Entreprenuers that desire to start a record label should take the time to develop a business plan. It’s easy to get distracted with the glitz and glamous, but the real focus should be on business. The plan allows a future record executive to carefully build the business on a solid foundation.
Part of this foundation is the artists that will be signed to the label. This much more important for a startup label than one that is already established. The first groups of artists essentially represent what the label is all about. Consumers will know if the label is diverse in talent or defined by a specific genre.
It’s also important to have the right funding for this type of business venture. It takes a lot to pay artists, provide studio time, and market the business. Entreprenuers that take on this task should be prepared to pay what it takes to produce the highest quality recordings. The product that is being offered has to be something that consumers will want to spend their hard earned money on.
The final piece of the puzzle involves artist development and marketing. This is done once the foundation for the label is in place.