on now and retired from music also, I think he's in his 60's but moved out of state now.........but he was a genius and was in about 4 or 5 Mix Magazine, and recording magazines, he was just that famous.

Just because you think you know how to run any old business, and you think you have an ear, doesn't bring you any respect.
You only wished you didn't waste your time and money.

But I really doubt anything I am saying will sink in, most people only see Dollar $ signs.And how great this will be....they don't hear the BIG CRASH comming.

To own a recording studio, or to own a lable ...or to be a manager then I hate to tell you this but... music has got to be your life. Not a dream.
I know this isn't what you want to hear.
But it's the truth.....don't believe me if you don't want to, just contact a studio and try and get a job, infact contact 20 studios, I bet no one will hire you.
Now if they won't hire you and they know best, then what makes you think you can do it and succeed?
You better do a re-think before you invest into this idea.

Sorry but I told you the truth

Heather48DD

P.S. you said you're planning on coaching the artist...sorry again ...but they are the artist, they know way more than you, coaching will not help but hurt them. They are the pro's not you.You really need to do a re-think.

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**EXEKutive** · 01-17-2008 07:50 PM

Thank you for your honesty Heather48DD. Even tho its hard to believe someone with a name like that, it may be a little prejudice but thats my opinion and if you dont like it go somewhere else.

**stlsmoore** · 01-17-2008 07:56 PM

EXEKutive even people told Michael Jordan that he would never be good at basketball when he was a kid....think about it.

Follow your dreams not other peoples opinions

**EXEKutive** · 01-17-2008 08:10 PM

Thanks for the encouragement stlsmoore.
I keep telling myself that alot of companys start with an idea and nothing more. My idea is to help the mass of Indie/new age/traditional unsigned artist find gigs and labels be it a large label or not, not so much fund their endeavors and produce records.

**MASapparel** · 01-17-2008 08:57 PM

yeah man I say go for it, you will not be the next big thing but I get where you are going with it.

How do you think those people she mentioned got the respect and skill they have? by doing what they loved and doing it full on. Don't worry about what she said and start small like your planning, don't put a lot of money in and slowly teach yourself. The things you can do hire someone else to do them for you and go from there.

best of luck with everything

**EXEKutive** · 01-18-2008 04:52 PM

Thanks for the words of encouragement. But I am very worried about not knowing the right people/ contacts in the industry. I am not worried about finding quality artist, which is a big hurdle. But if i dont know who want to sign the artist then what good is my idea. I wish I knew where to go or who to talk to.

**stlsmoore** · 01-18-2008 05:11 PM

Hmm I think in the business you're in Networking is going to be your most important asset. I'm not sure who you know but you could start with family and friends to see if they know anyone in the music industry. You can also start going to any type of music events near to meet people, you'll never know who you'll run into. I always hear stories of how some top person just happen to be at a club an artist is playing and gets signed that way. I don't know how often or not that happens but I'm sure it does every once in a while.

**akula** · 01-19-2008 12:09 PM

Originally Posted by EXEKutive

Thanks for the words of encouragement. But I am very worried about not knowing the right people/ contacts in the industry. I am not worried about finding quality artist, which is a big hurdle. But if i dont know who want to sign the artist then what good is my idea. I wish I knew where to go or who to talk to.

so what kind of feedback do you want now?