We’ve all heard the saying, ‘They call it music BUSINESS for a reason.’ Yet I often get asked what that really means. So, to illustrate the point, I am going to try to compare building your career as an independent musician to building a traditional type of brick and mortar business. For this example, we will use a restaurant. These are some of the key questions every new restaurateur must answer, along with the corresponding questions that you should ask yourself. Without knowing the answers to these questions (and more), both you and the restaurateur would waste a lot of precious money, time and energy trying to find out what will work and what won’t! [private_member]
Step |
Restaurant |
Independent Artist |
| Concept | How would you explain your concept to someone else? | How would you explain your act and your music to someone else? |
| What kind of restaurant and why? | What type of artist ? Why this kind of artist? | |
| Sit down restaurant or fast food? | 5 sets/night or 1 1-hr. shows? | |
| What will the décor be? | What will your image be? | |
| Where do you want to be located? | Where do you want to play? | |
| What days/hours will you be open? | How often will you perform? | |
| What kinds of items on the menu? | What kinds of songs? | |
| What will be your specialty? | What will you be most known for? | |
| Fine china, plastic or paper plates? | Covers, originals, or both? | |
| Proof of Concept | How do know you will be successful? | How do you know you will be successful? |
| Are there similar successful restaurants, or; | Are there other similar successful artists, or; | |
| Are you planning a brand new restaurant concept? | Will you be a completely new and unique artist? | |
| Are you buying a franchise? | Will you be a cover band? | |
| How will you know, before you build, if people will like your food and decor? | How will you know, before your invest all of your time and energy, if people will like your songs & your act? | |
| Surveys? Food samples giveaways? Hiring an expert chef? | Critiques? Free downloads? Coaching and lessons? | |
| Market Analysis | How do you know that there is a big enough market for your kind of restaurant? | How do you know that there is a big enough market for your particiular kind of act and music? |
| What part of town should you be in? | Where will you perform (geographically, and what kinds of venues? | |
| Is there enough population in the area to support your restaurant? | Are there enough of those kinds of venues in your chosen area(s) that will hire you? | |
| What price range will be acceptable to that population? | How much will you be able to charge the venue, or charge at the door? | |
| How many seats should it have? | What size venues will suit you best? | |
| What are the possible risks and how will you avoid or neutralize them? | What are the possible risks and how will you avoid or neutralize them? | |
| Are there too many restaurants there already? | Is your market flooded with artists similar to you? | |
| Who will be your target customer? What age? Locals? Tourists? Couples? Families? Local workers? Business people? | Who will be your target fans? What age? Gender? Single men/women? Couples? Children? Locals? Tourists? | |
| Finances | How do you know you’ll make enough money? | How do you know you will make enough money? |
| What are your start-up costs (equipment, food etc.? | What are your start-up costs (gear, recording etc.)? | |
| Where will the money come from? | Where will the money come from? | |
| How and when will you pay it back? | How and when will you pay it back? | |
| What will your monthly fixed operating costs be? e.g. rent, utilities, employees etc. | What will your monthly fixed expenses be e.g. rent, rehearsal space, car payment etc. | |
| What will your variable costs be? e.g. food prices, marketing etc. | What expenses will change monthly? e.g. equipment repair, gas, marketing etc. | |
| How much money do you need to bring in monthly to meet all expenses and make a profit? | How much money do you need to bring in monthly to meet all expenses and make a profit? | |
| Is it reasonable to expect to bring in that much income? | Is it reasonable to expect to bring in bring in that much income? | |
| How much profit will you make, and is it enough to make it worthwhile? | How much profit will you make and is it enough to make it worthwhile? | |
| Will there be enough profit to make it worthwhile for business-savvy investors to invest in you? | Will there be enough profit to make it worthwhile for investors (or a record label) to invest in you? | |
| How will you minimize your tax liability? | How will you minimize your tax liability? | |
| Team | Who else needs to be involved to insure long-term success? | Who else needs to be involved to insure long-term success? |
| Do you have the expertise to run this restaurant, or should you hire a manager | Do you have the business skills to manage your career, or will you need a manager? | |
| Who else needs to be on your executive team? An accountant? Attorney? Marketing expert? Executive chef? | Who else needs to be on your executive team? An accountant? Attorney? Marketer? Band leader? Booking agent? | |
| What kinds of employees will you need to hire? How many of each? | What kinds of band members will you need to hire? Jow many of each? | |
| How will your entire team be compensated? | How will your entire team be compensated? | |
| What is the chain of command? | What is the chain of command? | |
| Marketing | How will you let the world know about your restaurant? | How will you let the world know about your act and music? |
| Who is your target market? | Who is your target market? | |
| Where do they find new restaurants? | Where do they find new music? | |
| How do they mainly choose which restaurants they want to go to? Coupons? Word of mouth? Reviews? Rasio ads? Newspaper ads? Televiision ads? Convenience? | How do they mainly choose which artists they want to to see or listen to? Social networks? Radio? YouTube videos? CD Reviews? Newspaper ads? Free downloads? | |
| What is your specific marketing plan (how will you reach them)? | What is your marketing plan (how will you reach them)? | |
| How will you maintain your relationship with your customers? | How will you maintain your relationship with your customers? | |
| How much time and money needs to be spent on marketing? | How much time and money needs to be spent on marketing? | |
| Who is responsible for implementing your marketing plan? | Who is responsible for implementing your marketing plan? | |
| How will you measure the results of each kind of marketing you try? | How will you measure the results of each kind of marketing you try? | |
| Legal | What legal issues do you need to take care of? | What legal issues do you need to take care of? |
| What kind of corporate structure should you set up (none, LLC, S corp, C corp)? | What kind of corporate structure should you set up (none, LLC, S corp, C corp)? | |
| What licenses will you need (business license, sales tax license etc)? | What licenses will you need (business license, sales tax license etc)? | |
| What contracts need to be drawn up or reviewed by an attorney? | What contracts need to be drawn up or reviewed by an attorney? | |
| What legal challenges might arise that you need to protect yourself against? | What legal challenges might arise that you need to protect yourself against? | |
| What intellectual property do you need to protect (copyrights, trademarks and patents)? | What intellectual property do you need to protect (copyrights, trademarks and patents)? | |
| Will you be a union house? | Will you be a union musician? | |
| Competiton | Who is vying for the same customers that you are? | Who is vying for the same customers as you are? |
| What other restaurants are after the same customers you want to target? | What other artists are after the same fans that you want to target? | |
| What are their strengths (comfortable décor, very convenient) that you’ll need to overcome? | What are their strengths? (great musicians, great show etc.) that you’ll need to overcome? | |
| Do they have any weaknesses that you can capitalize on (high prices, poor food quality etc.)? | Do they have any weaknesses that you can capitalize on (weak performers, weak songwriting etc.? | |
| What will you have to do to entice their patrons to come to your restaurant? | What will you do to convince their fans to come to your shows and buy your music? | |
| Does you competiton have any markets ‘sewn up’? | Does your competion have any markets’sewn up’? | |
| Is tere any way that you can work in cooperation with them? | Is there any way that youcan work in cooperation with them? | |
| Business Plan | How do all of the above pieces fit together? | How do all of the above pieces fit together? |
| Does the plan make good practical and financial sense? | Does the plan make good practical and financial sense? | |
| Are you comfortable that you have covered all of the bases? | Are you comfortable that you have covered all of the bases? | |
| Strategic Plan | What do you do first, second, third etc? | What do you do first, second, third etc? |
| From beginning to end, and in chronological order, what are the exact steps that need to be taken to get started and to insure your long term success? | From beginning to end, and in chronological order, what are the exact steps that need to be taken to get started and to insure your long term success? | |
| Who is responsible for each individual step? | Who is responsible for each individual step? | |
| When do you need to have them done by | When do you need to have them done by | |
| Who will keep you and everyone else accountable? | Who will keep you and everyone else accountable? | |
| Finances II | How does the money work? | How does the money work? |
| How will you get the money you need to open the restaurant and operate it until it is making a profit? Invest your own money? Take out a bank loan? Get it from investors? Take on a partner? Ask the previous owner to finance you? | How will you get the money you need to record your first CD and pay the band and staff until you are making a profit? Invest your own money? Take out a bank loan? Get it from investors? Sign with a record label? Fan-fund by pre-selling CDs? | |
| What do you need to do to make the business attractive to a bank or investors (market study, proof of concept, financial projections, risk analysis and mitigation, put6 a top executive team together, invest some of your own money etc)? | What do you need to do to make the act attractive to a bank, investors or a record label (market study, financial projections, risk analysis and mitigation, put6 a top management team together, invest some of your own money etc, perform in lesser-known venues to tighten the act, build a large fan base (email list), showcase the act etc)? | |
| How and when will you pay your lenders back? | How and when will you pay your lenders back? | |
| How and when will your investors get paid back, and how much profit will they make? | How and when will your investors get paid back, and how much profit will they make? | |
| Operations | What is the plan for the day-to-day operations? | What is the plan for the day-to-day operations? |
| What kind of building do you need to rent, buy or build? | Where will you rehearse your act full bore? Where will you record? | |
| Do you need a drive-through? | Do you need a full PA system? | |
| How many freezers? | Where will you store your equipment? | |
| What kind of equipment will you need to buy or lease to offer the highest quality food and dining experiences? | What kinds of equipment will you need to buy or lease to offer the highest quality performances and recordings? | |
| What else will you need in order to run the restaurant efficiently and cost effectively (cash register, safe etc)? | What else will you need to run the band efficiently and cost effectively (lights, cables, instruments, microphones etc.)? | |
| Will you need one or more catering trucks? | Do you need to buy, lease or rent a new van, truck or bus? | |
| What staff do you need (waiters, cooks, cashier, bookkeeper, maintenance, managers etc)? | What staff will you need (sound and lighting tech, bus driver, people to sell merchandise, band members etc)? | |
| What vendors will you need to build relationships with (food, liquor, pest control, flower service, maintenance, repair etc)? | What vendors will you need to build relationships with (instrument repair, vocal coach, booking agencies, publisher, promoters etc.) | |
| What systems need to be put in place so the restaurant runs smoothly (employee scheduling, policies and procedures, insurances, payroll, rules for hiring and firing etc)? | What systems need to be put in place so the band runs smoothly (scheduling rehearsals, band rules, payroll, who is responsible for various tasks etc) ? |
With enough research, preparation, studying, planning and proper implementation. you can greatly minimize any chances of failure! You can bulletproof yourself from many of the common challenges that plaque artists. You can build a solid foundation on which you can build a stable and long-lasting career. And most importantly, all along the way you’ll have the piece of mind of knowing that you’ve done everything you possibly could to make your career a success.[/private_member]