Setting up an independent record label ( BUSINESS PLAN ) Essay

Setting up an independent record label ( BUSINESS PLAN ) - Essay Example The independent music industry around the world is renowned for providing a platform to such artistes who are either not considered commercially viable by the large companies or do not consider themselves worthy enough to approach larger music companies. As a result, such artistes seek the advice or aid of independent labels. Theses labels have recently caught the attention of larger scale companies Like Universal etc for their successful promotion and in fact the astronomical sales of certain artistes is a testimony to the success of the labels. In the United Kingdom alone, certain independent labels such as Stiff Records, factory Records and Rough trade have helped define certain vital niches for the artists they promote. In the United States, these labels have a long history stretching back to post-war period such as Sun Records. (Barry 1997) One of the major success factors of these companies has been technology, as now individuals can produce quality music while sitting at home. The decrease in the costing and access to numerous customers has resulted in the recent expansion of the Indies. (David 1999) This business plan would refer to the set -up of "Zee Ma Records"; an independent music label which would pertain to the music genres of punk rock and dance compilations. The reason for having these two poles opposed to each other music genres is that dance compilations would allow the company to earn a steady amount of income while the actual focus would be on promoting punk rock acts which have been overlooked by major companies. Punk rock acts are huge in number and this business plan would be focusing on the punk rocks in the United Kingdom. Another reason for the selection of this particular genre has been the fact that numerous acts have been successful in the recent times in the independent sector especially and therefore a viable sector to invest in. Zee Ma records stands for quality and Originality and it offers contracts to artists with the assurance of proper representation. (Shemtob & Braund 2005) This company would be operating on a smaller scale in the initial phase and therefore, the key personnel would be of a limited number as the cost actor has to be kept in mind at all times. The initial operational phase would include three members as the entire management team. The director would be the main face of the corporation who would handle all the management, legal and business affairs as well as having the final say in the accounts. However, for most deals and contracts specialists would be hired to deal with them as the director would be relatively inexperienced initially. (Andrew 2005) The other two personnel would be responsible for the office administration, book-keeping, press, radio and media promotion. The staff costs would therefore, vary according to the skills of the personnel and the amount of work required from them. The label would offer two sorts of contract; a royalty contract and a 50:50 profit split. The contracts terms and conditions would vary according to the reputation of the artist, their time of association with the label, and their success