business plan for musicians

Music Business Plan: A Guide for Music Industry Professionals

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A music business plan is crucial for any music industry professional looking to launch or grow their business. It provides a snapshot of the current state of the business and lays out a clear growth plan for the next five years. This is essential for understanding where the business is at and setting achievable goals for the future.

Check out our article below to learn more about creating an awesome music business plan and get a template.

What is a Music Business Plan?

A music business plan is a comprehensive and detailed document that outlines the goals, strategies, and financial projections for a music-related business. Whether it's a record label, music production company, artist management firm, or any other music-related venture, a business plan provides a roadmap for success. It helps to attract investors, secure loans, and guide overall operations.

From market analysis and competitive research to marketing and distribution strategies, a music business plan covers every aspect of the business to ensure clarity, direction, and long-term viability. It is an essential tool for anyone looking to establish or grow a music-related business in the highly competitive and dynamic music industry.

Why is it important to have a music business plan?

A music business plan is crucial for an artist's success in the industry for several key reasons.

It serves as a blueprint for the artist's career, outlining their goals, strategies, and financial projections. This document helps attract investors by showcasing the artist's vision, potential for return on investment, and realistic plans for reaching their target audience.

A well-crafted business plan guides decision-making by providing a clear direction and framework for the artist's activities and investments. Furthermore, it defines the artist's brand, including its image, style, and target market, which is essential for standing out in the competitive music industry.

In summary, a music business plan is instrumental in attracting investors, guiding decision-making, and defining an artist's brand, making it essential for achieving success in the music industry. Therefore, having a solid and comprehensive business plan is crucial for any aspiring musician or band looking to establish a successful and sustainable career.

How to Fill Out Your Lean Music Business Plan

In this guide, we will walk you through the steps of filling out your lean music business plan, from identifying your target audience to mapping out your marketing and sales strategies. 

We'll be referencing sections of the US Small Business Administration's ( SBA ) lean business plan template . Despite its generality, it works as a music business plan template. 

Aspects of this guide relate to the traditional business plan, which we will discuss later in the article. 

Business identity

A business identity helps your business specify exactly what you offer. Both the single-page lean plan and the traditional plan place importance on your identity. Let's say, for example, you're a business-owning musician who provides audio for creatives in the media industry. Here's how your identity might look:

Our business identity revolves around providing high-quality music and sound effects for TV programs, film industries, commercials production companies, video game developers, corporations, and event organizers. 

Through the lean template, try to identify your business in under one paragraph. Then, using the traditional template (see below), expand on that identity. Things like your mission statement, which we visit later, are an aspect of this.

The problem you're trying to solve

All businesses are problem solvers. Record labels help musicians with distribution, while music teachers help provide the next generation of musicians with a strong foundation. 

Naturally, you might wonder how this applies to musicians. Just saying "entertainment" feels a bit weak. There are bands, like Rage Against the Machine, who make music to push a movement. But if you're not part of that crowd, what do you put?

So, think about why you got into music-making in the first place. Any professional musician should think about who their music appeals to and what they want people to feel when hearing their music. You can then say your music solves that problem in a cheesy reminder that you think about more than what shows up on your financial statements. 

If you don't want to get too corny, think about who your music will most appeal to. Then, you can say what your target audience is. Think of something like this:

Creating music for young men and women that will entertain them and inspire them to explore challenging topics.

This problem-solving might feel generic, but you'll know your fans and why you make music. So, stay focused on that.

Solution your business presents

Once you consider the problem your business solves, you need to state how you solve that problem. Again, this is much easier for music industry professionals who work in support roles. Music distributors solve the problem by having direct connections with other distributors, while music marketers help bands reach out to fans via multiple social media platforms. 

As someone who makes music, your solution is the creation of music. So, ask yourself how the creation of your music solves this problem. Here's an example based on our situation above:

Our band writes music that delves into mental health struggles based on personal experiences and how we overcame them.

You might think that doing this as a musician feels silly, but think of it as a reminder. One of the reasons famous musicians like David Bowie and Tom Morello were so successful is focusing on how their music helps people. 

Competition 

Competitive market data varies depending on the territory you plan to target. For musicians and bands, this might involve bands in the local area and those in future touring locations. For musicians, the competition can also be a list of potential collaborators.

For everyone else not making music, other record labels and music production companies are just competition. Whether you can collaborate with them or not, you'll want to differentiate yourself from all the other options out there. Being another "me too" music business will make it easier to forget you. 

Using the lean small business plan, you'll want to stick this to two or three sentences. Be very general, knowing you can also expand using the traditional business plan. Here's an example of a made-up Tennesse company: My Music Production & Management: 

The competitive landscape for music production companies in Tennessee includes My Music Production & Management, Genre Music, and Retro Recording & Productions. My Music Production & Management offers a wide range of services, including music production, artist management, and music distribution. 

Revenue streams

Revenue streams come from various sources. A business plan reminds you of those sources so you can stay focused. As a musician, your income can come from many sources. Below is an example you can use under the lean business plan:

As a musician, my income comes from paid gigs, teaching music lessons, instrument repair services, and recording sessions. To ensure financial stability and growth, I plan to diversify my income by capitalizing on these different opportunities.

Your revenue streams will differ as a record label or other kind of music business. Like musicians, your revenue streams can vary. However, as a young business, you may specialize in specific areas. You might work on creating merch or distributing digital releases. 

Marketing activities

Marketing activities focus on how you plan on reaching out to different sources. For many new music businesses, this involves outreach through social media platforms. Here's an example of what you might include in your business plans:

Our marketing activities will primarily focus on building a strong online presence through social media and regional publications. We plan to utilize platforms such as Instagram, Facebook, Twitter, and TikTok to engage with our audience and share regular updates about our music and upcoming events. Additionally, we will work on developing a press kit to distribute to regional publications and media outlets to garner publicity and reach a wider audience.

Bands can create electronic press kits (EPKs) that are prebuilt for members of the media. This makes it easy for journalists and members of the media to share content about you, such as a new album release. You can also consider how much you might pay for advertising. Digital marketing activities like those above are the first choice, as this activity uses advanced targeting tools based on what people search for and their demographics.

Marketing traditionally focuses on the four Ps: product, price, place, and promotions. The first two Ps delve into your product line, which you'll learn about later. Promotions indicate the type of marketing you choose, and Place usually refers to the platforms your target audience uses. 

The lean business plan gives you a simple overview of your likely expenses, which can be detailed in your longer business plan. Part of these expenses include music taxes. Read our guide on music taxes for more details.

Expenses vary depending on the type of music business you run. You could pay to rent a studio for recording sessions, purchase recording equipment, access manufacturers, or pay for other expenses. These expenses can result in tax deductions .

Here's an example of what your expenses section might look like:

To get my music business up and running, I need to budget for several key expenses. Studio time would be required for recording and producing music, averaging around $50-$100 per hour. I'd also need to allocate funds for engineering talent, which could cost between $50-$200 per hour, depending on experience. Transportation costs for getting to and from recording studios or performance venues should be factored in, estimating around $200-$500 per month.

Legal fees for business formation are also deductible. When listing your expenses and considering deductions, ask yourself what your type of company would normally deduct. Reach out to Augur CPA if you'd like a comprehensive review.

The key roles section provides a list of high-ranking authorities in the business and explains the responsibilities and functions those roles bring to the business. Here's an example of what that might look like in your business plan:

1. Chief Executive Officer (CEO): Responsible for overall strategic direction and leadership of the organization, making key decisions and representing the company to the public and stakeholders.

2. Human Resources Department: This department is responsible for recruiting, training, and managing employees, as well as ensuring legal compliance and promoting a positive work environment.

3. Marketing Department: Responsible for promoting the organization's products or services, conducting market research, and developing marketing strategies to attract and retain customers.

4. Finance Department: This department is responsible for managing the organization's financial resources, including budgeting, accounting, and financial reporting.

5. Operations Department: This department is responsible for overseeing the organization's day-to-day activities, optimizing processes, and ensuring efficient production and service delivery.

As a new business, you might not need all of this detail in your roles. A new business owner wears many hats, handling all of this themselves.

As your business grows and you fill roles like those above, you'll want to create an operating agreement . Operating agreements dictate the roles, holding groups responsible for their actions. This can dictate things like voting rules, which are vital when making high-risk business decisions that require more input.

Your milestones tell readers, yourself, and business partners of the important milestones you've already taken or plan to take. Your lean business plan is a single sentence telling people what you generally plan to do. Larger business plans might look something like this:

Milestone 1: Lease Finalization

- Task: Negotiate and finalize the lease agreement for the studio space

- Deadline: by May 15th

Milestone 2: Personnel Contracts

- Task: Draft, review, and finalize contracts for hired personnel

- Deadline: by May 20th

Milestone 3: Studio Build-out and Equipment Purchase

- Task: Begin construction and build-out of the studio space, purchase necessary equipment

- Deadline: Construction to be completed by June 30th

Milestone 4: Networking and Marketing Plan Implementation

- Task: Develop and implement a networking and marketing plan to attract clients

- Deadline: Marketing plan to be in place by June 1st

Each milestone outlines specific tasks and deadlines to ensure a smooth and successful opening of a recording studio. A musician or distribution company should take a similar approach, focusing on initiatives that help them grow their business.

Filling Out Longer, Traditional Business Plans

The SBA's traditional business plan, which you can find here , is a multi-page document. It's an expanded version of the lean business plan, which you can provide upon request. When applying for business loans or bringing on business partners, this plan can help communicate your vision.

Traditional business plans might use a bit more jargon, like executive summaries and mission statements. Below, you'll learn a bit more about some of the more complex aspects of writing your detailed business plan.

Executive summary

Executive summaries summarize the main points of a business plan. The summary points include the purpose of the business, the business name, the target market, your business location, and how your business solves its target audience's problem. Here's an example you can use for inspiration:

The Executive Summary of my music business plan showcases my artist bio, mission statement, and unique selling proposition. As a musician, I bring a unique blend of classical training and modern influences, with a strong foundation in jazz, pop, and R&B. My mission is to create music that transcends genres and connects with audiences on a deeper level, aspiring to inspire and uplift through my art.

My unique selling proposition lies in my ability to blend diverse musical styles and deliver powerful, emotionally resonant performances. I have achieved recognition in local music scenes, including winning the Best New Artist award at a prominent music festival. My aspirations include reaching a global audience and collaborating with industry-leading producers to create music that leaves a lasting impact. What sets me apart from others in the industry is my unwavering dedication to authenticity and artistry, always prioritizing substance over trends.

For bands and musicians, the executive summary is a great way to showcase your passion for music. Notice the "unique selling proposition," which indicates how you plan on differentiating yourself compared to other companies.

Other companies, like music publishing companies, might focus a little less on the creative aspects of their business. An executive summary can differ slightly between companies. However, if you're new, start with the template until you get comfortable writing these plans.

Company description and mission statement

Your company description, based on the traditional plan, includes the mission statement, members, legal structure, and location of the company. It might also include the executive summary.

Here's an example of the description for a made-up company: SoundWave Entertainment:

Our company, SoundWave Entertainment, is structured as a Limited Liability Company (LLC) and has been in business for ten years. We specialize in providing top-quality live music entertainment, event production, and artist management services. Our diverse range of offerings includes wedding bands, corporate event entertainment, and music festivals. Our customer demographics range from engaged couples looking for the perfect wedding band to event planners seeking unique and memorable entertainment experiences. In the past decade, we have experienced significant growth, expanding our roster of talented artists and achieving a strong presence in the events industry. Our primary business goal is to continue providing exceptional musical experiences and to further expand our reach in the entertainment industry.

The description is simple enough, but the mission statement is arguably the most important aspect of your business plan. It's a few sentences long but shares the overall mission of your company, dictating where it goes and how it makes decisions. Mission statements are emotionally driven and connected to the morals and heart of the company's stakeholders. Here's how it might look:

At SoundWave Entertainment, we are committed to delivering unforgettable musical experiences and fostering the growth of talented artists. We strive to exceed our client's expectations by curating exceptional live entertainment and providing a platform for artists to showcase their skills. Our goal is to leave a lasting impression through the power of music, creating moments that inspire and connect people.

Market conditions and research

The traditional business plan offers a bit more room for reviewing your market conditions and researching your competition. Doing your own research helps you understand the market. Sharing your research on a business plan provides proof of your knowledge of market conditions. Here's a short example of market conditions:

The current market conditions in the music industry are characterized by several industry trends, including the shift towards streaming services, the resurgence of vinyl records, and the increasing importance of live performances for artists' revenue. Consumer behavior has also changed significantly, with more music fans opting for subscription-based streaming services over traditional album or single purchases. Key competitors in the industry include major streaming platforms like Spotify and Apple Music, as well as record labels and live event promoters.

Additional sections of your business plan include a detailed description of your customers, how your company outperforms the competition, and regulations that might impact your company.

Regarding regulations in the music industry, it helps to have a general understanding of the Digital Millennium Copyright Act ( DMCA ), fair use , and current communication laws. Knowledge of these laws or working with a music attorney can help you with this aspect of your business plan.

Service line and pricing structure

Your service line includes a complete list of your services and their costs. For musicians, this might include gigs, music lessons, and anything else you do to advance your career in music. It then breaks down the pricing of your services, including some potential for how that pricing can flex.

Services can vary heavily depending on your company and the services you offer. When you first start your business, you might specialize in a few areas. One milestone could be expanding to include additional features, like a record company offering email marketing services.

The service line section also includes your product lifecycle. For example, albums tend to make more money during their first year of release, and your lifecycle dictates how long you might make albums. If you go on a tour during the album, you might stop creating new albums or merchandise sales during this time. 

Service line information can also include information on intellectual property rights and how your band and albums will be copyrighted. You can also work to trademark your company (or band) logo.

Marketing, sales, and growth strategy

While your marketing research section details information about the market and industry, your marketing, sales, and growth section dictates how you plan on reaching target customers. The lean plan mentioned above briefly addresses this area.

The three areas you'll want to consider are your growth strategy, how you want to communicate with customers, and how you plan on selling your products.

Let's say you plan on creating your own Shopify e-commerce store for your business, which is a huge investment. This means your growth strategy, product sales, and customer communications will wrap around this tool. If you want to start simpler, mention how you plan on talking with fans and setting up merch tables at local shows.

Here, you'll see some examples of how you could write this section:

Our music business aims to market, sell, and grow by implementing a combination of online and offline strategies. Our marketing efforts will include targeted social media campaigns, SEO optimization for our website, and collaborations with music influencers and bloggers. We will also explore opportunities for live performances, partnerships with local venues, and utilizing traditional advertisement methods.

To drive sales, we will offer unique packages for our music services, including special promotions for first-time customers and loyalty rewards for returning clients. Our pricing strategy will be competitive while still maintaining the quality of our services.

In terms of customer retention, we will focus on delivering exceptional customer service and providing personalized experiences for our clients. Our unique selling proposition lies in our ability to offer customized music solutions tailored to different occasions and preferences.

Moving forward, our plans for growth and expansion include branching out to new markets and offering additional services such as music production and event management. We will also invest in building brand loyalty and expanding our customer base through strategic partnerships and collaborations within the music industry.

Why Should I Care About A Business Plan?

A business plan is a crucial tool for any musician or music industry professional looking to advance their career in the music industry. It serves as a roadmap for your career, helping you set goals, make strategic decisions, and stay on track for success.

One of the most significant benefits of having a business plan in the music industry is its ability to attract investors. A well-thought-out plan demonstrates to potential investors that you are serious about your music career and have a clear direction for success. It outlines your financial projections, marketing strategies, and potential for growth, making it more likely for investors to see the value in supporting your music endeavors.

Additionally, a business plan guides decision-making by providing a framework for evaluating opportunities and making informed choices. It forces you to consider all aspects of your music career, from marketing and promotion to touring and merchandising, ensuring that you have a comprehensive strategy in place.

Furthermore, a business plan helps define your brand identity and outline your unique selling points, target audience, and marketing message. This is crucial in the music industry, where standing out and connecting with fans is essential for success.

To learn more about how taxes can apply to a financial plan for your business, contact Augur CPA today .

This content is for informational purposes only and does not constitute legal, business, or tax advice. You should consult your own attorney, business advisor, or tax advisor regarding matters mentioned in this post. We take no responsibility for actions taken based on the information provided.

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A step-by-step guide to developing a music business plan

April 19, 2021

Why you need a music business plan

Where to start, the main components of a music business plan, the importance of multiple income streams, subscribe to greenlight by thimble..

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Making a living in the music business is the ultimate dream of every serious musician. But out of the countless individuals with a passion for music, only a select few will make a profitable business out of it. That doesn’t mean reaching your goals is impossible. If you want to earn reliable income from your music career, you need to treat it like any other business. That means making a detailed blueprint that will take you from passionate hobbyist to successful professional. This step-by-step guide to developing a music business plan will set you on the right path.

Whether your goal is to have a career as a professional musician, recording artist, producer, or music teacher, documenting the path you’ll take with a music business plan will be helpful to your cause. Your business plan outlines your goals, identifies the practical methods you’ll take to achieve them, and lists the resources you have and will need.

Not only will a concrete business plan keep you on course, it will also demonstrate your credibility in the eyes of others. Potential clients and business partners will see you as a professional and not another starving artist. If you ever need to take out a business loan or raise money for investors, a business plan is a must-have.

Crafting your music business plan isn’t something you can do in one sitting. You’ll need more than an afternoon to get this right. Take your time, bite off piece-by-piece, and chew your thoughts over thoroughly.

Our first piece of advice is as old as time:  know thyself.

You need some clarity of purpose before you can craft a useful music business plan. Ask yourself:

• Who is my audience?
• What is my ultimate goal?
• Why do I want to do this?

Having this understanding will make it easier for you to explain your vision to others and convey your enthusiasm. It will also establish the framework for your music business. This step is crucial if you’ll need people to buy in to help you reach your goals.

The content of your music business plan will vary depending upon whether you’re aiming to start a music school, be a producer, or work as an artist. But the fundamental components are the same either way. Here’s what you’ll need:

• Mission Statement
• Executive Summary
• Audience Analysis
• SWOT Analysis
• Marketing Plan
• Financial Considerations

Let’s look at each of these in turn.

Mission Statement:

This can be as short as a few sentences, as long as it adequately describes who you are as an artist or a musical entrepreneur and what you’re trying to accomplish. While this might sound simple, think things through a bit before you try to draft your statement. Everything that follows here will hinge upon it.

Executive Summary:

The executive summary is a one-page synopsis of your plan. It should include an introduction as well as a description of your endeavors. Details about the funding you already have and what you’ll need in addition to a brief accounting of your plans for putting all of it into play are important too.

Most experts recommend saving the drafting of this part for last. It’s essentially a digest of all the other parts of your plan. Doing it last allows you to draw upon the information you’ve drafted for all of the other steps.

Audience Analysis: 

Here’s where you’ll demonstrate your understanding of your target audience. If you’re already performing, teaching, or producing on the side, think about what traits the people who follow you have in common.

If you’re just getting started, find someone doing what you want to do whose style and circumstances are similar to yours, and analyze their target market. Create a demographic sketch of your target audience based on gender, age, location, musical tastes and favorite venues.

Strengths, Weaknesses, Opportunities & Threats:

Think about the qualities that make you unique. List everything that comes to mind, from technical mastery and creative spark to teaching older demographics and networking. Your skills might not seem extraordinary on an individual level, but combine all your best qualities and you’ll find there isn’t anyone quite like you on the market.

Don’t forget about your weaknesses. Identity these not as qualities to promote, but as areas to work on in the future. Being aware of your shortcomings will also help guide your decision on potential business partners in the future. Let your inner critic loose, but realize that this is an exercise in personal growth, not tearing yourself down.

Had enough reflecting? Let’s take a look at the marketplace. Think about potential gaps in the industry you can exploit. Perhaps your competitors are overlooking a key value and you see a way to provide it both efficiently and effectively. These are your opportunities.

Threats could include technological shifts, cultural changes, the emergence of new artists, competition, and new trends. The music world moves fast, and today’s hot act can end up as yesterday’s news before your can say “more cowbell!” Brainstorm any roadblocks you picture yourself facing over the next few years and strategies you can use to overcome them.

Marketing plan:

Your marketing plan will detail how you’ll spread the word about yourself. Consider how much money you can reasonably invest into marketing and work out how you’ll spend it to reach as many of the right people as possible. Think about how you’ll grow your online presence—including social media, a press kit, and publicity materials such as a logo and photography.

Get a full account of your current cash flow situation. List how much capital you currently have and estimate how much it’ll take to get your operation up and running. When in doubt, overestimate. Studio time, engineering talent, transportation, legal fee, copyrights and trademarks are all important considerations when projecting your budget.

Measuring your progress:

At what intervals will you go over the financials to see how you’re advancing? What are the milestones by which you’ll mark your achievements?

You’ll also need a method for measuring your impact on the market in terms of the reputation you build. Social media outlets provide analytical tools to help you track these metrics. They can also help you pinpoint the demographics of your audience.

Establishing your key performance indicators (KPIs) can help you set the standards by which you will gauge your success. Sharing this information with others makes you accountable because they can look at your projections and see how much progress you’ve made toward achieving them.

Summarizing your music business plan

As we mentioned above, once you have all of these areas covered, you can then condense the information each section contains to create your executive summary. After all, how will you know what to put in it until you’ve examined all of these other areas first?

Success in the music industry takes a lot of work and a little luck, but you can stack the deck in your favor by building multiple income streams. That way, if one area slows down, you’ll have another one in play to keep you rolling until the next opportunity presents itself. Revisit your strengths and opportunities and start brainstorming ideas. If you get stuck, here’s a quick list to get you started:

Give music lessons. Chances are if you’ve got the chops to play paid gigs, you’ve got enough skills to pass on to some novice students. Giving music lessons can be a great way to add some extra recurring income.

Start a YouTube channel. With over 2 billion active users, YouTube might just be your biggest source of untapped attention and potential. 1 The platform offers users a chance to learn or be entertained, and as a musician you’re well-positioned to offer both. You could upload instructional videos or footage of yourself performing. You’ll get to keep a portion of any ad revenue your videos make. And if the right person sees your content, it could open the doors to even greater opportunities.

Explore the marketing world. If composition is your thing, you might be overlooking a potentially huge money-maker—marketing and advertising. Brands are in constant need of good video content to market their products, and those videos need music to truly capture attention. If you’ve got a knack for putting together atmospheric instrumentals, creating music for ads could seriously help stabilize your income.

Open your own studio. If you have the capital to invest and live in an area underserved by recording studios, you might want to consider opening your own. While you’re not using it for your own projects, you can rent it out to other local musicians and producers. If there’s enough demand, you could cover the costs of equipment and rent and even have a little profit left over.

Explore session work. Sure, your band is your baby, but if you’ve got time on your hands and musical versatility to boot, why not offer your services as a session musician? Session work is an effective way to boost your income, make new connections and get your name out there as a legit professional. If an artist is truly enamoured with your work, they could invite you to join them on tour.

Another important consideration in your music business plan is protecting your livelihood from the consequences of unintentional accidents. General liability insurance is key to helping you stay focused on your business. Carrying a policy also demonstrates to potential clients that you are a serious professional — whether you’re a musician, DJ , or another kind of entrepreneur in the entertainment industry.

• Hootsuite. 25 YouTube Statistics that May Surprise You: 2021 Edition .

Our editorial content is intended for informational purposes only and is not written by a licensed insurance agent. Terms and conditions for rate and coverage may vary by class of business and state.

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Music Business Plan Template

Written by Dave Lavinsky

Music Business Plan

You’ve come to the right place to create your music business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their music businesses.

Below is a template to help you create each section of your Music business plan.

Executive Summary

Business overview.

Musicians First Studio is a startup music company located in Nashville, Tennessee. The company is founded by Michael Smith, an experienced musician who has gained valuable knowledge on how to manage a music business during the past ten years while working at My Music Production & Management, another local music company. Now that Michael has experienced managing a music company, he is ready to start his own business, Musicians First Studio. Michael is confident that his skills as a musician, combined with his understanding of business management, will enable him to run a profitable music company of his own. Michael is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a music studio – sales and marketing, production, artist management, music instruction, financial reporting, studio equipment maintenance, and client relations.

Musicians First Studio will provide a full suite of music production, management, and instruction services for both novice and professional musicians in the Nashville area. Musicians First will be the go-to music studio in Nashville for its client-focused services and dedicated professionals who are experienced in all aspects of the music industry. The company will be the ultimate choice for the needs of aspiring and professional musicians.

Product Offering

The following are the services that Musicians First Studio will provide:

• Artist Management
• Music Recording, Production, & Post-Production
• Private Music Lessons & Group Classes
• Venue Booking & Live Event Management
• PR & Marketing for New Artists

Customer Focus

Musicians First Studio will target new and experienced musicians in Nashville who are looking for professional production, management, or marketing services. The company will also target aspiring musicians and children looking for music lessons taught by industry veterans. No matter the customer, Musicians First Studio will deliver the best communication, service, and professionalism.

Management Team

Musicians First Studio will be owned and operated by Michael Smith. Michael is a graduate of Tennessee University with a degree in music. He has over ten years of experience working as a manager for another local music studio. Michael will be the company’s chief executive officer. He will oversee the recording/production process, music equipment, and studio staff’s activities.

Michael has recruited his former administrative assistant, Jessica Garcia, to be the company’s chief operating officer and help oversee the studio’s operations. Jessica will handle the day-to-day operations, including budgeting, scheduling, client relations, and logistics.

Michael and Jessica have recruited an experienced marketing director, John Brown, to become a member of the Musicians First Studio management team. John is a graduate of the University of Washington with a bachelor’s degree in sales and marketing. Michael and Jessica rely on John’s expertise to execute the company’s marketing plan and advertising strategies.

Success Factors

Musicians First Studio will be able to achieve success by offering the following competitive advantages:

• Skilled team of music production technicians and veteran musicians who will work one-on-one with clients to reach their individual music goals whether they’re looking to record a new album or learn a new instrument.
• Musicians First Studio is one of the only studio’s in the area that offers a wide range of services for musicians of all skill levels and goals.
• The company offers competitive pricing and discounts for referrals.

Financial Highlights

Musicians First Studio is seeking $800,000 in debt financing to launch its music business. The funding will be dedicated towards securing the studio and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

• Studio build-out: $340,000
• Music equipment, supplies, and materials: $280,000
• Three months of overhead expenses (payroll, utilities): $160,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Musicians First Studio.

Company Overview

Who is musicians first studio.

Musicians First Studio is a newly established music company in Nashville, Tennessee. Musicians First will be the first choice for aspiring, novice, and experienced musicians in Nashville and the surrounding communities for its full-suite of professional services provided by industry veterans. The company will provide a wide range of services including recording/production, music lessons, artist management, and marketing for new musicians.

Musicians First Studio will be able to guarantee high quality production thanks to the latest and most innovative music technology operated by expert music production technicians. The company’s team of highly qualified professionals experienced in music, production, and marketing will manage the suite of services offered at the studio. In addition to customized services for musicians, customers will be able to book studio time that comes with use of equipment by the hour.

Musicians First Studio History

Musicians First Studio is owned and operated by Michael Smith, an experienced musician who has gained valuable knowledge on how to manage a music business during the past ten years while working at My Music Production & Management, another local music company. Now that Michael has experienced managing a music company, he is ready to start his own business, Musicians First Studio. Michael is confident that his skills as a musician, combined with his understanding of business management, will enable him to run a profitable music company of his own. Michael is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a music studio – sales and marketing, production, artist management, music instruction, financial reporting, studio equipment maintenance, and vendor relations.

Since incorporation, Musicians First Studio has achieved the following milestones:

• Registered Musicians First Studio, LLC to transact business in the state of Tennessee
• Has identified an ideal location for the studio that is available for lease
• Reached out to numerous contacts to include local musicians, production technicians, and venue managers to help spread the word about the new studio
• Began recruiting a staff of musicians, music instructors, production technicians, marketing experts, and office personnel to work at Musicians First Studio.

Musicians First Studio Services

Industry analysis.

The global music industry is an estimated $60B market and is expected to grow by 8% by 2026. The broad music industry can be categorized into three primary segments; recording, live music, and music publishing. In the United States, the recording segment generated approximately $8B in revenues last year, while the live music segment brought in an estimated $9.5B, and the publishing segment totaled $1.8B. A majority of revenues generated in the recording segment come from streaming (28% of total industry revenue), with digital downloads and physical media coming in much lower (6.7% and 7.5% respectively). Revenue for the live music segment is generated primarily through ticket sales (37.1%) and sponsorships (10.3%). Publishing accounts for approximately 8.9% of total industry revenue.

Music streaming is one of the most significant trends in the industry, with the number of Americans who pay for streaming subscriptions at approximately 82.1M, up from 7.9M in 2014. Another trend is the emergence of independent artists and small record labels. These groups are earning more revenue than in years past and their percentage of revenue increase year over year is growing faster than that of larger record labels. With more options open to them when it comes to where and how to get their music out to consumers, artists, managers, and record labels have more opportunities for success than ever before.

Customer Analysis

Demographic profile of target market.

The precise demographics for Nashville, Tennessee are:

Customer Segmentation

Musicians First will primarily target the following customer profiles:

• Novice-to-experienced musicians looking for recording/production services
• Aspiring musicians of all ages looking for music lessons
• Musicians looking for artist management, booking, and representation services

Competitive Analysis

Direct and indirect competitors.

Musicians First Studio will face competition from other companies with similar business profiles. A description of each competitor company is below.

My Music Production & Management

My Music Production & Management is one of the largest commercial music studios in Tennessee. The company was established in 1997 and offers professional music recording and production services for local musicians. My Music Production & Management also handles the business management activities for musicians including marketing, booking, and legal representation services. The company is well known for providing high quality production for some of the top artists in the region and has been recognized in various publications and music industry associations for its outstanding work in the local music community.

Genre Music

Founded in 2018, Genre Music is a small music company catering to local musicians in Nashville, Tennessee and surrounding areas. Genre Music is owned and operated by a veteran musician who has over 40 years of experience in the music industry. The company specializes in artist branding, marketing, and representation in addition to its top notch recording services. Genre Music has worked with a variety of up and coming artists in multiple genres and has a loyal customer base of regular musicians who use the company’s services.

Retro Recording & Productions

Retro Recording & Productions is a trusted Nashville, Tennessee-based music company that provides superior production and recording services for Nashville and the surrounding areas. The company is able to provide a wide variety of recording, production, and post-production services using its state-of-the-art music recording equipment. Retro Recording & Productions serves local musicians and national musicians. The company prides itself on being the number one choice for classic sound produced through modern technology. Retro Recording & Productions also manufactures its own collectible vinyl records in limited quantities.

Competitive Advantage

Musicians First Studio will be able to offer the following advantages over their competition:

• The company offers competitive pricing on studio rentals and discounts for referrals.

Marketing Plan

Brand & value proposition.

Musicians First Studio will offer the unique value proposition to its clientele:

• Musicians First Studio provides a full suite of services tailored to the individual musician’s needs. Professionals are equipped to provide services for all skill levels from the aspiring and novice musician, the the industry veteran.
• The company’s studio is expertly designed for the clearest sound quality. The equipment is carefully selected to ensure the best sound possible.

Promotions Strategy

The promotions strategy for Musicians First Studio is as follows:

Social Media Marketing

The company’s marketing director will create accounts on social media platforms such as Linkedin, Twitter, Instagram, Facebook, TikTok, and YouTube. He will ensure Musicians First maintains an active social media presence with regular updates and fun content to get customers excited about using the studio’s services.

Professional Associations and Networking

Musicians First Studio will become a member of professional associations such as the Nashville Music Association, American Music Educators Society, and the Tennessee Music Production Association. The leadership team will focus their networking efforts on expanding the company’s artist and vendor network.

Print Advertising

Musicians First Studio will invest in professionally designed print ads to display in programs or flyers at industry networking events. The company will also send direct mailers to local residents advertising the services it provides.

Website/SEO Marketing

Musicians First Studio will utilize the in-house marketing director that designed the print ads to also design the company website. The website will be well organized, informative, and list all the services that Musicians First is able to provide. The website will also list information on the company’s events and featured artists.

The marketing director will also manage Musicians First’s website presence with SEO marketing tactics so that when someone types in a search engine “music company” or “music studio near me”, Musicians First Studio will be listed at the top of the search results.

The pricing of Musicians First Studio will be on par with competitors so customers feel they receive value when purchasing the company’s services.

Operations Plan

The following will be the operations plan for Musicians First Studio.

Operation Functions:

• Michael Smith will be the CEO of the company. He will oversee the music production technicians, production process, and the music equipment maintenance. Michael has spent the past year recruiting the following staff:
• Jessica Garcia – Chief Operating Officer who will manage the day-to-day operations, client relationships, scheduling, and logistics.
• Nancy Johnson – Chief Financial Officer who will provide all accounting, budgeting, tax payments, and monthly financial reporting.
• John Brown – Marketing Director who will oversee all marketing strategies for the company and manage the website, social media, and outreach.

Milestones:

Musicians First Studio will have the following milestones complete in the next six months.

12/1/2022 – Finalize lease to rent the studio facility

12/15/2022 – Finalize personnel and staff employment contracts for the Musicians First Studio management team

1/1/2023 – Begin build-out of the studio, purchase equipment, and test the acoustics

1/15/2023 – Begin networking at industry events and implement the marketing plan

2/15/2023 – Finalize contracts for musicians, instructors, production technicians, and marketing professionals

3/15/2023 – Musicians First Studio officially opens for business

Financial Plan

Key revenue & costs.

The revenue drivers for Musicians First Studio are the fees charged to customers in exchange for the company’s services and fees charged to book studio time by the hour.

The cost drivers will be the overhead costs required in order to staff a music company. The expenses will be the payroll cost, utilities, equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average hours booked per month: 120
• Average fees per month: $30,000
• Overhead costs per year: $640,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Music Business Plan FAQs

What is a music business plan.

A music business plan is a plan to start and/or grow your music business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your music business plan using our Music Business Plan Template here .

What are the Main Types of Music Companies?

There are a number of different kinds of music companies , some examples include: Recorded Music, Music Licensing, Live Music, Music Publishing, Music Production, Music Business Consulting, and Retail Music Store.

How Do You Get Funding for Your Music Business Plan?

Music companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

How to grow as a Music Artist: Create an Effective Musician Business Plan

• Post author: alyssavillagrana
• Post published: December 3, 2022
• Post category: For Students / Business / For Teachers / Music Business
• Post comments: 2 Comments

This post may contain affiliate links.

Why do you need a Musician Business Plan?

As a music teacher as well as student and performer, I have had countless conversations with musicians looking to “make it.” While the goal might look different for everyone, I can tell you that the road to “making it” as a musician looks surprisingly similar from person to person. Or, I should say, that the action steps don’t vary as much as you might expect.

Becoming a professional musician takes a little luck, but more hard work and planning than anything. Especially in a world where entrepreneurs have so many resources directly at their fingertips (thank you, internet!), that hard work and planning can take you farther than luck ever will.

All this to say, I have seen too many aspiring musicians burn out and give up because they are either unfocused, or focusing on the wrong things. This is where a musician business plan comes in.

A musician business plan, like any business plan, helps you focus your energy on things that serve you and your business well, giving you both purpose and actionable steps – the key to avoiding burnout.

In this post, we are going over the attributes that make up a good musician business plan, as well as elements to include to help you hone your vision, plan, and action steps, and set you up for success as a musician! For some extra help, C&S has a free musician business plan pdf template you can download to guide you through the process – click here to skip straight to downloading your music business plan template.

How to create your Musician Business plan

Smart goals.

When it comes to setting goals ( any goals, not just musician goals), there are some elements that give you higher success rates – when they are applied correctly. The acronym “SMART” is used: goals are easier to achieve when they are specific, measurable, attainable, realistic, and time-bound.

Vague goals are problematic for a number of different reasons, but the most important being that you don’t know when you’ve achieved them . Figure out exactly what you want to achieve that will have easy-to-identify results.

For example: instead of “I want to make money as a musician,” get more specific with something like:

“I want to support myself as a musician”

“I want to be able to quit [my current job]”

“I want to teach [x number of] private students”

“I want to join [a band or musical group]”

Fun thing: Specific and Measurable go hand in hand! When you’re setting your goal, make sure that you have data you can point to to show that your goal is completed.

My favorite way to make a goal measurable is by including a number (playing 20 gigs this year, signing 1 student per month) . It can also be a one-and-done task – the kind of thing you can cross off a checklist ( writing a marketing plan, setting up a website, signing up for a class) .

Is this goal realistic? Do you have the resources you need to make it happen?

“Little by little” is an excellent goal mentality to include when writing your musician business plan. Choosing unrealistic goals will absolutely cause disappointment and will probably lead to burnout. Like everything else, becoming a professional musician doesn’t happen overnight.

Some hard truth: I know that a lot of people pursue music for fame. I know that a lot of you will start your musician business plan with the goal, “I want to become a famous musician.” The thing is, becoming a famous musician isn’t a realistic goal for most people, especially when you are just starting out. Not only is it an incredibly competitive field, but the lifestyle is really far from what most people expect. Pursuing your craft and being flexible in the ways that you get to express it is the best advice I can give to young musicians wanting to build a career in music.

Is this goal relevant to my end goal?

We’ll get into it, but your musician business plan won’t include just one goal. You’ll have an overarching goal, but your plan will be made up of smaller steps, smaller goals that will help take you to that final goal.

For example: if your final goal is to grow as a musician, goals involving education, lessons, and practicing are incredibly relevant. Income goals won’t help you improve as a musician, so they aren’t as relevant. Leave those out of your plan.

When will you complete this goal?

Too often, we forget to put time constraints on our goals. And when we do that, we lose some of that fire under us to achieve them (and that typically means we don’t). So – when will you achieve this goal? The end of the year? 2 years? 5 years?

Another way to make a goal time-bound is to take recurring goals and give them a time frame (1 new student per month, 20 gigs each year, etc.)

Important things to include in your Musician Business Plan

Now that we’ve covered what makes a good goal, let’s talk about what elements you need to have an effective musician business plan!

Side note: a business plan should comprise of many goals! Your overarching goal or two, and smaller goals, or action steps, that will bring you closer to achieving those main goals.

Purpose Statement

Arguably the most important element of your musician business plan, a purpose statement outlines your “why.” Why do you want to be a musician? The deeper and more specific you can go, the clearer your goals and action steps will become.

For my goals, I use a year-long goal planner . It isn’t music-specific, but is more universal so I can use it for more than just one aspect of my life, and it includes prep work to help me flesh out my “purpose statement” for the year. I can’t tell you how helpful those prep pages are to focus my vision for the year!

So this purpose statement should drill down on the question – “Why do you want to be a musician?” Explore facets of this question like your skill level, passion, and character traits that set you apart from the competition – what makes you uniquely equipped?

Answer those questions as in-depth as possible and you’ll be surprised at how clearly your goals will stand out.

Continued Music Education

I don’t care what level of musician you are – you are never done growing. Even the great Celine Dion has a voice coach.

There should be some form of continued learning in your musician business plan. Maybe that’s finding a coach, maybe that’s learning music theory ( we have a great course for beginners wanting to dip their toes into the theory world ), maybe it’s learning a new instrument, or maybe it’s learning some of the business side of things – social media, web design, or marketing specifically for musicians. This is a musician business plan, after all!

Varied Revenue Streams

One of the realities of the music business is the need for various sources of income. Many, many musicians (most that I know) piece a living together doing a combination of things – paid gigs, teaching lessons, instrument repair or tuning, mixing, recording, leading worship, whatever. There is actually a huge diversity in options for income as a musician , as long as you’re open to things other than performing.

Marketing Plan

Unfortunately, music is not a “build it and they will come” kind of industry. When you’ve decided what your end-goal is and what kind of revenue streams you want to build, you can look into marketing yourself, your lessons, or whatever other services you want to offer.

There are so many marketing options available to us, thanks to the internet! Social media alone has changed the game for many a musician. Click here for a guide to the most popular marketing avenues for musicians. (that post was written directly to private music teachers, but the principals can apply to any music marketing you want to do!)

Again, though, play to your strengths. I personally have some social media channels, but that kind of content is not my forte (though I am continuing education to try and grow in that area!) – however my writing skills are above average, so most of my marketing goes through this blog and email list. Working smarter, not harder, will help prevent burnout.

Success Metrics

This hearkens back to the “M” in SMART: how will you measure your success? What numbers do you want to hit? What pieces of your business do you want complete, and by what time? Make a list of action items that you can check off as you complete them.

Summary: Your 5-year plan as a Musician

After you’ve completed the other pieces of your musician business plan, write a summary. This summary should be one page or less, and give the reader a complete picture of your 5-year plan as a musician. Where do you, as a musician, want to be in 5 years? What will you look like, what will your business look like, and how will you get there?

Grab your Musician Business Plan PDF Template

Whew, that’s a lot! It can feel overwhelming, but I don’t want to let that stop you – that’s why I’ve made a Musician Business Plan PDF Template, free for you to download. It outlines these steps and has some guiding points to help you think through and flesh out your business plan!

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This post has 2 comments.

I click the big yellow download now button and it just takes me back to the top of the page. Disappointing, after a great lead up in the article.

So sorry, Eric! The link is now fixed – thank you for bringing it to my attention!

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Tip Jar: How To Write A Music Business Plan

The biggest mistake artists make when it comes to procuring financing for their music ventures is the lack of a business plan. Artists and musicians must understand that music is a business and should run like one. Once you’ve decided that music is your business, you must set aside time to write out a solid business plan if you want to grow as a business, attract investors, increase your fan base, market and sell music or launch a crowdfunding campaign.  Here are the essential elements you’ll need to begin your process of establishing a business plan:

1. Write it down (the rough draft)

Whether it’s temporarily written down on a napkin or typed in Microsoft Office, you need to get your plan from out of your head. Start by considering where you are currently in your music career and where you want to be. Give yourself a realistic time frame and work backwards, citing the steps and resources required to reach each milestone in your plan.

2. Take yourself seriously

This is not a joking matter. If you don’t take yourself seriously, no one else will, so include pertinent information regarding your music business. Before you complete your plan, make sure you’ve captured the essence of your music business with the same passion you have for your music.

3. Before you dive in headfirst

Creating a music business plan can be an overwhelming task if you allow it to be. Remember, the only way to eat an elephant is one spoonful at a time, so take a moment to breathe and gather your thoughts.

4. Taking personal and professional inventory

If you have been in the music business for at least a year, you should have a basic idea how a music business operates. In fact, you are most likely implementing core business principles and practices at your current level. Now take it a step further by conducting a SWOT analysis.

A SWOT analysis is a simple assessment of your personal or professional Strengths, Weaknesses, Opportunities and Threats as they apply to your music business. Begin by taking a piece of paper and folding it into four equal squares. At the top of each square going clockwise, write each component of the SWOT analysis in its own square. Then create a bulleted list of all the information regarding your business in the corresponding squares. Once completed, you will have the framework to create a formal business plan.

5. Understand what should be included in your plan

At a minimum, your plan should include the following:

A ) Executive Summary - An overview of your company, including an executive summary, mission statement, goals and objectives and a brief artist history.

B ) Market Analysis - Here you will analyze the current music market, with special focus on your genre of music. Include opportunities, competitors, trends, market size and growth potential.

C ) Company Description - Describe who you are, what you offer and the audience your business serves.

D ) Organization & Management Structure - A layout of your organizational structure. Are you an LLC, corporation or sole proprietorship? List the key team players, i.e. management, promotions, legal, accounting, etc.

E ) Marketing & Sales - How do you plan to market your music to the consumer (fans)? List your sales, product pricing and positioning strategies, marketing channels, ecommerce and communication strategies, as well as distribution and promotion networks.

F ) Products or Services - Explain the music related products and services your business is offering. Are you selling physical CDs or only digital downloads? Are you offering merch for sale such as T-shirts, posters, download cards and stickers? Do you have your own website outside of your social network that also serves as an online store for your music and merch?

G ) Funding Request or Needs - How much money do you need to get your operation off the ground? How much will you need for operation costs such as fixed and non-fixed expenses? Are you or your staff taking a salary? What are your costs for manufacturing, distribution and marketing?

H ) Financial Projections - How will your music business make money? What are the current and future revenue streams of your business? Be as clear as possible, investors hate ambiguity.

I ) Appendix (if needed) - If you already have an existing music business, use this section to add documents such as: revenue model, resume of owners (founders), cash flow statement, income statement, balance sheet and any other information that can help you stay on plan and attract the right people to your business.

6. Writing the plan using a  mind map

Just like creating a song, you will never really finish your business plan; you just have to stop and be okay with what you have. A business plan should evolve in sync with your business.

As a creative type, this is probably more than what you signed up for, but I assure you that it is a well worthwhile venture. Begin by creating an outline using the parameters I mentioned early. Some business plans are far more granular than what I have offered here, but use this information as a guide to establish the basic elements.

Artists, start your plan by creating a mind map. A mind map is a diagram that visually outlines information. Draw a circle in the center of a piece of paper and write the main idea or concept in the middle. Use lines to connect smaller circles with related ideas or subtopics. Once you’ve jotted down your thoughts, use the mind map to create an outline.

7. Pulling it all together

Once you have the first draft of your business plan, put it down and walk away for a few days. After a short mental vacation, review your plan and make corrections where necessary. Make sure it is properly formatted and free of errors.

Keep in mind that your music business plan is a living document that will serve as the roadmap for your career, but it should be fluid enough to adjust to changes in the market. Visit my website http://musicbusi nessguruacademy.com/businessplantemplate and download my free Word doc Music Business Plan template.

8. Distributing your music business plan (the final draft)

Once the final draft of your business plan is ready, distribute it across your organization and discuss it. Does the plan provide the reader with the key goals of your business? If so, your business plan can be used to help you launch a crowdfunding campaign, find an investor or take on business partners.

SAHPREEM A. KING is a Multiplatinum music producer, DJ, music industry journalist and author of several music industry books, including Dude, I Can Help You! 18 Mistakes Artists Make and How To Fix Them . King has used the knowledge he acquired as an artist, producer and educator to create an online music business course that he will offer from his website http://musicbusinessguruacademy.com in early 2014. He can be contacted at [email protected] .

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Business Plan Template for Musicians

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

As a musician, it's not just about creating great music—it's about running your career like a business. And that's where ClickUp's Business Plan Template for Musicians comes in handy!

With this template, you can:

• Clearly define your goals, strategies, and vision for your music career
• Create a comprehensive financial plan to attract investors and secure funding
• Develop a solid marketing strategy to grow your fanbase and increase your reach
• Stay organized and focused on your long-term success in the music industry

Whether you're a solo artist or part of a band, ClickUp's Business Plan Template for Musicians is your roadmap to thriving in the music business. Start planning your journey to success today!

Business Plan Template for Musicians Benefits

Creating a solid business plan is crucial for musicians looking to make their mark in the industry. With the Business Plan Template for Musicians, you can:

• Define clear goals and objectives to guide your career path
• Develop effective strategies to reach your target audience and promote your music
• Outline your financial projections and budget to secure funding and manage your finances effectively
• Identify potential challenges and develop contingency plans to navigate the ever-changing music industry
• Attract potential investors and industry professionals with a professional and comprehensive business plan.

Main Elements of Musicians Business Plan Template

ClickUp's Business Plan Template for Musicians is designed to help musicians effectively manage their careers and navigate the music industry. Here are the main elements of this template:

• Custom Statuses: Keep track of the progress of different sections of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Use custom fields like Reference, Approved, and Section to add specific details to your business plan, such as references, approval status, and section information.
• Custom Views: Access different views to organize and visualize your business plan. Use the Topics view to focus on specific topics, the Status view to track the progress of each section, the Timeline view to set deadlines and milestones, the Business Plan view to see the complete picture of your plan, and the Getting Started Guide view for step-by-step guidance.

With ClickUp's Business Plan Template for Musicians, you can effectively plan and manage your music career, attract investors, and secure funding.

How To Use Business Plan Template for Musicians

If you're a musician looking to take your career to the next level, creating a business plan is an essential step. With the Business Plan Template for Musicians in ClickUp, you can organize your goals and strategies to help you achieve success. Here are six steps to help you make the most of this template:

1. Define your musical goals

Start by clearly defining your musical goals. Do you want to release an album, go on tour, or build a strong online presence? By identifying your goals, you can create a roadmap for your music career and focus on the most important aspects.

Use the Goals feature in ClickUp to set specific, measurable, attainable, relevant, and time-bound (SMART) goals for your music career.

2. Analyze the market

To create a successful business plan, it's crucial to understand the music industry and your target audience. Research other musicians in your genre, identify trends, and study your competitors. This analysis will help you identify gaps in the market and develop strategies to stand out.

Use the Gantt chart feature in ClickUp to visualize your market research timeline and track your progress.

3. Develop your brand

Your brand is what sets you apart from other musicians. Define your unique selling points, create a compelling artist bio, and design a visually appealing logo and website. Your brand should reflect your music style and appeal to your target audience.

Use the Board view in ClickUp to brainstorm and organize ideas for your brand development, including visuals, messaging, and audience targeting.

4. Plan your marketing strategies

Marketing is key to gaining exposure and growing your fanbase. Identify the most effective marketing channels for musicians, such as social media, music streaming platforms, and live performances. Develop strategies for each channel, including content creation, engagement tactics, and collaborations.

Use the Calendar view in ClickUp to schedule and manage your marketing activities, ensuring a consistent and strategic approach.

5. Set financial goals and budgets

Creating a business plan for musicians also involves financial planning. Determine your income streams, such as live performances, merchandise sales, and digital music sales. Set financial goals and create budgets to allocate resources effectively.

Use the Table view in ClickUp to track your income streams, expenses, and projected revenue, helping you make informed financial decisions.

6. Monitor and adjust

Once your business plan is in motion, it's important to monitor your progress regularly and make adjustments as needed. Track your key performance indicators (KPIs), analyze the effectiveness of your strategies, and adapt your plan accordingly.

Use the Dashboards feature in ClickUp to create visual reports and monitor your KPIs, allowing you to make data-driven decisions to optimize your music career.

By following these steps and utilizing the Business Plan Template for Musicians in ClickUp, you'll have a comprehensive plan to guide your music career and increase your chances of success.

Get Started with ClickUp’s Business Plan Template for Musicians

Musicians can use this Business Plan Template for Musicians to effectively manage their careers, attract investors, secure funding, and navigate the music industry.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive business plan:

• Use the Topics View to organize your business plan into different sections such as Marketing, Financials, and Goals
• The Status View will help you track the progress of each section, whether it's Complete, In Progress, Needs Revision, or To Do
• The Timeline View will allow you to set deadlines and visualize the timeline of your business plan
• The Business Plan View will give you an overview of your entire plan, allowing you to easily navigate and make updates
• Use the Getting Started Guide View to access a step-by-step guide on how to use the template effectively
• Utilize the custom fields Reference, Approved, and Section to add additional information, track approvals, and categorize sections
• Update statuses and custom fields as you progress through your business plan to keep stakeholders informed of progress
• Monitor and analyze your plan to ensure maximum productivity and success.
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Music Business Plan

Music can unite individuals, inspire social change, and strengthen communities & it is satisfactory for many musicians too. Plus the financial and creative rewards are great. Therefore, want to start your own music studio or band? Then planning everything priorly is the priority.

Need help writing a business plan for your music studio business? You’re at the right place. Our music business plan template will help you get started.

Free Business Plan Template

Download our free music business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Music Business Plan?

Writing a music business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Introduce your business: Start your executive summary by briefly introducing your business to your readers.
• This section may include the name of your music business, its location, when it was founded, the type of music business (E.g., record labels, music publishers, live music industry), etc.
• Market opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Product and services: Highlight the services you offer your clients. The USPs and differentiators you offer are always a plus.
• For instance, you may include music recordings and albums as services.
• Marketing & sales strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• Business description: Describe your business in this section by providing all the basic information:
• Record labels
• Music publishers
• Live music industry
• Music streaming services
• Describe the legal structure of your music company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the names of your music company’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Business history: If you’re an established music service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.
• Additionally, If you have received any awards or recognition for excellent work, describe them.
• Future goal: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Target market: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.
• For instance, music lovers, music directors, movies, younger audiences, etc can be the ideal market for the music business.
• Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.
• Competitive analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your music services from them. Point out how you have a competitive edge in the market.
• Market trends: Analyse emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.
• For instance, the demand for rap and pop music is increasing; explain how you plan on dealing with this potential growth opportunity.
• Regulatory environment: List regulations and licensing requirements that may affect your music company, such as copyright laws, advertising regulations, etc.

Here are a few tips for writing the market analysis section of your music production business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Music stores
• Music licensing services
• Music promotion services
• Music education services
• Describe each service: Provide a detailed description of each service you provide, including how it works, what it does, and any technical specifications or features.

In short, this section of your music plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique selling proposition (USP): Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.
• For example, exclusive content, high-quality production, niche market focus, etc, could be some of the great USPs for a professional music company.
• Pricing strategy: Describe your pricing strategy—how you plan to price your services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers.
• Marketing strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, email marketing, influencer marketing, etc.
• Sales strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include online sales, partnering with other businesses, live shows, etc.
• Customer retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts on annual membership, personalized service, etc.

Overall, this section of your music studio business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your music business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & training: Mention your business’s staffing requirements, including the number of employees or music professionals needed. Include their qualifications, the training required, and the duties they will perform.
• Operational process: Describe the steps taken to produce and distribute music-related products and services. It ought to contain details regarding any technological innovations employed in the production process, as well as any outsourcing of work or joint ventures with outside providers.
• Equipment & Instrument: Include the list of equipment and machinery required for music, such as musical instruments, sound equipment, recording equipment, etc.
• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your music business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founder/CEO: Mention the founders and CEO of your music company, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.
• It should include, key executives(e.g. COO, CMO.), senior management, and other department managers (e.g. operations manager, music director.) involved in the music business operations, including their education, professional background, and any relevant experience in the industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.
• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your music business services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance sheet: Create a projected balance sheet documenting your music business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the music industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your music business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample music business plan will provide an idea for writing a successful music plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our music business plan pdf .

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Frequently Asked Questions

Why do you need a music business plan.

A business plan is an essential tool for anyone looking to start or run a successful music business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your music company.

How to get funding for your music business?

There are several ways to get funding for your music business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your music business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your music business plan and outline your vision as you have in your mind.

What is the easiest way to write your music business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any music business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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A music business plan: Why you need one and how to create it

• Best Practices

Can’t wait to become a musician and hang up your business casual wear? We get it. But there’s just one more administrative task to accomplish before you can do that: creating your music business plan . 

A career in music allows you to put your passion to work by recording tracks or performing for live audiences. But in order to make the most of it (and ensure you earn enough to meet your financial goals), you’ll want to start out with an artist business plan .

What is a business plan ? Essentially, it’s a document in which you state your goals and chart how to reach them. Think of it like manifesting, even if it seems more like office work. 

If you’re about to start a career in music, we’d venture to guess you have a dream. A solid business plan can help you get there. Stay with us in a corporate (okay, semi-corporate) mindset a few minutes longer while we explain the importance of a business plan for musicians . 

Why do you need a music business plan ?

We hope a major record label stumbles upon your music and offers you an incredible deal. 

But until you make your big break , you should plan to drive your own success with a business plan that maps out where you hope to be in five years. You’ll determine whether you’ll need to raise money to get started, how much you’ll need to earn, and what revenue streams you’ll have to help you get there. You may be starting your business plan now, but you can continue to modify it as your career develops and changes. 

Creating a music business plan: what do you need?

Ready to get to work? Start by outlining the following sections or use a music business plan template to help you stay organized.

1. Executive summary

Writing an executive summary might seem easier said than done, but trust us, it’s doable. In your own words, explain who you are, what kind of music you make, and why you do what you do. That’s right, this is your mission statement! An executive summary is a high-level view of your work, which is why it’s sometimes tricky to write. Don’t get lost in the details. If you get stuck, try creating this summary after you’ve finished the rest of your plan. 

2. Business description

Unlike the executive summary, which is your would-be elevator pitch, a business description gets down to brass tacks. Imagine you score a meeting with a music mogul who thinks you have what it takes to be a star. They’ll have questions about how your business is structured and registered, and they’ll also want to see some stats on your earnings, fan base, and growth. Provide all this information in your business description. 

3. Offerings

If you offer services like music for events, backup singing, or play-for-hire gigs, include a section in your business plan that lists out all that you provide. It’s important to diversify your income streams, so if you play solo gigs but also provide freelance songwriting or music production services, be sure to list all that here.

4. Audience analysis

Everyone has a target demographic. If you have a hard-core metal band, you’re probably not trying to attract pop fans. Or, maybe you have some serious crossover potential that you must mention in your audience analysis. In this section, highlight who your listeners or future clients are. If you plan to jam at weddings, then your target clients are brides- and grooms-to-be. If your goal is to become popular on streaming apps with your bassy house tunes, then your target audience is club-goers, say, from ages 18-30. 

5. Market analysis

A market analysis exists more for you than it does for anyone who reads your business plan. It helps you familiarize yourself with the industry. Do some research, and outline how much money is in the industry to determine what’s trending (aka what’s profitable). How’s the industry projected to fare in the next three, five and 10 years? Get to know your competition and figure out what businesses or platforms you can depend on to support your work. If you plan to become a recording artist, familiarize yourself with the big labels and major distribution platforms. 

6. Marketing plan

Until you have a record label or a team behind you, you’ll likely be in charge of your own marketing strategy. In this section of your business plan, outline your ideas for social media and any other type of online or print marketing you plan to do. If you hope to get your latest track out to music lovers around the world, build your reach on social media by opening accounts on all major platforms and posting consistent content that’s coherent with your “brand.” If you want to reach local audiences, perhaps an ad in regional papers or magazines is a good idea. Don’t forget to link to your merch site and streaming outlets, too, by putting a Linktree multi-URL in your social bios. 

7. Operations 

You know what you hope to achieve, but how are you going to get it done? Think of the operations section of a business plan as a generalized to-do list. Write out the tasks you’ll have to do every day to keep your music career up and running. If you can’t do it all yourself, think of whom you could outsource the work. This is also a good space in which to plan how you intend to reach your long-term goals, like accruing 10,000 social media followers. 

8. Finances

If the idea of creating financial statements makes your head spin, here’s where you may want to hire an accountant. In this section of your business plan, you’ll provide an income statement, cash flow statement and a balance sheet. Creating this section will help you identify the costs of running your music business and make more accurate financial projections. 

Having a business plan gives your career some shape. Not only will you feel more confident in your ability to make it in a tough industry, but investors and brands will believe in your potential as well. 

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Music Production Company

Back to All Business Ideas

How to Start an Independent Music Production Company

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on March 29, 2022

Investment range

$4,150 - $9,600

Revenue potential

$97,500 - $156,000 p.a.

Time to build

1 – 3 months

Profit potential

$78,000 - $124,800 p.a.

Industry trend

Important elements to think about when starting your music production company:

• Studio location — Choose a suitable location for your studio. Consider factors such as accessibility, noise levels, and space requirements. Invest in proper acoustic treatment to ensure high-quality sound recording and mixing. This includes soundproofing and installing acoustic panels.
• Equipment — Purchase essential studio equipment , such as microphones, audio interfaces, studio monitors, mixing consoles, and digital audio workstations (DAWs).
• Find talent — Hire skilled producers, engineers, and session musicians to work with your clients. Building a talented team is crucial for delivering high-quality productions. 
• Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
• Legal business aspects — Register for taxes, open a business bank account, and get an EIN .
• Music licensing — Get necessary music licenses to legally use and distribute copyrighted music. This includes performance rights, mechanical licenses, and synchronization licenses.
• Contracts — Draft clear and comprehensive contracts for all your projects that outline the terms of service, payment, and intellectual property rights.

Interactive Checklist at your fingertips—begin your music production company today!

You May Also Wonder:

How does a music production company make money?

A music production company can make money for recording time, mixing and mastering, and royalties. You can also expand your services and offer consulting on how to get music noticed or even connected with a record label.

How can I learn to be a music producer?

You can take courses on music production on sites like  Udemy , generally for under $20. You can also get a music and recording certificate or degree from places like  Full Sail University . If you go with the self-study route, you may have to study and practice for years to be good enough to make money.

Is music producer profitable business?

Music production can be a profitable business, but success and profitability depend on various factors, such as the producer’s skills, industry connections, reputation, demand for their services, and the ability to adapt to changing market trends.

What is a ghost producer?

A ghost producer is a music producer who creates and produces tracks for other artists or clients without receiving official credit for their work. They often work behind the scenes, allowing the artist or client to present the music as their own.

How much money does a producer make on a song?

The amount of money a producer makes on a song can vary widely and depends on factors such as the producer’s level of experience, reputation, the artist’s budget, and the terms of the agreement. Producers may receive a flat fee, a percentage of sales or royalties, or negotiate a custom payment arrangement.

How can I differentiate my music production company from competitors in the market?

Differentiate your music production company by creating a unique sound or style, offering exceptional production quality, building relationships with talented artists and songwriters, providing comprehensive services like mixing and mastering, maintaining strong communication and professionalism, delivering projects on time, and engaging with the music community through networking and collaborations.

How do I become a successful music producer?

To become a successful music producer, hone your production skills and musical knowledge, stay updated with industry trends and technology, build a strong network, develop your unique style, consistently produce high-quality work, seek collaboration opportunities, and continuously learn and evolve with new production techniques.

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a music production company has pros and cons to consider before deciding if it’s right for you.

• Flexible – Start out with a home studio
• Fun! – Help make great music
• Good Money – Multiple revenue streams
• Education Required – Need to learn producing before you can start
• Expensive Equipment – Setting up your studio will be $$

Music production industry trends

Industry size and growth.

• Industry size and past growth – The global music production and distribution industry is worth $34 billion in 2022 after five years of 5% annual growth.(( https://www.ibisworld.com/global/market-size/global-music-production-distribution/ )) 
• Growth forecast – The global music production and distribution industry is projected to grow 3.6% in 2022. 

Trends and challenges

Trends in the music production industry include:

• Digital manipulation of audio is becoming more advanced, allowing music producers to alter and improve recordings.
• The explosion of TikTok is creating huge opportunities for music producers and artists to go viral and gain fans, boosting revenue. 

Challenges in the music production industry include:

• Advancing technologies also present a challenge for music producers, as they have to update their equipment to keep up with technology.
• The widespread availability of digital audio production software has made it easier for artists to record themselves, rather than going to a music producer. 

Demand hotspots

• Most popular states – The most popular states for music producers are New York, Connecticut, and California.(( https://www.zippia.com/music-producer-jobs/best-states/ ))
• Least popular states – The least popular states for music producers are Montana, Kansas, and Idaho.

What kind of people work in music production?

• Gender – 10.1% of music producers are female, while 81.8% are male.(( https://www.zippia.com/music-producer-jobs/demographics/ ))
• Average level of education – The average music producer has a bachelor’s degree.
• Average age – The average music producer in the US is 40.1 years old.

How much does it cost to start a music production business?

Startup costs for a music production company range from $4,000 to $9,500 for a home studio space. Costs include all the equipment, a computer and insulation pads for your walls. 

You’ll need a handful of items to successfully launch your music production business, including: 

• Digital audio workstation
• Audio interface
• DAW software
• Studio monitors and stands
• Microphones and stands

How much can you earn from a music production business?

A home music production studio can bring in $50 to $100 per hour of recording, and the same for mixing and mastering. You can also make money from royalties. Your profit margin should be about 80%.

In your first year or two, you could average 25 hours of recording per week at $75 an hour, bringing in $97,500 in annual revenue. This would mean $78,000 in profit, assuming that 80% margin. As your brand gains recognition and you get referrals, you could work 40 hours a week. With annual revenue of $156,000, you’d make a tidy profit of $124,800. You may also be bringing in revenue from royalties at this point. 

What barriers to entry are there?

There are a few barriers to entry for a music production company. Your biggest challenges will be:

• The skills required to make great music 
• The startup costs of a home studio

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Step 2: hone your idea.

Now that you know what’s involved in starting a music production company, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research music production companies in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a hip-hop music producer or a pop music producer.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as music production for new music artists, or for country artists.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your services

Your services will depend on your skills. You can do recording, sound manipulation, mixing and mastering, provide your own original beats, and even marketing and promotional services for your clients.

How much should you charge for music production?

You can charge different prices for various services, usually between $50 and $100 per hour. Your profit margin after things like software costs should be about 80%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will probably be a younger demographic of artists, which you might find on TikTok or Instagram. It’s also a good idea to just get out and talk to people, at cafes, clubs, and bars, as many aspiring artists might be interested in your music production services. Once you start doing good work, you’re likely to get a lot of referrals because local music communities tend to be very connected.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a studio space. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Music Production Company Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “music producer” or “music production”, boosts SEO
• Name should allow for expansion, for ex: “RhythmRoom” over “HipHop Hitmakers”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Music Production Business Plan

Here are the key components of a business plan:

• Executive Summary: A brief summary of the entire business plan, highlighting key points and objectives.
• Business Overview: An overview of the music production company’s mission, vision, and its place in the industry.
• Product and Services: Description of the music production services and products offered, such as recording, mixing, and mastering.
• Market Analysis: Examination of the music industry, target market, and trends, providing insights into the demand for your services.
• Competitive Analysis: Evaluation of competitors in the music production field, identifying strengths, weaknesses, and opportunities.
• Sales and Marketing: Strategies for promoting your music production services and reaching your target audience.
• Management Team: Introduction to the key team members and their roles within the company.
• Operations Plan: Details on the day-to-day operations of the music production business, from studio management to equipment maintenance.
• Financial Plan: Projections for revenue, expenses, and profitability, including startup costs and financial forecasts.
• Appendix: Supporting documents, such as resumes, contracts, and additional information that complements the business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to music production companies. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your music production company will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital : Venture capital investors take an ownership stake in exchange for funds, so keep in mind that you’d be sacrificing some control over your business. This is generally only available for businesses with high growth potential.
• Angel investors : Reach out to your entire network in search of people interested in investing in early-stage startups in exchange for a stake. Established angel investors are always looking for good opportunities. 
• Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a music production business. You might also try crowdfunding if you have an innovative concept. If you get to a point where your company is poised for high growth, you might be able to attract angel investors or venture capital.

Step 8: Apply for Licenses and Permits

Starting a music production business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your music production business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability : The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property : Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance : Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation : Provides compensation to employees injured on the job.
• Property : Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto : Protection for your company-owned vehicle.
• Professional liability : Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) : This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as Studio Director , Sonido , or Skedda , to manage your bookings, schedule, invoicing, and payments.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Collaborate with Local Artists and Events: Partner with local musicians, bands, and event organizers to offer your services, showcasing your expertise in live productions and studio work, while tapping into existing fan bases.
• Social Media Challenges and Campaigns: Engage your audience on platforms like Instagram and TikTok by creating music-related challenges or campaigns that encourage user-generated content, fostering a sense of community around your brand.
• Exclusive Content and Behind-the-Scenes Access: Share behind-the-scenes glimpses of your studio sessions, equipment, and collaborations, providing followers with exclusive content that builds intrigue and positions your company as an industry insider.
• Online Tutorials and Educational Content: Establish your authority in the industry by creating and sharing online tutorials, tips, and educational content about music production on platforms like YouTube. This not only attracts aspiring musicians but also showcases your expertise.
• Strategic Sponsorships and Partnerships: Sponsor local music events, festivals, or even collaborate with music schools to gain exposure and build relationships within the music community, enhancing the credibility of your production company.
• Client Testimonials and Success Stories: Highlight client success stories through case studies and testimonials on your social media channels and website, demonstrating the value and quality of your music production services.
• Email Marketing with Personalized Offers: Build an email list and regularly communicate with your audience through newsletters. Include personalized offers, discounts, or exclusive deals to incentivize repeat business and referrals.
• Podcast Hosting and Guest Appearances: Host a podcast related to music production or become a guest on existing podcasts, showcasing your knowledge and simultaneously reaching a wider audience interested in the music industry.
• Interactive Virtual Events and Webinars: Host virtual events, webinars, or Q&A sessions that allow your audience to interact with you directly, fostering a sense of connection and providing value beyond your core services.
• Consistent Branding Across Platforms: Ensure consistent branding across all your online and offline platforms to create a strong, recognizable identity, helping to establish trust and credibility in the competitive music production landscape.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your music production company meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your music production business could be: 

• Our full-service music production will make you a star
• You bring the beats; we’ll make your hip hop great
• Wanna hit the charts? We’ll take your music to the next level

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a music production business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in music for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in music production. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a music production business include:

• Sound Engineers – assist with music production
• General Manager – scheduling, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Music Production Business – Start Making Money!

Imagine helping up-and-coming artists bring their music to life, then seeing that music embraced by legions of fans — how rewarding! And this is in addition to the financial rewards you’ll reap from a large and growing industry. Starting a music production business is fairly easy, and you can set up your studio in your home for a small investment. If you just get a few clients and do excellent work, you’re bound to get referrals and start building your music empire. 

Now that you understand the business, get that studio set up and running and live out your entrepreneurial dream of being the next major music mogul. 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Music Production Company Name
• Create a Music Production Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Music Production Business - Start Making Money!

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Music Business Plan Template [Updated 2024]

Music Business Plan Template

If you want to start a music business or expand your current business, you need a business plan.

The following business plan template gives you the key elements to include in a winning music business plan. It can be used to create a music production company business plan, a business plan for a music artist, or business plans for a music teacher and/or music management.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Music Business Plan Example

I. executive summary, business overview.

[Company Name], located at [insert location here] is a new, independent music business focusing on alternative rock music.

We seek to find and sign up-and-coming alternative rock bands based in the New York region. By finding underground talent and improving their marketing and appeal to a broader music audience, we will be able to build a stable of artists with significant customer bases. This will translate into significant sales of music (CDs, MP3s), concert tickets, and related products (e.g., merchandise).

Products Served

[Company Name]will provides both a product and a service to two distinct audiences.

To alternative music artists which provide talent agent and artist representation functions. That is, we find and recruit talent. And then we manage our bands and provide the creative and marketing resources they need to develop music and sell music and merchandise.

To fans of our bands, we will sell music, concert tickets and merchandise.

Customer Focus

[Company Name] will primarily serve alternative rock fans in the greater NY region. Simmons Research has found that these fans display the following demographic characteristics:

• Gender skew is fairly balanced…56% males, 44% females.
• Listeners tend to be well-educated, 41% more likely than the average adult to have attended or graduated from college.
• Listeners tend to be 40-50% more likely than the average adult to be a heavy radio listener.
• The majority of the audience remains firmly lodged in the 18-44 age range.

In addition to end-customers, we serve the needs of alternative rock bands. We will focus on currently unsigned bands. Typically, the members of these bands are in their 20s and have getting signed, generating revenues and becoming famous as their primary goals.

Management Team

[Company Name]is led by [Founder’s Name] who has been in the music business for 3 years. While [Founder] has never run an independent music businesshimself, he has been active in the industry for many years as a listener and as an intern at Alternative Rock Station WCDS in New York City.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• There is currently no independent music businessin the NY metro area focused exclusively on up-and-coming alternative rock bands.
• There has been a significant growth in alternative rock listeners in the area. Music stations catering to this market have been thriving.
• The management team has a track record of success in the independent music business.
• Our business model will be profitable if we can grow in the metro-NY area. If any of our artists thrive nationally, then we will be even more successful.

Financial Highlights

[Company Name] is currently seeking $100,000 to launch.Specifically, these funds will be used as follows:

• Build-out and Startup costs: $25,350
• Salaries: $45,000
• Marketing: $20,000
• Lease expenditures: $12,000

II. Company Overview

Who is [company name].

We seek to find and sign up-and-coming alternative rock bands based in the New York region. By finding underground talent and improving their marketing and appeal to a broader music audience, we will be able to build a stable of artists with significant customer bases. This will translate into significant sales of music (CDs, MP3s), concert tickets, and related products (e.g., merchandise.

[Company Name]’s History

[Founder’s Name] conceived [Company Name] on [Date] after years of attending alternative rock concerts in the New York metro region and seeing the massive increase in attendance to most events.

[Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].

The business is currently being run out of [Founder’s Name] home office, but once the lease on [Company Name]’s retail location is finalized, all operations will be run from there.

Since incorporation, the company has achieved the following milestones:

• Found office space and signed Letter of Intent to lease it
• Developed the company’s name, logo and website located at www…
• Created the mission statement
• Determined equipment requirements
• Began discussions to sign key alternative rock bands

[Company Name]’s Products& Services

[Company Name] will develop the following products for sale to consumers:

• Music (CDs, MP3s)
• Merchandise (shirts, hoodies, posters, etc.)
• Concert tickets

To the music artists it signs, [Company Name] will primarily offer the following services.

• Marketing support (to build each band’s customer base)
• Distribution (to sell music, merchandise and concert tickets)
• Tour support (arranging and managing tours)
• Promotions (working with radio stations and other entities to promote each band).

III. Industry Analysis

[Company Name]directly competes within the music market, and particularly within the independent music business market.

Industry Statistics & Trends

The following industry size facts and statistics bode well for [Company Name].

The music market is clearly vast. According to IFPI, which represents the recording industry worldwide, global music sales were $33.5 billion last year, with the U.S. accounting for $12.3 billion of that amount.

Within this market, consider the following key statistics:

• 30% of the global music market belongs to independent labels
• Independent labels sell 900 million units annually
• Artist signed by a major record lable earn approximately $1 per copy sold
• Artist signed by an independent music business earn approximately $5 per copy sold

Because independent music business artists earn 5 times the revenue per unit sold, [Company Name] is at an advantage in signing many up-and-coming alternative music bands versus major labels.

Other key information from IFPI includes the following:

• The digital music business internationally saw a sixth year of expansion last year, growing by an estimated 25 per cent to $3.7 billion in trade value. Digital platforms now account for around 20 per cent of recorded music sales, up from 15 per cent last year. Recorded music is at the forefront of the online and mobile revolution, generating more revenue in percentage terms through digital platforms than the newspaper (4%), magazine (1%) and film industries (4%) combined.
• Single track downloads, up 24 per cent to 1.4 billion units globally, continue to drive the online market, but digital albums are also growing healthily (up 36%).
• A-la-carte music downloads continue to grow, with AmazonMP3 joining the European market, broadening consumer choice. An increasing number of stores are licensed to sell DRM-free music tracks.
• Music companies are also increasingly licensing music to third parties. One notable success is the games sector, where music games were responsible for 15 per cent of overall game sales in the US in the first half of the year (NPD Group). Guitar Hero and its sequels have sold more than 23 million copies in three years, generating more than US$1 billion in North America alone (PWC).

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will primarily serve the alternative rock bands and fans in the New York metro area. Over time, we expect that our bands will gain regional and national attention.

Simmons Research has found that alternative rock fans display the following demographic characteristics:

Customer Segmentation

With regards to alternative rock bands, we will focus on currently unsigned bands, independent artists and internet stars . Typically, the members of these bands are in their 20s and have getting signed, generating revenues and becoming famous as their primary goals.

V.Competitive Analysis

Direct & indirect competitors.

The following independent alternative rock music businesses most directly compete with [Company Name]:

Fueled By Ramen

Fueled By Ramen is a music business based in New York City with an office in Tampa, Florida.

In 1998, Fueled By Ramen released a self-titled EP from Jimmy Eat World, a five-song collection that proved a breakthrough for both the label and the Arizona-based band. With increased distribution demands and a rise in radio play, Fueled By Ramen set up its first real office space that same year.

Fall Out Boy’s Pete Wentz introduced Fueled By Ramen to fellow Chicago rock outfit The Academy Is… who released their acclaimed debut album Almost Here, the following year.

The label opened an office in midtown Manhattan and that same year Paramore’s album Riot! debuted in the Billboard Top 20, was certified gold and has recently gained platinum status. Panic at the Disco’s second album enjoyed similar success, debuting at number #2 on Billboard’s Top 200 chart, selling over 139,000 copies its first week and making it the fastest-selling album in the label’s history.

The following artists are currently signed to Fueled By Ramen:

• The Academy Is…
• Cobra Starship
• Cute Is What We Aim For
• Fall Out Boy
• Forgive Durden
• The Friday Night Boys
• Gym Class Heroes
• The Hush Sound
• Panic at the Disco
• A Rocket to the Moon
• This Providence
• VersaEmerge

Caroline Records

Caroline Records started out as a subsidiary of Richard Branson’s Virgin Records label during the early to mid 1970s. The label originally specialized in putting out budget price LPs by mainly progressive rock and jazz artists generally not considered to have a great deal of ‘mainstream’ or commercial appeal, but were often however creatively of great interest.

The first release on the label, and the artist who gave it its name, was Carol Grimes’ ‘Warm Blood’ LP, released in 1974. The original label was a photographic style variation on that of the Virgin label’s “Twins” logo designed by Roger Dean.

Both the U.S. and U.K. branches of Caroline Records are subsidiaries of Caroline Music, which includes Caroline Distribution and is in turn owned by EMI. Caroline has or had a number of subsidiary labels including Astralwerks, Gyroscope, Caroline Blue Plate, Rocks the World, Scamp, and Passenger.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Location: [Company Name]’s location is within New York City giving it better proximity to NY alternative rock bands and the throngs of customers who enjoy this genre of music.
• Management: Our management team has years of business and marketing experience that allows us to market and serve both music artist and consumers in a much more sophisticated manner than our competitors.
• Relationships: Having been a part of the local alternative rock community for the past 5 years, [Founder’s Name] knows all of the local leaders, media and other influencers. As such, it will be relatively easy for us to build branding and awareness of our independent music business.

VI.Marketing Plan

The Marketing Plan describes the type of brand [Company Name] seeks to create and the Company’s planned promotions and pricing strategies.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

• Offering high-quality service to independent alternative rock bands.
• Offering high-quality bands and music to alternative rock fans.
• Providing excellent customer service and allowing fans to get exciting experiences with their favorite independent alternative rock bands.

Promotions Strategy

[Company Name] expects to reach consumers through the following tactics:

Direct E-Mail

[Company Name] will collect physical email addressat alternative rock concerts and via the websites of the bands it signs. It will market music (CDs, MP3s), concert tickets and merchandise to these consumers via email.

Public Relations

We will contact all local and area newspapers and television stations to tell them about each of our artists.

Advertising

[Company Name] will advertise in local newspapers and sponsor community events in order to gain awareness of our bands.

[Company Name] will provide free tracks to customers to enable them to hear samples of our bands.

Ongoing Customer Communications

[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products and more.

Pricing Strategy

[Company Name]’s pricing will be moderate so customers feel they receive great value when purchasing items from the bands we represent.  

VII.Operations Plan

Functional roles.

In order to execute on [Company Name]’s business model, the Company needs to perform many functions including the following:

Administrative Functions

• General & Administrative functions including legal, marketing, bookkeeping, etc.
• Hiring and training staff

Artist Representation Functions

• Finding/recruiting bands
• Negotiating contracts
• Promoting band events and products
• Managing concerts and tours
• Music development (recording studio management, etc.)

Retail Functions

• Product development (e.g., manufacturing merchandise)
• Product sales (direct via internet, and recruiting distributors)
• Customer support functions

[Company Name] expects to achieve the following milestones in the following [] months:

VIII. Management Team

Management team members.

[Company Name]is led by [Founder’s Name] who has been in the music business for 3 years. While [Founder] has never run an independent music business himself, he has been active in the industry for many years as a listener and as an intern at Alternative Rock Station WCDS in New York City

[Founder] graduated from the University of ABC where he majored in Communications.

Hiring Plan

[Founder] will supported by a team of experienced music professionals. As the Company grows, we will need to hire the following personnel:

• Director of Operations
• Director of Marketing
• General Manager
• Assistant Manager

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come from the sale of:

• Music (CDs/MP3s)
• Merchandise

The major costs for the company will be music and merchandise production costs, distribution costs and staff salaries of the staff.

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $370,000 to launch its store. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.

[Company Name] is currently seeking $100,000 to launch. Specifically, these funds will be used as follows:

Key Assumptions & Forecasts

Below please find the key assumptions that went into the financial forecast and a summary of the financial projections over the next five years.

5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement

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Music and Entertainment Business Plan Templates

Written by Dave Lavinsky

In the vibrant and ever-changing landscape of the music and entertainment industry, a solid business plan is not just a formality, but a cornerstone of strategic development and sustainable success. It serves as a critical roadmap for navigating the unique challenges of this industry, including rapidly evolving technology, shifting consumer preferences, and intense competition.

Our collection of business plan examples represent various facets of the music and entertainment sector, ranging from record labels and music production companies to entertainment venues and digital streaming services. Each plan is expertly crafted to address essential elements such as talent acquisition, content production, distribution strategies, marketing initiatives, and financial management. These plans are indispensable tools for entrepreneurs and business owners in the industry, offering a comprehensive guide to establishing a robust presence, capitalizing on market opportunities, and building a resilient, profitable entertainment enterprise. They emphasize the importance of meticulous planning in balancing creative vision with commercial viability in the dynamic world of music and entertainment.  

Music & Entertainment Business Plans

Film Business Plan Music Business Plan Party Bus Business Plan Podcast Business Plan Production Company Business Plan Record Label Business Plan Recording Studio Business Plan  

Writing a business plan for your music career

For all the creativity needed to sustain a career in music, having a business plan is one way to stay grounded, define your goals, and keep you reaching for the stars.

Artists of all stripes grapple with the struggle of art versus commerce. We need time to make music and concoct our visions, but we also need to eat, pay the rent, and have clothes to wear. Musicians who become famous when they are young often have to learn business acumen and skills as they go along, usually learning the price of ignorance by being ripped off.

For those of us on ground level, having a plan can mean the difference between being able to make a living as a musician and being a weekend warrior with a day job for eternity. Here are a few suggestions on how to make a business plan as a musician. The most important suggestion: take it one step at a time! This kind of work can be overwhelming for creatives. I left my last day job by working on a business plan 15 minutes a day at lunch for a year. Slow and steady wins the race!

How to start

There’s a ton of resources online — including articles, courses, and software you can purchase — to help write a business plan. But where to begin? A good place to start is to define what a business plan is and why you might need one.

A business plan is an outline of your goals, the practical methods you will take to achieve them, and the resources that you have and will need. The plan will help you take your goals from disembodied ideas to concrete actions.

There’s a number of reasons to have a business plan, not the least of which is the basic idea that planning always helps. When you go to the grocery store, you go with a list. When you head on a cross-country drive from New York to California, you plan your route. Having a business plan will give you clarity, focus, and a sense of forward motion in your music career by identifying realistic, achievable, and action-based short-term goals.

It’s also worth noting that you will absolutely need a business plan if you seek to attract investors or loans. It can also help to show potential managers, booking agents, and record labels that you are serious about what you’re doing. There is value in making long-term (10 year), medium-term (five year), and short-term (one year) business plans. You might also want to make a business plan for a specific project/album to have structure for the process from recording to releasing to marketing.

Writing a business plan requires research. You’ll need to understand your audience, your market, and where/how you will find resources and people to join your professional team. If you’re writing the plan for yourself, this step is still important to provide guidance and clarity. If you are writing a business plan to attract investment, a thorough understanding of your field and your plan is crucial.

First, you need to clarify your vision and craft a mission statement. Who are you, what do you want to do, and why? These are weighty questions and worth pondering in depth: the clearer you are about who you are as an artist, the easier it will be to explain what you do to others and sell your project/products. The mission statement doesn’t have to be long, just a short paragraph describing who you are as an artist and what you are trying to achieve.

The meat of the plan

There is no set business model for a career in music, but there are some essential components to any business plan, and no matter what your objectives or what kind of outline you use, it’s a good idea have the following categories included.

Executive summary. You should actually write this after you’ve finished the entire plan. This is a one page summary of your business plan that includes an introduction, a description of your project/goals, an account of the funding you have and/or are seeking, and a synopsis of your plans for implementation. This will be the first thing prospective investors read, so it’s important to make it thorough and compelling.

Analysis of your audience. It’s a bad idea to try to appeal to everyone. To define your demographic, start by understanding who comes to your shows. What is the gender breakdown, age, and geographical location of your fans generally? What other artists do they listen to? How do they purchase music? What other events do they attend? Where do they shop and could you work with those retail outlets on cross-promotion?

SWOT analysis. This is a standard part of any business plan in any field. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The first two categories, Strengths and Weaknesses, are internal to your music and music business: they are things you can control. For example, the people on your creative/business teams, musical skills and abilities, your location.

The second two categories, Opportunities and Threats, are external, based on what happens in the larger market. You can take advantage of opportunities and protect against threats, but you can’t change them. Examples would include recordings and success of your competitors, prices of gear and equipment, and technology shifts (streaming vs physical product). Most SWOT analysis templates would have you list at least three items per category. Once completed, this will provide new perspectives on ways you can leverage what you already possess to take advantage of opportunities and protect yourself from marketplace threats.

Marketing plan. Creating a comprehensive marketing plan is a separate exercise requiring as much research and detail as a full business plan itself! For the purposes of the business plan, though, you will at least need to demonstrate awareness of your market and have an idea of some solid steps you are going to take to generate revenue and get your products and services into the marketplace.

What kinds of promotion will you do? What will it cost? What kind of return do you expect to achieve on your marketing investment? How will you track your progress? All these questions should have answers within your business plan. The music business specifics you’ll want to address in this section are your web page, your social media plans, touring, radio promotion, press kit, what merchandise you’ll sell, what your logo will look like, etc. Get as detailed as possible; your plans may change once you begin to execute, but if you have a blueprint, your chances of success will be much higher.

Financials. There should be detailed financial breakdowns of your estimated income and expenses. It’s not important that you have a lot of money to start with; you need to show how judiciously you would use investment funds and what kind of return you would expect you and your investors to get. If you’re doing a recording project, you should have a clear breakdown of all the costs involved in the recording, mixing, mastering, and replication processes. This section will likely require significant research. Include a category for legal expenses, as it’s vital to copyright your songs and trademark your logo. The better your estimates are of income and expenses, the easier following your plan will be, so be thorough!

Metrics. You are going to need to demonstrate to investors (and yourself) how you will measure your progress. Will you have weekly or monthly check-ins with your business team for accountability? Social media accounts and websites have multiple analytical tools to measure page hits, likes, demographic info of your fans, and where your page/account can improve. If you choose to advertise on Facebook or Google, there are tools to track the progress of those as well. Use them. Set yourself a very specific timetable and make yourself accountable to someone else, even if you are not seeking investors and just doing this for yourself.

A word about income

In any creative business plan, you should have multiple revenue streams. Business coach Gary Ryan Blair suggests that anybody in business for themselves should have at least 10 revenue streams at all times. This ensures that if one stream dries up, another can cover the gap until you rebuild it. In writing your business plan, you’ll examine your skills and abilities (SWOT analysis) and figure out where those revenue streams could come from.

In looking for those 10 revenue streams, keep the definition of what you do broad. One of my heroes and good friends, the artist Rex Ray, was an artist, a teacher, a graphic designer, and designer of housewares (wallpaper, rugs, furniture). He straddled the line between art and commerce better than anyone I know. He designed album covers, book covers, rock posters, and also made high art that hangs in museums. He followed his interests and saw how he could contribute and also survive as an artist.

There are multiple options out there for a business plan framework. LivePlan is an excellent piece of software, and there are books available, including Business Plans For Dummies which also offers a kit you can purchase with templates to craft plans. Find something that works within your budget. The format you use is irrelevant as long as it is comprehensive and detailed.

As Casey Kasem, the great DJ who hosted American Top 40 for many years, would say: “Keep your feet on the ground and keep reaching for the stars.” Dream big, but think practically and build a business plan. Break down your goals into smaller, more achievable goals. Become clear on what the costs will be. You’ll find that the very act of creating a business plan will set things in motion and center you in a place of clarity. This opens the door for synchronicity and fate to intervene. But it all starts with formulating and having a plan.

Chris Huff has been a professional singer, multi-instrumentalist, songwriter, and producer for over 20 years. He has worked as a sideman with Peter Yarrow (Peter, Paul, and Mary), Echo and the Bunnymen, Chuck Hammer (David Bowie, Lou Reed), and Tom Kitt (Broadway composer of Next To Normal). Chris also wrote liner notes for David Bowie’s Live And Well CD, and has two full-length albums of original music available on iTunes .

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About Chris Huff

5 thoughts on “ writing a business plan for your music career ”.

this is just like starting any type of business, isn’t it ? Even though as a new old musician I don`t think of being a business person. How many people start in business for themselves without a business plan. This article opens my eyes about how far I want to go in music & the ground steps. thanks

Really good post! Thanks so much for sharing this.

Great mr thanks for your good handover, all the best

Amazing Post Chris, Very helpful for Musician. I am also a musician i learnt a lot also having difficulties to break through into the industry why because i don’t have manager and publisher’s. So I manage it all alone for now. But in future, I am definitely going to expand business.

Every successful career came up with a good plan. Thanks for this informative information. Well done!

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Music Business Plan Template

Need to write an effective Music Business Plan? Use this customizable template to create a business plan of your own.

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This pre-written Music Business Plan Template for musicians, bands, and singer/songwriters is an excellent way to create a blueprint for success.

A Music Business Plan is important for creative entrepreneurs to identify and reach critical goals in business and finances. It helps musicians make informed financial decisions, research local markets and identify business opportunities to reach financial goals. A business plan also provides key points in the areas of business operations, sales and marketing as well as financial reporting in order to gain funding, partnerships, sponsorships, and more.

This Music Business Plan Template pack offers a convenient way to create a business plan for musicians and bands. It includes a 25-page pre-written music business plan, editable financial reporting documents, a financial growth chart, and an editable artwork file for the cover page.

Customize this template to create a music business plan of your own. Verbiage, language, and overall voicing can be kept the same or changed to fit your style. If you are a musician and you are hoping to write one of the most important documents to build a strong foundation for your music business with a professional, polished look, this template will help you do just that.

The Music Business Template includes the following elements that are standard with most business plans…

• Executive Summary
• Business Description
• Service and Product Offerings
• Market Analysis
• Your Business Model
• Organization and Management Team
• Financial Outlook

Every element is customizable. You can change all fonts, colors, images, or the entire layout based on your needs.

NO REFUNDS will be issued as this is a digital listing. If you have problems with access or any other issue, please  reach out on the contact page  for assistance.

Distribution, modification, and selling of any part or of the entire template are strictly forbidden.

WHAT YOU WILL GET

• 25-page pre-written music business plan template
• Editable financial reporting documents including Profit and Loss Statements, Quarterly Statements, Revenue and Expense Statements, and a 5 Year Financial Snapshot.
• Editable financial growth bar chart
• Editable artwork file for cover page presentation
• Supporting links to coaching videos where you can watch this exact business plan explained step-by-step

HOW IS THE FILE DELIVERED?

• Design-oriented files are delivered via CANVA (you can use a Paid or Free account)
• Text-oriented files are delivered via GOOGLE DRIVE

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Once your payment is confirmed, you’ll see a link to download your file(s). You will also receive an email with the link to the file included.

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How To Write a Winning Music Production Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for music production businesses that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every music production business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Music Production Business Plan?

A music production business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Music Production Business Plan?

A music production business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Music Production Business Plan

The following are the key components of a successful music production business plan:

Executive Summary

The executive summary of a music production business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your music production company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your music production business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your music production firm, mention this.

You will also include information about your chosen music production business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a music production business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the music production industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the clients of a music production business may include:

• Recording studios
• Independent record labels

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or music production services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your music production business may have:

• Proven industry experience
• Unique production process
• Strong customer loyalty
• Extensive music library
• Personalized service

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or, you may promote your music production business via a public relations campaign.

Operations Plan

This part of your music production business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a music production business include reaching $X in sales. Other examples include adding new production equipment, opening a second location, or hiring new personnel.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific music production industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Music Production Firm

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Music Production Firm

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup music production business.

Sample Cash Flow Statement for a Startup Music Production Firm

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your music production company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

Remember to keep your business plan updated as your company grows and changes. Review it at least once a year to make sure it is still relevant and accurate.  

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Writing a business plan for your music.

July 25, 2018

The Indie Artists Guide to Writing a Business Plan

When it comes to the independent musician, the music business can be a strange, frustrating and scary concept. A good first step for any indie artist who is serious about creating a career in music, is to create a business plan. The Business plan will act as a roadmap to help the Indie Artist negotiate the music business and help them identify their strengths and weakness and more importantly, once identified, learn how to address them.

What is a Business Plan?

The mere mention of a business plan can make many of you freeze in fear. It sounds like a some mystical book of numbers and formulas that will take a business degree to understand. Nothing can be further from the truth. A  business plan is a simple outline your goals, how you can achieve those goals and outlines the resources that you have or need to get to reach those goals. It is basically a roadmap of your career and your business. It is the plan that takes you from the Dream to what actions you need to take to get there.

Why Write a Business Plan?

Basically the business plan will allow you to focus and set a realistic plan with realistic goals!  The business plan can be used to help bring in key people and companies you would like to make part of your team, such as prospective managers, agents, labels. Having a business plan will shows these people that you have thought about your career, planned how you want to achieve your goals and treat your career seriously. You can also use the business plan if you are looking to secure some financing for new equipment or to underwrite a tour.

Getting ready to write a Business Plan

Do your research, This article will give you a good framework to work from, but get a good book on the subject of writing a business plan  or you can get an Audio book to listen to while you are on the road. Second, BE REALISTIC AND HONEST WITH YOURSELF! Nothing will sink your business plan faster than unrealistic goals and an over estimation of your resources. If your goal is to be a star and make 2 Million a year writing songs from your mansion, keep in mind the amount of musicians that are out there trying to make it vs the small percentage of artists in that top tier. You would be better setting your goals to creating a sustainable income that will allow you make music your career.

Make an outline of your goals, Resources and needs. You will use this outline as you start to write your business plan.

Parts of a Business Plan

Your Business plan is a “Living Document”, it will change over time. It will also change depending on who you are presenting this plan to. Even if you are just using it as a guide to where you want to go and what you feel you need to do to get there. The reality is, as your band moves towards it’s goals, your resources will change and your goals will change, so your plan will change as well. Breaking it down to basic sections will allow you to update your plan easily. You would add or subtract sections depending on what you are doing or who you are presenting it to.

1. Executive Summary

The executive Summer should be single a page that introduces the band and provide a synopsis of your marketing plan. This would also be where you would personalize the plan to who giving this to. If it is to a bank, you would outline how much you are looking to finance and what the money will be used for.

2. Introduction

This is where you would have a more extensive bio of the band. If the plan is for a specific project (ie: Recording a CD, Setting up a tour, etc.) this is where you would outline that project.

3. Mission Statement

This is a short statement that explains who you are as an artist.

4. Vision Statement

Again this is a short statement outlines your goals as an artist.

5. Music Industry Overview

This would be a section that you would include if you are presenting your plan to someone who is not educated in the Music Business. A simple page that explains how you or your band fits within the Music Business. For example what is a Recording and touring artist, what does a booking agent do, what does a radio promoter do, etc.

6. Band/Artist Bio, History, and Functions

This would be more a resume of the band, accomplishments, key moments and it’s here that you would introduce the bio of the individual band members. You should also indicated who is doing what jobs for the band, For Example you can indicate the Bass player is working as a booking agent and the drummer is also producing and editing the bands music videos. You can also list any additional team members in this section, such as your PR Person, Booking agent, Radio Promoter, etc. This is also a good way to outline who is doing what within your business.

7. Your Market

This is THE most important aspect of your marketing plan, knowing your market. It is the artist who really knows who their audience is, stands out!

You should be tracking who comes to your shows. Do you have more women or men that show up at a gig? Are these people with disposable income, or do they nurse that beer all night. What other artists do they listen to, or go to see live. How do they get their music, CD’s, Downloads, Streaming? The more information you have about your market the better you can understand how to get them at your show. This also applies to markets you want to attract! For example, If you are looking to attract more women under 28 to your shows, then you need to know what women under 28 need to attract them to your show.

Keep in Mind your music is not going to be for everyone, but with a good understanding of your target market the better chance you will be able to expose them to your music.

8. Graphics and Branding

How you present yourself as an artist or band will determine the market that will be attracted to your shows. Your graphics and branding are an important part of your marketing plan. You should also determine how you are going to describe your music, the genre you are going to identify with. How you identify your music Genre can determine your market as well. If you are a “ Country” artist, you will attract a very specific market, or you can us other identifiers to create curiosity or interest with younger markets such as “Alt Country” or “Indie Blues”  .

9. Recording Project

If you are using the business plan for a recording project this is where you would put in the information about the project. Include information on who is producing this project, The engineer, any sessions players you are using, the studio you are going to use. Add bios of any additional players, producers and engineers. What is your timeline for the project.

This is also a good place to establish a budget for this project. Create a spreadsheet that allows you to input how many hours (and cost) of the actual recording, Mastering costs, Musician costs, pressing and packaging, radio promotion, packaging for mailings, postage for mailing to reviewers and radio stations, posters, ads, digital agrregators etc. You should also keep track of all sales of the CD as well once it is released.

You may decide to purchase the hardware and software to create your own studio to record your music. Here is where you would also outline the cost of this equipment. Sometimes this can be more cost effective then paying the hourly fee at a studio free you from the stress of watching the clock.

This will help you determine your “Return on Investment” or how many copies of your new project you have to sell before you recoup the cost of it’s production and marketing. This will reveal pretty quickly if you are making good business decisions on any recording project.

10. Press Kit

Here you can outline what is to be included in your press kit. Whether you are going to have a physical kit or an electronic press kit or both. Again what are the costs of producing each kit and the cost of sending that kit to any prospective buyer.

11. Additional Merchandise

Let’s face it, your CD is most likely the least profitable item on your merch table. Once you have sold a CD to someone, they will not purchase it again, You will quickly saturate your market and your merch table will be very quite, very quickly if you don’t have an well stocked merchandise plan. As any band with extensive touring experience will tell you, it’s all about the merch. I have known artists whose take at their merch table would be double their guarantee for the show. Again keep good records on what items you have on your merch table, how much it costs and how many you sold and for how much.

You will be able to see what sells good and what does not, what sizes sell the most and which ones sit for a while, etc. The bottom line it’s all about keeping good records and know what works and what does not. This is Good Business!

If you are looking for good ideas on how to merchandise your band check out this article. 

12. Touring Plans

Okay, here is a reality check. The Job of Musician is touring! If you don’t spend more time in your van then you do on stage then you are doing something wrong. Going on tour is not easy, and it’s not something you go into without good planing.

You need to again create a budget spreadsheet that includes how much you are going to spend on gas, Rooms (yes you are going to need a place to sleep even when you don;t have a gig that night), paying the band, food, strings, sticks for the drummer, wear and tear on the van, Oil Changes, Laundry, and make sure you have a reserve fund just in case you break down or you have to bail someone out. See Tips for the Touring Musician

As you book the shows, with a good budget you can quickly see if you will make money or lose money on the tour.

Its here you will also outline your “Tour Support” marketing. Are you sending posters to the venues in advance of the show? Are sending a press release to the press outlets in the area of the venue? Are you doing social media marketing in advance of the show? Do you need to setup interviews with the local radio stations? Have you established a mailing list for this market?

13. Connecting with your Fan Base

Your Fan base is your biggest asset as a touring artist. They are the what makes your business profitable. They scome to the shows, buy your merch and help spread the word about your and your music. With today’s access to social media platforms such as facebook, instagram, snapchat, twitter, etc., it is important to keep your fan base engaged with you and your music.

You need to outline your plan to keep your fan base informed of what you are doing, news of any upcoming shows or releases. Who is going to be responsible for posting and interacting with your fans, what are you posting and when? You should also keep an eye on your fan base to see what platforms they are using to get their information. We all know how fast the social media technology changes and you have to change with it.

You can post a instragram photo of you in front of the venue when you arrive to loadin .. do a facebook live video of the band on the road. Some behind the scenes pics and videos can help your fan base feel engaged and invested in your and your music.

14. Web site

As old school as you may think this is, having a really professional looking website is VERY important! This is your first impression to the music industry. It is the hub where your social media, Electronic Press Kit, Pictures, Tour Schedule, Branding, video’s, streaming players all come together to promote your band and music.

Have a good website development plan that keeps your site up to date and establish who is going to take on this responsibility. Are you going to use Reverbnation for your tour schedule or are you going to input the dates directly on your site. How often are you going to post new content (pics, videos, tour dates)?

Are you going to setup a merch store to sell your merchandise online and if so, how are you going to accept payment, and fulfill those orders.

Are you going to have an area that allows your fans to interact with your site? Are you going to have  newsletter and how are you going to capture email addresses. How can you capture demographic information from your fans from your website?

Here is a great review of the Themify Themes and Builder for WordPress

15. Partnerships with Other Artists

Do you have relationships with other artists or do you tour as a supporting act to a larger act? This is a great place to add what artists you have toured with or have opened for while on tour.

16. Video Production

What was once a luxury reserved for only the top selling artists now has become a necessary part of any independent musicians business plan. The good news is the cost of doing a music video has dropped significantly! With the advent of inexpensive HD and even 4K video on Smart phones or Action Cameras like the GoPro , it is now possible for an independent artist to produce a professional music video for a fraction of the cost of what it use to cost.

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You should create a timeline for at least 3 or 4 Videos for each release you record. You should also consider creating a “Pre-Release” “making of” video as well.

You should again create a budge spreadsheet for the cost of creating these videos. Either hiring someone to shoot and edit the video’s for you, or purchase the equipment to do your own.

The John Pagano Band used only a Iphone to shoot their latest video, you can read about it here.  You can also learn How to Create Music Video on a Budget Here!

17. Additional Revenue

As a working musician one of the most important concepts you need to come to terms with if you want to make music your career, is the fact you need to have multiple income streams. In this section you can outline any additional streams of income you can create using your music. Whether it is acting as a booking agent for other bands, Teaching music (even on the road you can teach via skype), Songwriting for other artists, creating music for Local Commercials, Film, Tv, etc.

The more income streams you are able to identify and take advantage of the stronger you business becomes.

18. Sponsors/Investors

Most investors would like to know if there are other sponsors and investors involved in the project. They seem to feel more assured if there are other investors involved. This also gives you a chance to highlight any sponsorship deals that you have been able to secure. You don’t need to get into the details of how much investors have put in (this will show up in your financial statements) but you should list them.

19. Strengths/Past Successes

This is really your chance to get out there and strut your stuff.  Let the reader know what the strong points about the band/artists are. List key past successes and milestones that you have already achieved. You definitely want the reader to be excited about the project, the band and where you have already been. This gives you a chance to show your track record – you could show past sales (if they have been strong), successful tours, key gigs, awards and honors, etc

20. Challenges

Here is where you can list any challenges that you are currently facing. Now Be honest with yourself. This may include financial concerns, band member relations, weak business skills. More importantly, you should show how you are working to address and solve those particular problems and challenges. This section is important because once you have acknowledged what you challenges are you can start to address them.

Here is where you set your goals for the next 6 months, 1 year, 3 years and five years. For each goal, you should be stating what you want to achieve, when you want to achieve and how you will measure your success. This is a great tool for you as well to see if you are on track. A detailed timeline should also be included in the appendix. Make sure you reference to it in the business plan. The best format for this is a calendar or a chart where you can plot all your dates and what you need to have achieved by then.

22. Assumptions/Scenarios

This is important for traditional investors. Here is where you state what assumptions you are using to base your success and financial statements on. How did you estimate your sales? What formula did you use? How did you estimate your costs?

What key people are necessary to your success? What events/actions are key in your marketing plan to be successful? More importantly, you should indicate what alternatives you have considered if your estimates and assumptions fall through in order to ensure success.

23. Financial

Ok, here comes the scary and most eye opening part of the business plan. This is where you put all those costs and estimate spreadsheets together and create your cost/profit financial report. Now, if your sales and costs are estimates, you should be basing it on past successes or a really thought out formula. Really look at what other artists are selling and ask yourself if you are really being realistic? Call to ensure that the costs that you have set out for yourself actually make sense. If you have been around for awhile and have kept track of your past financial information, you should be including it in this section.

The most common forms of financial reports are Balance Sheet, Income Statement and Cash Flow/Budget. These do not need to be included specifically in the business plan (they can be put in the appendices); however, they should be summarized in your financial section. What are your costs, sales and do you know when you will need the most money?

Finally, some institutions/investors will require that you provide a list of collateral that will go towards the loan. You can list your tour van, Pa System, Recording Equipment, etc.

24. Conclusions

Your conclusion should sum up the band, the project, your request, and why you believe that this is a successful project and why your reader should invest in it. Keep it short, no more than a page should do it.

25. Appendices All your appendices come at the end of the document and they should be used to provide any supplemental information, but the business plan should be able to stand alone.

You don’t need to have all the sections outlined in here. It was created to cover a variety of genres, situations and career levels. Choose sections and develop your business plan to fit your needs.

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The Ultimate Guide to Starting & Running a Music Lesson Business

This guide will provide you with all of the information that you need to start and run a music lesson business successfully. Depending on where you are in your journey, feel free to read all the way through or jump to the sections that are the most relevant to your needs.  

If you are looking for more support in running your music lesson business , Sawyer can help. Schedule a free demo with our specialists today.

How to open a music lesson business

A lot goes into opening a music lesson business, but it is so rewarding in the end. Watching your students become stronger musicians and better people makes each step of the process worthwhile!

We will go over each step in the process of starting your own business so that you will get a full understanding of the timeline, necessary funds, and legal requirements you need to follow. Before you know it, you will be ready to start teaching music lessons to children and adults in your neighborhood and online. 

If you are looking to start a music lesson business, then you have come to the right place. The team at Sawyer has worked with hundreds of businesses to create and build children’s activities all over the country. 

Related blog posts

Requirements to start a music lesson business

What do you actually need to start a business teaching music lessons? Before you think about lesson plans, materials, and marketing, you need a business plan, budget, and so much more to get your business off the ground. In this beginning phase, it is also essential that you meet the legal requirements for your state, city, and county. These vary, so look up exactly what is needed in the location that you wish to start your business. 

Music lesson business plan

Before starting a business, you need to write a business plan to organize your goals, make important decisions, and keep track of analyses. Plus, if you are looking to apply for funding assistance ( small business loans or grants ), they often require a business plan as part of the application.

Business plan template

• Executive summary : This section opens up your business plan and gives your reader a quick look into your goals and ideas. Outline the problem your business is trying to solve in your executive summary. Then, include a brief description of who you are and the necessary financial information about your business. Someone short on time should be able to read your executive summary and get the basic information about your business.
• Description of your business : In this section, describe the services you will offer. Will you be teaching just children or adults as well? Will you have after school classes and summer camps ? Are you offering private music lessons, group lessons, and/or open practice time? Make sure to include information about how you are planning to operate as well. What state will you teach in? Are you an LLC or a non-profit? Give your readers a detailed explanation of who you are.
• Market analysis : Outline your target audience, how you will find customers, and how you’ll deliver your services to them. Are you looking for families in your community? Or maybe customers you can reach virtually in different cities? In addition, take a look at what your competitors are doing to get a sense of the market.
• Your team : Whether you’re a solo entrepreneur who will be teaching as well or a room full of wonderful instructors, it’s important to talk about the team members standing alongside you. How is your business organized? Who is in charge of the different responsibilities? Why are they right for those roles? Include their credentials and background so readers can learn more about them.
• Financial plan : This section should be a detailed overview of all of your finances: Budget, projected (or current) profit, overhead costs, and more. These financial plans will help you forecast your growth and give your reader a more detailed look into the health of your business.

Use our guide for more support on creating your business plan .

Business budget and investment

In order to run a business successfully, you need a budget. Use your budget to stay on track with your goals and objectives, maintain your day-to-day operations, and, when the time is right, scale and grow.

What to include in a business budget?

• Sources of income: How much money are you planning to bring in (projected income) or currently bringing in (income)? Make sure you take into account all of your revenue sources. For example, if you teach classes in-person and online, if you sell instruments or sheet music, or if you provide private lessons. If you tend to see seasonal trends in sales, make sure to take these into account. Everything should be tallied in this section. 
• Fixed costs: Once you know how much money is coming in (or projected to come in), you can begin to determine how much will go out. Fixed costs like rent, insurance, employee salaries, utilities like Internet, and platform subscriptions stay the same each month, so they are a good place to start. 
• Variable costs: Unlike fixed costs, variable costs change each month. This makes them slightly trickier to budget, but you need to try. Variable costs can include consumption-based utilities like gas and electricity, commission on item sales, holiday gifts for employees , shipping costs, or travel. Even though they are different month to month, keeping good track of these variable costs will help you determine their seasonal averages, so you can keep that in mind as you budget.
• One-time costs: If you have any planned one-time costs, like buying a new computer and microphone for better online classes, then you can include that in this section. However, most people use this section of their budget as a buffer. That way, you are protected from large, unexpected costs like broken instruments or equipment, damage to your space, slow months because of a global pandemic, illness, or something similar.

Review our guide for more information and guidance on building your business budget .

Music lesson business license

There are a few different licenses that are needed to start a business teaching music lessons. Beyond these licenses, all businesses also need to pay taxes and adhere to regulations and laws at the federal, state, and county level.

• Company registration: Your company must be registered as a legal entity before you can begin teaching music lessons. A small business is usually registered as an LLC while larger businesses and franchises are usually C Corps.
• Employee Identification Number (EIN): After registering, all businesses are issued an EIN from the IRS. This helps the IRS keep track of businesses when tax season comes around.
• Certificate of Occupancy (CO): If you plan to rent or buy space to teach lessons, you will need to ensure it passes inspection and receives a CO before you can legally see students there.
• Music licenses. If you plan to use licensed music in your performances, you will likely need to acquire public performance licenses issued by music rights organizations such as ASCAP, BMI, and SESAC.

Registration and management software

Class registration and management software like Sawyer can help your business as you get off the ground and grow. Even though software is an added cost at the start of your business journey, it is worth it. 

When you use class registration and management software, you don’t need to spend time manually accepting bookings over the phone or via email. Instead, you can take bookings 24/7 so you never miss a sale. Plus, software helps you make schedules easily, keep track of important student information, seamlessly take payments, and analyze financial reports.

Music lesson plans and curriculum

Once you have taken care of all of your legal and business requirements, you can get started on the fun part: building a music curriculum and writing lesson plans! Success with your students is dependent on strong lesson plans that keep your instructors (or you) on track when teaching.

How to write a music curriculum

Whether you are teaching private or group lessons, a curriculum is important. Planning your curriculum puts you in a great position to establish your goals, write lesson plans, and come up with exciting hands-on activities for your students to keep them engaged and learning. Use these curriculum development and design tips to get started.

• Determine your goals: The first step in curriculum development is to establish your goals. Your goals will likely depend on what you teach, the type of lessons (group or private), and the age of your students. Make sure you choose realistic goals so that you can set yourself, fellow instructors, and students up for success. 
• Sketch it out: Once you have determined your goals, you can begin to sketch the course out. How many lessons do you have? How long is each lesson? This information is important as you begin to write your curriculum, and later, your lesson plans. When planning a music curriculum, make sure you give yourself and your students enough time to understand each section before moving on. 
• Review previous lessons and curricula: Go through what has worked (and not worked!) in the past. Where have students struggled when learning this instrument or song? What lessons and activities really helped them master the tricky sections? Use these experiences to write your new curriculum. If you are a new teacher, use the Internet to see what others have done or speak with other educators to get their advice. ‍
• Write lesson plans: Once you have the structure for your curriculum, write the lesson plans for each class. Each lesson should have a micro goal, which will help you accomplish the overarching goal. You should also include information about how you will assess and evaluate your success so you know what works and what doesn’t. Use our guide for more details on how to write a lesson plan , including templates and examples.

More questions on how to write a curriculum ? Use our guide!

Music lesson plans

Not only do lesson plans help the instructor stay on track while teaching, but also they ensure that students can learn effectively and efficiently. We suggest writing a lesson plan before every class. Each lesson plan should include a learning objective, a list of the materials, instruments, and music needed, the activities you will be doing and the time allotted for each one, and space for assessments and evaluations. These are the sections of a music lesson plan to keep in mind when you write your own.

• Lesson objective(s): What is the goal or goals of this lesson? What are the students going to learn or be able to do at the end of the class? Make your lesson objective(s) as action-oriented and measurable as possible because this is how you will measure progress before moving on to new lessons. For example: learn 30 seconds of a song or understand 5 new chords.
• Materials needed: What materials, supplies, instruments, and sheet music are needed to teach this lesson? How many of each item? Be specific and feel free to check each item off as you bring it into the classroom.
• Lesson activities: What will you be doing to help your students accomplish their objective? Break your lesson down into individual activities that will help your students learn what you want them to learn. Try to incorporate games and fun elements to keep them engaged. 
• Timing: Include a time estimate with each activity description. It is best to add a little extra time to each activity in case students are having difficulty mastering something. ‍
• Assessment: It is helpful for instructors to include a measure of assessment in their lesson plans. It can be as simple as blank space for the instructor to write whether or not the objective was met. The goal is to remind the instructor if the lesson was successful so they know where to start in the next lesson. Plus, it gives them important knowledge for the next time they teach this lesson.

Review our guide with even more information about teaching music to children for music activities and more!

Marketing your music lesson business

Marketing is an important part of starting a new business. You need to get your name out there! With the right marketing strategies, you can let your community know about your offerings and build your customer base. Say hello to your new band of loyal fans!

Email marketing for music lessons

If you have spent time in the community or run previous programming, you might already have email addresses of families. If so, email marketing is a great place to start! Start by announcing your new business and try to include an incentive in your first email. Remember: You are fighting for visibility in busy inboxes. Keep these tricks and tips in mind to be successful with email marketing for your music lessons.

• Use a strong subject line. A good subject line will hook your reader and get them to open your email. Create a sense of urgency, intrigue the reader, and showcase your value with a strong subject line. Here are a couple of examples:
• ~~ Only 10 spots left for beginner guitar!
• ~~ Book now! Band camp is almost full!
• ~~ See what families have to say about our infant music classes
• Provide incentives. If you can offer incentives like discounts, early access, or promo codes, highlight them in your email subject line. Then, go into more detail on these incentives in the body.
• Keep it short. People get hundreds of emails every day. Therefore, you should get right to the point with marketing emails. Tell them why you are emailing, show them your value, and give them an easy way to purchase.
• End with a call-to-action (CTA). At the end of your email, use a strong CTA that encourages the reader to make a decision. Sometimes, the decision will be registering for your classes. However, other times it might make more sense for the CTA to be “schedule a call” or “learn more” if the reader is not yet ready to make a purchase.

Review our guide for more in depth information on email marketing for small businesses .

Social media marketing for music lessons

Social media is a very important platform when marketing music lessons for children and adults. Pew Research found that 83% of parents use social media. Most of the time, they are looking for recommendations and making decisions based on what they see on Facebook and Instagram (the 2 most used platforms for parents). Therefore, social media is an important medium for reaching potential customers. Consider these recommendations when you use social media for marketing your music lessons.

• Use high quality photos. The images that you post on social media can be the first impression a customer will get of your business, so make sure they are full of smiling faces! Smartphone photography is a great, cost-effective alternative to professional photos. Remember: If you use photos of children, always get written permission from a parent or guardian beforehand. 
• Showcase user-generated content (UGC). Millennials trust UGC over brand-created content every time. Ask customers to share pictures in photo contests, reshare positive reviews, and get the excitement flowing with social media takeovers. Check out our full guide on user-generated content to see even more ideas.
• Cultivate connections with potential and current customers. Social media is such a great tool because you can easily interact with your community. When you make connections with potential and current customers, you are increasing the likelihood that they sign up for your classes and refer friends. 

For more guidance on social media marketing , check out our article, which includes helpful information about setting up business accounts on Facebook and Instagram.

Advertising for music lessons

Google Ads help you get your business in front of interested customers. When you create Google Ads, you follow a Pay Per Click (PPC) advertising model. That means you bid on search terms and pay for the clicks that your ads receive. There is no spending requirement, which means you can set your own budget and keep it cost efficient. Follow these steps when setting up your Google Ads strategy.

• Start with research. Decide which keywords you want to target. Keywords are the words or phrases that people search for on Google that trigger an ad. The first step is to see which keywords your competitors are targeting. You can find this information by searching those words to see what ads appear.
• Choose your level. Google Ads have two different levels: campaigns (higher level) and ad groups (lower level). Creating different ad groups for the keywords will help your ad be more effective with customers. 
• Set your budget. You need to consider two different elements that go into your account’s overall spend: The amount of money you spend on each campaign each day (daily budget) and the cost when someone who searches for your keyword actually clicks on your ad (bid).
• Choose your keywords. Google Ads has a free Keyword Planner tool, which can generate a helpful list of keywords for your campaigns. The Keyword Planner helps you see if certain keywords are too expensive. You also need to decide the match type, which refines where your ads appear. 
• Pick your devices. Do you want your ads to appear on mobile, desktop, tablet, or all three? In our 2022 Children’s Activity Business Trend Report , we found that 60% of parents booked activities on mobile, 39% on desktop, and 1% on tablet.
• Write the ad copy. Write catchy ad copy that catches your customer’s attention and, of course, includes your keywords. Plus, be sure to add a call-to-action (CTA) like “Sign up today” or “Learn more”.
• Activate and monitor. Turn your ads on and then see how they are doing with Google Analytics , which is free and connected to Google Ads. For more advanced tracking, you can also install a Google Ads pixel on your site. 

Looking for more details on setting up Google advertising for your classes ? Check out our guide!

Making connections with schools

When you teach classes to children, making connections with schools can help you increase your enrollment numbers, build customer trust, and find new families in your community. And, for a new business teaching music lessons, school connections can help you get your first batch of students. Here are some of our top tips to help you make connections with schools.

• Find the right contacts. Try reaching out to members of the school board, administrators at the school, and/or the PTA to start the conversation.
• Write a strong outreach email. Be polite, but straightforward. Use a strong subject line, then in the body, introduce yourself and explain what you are offering. Let them know why the students would benefit from your classes and how you can make life easier for the school, too. End your email by thanking them for their time and let them know how they can get in touch with you to continue the conversation.
• Use our outreach email generator. With our outreach email generator , you can easily input the above information and create an email that will help you make strong connections with local schools.

Use our guide to learn more about how to make connections with schools .

Common challenges of running a music lesson business

As you start and continue on your journey to setting up and running a music lesson business, you might be wondering what you are missing. What other elements should you consider that you might not be thinking about from the get go? 

Luckily, at Sawyer we work with children’s activity business owners every day to make starting and running a business more simple. We’ve outlined some of the common challenges of running a music lesson business and how you can solve them. It’ll be music to your ears!

Managing rosters

Managing rosters is one of the biggest challenges when you run a lot of different lessons and classes. Rosters help you and your instructors keep track of everything you need: Registered students, attendance check-in and -out, and important information like pronouns, allergies, and more. If you do not have a system in place, rosters can become overwhelming. We recommend using a class registration and management software like Sawyer to keep your rosters organized. 

Auto-generated rosters

Once a student is registered, they are automatically added to the roster along with all of their information like parents’ names, pronouns, birthday, allergies, t-shirt size, instrument, and more. Instructors and administrators can also track attendance at drop-off and pickup online on the roster or by exporting and printing. And if something comes up, instructors can email everyone on the roster to keep them in the know. 

Learn more about how Sawyer can make managing rosters simple for your music lessons.

Managing waitlists

If you have more interest in your classes than space in the room, that’s a great sign! Waitlists help you capitalize on this demand and ensure you don’t leave money on the table. Plus, waitlists are a great way for you to see which specific classes resonate with your audience more strongly.

Sawyer provider Oh! Canary, which offers art camps and extracurricular activities for young children in New Jersey, explains that waitlists are beneficial because they also act as a growth projection and planning metric. Lacey, founder of Oh! Canary, explained that “waitlists are helpful because we can really see in real time the demand for our classes. In some weeks, our camp waitlists are up to 70 kids! It shows us the potential of what could be possible.” Read more about how Sawyer helped Oh! Canary grow and scale in our case study.

Taking online registrations

Millennials are tied to their devices because they are digital natives. That’s why it is important to make sure your classes can be booked online, 24/7, without the need to make a call or send an email. In our 2022 Children’s Activity Trend Report , we reviewed 7.2 million activity bookings and found that 42% of parents book outside of typical business hours (9am to 5pm). Plus, over 60% booked on mobile! To capture this business, you need to be available for online bookings and mobile optimized.

Selling semester and drop-in options

By offering registration options for customers, you can increase your enrollment numbers. People are looking for flexibility when they make booking decisions. However, it is difficult to offer options like semesters, camps, and drop-in classes unless you work with a class registration and management software that has these capabilities built in.

With Sawyer , you can choose to offer semesters and summer or school break camps as well as drop-in classes and private lessons. You can even offer multiple options for one class, so some customers can choose to pay for the whole semester or month while others pay by week or even by day. 

Allowing transfers

Transfers help you meet your customers where they are and offer flexibility for life events. Sometimes bookings need to be changed due to unforeseen circumstances. Class management software makes transfers an easy process. You can allow customers to choose whether they want to transfer into a different class or program or request a refund. With a few clicks, the booking has been updated!

Getting the information you need

Without registration and class management software, educators need to ask each customer to print and fill out registration materials, consent forms, waivers, and more documents before they can participate in lessons and classes. Then, you have to file these papers and keep everything organized. Instead, you can use class management software like Sawyer to seamlessly collect information about each camper and access it easily from anywhere.

Custom form fields

Require custom forms for registration to keep track of  important responses about instrument choices, medications, allergies, and pronouns, consent and waiver forms, and emergency contacts. This information is then exported automatically into the roster so that instructors and staff have access to everything in one place.

Do you need to use class registration software?

Class registration software makes starting and running a music lesson business successfully much easier. Rather than relying on phone calls and email, handwritten forms, and spreadsheet rosters, you can have everything organized and accessible. (See how Sawyer helped Shredder get organized so they could manage their six locations). 

Software keeps you and your staff more organized and efficient. In fact, class registration software Sawyer can save you 28 hours per month on administrative tasks, so that you have more time to spend planning lessons and activities, growing your business, working with your staff, and teaching your students.

Features to look for in class registration software

There are a few different class registration and management softwares on the market. How can you tell which one is right for your new business? Here are some questions to ask yourself and features to look for so you can find the perfect class registration software for your music lessons.

• What is your goal? Why do you need software? Do you want to free up your team’s time to focus more on connecting with students? Are you hoping to improve staff experience? Do you want to appear more professional to your customers and provide an easier way to register? Are you looking to process payments or dive deeper into business analytics?
• How are the reviews? What do current and former customers say about the software? Check reviews on sites like Capterra to hear firsthand from business owners about their experience with certain softwares.
• Do they have great customer service? As a new business starting on a platform, customer service is incredibly important. Do they help with onboarding and continued education? When and how can you reach out to the customer service team? These are important questions to ask when considering a registration software.
• Can they help you grow? How will the features and options on that platform help your business grow and scale? Do they accept customer feedback and make changes so that they grow with you? You don’t want to be stagnant and neither should your software.

Check out our guide to learn more about how to find the perfect registration software for your camp.

Still not sure if starting and running a music lessons business is the right decision for you? Making the jump is a big endeavor. Check out these frequently asked questions about running a music lessons business to see if it is the right choice for you.

How much does it cost to start a music lessons business?

According to Newfoundr , it costs about $10,500 to start a music lessons business. Rent, instrument purchases, licenses, insurance, registration software, and marketing materials make up this number.

However, it is very important for new business owners to look at their own expected expenses and income to determine the cost of running a business for themselves.

Do I need a license to teach music lessons?

There are a few different licenses that are needed to teach music lessons. First, you must register your company as an LLC, C Corp, or nonprofit. Once this is done, you will be issued an Employee Identification Number (EIN) from the IRS, which is also necessary to start a business. Likewise, if you plan to do performances with your students of licensed music, you need licenses that are issued by music rights organizations like ASCAP, BMI, and SESAC.

How much do music teachers make?

According to Indeed , the national average salary of a dance studio owner is $81,030 or about $32 per hour. However, this number is not set in stone. Expenses, location, and other elements should all be considered when determining salary.

When should I invest in class registration software?

If you want your music lessons business to start off on the right foot, you should invest in class registration software like Sawyer from the very beginning. You want your first customers to have a great experience when they register for lessons and classes so they keep coming back for more. With a class registration system, you can ensure your bookings are seamless, payments are always taken, and important information is organized.

We hope this guide has provided you with all of the information you need to start and run a business successfully. At Sawyer , our mission is to help children’s activity businesses thrive. With our suite of tools and helpful resources , we can help you spend less time on administrative tasks and more time with your students. Want to learn more? Talk to a member of our expert team and see how Sawyer can help your business grow. Or get started with a free trial .

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Turn your love of music into a successful business. First, combine your knowledge with a good business plan. Start by looking at these sample business plans for music-related businesses. Then get started writing a business plan for your own business.

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