Independent Record Label Resources

Record Label Financial Tips -Part 1

If you are just beginning your record label business, or if you have not completed some parts of it, you will want to make sure to start spinning the deals in the right direction.

One of the most essential parts of setting up your record label is getting your finances into place.  As much as you may cringe at the idea of setting up the numbers and keeping track of record sales,
it is simpler than you may think.

1.  Find people to help.  The first thing that you want to do in order to set up the finances is to go to an area that can help you with all of the details.  If you are not ready for an accountant, you can try a small business development center that can provide you with resources and consulting on exactly what to do.

2.  Build a power team.  If you want to complete your financial means without having to worry about it anymore, it is time to build a power team.  This can help you to keep track of the finances without spending a lot of time. Your power team will consist of your accountant and bookkeeper. If your situation isn’t ideal, then you can double up as the bookkeeper amongst all you other job hats!

Either way a good competent music accountant is a *must*. I strongly recommend that. Do not skip this part out or be asking a friend that knows “any old” accountant.  You need the specialists here that understands the business.

3.  Building the right way.  You want to make sure you have divided your finances correctly and have the right people watching over them.  This means having a trusted individual (a bookkeeper) who will keep track of your company’s sales. They should also make sure that you keep to a set budget and keep a close eye on the outgoings month in and month out.  This will prevent the feeling of
*bottomless pit water drainage* on your much needed finances.

Having your books kept in this way by a bookkeeper or by yourself will not only make your accountants job easier, but it will also save you money with accountancy fees!

“How do I find a good accountant?” you may ask! The best way is through referral.

If you have been networking, like you should, ask around for a good accountant. Set up meetings with the one’s you get good recommendations about. Tell them what your situation is regarding the level you are at. You will either be appointed the main person or they will assign a junior depending what your budget is like. Don’t play the bigshot if you can’t afford it!

If you want your record label to begin to take off, one of the keys is the finances that you set up.  This will allow you to have a means to take in your means of making a living and will be easier to handle in the long run.

Record Label Financial Tips -Part 2

We talked about getting your finances in check.   Along with this, you will want to make sure that you understand where and how you are going to make money. You are also going to need to know how you can take the most advantage of this.  Follow these three simple tips, and you will be on your way to bringing in the cash.

1.  Build a budget.  Figure out where all your sources of income are going to be coming from, whether from online sales, CDs or from gigs. You need to work at the ways of generating the different income streams then utilize them by taking the relevant action and selling your music. If you are starting out, you will most likely be doing the “do it yourself” method.

Most of the time your sales of physical CDs will come from doing  live gigs by selling your merchandise inside or outside the venue.

If you have hired help, a good motivator is to pay them in  commissions. The money that you make from the above methods  combine with your regular expenditure will allow you to figure out  if you are making money or loosing it.

This might sound obvious, but if you are not strict with this discipline you can easily loose money that could be used to  help build your business. If you want an easy way to keep track  of you finances, get a copy of Quick Books or an online financing  program to keep everything up to date.

2.  Keep track.  If you are online, off-line or both, you will want to get as many ways to bring in money. Set up an automated system that allows you to keep track of what has been sold.  Make sure that you keep updated with the money that is coming in.  It is vitally important to track where all your sales are coming from, so that you can do more of the same. Your webmaster should be able to help you keep track of your online sales no problem

3.  Bring in more money.  After you figure out exactly how much you are making from different sources, you can begin to figure out exactly how to make more and what it will allow you to increase by.
You can now estimate how much you can make each month or  what you need to do in order to advertise and market more
effectively to get more people interested in your music.

This is one of the basis of getting a financial generating model in place that will allow you to expand your sales and tap into the different avenues of generating income for your company and essentially you.

To learn more about starting a record label check out my comprehensive PDF ebook Start Your Own Record Label – The Ultimate Assist For The ‘New Era” Indie Label!

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