You must approach your music career like any other business if you want to generate consistent revenue from it.
It's not enough to just have a dream; you need to plan for it as well. A music business plan is your roadmap to success, but how do you write one?
Let's take a look at how this document is constructed and how it would be useful for musicians of all kinds.
A music business plan will be beneficial to your cause whether your objective is to pursue a career as a professional musician, recording artist, producer, or music educator.
Your business plan lays out your objectives, identifies the realistic steps you'll take to reach them, and provides a list of the resources you currently have and will require.
A detailed business plan will not only help you stay on track, but it will also show other people how credible you are. A business plan is essential if you ever need to obtain a business loan or acquire capital from investors.
It should be concise and easy to read, as it will likely be read by many people in the industry who have little time to spare.
Although it serves as the start to your music business plan, the executive summary is typically the last piece you create because it summarizes each important section of your strategy.
Your executive summary should attract the reader in right away. Tell them what kind of music business you run and its current state. It includes:
- Your stage name and the city in which you are located.
- What kinds of music oriented services and goods will you provide (think live entertainment, sound engineering, sync licensing, songwriting, merchandise, etc.).
- Mission and vision statement outlining briefly why you become a musician.
- The goal of your strategy (to get funding, support, assistance, etc.).
If you are presenting your plan to someone who is not educated about the music industry, you should include this section. This is a brief explanation of how you or your band fits into the music industry. What is a recording and touring artist, for instance, or what do a booking agency and a radio promoter does.
This would be more of a summary of the band's achievements and significant events, and this is where you would introduce the biographies of each band member.
Additionally, you should list the roles each band member has. For instance, you may say the drummer also produces and edits the group's music videos while the bassist works as a booking agent.
In this part, you can also mention any other team members, such as your PR representative, booking agent, radio promoter, etc. This is a useful approach to describe who is responsible for what in your venture.
The market analysis gives a quick overview of your fan base and how you plan to connect with them. The investigation into your possible fan base is the most notable part of this component.
Gaining as much knowledge as you can in this area will help you make time and money-saving marketing and promotion decisions. Most significantly, it will assist you in developing a strong base of devoted supporters.
- Describe your followers or ideal followers.
- A summary of business-related trends in the music industry.
- How does one discover new music?
- What kinds of music-related goods (such as live performances, merchandise, digital music, etc.) do people currently purchase?
- A thorough explanation of comparable actions in your area and how you plan to stand out.
The numerous services you provide (live entertainment, lessons, session work, etc.), as well as any goods you sell (i.e., merchandise, books, etc.), are all described in depth in this area.
- List each of your services together with a brief description and advantages.
- Describe each of your items or product categories in the following list.
- If you want to get noticed locally and want to distinguish yourself from other artists, explain how you'll do this, especially in your neighbourhood.
- Any future service or product expansion plans you have, such as establishing a band, playing bigger events at bigger venues, expanding your traveling schedule, etc.
This section goes into further information about how you will make money. It outlines the specifics of your business, such as how you market your music to get new fans and how you persuade your audience to buy your products. This section contains:
- A description of your strategy for gaining awareness for your music and promoting it to both existing and new fans.
- Information on the price points for each of your service offerings, goods, and commodities.
- Details on how you intend to release your music and make it available for purchase by consumers.
- A synopsis of your supplier chain, if relevant. This includes your intended method of music production, the professionals or studios you intend to collaborate with, and whether you have a supply chain in place to produce your merchandise.
- A description of your marketing strategy for your goods and services.
You should really take advantage of this opportunity to show off. Inform the reader of the band's or artist's strong points. List your most significant past victories and accomplishments.
You obviously want the reader to be enthusiastic about the endeavour, the group, and your previous experiences. You have the opportunity to demonstrate your track record by showcasing prior sales (if they have been robust), successful tours, notable appearances, accolades, etc.
You can list any difficulties you're currently experiencing here. Now be truthful to yourself. This could involve worries about money, relationships between band members, or poor business abilities.
More importantly, you need to demonstrate how you are attempting to address and overcome those specific issues and challenges. This section is crucial because it allows you to begin addressing your difficulties once you have identified them.
Your six-month, one-year, three-year, and five-year goals should be set here. You should specify what you hope to do, when you hope to accomplish it, and how you plan to evaluate your progress for each goal.
You can use this tool to check your progress as well. The most effective format for this is a calendar or chart where you can list all of your deadlines and the tasks you must do by then.
The last section of your business plan is this one. It gives an account of your music business's financial situation. If your company has been in operation for some time, you should include past financial data and/or financial forecasts in this part to show how your company is making progress financially.
Make sure your financial estimates are realistic when you illustrate them. This section is particularly important if you are applying for a loan and should include:
- Data on cash flow from the previous three to five years, as well as income statements and profit and loss statements.
- A quick look at the five-year forecast for revenues and costs.
- A summary of fresh possible business possibilities as well as your future revenue-growth strategy.
As you can see, there’s a lot to think about when it comes to your music career and the planning process. But don’t let that scare you! If your passion is strong enough, you will find a way to make it happen—and that could be by starting with a simple plan like this one.
Hopefully, we have given some useful tips on how to get started on creating this document for yourself or your band, and if you are willing to give your music a further dimension, be reminded that we are only one email away.
Find way more useful tips and recommendations for your music career in our blog section.
Thanks for reading,