Music in the freelance world:
Music Business Planning
Why write a music business plan?
- Clear the way for creative thinking.
- Pinpoint strengths and weaknesses.
- Identify problems & obstacles.
- Expose hidden opportunities.
- Set priorities.
- Coordinate marketing.
- Take guesswork out of budgeting.
- Allow meaningful review & revision.
Business Plan:
A business plan is a universal an international document with some ‘adjustment’ depending on your industry type.
Why plan your music Business?
- All successful musicians will have to plan their business at some point.
- To acquire funding from financier or private investor.
- To map out how you will run your business on a daily, monthly. Yearly basis.
Business planning:
- A business plan is a standard format document that is required when seriously considering ANY business.
- A Good business plan is a work in progress.
- The act of competing the plan helps you think things through thoroughly.
PAGE 1: Executive summary
- It should be written last.
- Once all the sections of the plan are complete you summarize/describe the main points.
- Usually once perfectly write page.
- Inserted after the table of contents.
- State what you want to achieve upfront.
Answer the following:
1. Who are you?
2. What do you sell? /your service?
3. What do you want?
Company Description
- Prove why an investor should be interested funding your idea.
- Describe your product or service
- Include the area of the music industry you are in and how you will become profitable.
Your pitch:
- Each of you should write a ‘pitch’ for your business.
- This is a ‘mission statement’ that captures the imagination of investors.
- Your ‘pitch’ will be a statement lasting about 30 seconds.
Pitch Exercise”
- Each of you will take 20 minutes to write an emotive, well thought out pitch lasting no less than 30 seconds on a subject of your choice.
- Each of you will address your pitch to the group.
Article contd:
Products & services:
- This is where you discuss your product/service in more detail.
- Most music entrepreneurs will have more than one revenue stream.
- Describe your competitive advantage and why your business will succeed.
- You may also include future products & services.
- REVENUE STREAMS-SOME IDEAS:
Playlists, flash/micro drives, ring tones, games, apps, subscriptions, social sharing, videos, teaching materials, bogs, live streaming, ringbacks, branding, licensing, remixes, widgets.
Marketing plan:
- you will explain the current state of the market you are entering taking account of customers & competitors.
- List features, advantages * benefits of the product or service you offer.
- Know what your product or service will do for your customers.
- Explain your niche – explain what is special about your business.
Markiting mix:
1. PRODUCT: how will it meet or create consumer demand?
2. PRICE: is it low enough for your customer to but and high enough to make a profit.
3. PLACE: Where will your product or service be sold? Online? Offline? Both?
4. PROMOTION: What is your advertising & publicity strategy? What programs will you use to get your business moving?
Marketing
- End this section with a specific measurable description of how you will reach your goals
- List how many calls, emails, performances you will carryout to achieve success
- Attatch any diagrams/artwork that corresponds to your business in the appendix at the back of your plan.
- The majority of the plan should be in black & white, easy to read & professionally written
Management description:
- List each member of your management team and describe what they do to make the business successful.
- Explain specific duties of your manager, layer, agents, band members etc.
Financial plan:
- Create a spreadseet forecasting the best and worse case scenarios including potential sales.
- Include ALL income and expenses.
- Prepare a BREAK EVEN analysis showing exactly when you intend to become profitable.
- Finish your plan with chart that highlights these figure for the next 3-5 years.
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