Picking The Right Business Partner

Starting a record label can be very stressful, and cost a lot of money.  In my experience of trying to start an indie record labels I am learning do’s and don’t of the start-up business.  First and foremost before starting an indie record label figure out if you will do this all by yourself or if you try and find business partners.  I would suggest if you can afford to take the start up cost on your own, you should start the label by yourself.  If not when it comes to choosing a business partner take the suggestion the article 7 Tips on How to Choose a Business Partner, and choose your business partner as if you are choosing a spouse or a day care provider. [About.com] If I could go back in the hands of time I would have done my due diligence and picked business partners that have the same passion, vision and values that I have.  Also, you want to make sure you choose partners that are willing to invest the same amount time and money into your record label. 

There are important issues that you want to make sure you accomplish when starting a record label.  First, you want to make sure you have a good business plan.  Some people like to go straight into the start of business without having the vision or the plan needed to have a successful business.  I will give you some advice if your business partners do not see the importance of getting all the legal work complete before starting run the other way.  In an article on how to start your own record label, the first plan of action is to start with your first year budget, and create a business plan. [SOS] If you choose to start this label on your own this can be very simple because you are the person in charge, and you can have only your input into this business plan and the budget.  But if you are working with business partners this is crucial that you sit down with all of your partners and develop this plan.  In your business plan make sure you establish roles.   From my current experience this seems to be one the biggest issue we are having moving forward.  The problem with not establishing roles is that no one knows exactly who makes decisions, and your employees do not know who to answer to.   Just remember when starting a record label choose your business partners wisely or try and start the label yourself.