Nowadays, the many barriers for entry when it comes to starting a record level or almost nothing. Anybody can start a record label, as long as you have certain things. A lot of labels have actually been formed by somebody saying something very simple, along the lines of, “I feel like starting a record label”. Well, it is just that simple, but there are certain things that you need to consider. It is obvious that the wonderfully gigantic music industry is going through a lot of changes and success. The internet, streaming services and shifting patterns of consumption have actually make sure that record labels cannot function the same way they did in the past couple of decades. When we are talking about major record labels, it is quite easy for them to go through these transitions because they can afford to go through it. When we are talking about independent labels, it does create a little opportunity for them.
If the record label is small or nimble, they can use the transition as an advantage and make sure that they start the label in a way that would fit the current trends or changes. If you really want to give yourself a good chance of success, not even mentioning the protection of your investment, you should go ahead and set up a process which is quite important for yourself.
- Firstly, you need to pick the name for the label. The very first step is taking the name. Make sure that it is catchy. Do not copy from anywhere. How about brainstorming it with someone you trust?
- Secondly, you need to start selling the merchandise with the name of the label on it. It should be T-shirts, mugs, et cetera. It can be a lot of things. We should make sure that more and more people purchase it.
- Thirdly, you need to properly decide on a structure for the business. A lot of indie labels and some other inexperienced labels always skip these formalities. You should form a legal entity that would cost money. You should make it legitimate.
- You need to make sure that you are running an actual legal business with a proper connection to a bank or even a credit card. It should be taxed every single year and, you need to make sure that you are paying your taxes regularly.
- The next thing that you should be worried about is finding talent for your label. You need to be representing some talent, if you want a successful record label. If you’re going to be in the music business, you need an artist to sell the music that they are making.