Musician Industry & Freelance Musician Music Business Planning & Marketing Mix www.musicstudentinfo.com Chris Baker
Why write a music Business Plan?1. Clear the way for creative thinking2. Pinpoint strengths and weaknesses3. Identify problems & obstacles4. Expose hidden opportunities5. Set priorities6. Coordinate marketing7. Take guesswork out of budgeting8. Allow meaningful review & revision
Music Industry Business Plan• A business plan is a universal and international document that is used whatever your business with some ‘adjustment’ depending on your industry type
Why plan your music business?• All successful musicians will have to plan their business at some point• To acquire funding from financier or private investor• To map out how you will run your business on a daily, monthly & yearly basis.
Business Planning• A business plan is a standard format document that is required when seriously considering ANY business• A good business plan is a work in progress• The act of completing the plan helps you think things through thoroughly
EXECUTIVE SUMMARY• Should be written last• Once all the sections of the plan are complete you summarize/describe the main points• Usually one perfectly written page• Inserted after the table of contents• State what you want to achieve upfront
EXECUTIVE SUMMARYAnswer the following1. Who are you?2. What do you sell?/Your service?3. What do you want?
COMPANY DESCRIPTION• Prove why an investor should be interested in funding your idea• Describe your product or service• Include the area of the music industry you are in and how you will become profitable
Business Planning The Pitch• Each of you should write a ‘pitch’ for your business.• This is a ‘mission statement’ that capture the imagination of investors.• Your ‘pitch’ will be a statement lasting about 30 seconds.
Pitch Exercise• Each of you will take 20 minutes to write an emotive, well thought out pitch lasting no less than 30 seconds on a subject of your choice• Each of you will address your pitch to the group
PRODUCTS & SERVICES• This is where you discuss your product/service in more detail• Most music entrepreneurs will have more than one revenue stream• Describe your competitive advantage and why your business will succeed
PRODUCTS & SERVICES• You may also include future products & services• Revenue streams-some ideas playlists, flash/micro drives, ring tones, games, apps, subscriptions, social sharing, videos, teaching materials, blogs, live streaming, ring backs, branding, licensing, remixes, widgets
MARKETING PLAN• You will explain the current state of the market you are entering taking account of customers & competitors• List features, advantages & benefits of the product or service you offer• Know what your product or service will do for your customers• Explain your niche - explain what is special about your business
MARKETING MIXYou should provide answers to the following questions:1.Product how will it meet or create consumer demand?2.Price is it low enough for your customer to buy and highenough to make a profit?3.Place where will your product or service be sold? Online?Offline? Both?4.Promotion what is your advertising & publicity strategy? Whatprograms will you use to get your business moving?
Classroom Exercise• Think of a successful music consumer product and carry out a marketing mix assessment for it P,P,P & P• Feedback your results to the group
Business Marketing• End this section with a specific measurable description of how you will reach your goals.• List how many calls, emails, performances you will carry out to achieve success.• Attach any diagrams/artwork that corresponds to your business in the appendix at the back of your plan.• The majority of the plan should be in black and white, easy to read & professionally written.
MANAGEMENT DESCRIPTION• List each member of your management team and describe what they do to make the business successful• Explain specific duties of your manager, lawyer, agents, band members etc.
FINANCIAL PLAN• Create a spreadsheet forecasting the best and worse case scenarios including potential sales.• Include ALL income and expenses.• Prepare a break even analysis showing exactly when you intend to become profitable.• Finish your plan with a chart that highlights these figure for the next 3-5 years.