Record Label Business Plan Template

Important: This document is uneditable, so you’ll need to create a

copy in order to use this template as a guide and edit it for your
own business plan.

Please do not request edit access, instead click:

File > Make a copy…

You can use this Record Label Business Plan Template as a guide for writing
your own business plan.

While Record Label in a Box gives you all the tools you’ll need to start your own
label, there’s a lot more to consider when establishing an independent record label
and running it as a successful business. This guide will take you through the most
important points you’ll need to cover in your business plan.

The most effective business plans aren’t overly long and complicated. You’ll want to
cover only the most essential information, including your main aims, how you’ll get
there and what you’ll need to achieve along the way. Don’t forget to include a front
cover and contents page too, to give your plan a professional look and feel.

Don’t rush your plan either. A good business plan may take weeks to complete, if
you’re going to take the time necessary to develop it properly. Some parts will be
simpler to complete than others, so it’s a good idea to approach it one section at a
time.

Once it’s complete, you will have a useful overview of your label, your finances, and
how you will achieve your goals.

This template is divided into nine important sections, with prompts on what to include
for each section in red and example text written in italics.

1. Label Overview
Record Label Name

Owner(s) Name

Address & Postcode

Email

Phone number

Your previous experience

Qualifications & training

Any further information

2. Executive Summary

Sum up the content of your business plan, your label and its aims in a paragraph or two.

Label summary
Label aims

Unique selling points

Financial targets

New Label Records is an independent record label based in London, UK. Our aim is to
support and promote emerging and established artists across the UK; releasing music,
organising tours and securing press coverage for the acts signed to the label.

After more than ten years’ working as a professional independent musician, Director of New
Label Records John Doe has developed the contacts and experience necessary to propel
this new label and its artists to success. This business plan will demonstrate how New Label
Records will create strong brand recognition within the UK’s music scene and generate profit
long-term through royalties, ticket sales, merchandise and other revenue streams.

3. SWOT Analysis

Strengths

· Multiple acts with large social media followings interested in signing to the label
· Distribution to major music stores through Ditto Music
· Industry support and advice via Record Label in a Box

Weaknesses

· Current lack of investment & funding

· No major brand awareness

Opportunities
· Long list of influential press, media and music industry contacts
· Large number of aspiring musicians and popular music venues in local area

Threats

· Competition from other high-profile independent and major labels

4. Key

Objectives

Main Objectives

1. Achieve both regional and national media coverage

2. Increase Spotify streams and iTunes downloads
3. Organise a successful UK tour

KPIs (Key Performance Indicators) for the next 1 – 3 years

1. Secure at least 3 high-profile press stories within the first year

2. Reach a combined total of 100,000 streams and downloads
3. Generate profit from event ticket sales

5. Products & Services

Overview of your products/services, eg:

Distribution

· Music distribution to all major online stores secured via Ditto Music, including iTunes,
Spotify, Apple Music, Tidal, Deezer and Google Play.

Management

· Artist management provided by label owner John Doe, a successful independent

musician with over 10 years’ experience working in the industry.
Events

· Events and tours will be organised through John Doe’s contacts within the music industry,
including venue owners and promoters. Events will be promoted through both local and
national media coverage and social media.

Average ticket price: £10 per person

Merchandising

· Merchandising will be organised and implemented by John Smith. An expert in music

merchandising, he will create products through his own merchandising company and sell
items during gigs, tours and online.

Merchandise pricing:

T-shirt: RRP: £15 | Cost: £5 | Net profit: £10

Hoody: RRP: £25 | Cost: £10 | Net profit: £15
Poster: RRP: £5 | Cost: £1 | Net profit: £4

Any further information

6. Operations & Management

Who’ll be managing your label?

The New Label Records Team

John Doe – Director of New Label Records

- Responsible for scouting, signing and managing new artists

- Managing the labels finances and music distribution
- Overseeing the planning of tours of events

Any other team members involved? What are their responsibilities?

Jane Doe – PR executive

- Responsible for all PR strategies and media coverage

- Creating new business opportunities for the label to generate business growth

John Smith – Merchandising Manager

- Responsible creating and ordering artist merchandise
- Running the merchandise stand during gigs and tours and tracking sales

Do you have access to useful facilities and equipment?

Facilities and Equipment

Generic Recording Studios in Liverpool: 24/7 access

Generic Rehearsal Rooms in Liverpool: 24/7 access

Equipment owned:

- Guitars & Amps x 2

- Bass & Amp x 1
- Drum Kit x 1
- Synthesizers x 2
- PA System x 2
- Mixing desk x 1

7. Marketing Strategy & Analysis

Marketing goals and objectives

· Identify and reach out to new business partners and press publications to create brand
recognition and new marketing opportunities
· Develop, implement and evaluate plans promote releases to increase sales
· Increase gig ticket sales through PR strategies and social media campaigns
· Secure sync deals for TV, films and games

Your target market

· Rock/indie music fans and regular gig attendees within the UK’s main cities

Any market research findings

· Spotify currently pays out around £5,000 per 1 million streams

· On average, artists earn 60-70% of their iTunes revenue
· The average independent label earns £XXX from sync deals in the first 3 years

How will you advertise and promote your label/artists?

· Local and national press coverage
· Web and social media advertising campaigns
· Physical posters and leaflets

Your competitive advantage

· Influential contacts already established at publications including Music Mag 1, Music Mag
2, Music Blog 3 and Music Blog 4.

Any clients, deals or opportunities already lined up

· Sync deal for Band 1 already secured with Company 2

· Access to recording studio and rehearsal space arranged

Any further information

8. Financial Forecast

You’ll need to think very carefully about your label’s financial forecast. Thorough market
research can help you work out your startup costs and expenses, as well as how much you’ll
earn from various revenue streams.

We’ve created a Financial Planning Spreadsheet for record labels, which you can use to
plan your own label’s finances for the first two years. It includes the following information:

● Startup costs
● Sales forecasts
● Areas of Income
● Expenses
● Funding/Loans

Click here to open the Financial Planning Spreadsheet template, create your own
copy, and replace the data with your figures:

PLEASE DO NOT REQUEST EDIT ACCESS, INSTEAD:

Click above to open the template > Click ‘File’ > ‘Make a copy…’ > Enter your own figures

You can then insert your Cash Flow Forecast Charts into your business plan below:

Insert > Chart > From sheets… > Select your spreadsheet > Select your chart
 Cash Flow Forecast - Year 1

Insert chart here

Cash Flow Forecast - Year 2

Insert chart here

9. Plan overview

Short-term plan

Within 6 months:

Sign 3 – 5 new bands and artists, secure studio production and distribution to the major
online music stores, arrange tour dates and approach press publications.

Long-term plan

Within 3 years:

Generate enough revenue to become profitable through royalties, sync deals, merchandise
and tickets sales. Secure high-profile press coverage for artists signed to the label to create
nationwide awareness and brand recognition.

Contingency plan

If the objectives and KPIs are not met within the first year of operation, the label will be
streamlined and cuts will be made to stop further loss of revenue.