This document discusses music finance and its importance for bands. It explains that music finance involves having control over all financial aspects like budgets, expenses, and statements. As technology advances, the finances of bands become more complex with higher pressures. Key expenses include recording, publishing, networking, equipment, and touring. Recording can be very costly if studio time exceeds budgets. Touring is risky as transportation, food, repairs, and other costs must be considered. Selling merchandise on tour requires planning for vendor costs, materials, and sometimes venue fees. The tips are to expect unexpected expenses, stay organized with financial records, and have fun while balancing the budget and staying flexible.
2. What is Music Finance?
Meshing together the music industry and finance.
Having complete control on all the finances and
where the money is going to be spent.
While at the same time creating organized
financial statements; balance
sheets, stockholders equity, cash flow and a
extensive journal of all your expenses.
3. The Music Industry is a strong field and is constantly
growing with the help of new creations such as
4. With the rapidly growing technological advances
the finances of a band also increases. There is
more pressure put on these bands and new
stresses. This is why music finance is such an
important topic.
Also why my role in the semester project is so integral.
5. Keeping track of the Budgets!
There are many things that can rack up a pretty
large receipt at the end of the day including;
Recording
Publishing
Networking
Daily band expenses
Equipment
and last but definitely not least
Touring
6. Recording
Recording can cost a lot of money.
As much as someone like the financial manager/
business manager can plan for the recording costs
once your in the studio time could fly by and each
hour you didn’t plan for can be hundreds of dollars
out of your budget!
A trend that we see now is our generation is heading
more in the direction of home recording or having
a friend record their band, which will definitely
help keep costs down (Turner 2006).
7. Touringcanmake or break a band.
Touring expenses can include a number of things but the
biggest are; transportation, food, your
“people”, equipment repair and the list goes on.
According to Peters (2009) the current economic times
have changed the direction in which some artist
tour, heading in the campus show direction. Any way
to save some money right?
It is hard for a band to even break
even on a tour let alone make a
significant profit.
8. Merchandise
In our semester project or in a real band merchandise
is a resource that can generate a lot of revenue if
you know how to approach it.
Finding the right vendor, cheap materials, single
colors are all things that you can do to make sure
that t-shirt costs stay relatively low.
Touring you could run into some problems such as hall
fees. Which is when the venue could charge you to
sell your own merchandise in their facility.
9. Tip #1
Expect the unexpected!
The financial planner always has to make sure
that they are ready for anything. Say your
touring and your van breaks down, or maybe
a guitar breaks you need to be able to find the
money to fix these problems.
Thinking on your feet is
important but also knowing
the boundaries at all time is
even more important.
10. Tip #2
Keeping all your records
Stay Organized! and financial journals
organized is probably
the most important
things you could do.
To keep track of the
budget you first need
to know what the
budget is and know
how to stay within it.
11. Tip #3
HAVE FUN!
You most likely love music and have some sort of
interest in finance so have fun with it!
Find that balance and roll with it
Keep track of the budget in an
organized way
And STAY on your toes!
12. Citations
Peters, M. (2009, Oct 17). Touring - universities & booking agents: Class
acts - campus concerts adjust to tight economy. Billboard - the
International Newsweekly of Music, Video and Home
Entertainment, 121(41), 23-23.
Turner, M. (2006, Recording: Recording Q & A. Canadian Musician, 28
(6), 59-59.
