MUC110 LEC12 Entrepreneurship

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Basic Introduction to Entrepreneurship in the Music Industry

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MUC110 LEC12 Entrepreneurship

  1. 1. Entrepreneurship in the Music Industry © 2007 musicbizclasses.com
  2. 2. Why be an Entrepreneur? Being your own boss lets you… • Define the terms of your expertise and your enterprise • Determine the limits of your success • Take advantage of new opportunities, quickly and nimbly • Command the attention of potential clients and industry influencers • Demand equal play in strategic partnerships • Meet the top dogs and do business with the most dynamic players © 2007 musicbizclasses.com
  3. 3. Know Thyself, Know Thy Audience To be a successful Entrepreneur, you must: • Understand what makes you different, better, more valuable • Understand which audiences will be most attracted by your music product or service • Become an expert on trends - Constantly scan for new lifestyle brands, products and services - Be a Futurist- imagine what consumers will want and need in the next 2, 5, 10 years- Then help them get it. © 2007 musicbizclasses.com
  4. 4. Develop a Strong Brand • You, Inc. is THE brand you are selling, no matter who you work for • Delight Your Audience – Provide experiences, not just products – Be an Innovator • Be Consistent: – Mission Statement – Branding © 2007 musicbizclasses.com
  5. 5. Remember, You are Always Selling • Create your own Buzz/ Sell Yourself – Create an active presence online—websites; e-commerce; social network sites; Blogs; Videos (YouTube); Merchandise; Licensing. • Develop an authentic, powerful story about your brand/ work that you tell to everyone – The elevator pitch • Don’t wait for someone to discover you. Put yourself in the right place to meet people © 2007 musicbizclasses.com
  6. 6. Build and Care for Your Network • Make a business card- carry it with you at all times • Create a promotional plan and work it with focus and determination • Go to industry conferences and local music events; offer workshops and lectures to schools and organizations; volunteer; help other artists, producers and music execs. Organize music festivals, concerts or events. • Create a client/customer database; find good reasons to contact them on a regular basis- stay “top of mind” © 2007 musicbizclasses.com
  7. 7. The Entrepreneurial Spirit • You are not just doing a job, you are building a business system • Do you have the right temperament? – Employees “Security is more important than money” – Self-Employed “I want to do it my way. Total control is more important than money” – Entrepreneur “I want to surround myself with the smartest team, so I can succeed. Work smart, not hard.” © 2007 musicbizclasses.com
  8. 8. The Entrepreneurial Skillset • Self-Awareness & Business Skills – Possess Emotional/Psychological Courage to overcome fear & resistance – Develop Business & Technical Expertise • A strong desire to focus on Leadership skills • Manage cash flow • Manage people • Manage time © 2007 musicbizclasses.com
  9. 9. The Entrepreneurial Skillset Before you start, take a personal Inventory. Check in with yourself about your: • Goals • Personal style • Resilience • Independence • Risk Tolerance • Reasons for wanting to own a business • Appetite for the realities of business- accounting, taxes, contracts, selling © 2007 musicbizclasses.com
  10. 10. Are you prepared…to fail? • A Large number of businesses fail in the first 5 years • A business usually fails BEFORE it is launched • A word about failure it happens! – Losers quit when they fail, Winners fail until they succeed – Failing faster helps you succeed faster © 2007 musicbizclasses.com
  11. 11. Laying the Foundations So, how do you succeed? • The #1 job of an entrepreneur is to design the business BEFORE there is a business Business Planning is crucial for success. • Step I- Gather Information – Study other entrepreneurs and business systems – Learn from your mentor(s) – A successful business is NOT a product; A successful businesses is a system © 2007 musicbizclasses.com
  12. 12. The Business System • Every business, no matter what size, is a combination of functions • To succeed you need to manage each function regularly and with well developed skills • The baseline functions your business needs are: – Product/Offering/Service/Experience – Marketing/Communications – Legal – Back-end Systems/Administration/People Management – Cash flow © 2007 musicbizclasses.com
  13. 13. The Business System • How many of these functions are you skilled in, today? • What else do you need to learn? • Who do you need to hire? © 2007 musicbizclasses.com
  14. 14. Learning the vital functions • You cannot be an expert in all the functions – Product/Offering/Service Concept development – Legal Contracts, IP, Attorneys – Communications Marketing , PR, Sales – Systems Operations, distribution, manufacturing – Cash flow Accounting, Budgeting, Forecasting • Pick one or two functions, study and learn what it will take to become the best at these functions. © 2007 musicbizclasses.com
  15. 15. Learning the vital functions • Plan to build out the rest of your team with others who are the best at their functions. (Hire Your Weaknesses) – Marketing Managers – Attorneys – Publicists – Human Resource experts – Accountants • BUT, always be sure you understand what the other functions are doing. Keep learning… © 2007 musicbizclasses.com
  16. 16. Prepare for the Business Plan • Define the Mission of your company – The most successful businesses do one of two things: • Solve a problem • Fill a need – Your mission should be centered on who you are serving and what you will provide them to improve their lives. • Envision a continual learning process as part of your mission- build a feedback loop into every step of your business-building process. © 2007 musicbizclasses.com
  17. 17. Prepare for the Business Plan • Define the Goals of your company – Goals should be SMART- • Specific/Smart • Measurable • Attainable • Realistic/Relevant • Timely/Time Specific – Goals should address each of the functions in your business system – Goals should be short- and long-term 90 Day plan, 1 year plan, 5 year plan – Goals, Planning & Research= Your Business Plan © 2007 musicbizclasses.com
  18. 18. Write the Business Plan • What is a Business Plan? – A roadmap for growth – a tool for raising funds – an internal outline of the mission and goals of the business • Business Plans can be 5 pages or 500 hundred pages • Write the plan you need for your audience- internal, business partners, venture investors © 2007 musicbizclasses.com
  19. 19. The 7-Question Business Plan • Who are you? Strength and Depth of Management team • What do you plan to sell? Product, Service, Experience you are offering • What makes your approach unique? Differentiated vs. other offerings already in the market? WHY will people want yours? • Who are your customers? Demographics, Psychographics, Geographics, Behavior/Usage, Unmet needs? © 2007 musicbizclasses.com
  20. 20. The 7-Question Business Plan • What is your potential market? How many people will want your service or product when you launch? How many more will want it in 2 yrs, 5 yrs, 10 yrs? • How will you make money? What is your business model? When will you be profitable? How stable is your cash flow? • Who or What could kill your business? Who are your competitors? What technologies could disrupt your business? How will you deal with them? © 2007 musicbizclasses.com
  21. 21. Operational Set-Up Complete administrative/operational tasks: • Choose a business entity– Sole Proprietorship; LLC, Inc. • Create a business name/brand identity • Put legal protections in place- Copyrights, Trademarks, Liability Insurance, Partnership agreements, etc. • Get required professional/business licenses © 2007 musicbizclasses.com
  22. 22. Now what? You are up and running, now SELL, SELL, SELL © 2007 musicbizclasses.com

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