Wednesday, May 18, 2011
wise business owner knows and adheres to.
1. The law of supply and demand. If there is not enough demand
for your kind of act or music, you will not make money. On the flip
side, if there is more demand for your kind of act or music, you
will stay working, sell more music and you can charge more.
2. You have to spend money to make money. If you are not willing to invest in yourself (lessons, coaches etc.) and your tools (instrument, gear etc.), then you will be unable to compete with those who do.
3. The greater the risk, the higher the potential return. If you are always playing it safe and doing the same thing that everyone else is doing, you may make money but you will never get paid for being a groundbreaker or trendsetter. If you take a risk by getting creative and stretching the boundaries with your act and music just a bit, you may be unique enough to set yourself apart from the rest of the crowd.
4. It costs 5 times as much to get a new customer as it does to sell something to a previous one. If you build relationships with your fans by collecting email addresses and sending out periodic newsletters, it is easy to sell your newest CD or downloads to them. The reason for that is because they already know you, trust you and like your music. It beats starting from scratch and trying to convince new fans that should spend their hard-earned money on you.
5. Customer service is king. If you don’t treat every fan and every audience like they are the most important people in the world, they will find someone who does. Become a friend. Give them what they want and more.
6. Every industry has its own set of ‘best practices’. The music industry is no exception. Study the industry, learn the rules, find out what works for other artists, get a mentor, network with the movers and shakers etc. I guarantee you that your serious competition is doing all of these and more.
7. Businesses with strong advisory boards and a strong management team make wiser decisions. As your career moves forward, surround yourself with a wise manager, a bookkeeper, an entertainment attorney and any other advisors and professionals you need on your team.
8. Smart business owners use attorneys. They don’t look at them as trouble or unnecessary. They look at them as security guards protecting the company from lawsuits, from breaking the law (even unknowingly), from signing bad contracts and more. You should also use an attorney for all of your legal matters. Keep in mind that ignorance of the law is not a valid excuse for breaking it.
9. Keep good and accurate financial records and pay your taxes. There is no joy in tangling with the IRS, the state, the county or any other government agency you might owe money to. Instead, have a good accountant teach you how to minimize your tax liability.
10. Successful business owners know their market and their competition. Define your most loyal fans. Where do they live? That’s where you want to book yourself. How do they listen to music and where do they shop for it? That is where you want your music to be available to them. What is their income bracket and how much are they willing to pay to see your shows or to hire you? Set your prices accordingly. Which do they respond best to – email, snail mail or text messaging? Use that method the most. What are your competitors doing successfully that you’re not. Find out and at least copy them. If possible do even more to take away their competitive advantage.
If you follow these 10 guidelines, you will be amazed at how quickly your career moves forward! Learn to be an entrepreneur as well as an artist. It will serve you well not only in your music career, but in any other kind of business venture you may decide to undertake or get involved in.
Vinny Ribas is the founder and CEO of Indie Connect, a member-based support organization for the independent music industry. It consists of singers, bands, musicians, songwriters, record labels, service providers and music professionals who join in order to help and support each other by sharing contacts, resources, ideas, expertise and advice. Indie Connect has chapters in cities throughout the US, hosts an extensive online training library (videos, articles, podcasts and more), offers discounts on services and products from dozens of industry partners, including MusicPro Insurance, Broadjam, MyWerx, Airplay Direct and more.
www.indieconnect.com - main website
www.indieconnect.org - free music industry network
www.indieconnectmagazine - free online magazine
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