Daily DIY: Create A Business Plan

In our second of five excerpts from the new book Reality Check – A Common Sense Guide to Breaking into the Music Industry, author Matthew Walt, a booking agent who has seen first hand why some bands succeed and others fail, examines the importance of creating a business plan for your musical endeavor.

Just because the career about which you dream happens to be in entertainment, this does not imply in any way, shape, or form that basic principles of business do not apply. It’s called the music business, and it requires a serious commitment to both—the music and the business. Of course, the music itself is a given—no one need be reminded of that—but all too often artists forget (or ignore) the fact that establishing one’s business requires equal attention, and to that end, I strongly advise creating a business plan.

The plan needn’t be elaborate—at least not at first—nor does it need to be formatted in any “textbook” sort of way. As long as you document what you are trying to do, separating the art from the business so that you may chart the course of your development and the sale of your product, that is a satisfactory first step in the formation of a company (which is effectively what you will become).

Start by identifying who you are and what you represent. Note your sound and your style; to whom you compare yourself and why; how you fit into the landscape of the music industry as you know it; and what you believe makes you worth people’s while.

Next, establish some basic goals and objectives—what you wish to achieve and how. Goals and objectives are essential to any business plan, even if you are having trouble identifying yourself. So, if need be, start here and worry about my prior suggestion later (as long as you address it in time). Think globally, act locally is a term you’ve probably heard before. You’ve got a big dream, perhaps a global vision in mind—but in order to make that dream a reality you’ll have to start with what you know and build your business incrementally from there. Remember, before you sell ten million records you’ll need to sell ten. Yes, just ten—to people who are neither good friends nor family. Even that is an accomplishment, a small victory in itself, for anyone who is just getting going—much like ten thousand is to someone who is starting to catch their stride.

A conventional business in the twenty-first century builds its plan around four primary areas. They are:

• Finance: the development and management of a budget
• Marketing: product, place, promotion, price, and branding
• Operations: how your business will function and what it will need to do so
• Information Technology: Web presence, e-commerce, and related maintenance needs, as well as your computer hardware and software

Once you’ve established your business plan, you may chart a course of action you can manage—one which follows a linear sequence and results in small measurable successes you can see. This will give you the confidence that you can do it on your own. Just be realistic and make sure your goals are reasonable. Realistic expectations is a term you’ll hear over and again. Take your time, when you have to, in order to avoid skipping steps. Overnight success is unlikely, so you may as well do things right. Don’t waste time—that won’t help you—you’d only be cheating yourself. Be prepared for a long, slow ascent. As long as you’re moving forward you will get wherever you are going.