Most independent music artists are not very good at business planning. Yes, most popular indie artists are creative and talented. But the ability to create a business plan is often outside their wheelhouse.
And every Independent Music Artist needs a plan, whether they know it or not. A business plan is a document that outlines the goals of your music career and how you plan to achieve them. It will help you stay focused and keep moving in the right direction.
You may have heard that artists don’t need to worry about money because they “make art” instead. This couldn’t be further from the truth. All musicians must understand basic financial concepts to keep their businesses running smoothly.
So, this article will help you create a simple yet effective music business plan. Are you an upcoming Independent Music Artist who wants to make a living from your music? If so, then read on.
Elements of a Good Business Plan
Every good business plan should include the following elements.
Vision Statement
A “vision statement” is a brief paragraph describing your business’ purpose. It should be no more than one or two sentences long. But this is the most crucial part of your plan because it sets the tone for everything else.
The vision statement serves as the anchor for your business. Many popular indie artists have powerful vision statements. They usually showcase them on their websites and social media profiles. It shows potential investors that the artist has a clear vision of where they want to go with their career.
Goals and Objectives
Goals and objectives are quite different from the vision statement. Goals are specific and measurable and will help you determine where you want to go with your career. For example, if you want to sell a particular number of albums next year, that’s a goal.
Objectives are vaguer than goals. They’re things that will help lead you toward achieving your goals. For example, putting together a press kit is an objective. Your objective will help you sell more albums (your goal).
Defining your goals and objectives as an Independent Music Artist is essential to your success. Goals will help you focus on what you want out of your career. On the other hand, objectives will help you achieve those goals.
Target Audience
Popular indie artists already know their target audience. But it’s important to revisit this information every once in a while. Re-evaluating your target audience can help you better connect with them. It’ll give you an idea of how to create music that will appeal to them.
And an upcoming Independent Music Artist must define their target audience. This will help them figure out who they should be creating music for. To do this, you’ll need to know where your fans are and what they like about your music.
You can do this by looking at the data from your social media accounts. You’ll see which songs have the most likes and shares (or comments).
Marketing Strategy
The next step in your business plan is to develop a marketing strategy. This is how you’ll get your music out there, reach new fans and grow your audience.
You can create an online presence on social media sites. You can also post updates about new songs or videos as they are available.
However, remember that there is no such thing as a one-size-fits-all marketing strategy. You’ll need to adapt your approach depending on where your fans are and what they like about your music.
That’s why this stage is crucial. You’ll be wasting time and money if you market to the wrong people. The same goes for being too generic in your marketing efforts—you need to find a way to stand out from the crowd.
Finances
Finances are integral to any successful business. And the music business is no different. You need to plan for your financial future and your artistic one.
One of the most important things you can do is ensure that you have enough money saved. This helps because you won’t be left in the lurch if something goes wrong.
Don’t forget about taxes, either. Ensure you have all the information on how much each gig pays and what percentage goes toward taxes.
Another aspect of finances for an Independent Music Artist is attracting investors and sponsors. You may need extra money to get your business off the ground or want to expand your brand. If this is the case, look at how you can attract investors and sponsors. Look for those who want to see their name associated with yours.
Organizational Chart
“Why do I need an organizational chart? Isn’t it just for popular indie artists?” We understand your sentiments. And on the surface, you might think you don’t need an organizational chart. After all, you don’t have a big team or many employees.
But if you have big dreams and hope to grow your brand, you may need an organizational chart to help you plan.
An organizational chart is a visual representation of the structure of an organization. It shows who reports to whom and how many levels there are between them. It’s also helpful in portraying how responsibilities overlap and what each person handles.
Don’t worry if you’re an upcoming independent artist. You don’t need a big team or many employees to benefit from an organizational chart. You can use it to keep track of your creative process and ensure that you’re spending your time on the right things.
And when you eventually have a team, you’ll be glad you thought ahead and prepared.
Products/Services
“Products and services?” you may ask, “What do they have to do with being an independent musician?” Firstly, you need to define what you do. How can anyone else if you don’t know what your business is about?
This is essential because it helps you decide where to focus your efforts. If you’re starting as an Independent Music Artist, you don’t want to waste time and money on things that don’t create value.
For example, let’s say you plan to make a living off live shows. Then it’s more vital to focus on playing in front of people. You don’t need to spend lots of time perfecting your website or social media presence.
Popular indie artists might have their products and services as merchandise, talk shows, or songs. You might be an artist who offers lessons, workshops, or master classes. Are you a singer-songwriter? Then you could sell your songwriting skills as a service to other artists.
Whatever your product or service, you need to know what it is and how it adds value to your audience. This allows you to focus on those things that add the most value and leave out the rest.
Conclusion
As you can see, a business plan isn’t exclusive to large corporations and popular indie artists. An indie artist business plan can help you focus on the most critical aspects of your career. It’ll help you make better marketing, promotion, and distribution decisions.
If you’re an independent music artist just starting, don’t hesitate to ask for help. Many online resources can help you start a new business plan or update an existing one.
