17 Items You As A Musician NEED In Your Business Plan!!!!
What Do You Have Included In Your Business Plan?
Write it down (the rough draft)
Whether it’s temporarily written down on a napkin or typed in Microsoft Office, you need to get your plan from out of your head and on paper. A clear outline helps the brain plan and create direction. Start by considering where you are currently in your music career and where you want to be. Give yourself a realistic time frame and work backwards, citing the steps and resources required to reach each milestone in your plan.
Be A Professional
Living on the corner begging for a meal is no joke. If you don’t take yourself seriously, no one else will, so include pertinent information regarding your music business. Before you complete your plan, make sure you’ve captured the essence of your music business with the same passion you have for your music.
Wait Don’t Dive All The Way In Yet
Creating a music business plan can be an overwhelming task if you allow it to be. Remember, the only way to clear a mountain is one small rock at a time, so take a moment to breathe and gather your thoughts. Don’t let the overwhelming feeling frustrate you to the point you can get the business done. Small chunks can be accomplished in days and by the end of the week you will have a portion of the work done. Small task
S.W.O.T, NO Not The Police!!
Do Your SWOT analysis. A SWOT analysis is a simple assessment of your personal or professional Strengths, Weaknesses, Opportunities and Threats as they apply to your music business. Begin by taking a piece of paper and folding it into four equal squares. At the top of each square going clockwise, write each component of the SWOT analysis in its own square. Then create a bulleted list of all the information regarding your business in the corresponding squares. Once completed, you will have the framework to create a formal business plan.
Every Business Plan Should Contain
- A) Executive Summary – An overview of your company, including an executive summary, mission statement, goals and objectives and a brief artist history.
- B) Market Analysis – Here you will analyze the current music market, with special focus on your genre of music. Include opportunities, competitors, trends, market size and growth potential.
- C) Company Description – Describe who you are, what you offer and the audience your business serves.
- D) Organization & Management Structure – A layout of your organizational structure. Are you an LLC, corporation or sole proprietorship? List the key team players, i.e. management, promotions, legal, accounting, etc.
- E) Marketing & Sales – How do you plan to market your music to the consumer (fans)? List your sales, product pricing and positioning strategies, marketing channels, ecommerce and communication strategies, as well as distribution and promotion networks.
- F) Products or Services – Explain the music related products and services your business is offering. Are you selling physical CDs or only digital downloads? Are you offering merch for sale such as T-shirts, posters, download cards and stickers? Do you have your own website outside of your social network that also serves as an online store for your music and merch?
- G) Funding Request or Needs – How much money do you need to get your operation off the ground? How much will you need for operation costs such as fixed and non-fixed expenses? Are you or your staff taking a salary? What are your costs for manufacturing, distribution and marketing?
- H) Financial Projections – How will your music business make money? What are the current and future revenue streams of your business? Be as clear as possible, investors hate ambiguity.
- I) Appendix (if needed) – If you already have an existing music business, use this section to add documents such as: revenue model, resume of owners (founders), cash flow statement, income statement, balance sheet and any other information that can help you stay on plan and attract the right people to your business.
Writing the plan using a mind map
Just like creating a song, you will never really finish your business plan; you just have to stop and be okay with what you have. A business plan should evolve in sync with your business. Refine minor changes along the way. As a creative type, this is probably more than what you signed up for, but I assure you that it is a well worthwhile venture. Begin by creating an outline using the parameters I mentioned early. Some business plans are far more granular than what I have offered here, but use this information as a guide to establish the basic elements..
17. Pulling it all together
Once you have the first draft of your business plan, put it down and walk away for a few days. After a short mental vacation, review your plan and make corrections where necessary. Make sure it is properly formatted and free of errors.
Distributing your music business plan (the final draft)
Once the final draft of your business plan is ready, distribute it across your organization and discuss it. This step is critical, as everybody in the camp should understand the plan and the vision of the organization. If they don’t, you will know immediately how serious they are about their career and should remove them from the operation. Does the plan provide the reader with the key goals of your business?
Now it’s time to look for business partners or investors to take the ultimate goal to the next level. The money is not everything but it makes many things easier. It takes money to spend money. Create your plan before you make a million moves. You will thank us in the long run. We want to see you on the stage not the street in a few years!!! It all starts with your business plan!!!