An Actual Record Label Plan

Use it as a guide to:

Tweak or develop your own business plan or idea 
(Perfect for Do-it-Yourself-ers!)
Gather marketing data and unique ideas
Explore a concept for a business you may never have 
considered! Learn what's important. What's not. 
What to include. How much detail to provide, and in what format.
AND, if you'd rather have let us create a CUSTOMIZED 
plan that's made just for you.

Current demographic information for target marketing
-Marketing strategies unique to your passion, talents and business
-Live "Real-Time Financials"
(We research industry data and make financial projections based 
on the performance  of actual, existing companies. In other words, 
the data in our business plans is based on current reality!)



 

   

Table of Contents


I. Executive Summary

II. Company Description
This section typically includes
        A. Legal name & structure of business
        B. Mission/objectives/vision 
        C. Management team 
        D. Location and Geography 
        E. Company development stage 
        F. Trademark, Copyrights, Patent, 
             Domain name & other legal holdings
        G. Products and Services offered
        H. Specialty business information
        I. Financial status of company
        J. Milestones achieved thus far


III. Industry Analysis and Trends
This section typically includes
        A. Size and growth of industry
        B. Maturity of industry
        C. Impact of economic factors 
        D. Seasonal factors
        E. Technological factors
        F. Regulatory factors
        G. Supply and distribution
        H. Financial considerations
        I. Anticipated changes and trends in industry


IV. Target Market
This section typically includes
        A. Demographics/Geographics
        B. Lifestyle and Psychographics
        C. Purchasing patterns
        D. Buying sensitivities
        E. Size and trends of market

V. Competition
This section typically includes
        A. Competitive Position
        B. Market Share
        C. Barriers to entry
        D. Future competitors
        
VI. Strategic Position and Risk Assessment
This section typically includes
        A. Company strengths
        B. Market and Industry Opportunities
        C. Risk Assessment
        D. Definition of Strategic Position
        E The Wow Factor

VII. Marketing Plan and Sales Strategy
This section typically includes
        A. Company's Message
        B. Marketing Vehicles
        C. Strategic Partnerships/Alliances
        D. Other Marketing Tactics
        E. Sales Force and Structure
        F. Sales Assumptions

VIII. Operations
This section typically includes
        A. Plant and Facilities
        B. Manufacturing/Production Plan
        C. Equipment & Technology
        D. Variable Labor Requirements
        E. Inventory Management
        F. Supply and Distribution
        G. Order Fulfillment and Customer Service
        H. Research and Development
        I. Capacity Utilization
        J. Quality Control
        K. Safety, Health & Environment
        L. Shrinkage
        M. Management Information Systems
        N. Other Operational Concerns

IX. Technology Plan
This section typically includes
        A. Technology Goals and Position
        B. Internet Goals and Plans
        C. Hardware Needs
        D. Software needs
        E. Telecommunication Needs
        F. Technical Personell Needs
        
X. Management and Organization
This section typically includes
        A. Principals and Key Employees
        B. Board of Directors
        C. Consultants and Specialists
        D. Management and Personell to be added
        E. Organization Chart
        F. Management Style and Corporate Culture
        
XI. Community Involvement and Social Responsibility
This section typically includes
        A. Social Responsibility Goals
        B. Company Policies
        C. Community Activities
        
XII. Development, Milestones and Exit Plan
This section typically includes
        A. Long Term Company Goals
        B. Growth Strategy
        C. Milestones
        D. Risk Evaluation
        E. Exit Plan

XIII. Financials
This section typically includes
        A. Income Statement
        B. Cash Flow Statement
        C. Balance Sheet
        D. Break-even Analysis
        E. Assumptions of this plan
        F. How the Funds will be Used

XIV. Appendix

     

FACTS, TRENDS AND OBSERVATIONS

FACT: Sales of CDs are down

FACT: Digital downloads are up

FACT: There's a new generation of children who view music not as a vinyl disc, or a CD, but as words on an MP3 player's LCD/LED screen accessible through headphones and earpieces. The purchasing experience has changed from browsing the aisles of a retail store to downloading from computer or a cell phone. These trends are now reality.

We as entrepreneurs hoping to capitalize on the value of music must change with the tide. We must be facilitators of the new paradigm.

THE DECONSTRUCTION OF THE MAJOR LABEL SYSTEM

We are witnessing the end of the major label era

Yes, CDs are becoming defunct, which means Stores are becoming defunct. Selling now takes place at the label/retailer level Promotion is now more effectively done by the public through word-of-mouth facilitated by the internet, blogs, myspace, etc. A&R takes place in the public domain with word of mouth demand driving the artist's exposure

The Record Label of the Future

As trends continue, CD sales decline, digital media expands, the record label of the future must

How Labels Will Make Money in This New Paradigm

Yes, you can still sell CDs....at least for a while. There will still be a segment of the population (albeit a shrinking one) which will want high quality music on CDs with jewel cases, pretty packaging, liner notes, etc. We shall cater to them. However, the growing majority of consumers as well as artists will be adapting to this new paradigm.

Therefore, with the underlying assumption being to keep everyone living in the manner to which they've grown accustomed, I offer you

Rule of the Pie #1:
"As your slice of the pie decreases, bake a bigger pie."
This applies to going global in marketing efforts. If the trend locally is limiting the amount of money you can make, then expand nationally and internationally. Bake a bigger pie.

But of course, it isn't always possible to bake a bigger pie, which brings us to

The Rule of the Pie #2
"If the pie is getting irreversibly smaller, bake more pies."
This applies to facilitating success for more artists. If you have to sell digital downloads for $1 to make them attractive to consumers, then do what itunes does, and sell the products of more artists so you can profit on volume.

The Rule of the Pie #3

"If the pie is no longer tasty, bake a different pie." If the music industry is declining, then expand to gaming for example. Sell what people are buying and where they are buying. Incorporate music into the products that people are purchasing in huge numbers and generate your income there.

The Hip Hop Entrepreneur Record Label Business Plan 2007 reflects this strategy and more to help you make money as an independent label.

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