Music Business Planning

1. Musician Industry & Freelance Musician
Music Business Planning
& Marketing Mix
www.musicstudentinfo.com
Chris Baker

2. Why write a music Business Plan?
1. Clear the way for creative thinking
2. Pinpoint strengths and weaknesses
3. Identify problems & obstacles
4. Expose hidden opportunities
5. Set priorities
6. Coordinate marketing
7. Take guesswork out of budgeting
8. Allow meaningful review & revision

3. Music Industry Business Plan
• A business plan is a universal and international document
that is used whatever your business with some ‘adjustment’
depending on your industry type

4. Why plan your music business?
• All successful musicians will have to plan their business at
some point
• To acquire funding from financier or private investor
• To map out how you will run your business on a daily,
monthly & yearly basis.

5. Business Planning
• A business plan is a standard format document that is
required when seriously considering ANY business
• A good business plan is a work in progress
• The act of completing the plan helps you think things through
thoroughly

6. EXECUTIVE SUMMARY
• Should be written last
• Once all the sections of the plan are complete you
summarize/describe the main points
• Usually one perfectly written page
• Inserted after the table of contents
• State what you want to achieve upfront

7. EXECUTIVE SUMMARY
Answer the following
1. Who are you?
2. What do you sell?/Your service?
3. What do you want?

8. COMPANY DESCRIPTION
• Prove why an investor should be interested in funding your
idea
• Describe your product or service
• Include the area of the music industry you are in and how you
will become profitable

9. Business Planning The Pitch
• Each of you should write a ‘pitch’ for your business.
• This is a ‘mission statement’ that capture the imagination of
investors.
• Your ‘pitch’ will be a statement lasting about 30 seconds.

10. Pitch Exercise
• Each of you will take 20 minutes to write an emotive, well
thought out pitch lasting no less than 30 seconds on a subject
of your choice
• Each of you will address your pitch to the group

11. PRODUCTS & SERVICES
• This is where you discuss your product/service in more detail
• Most music entrepreneurs will have more than one revenue
stream
• Describe your competitive advantage and why your business
will succeed

12. PRODUCTS & SERVICES
• You may also include future products & services
• Revenue streams-some ideas playlists, flash/micro drives,
ring tones, games, apps, subscriptions, social sharing, videos,
teaching materials, blogs, live streaming, ring backs, branding,
licensing, remixes, widgets

13. MARKETING PLAN
• You will explain the current state of the market you are
entering taking account of customers & competitors
• List features, advantages & benefits of the product or service
you offer
• Know what your product or service will do for your customers
• Explain your niche - explain what is special about your
business

14. MARKETING MIX
You should provide answers to the following questions:
1.Product how will it meet or create consumer demand?
2.Price is it low enough for your customer to buy and high
enough to make a profit?
3.Place where will your product or service be sold? Online?
Offline? Both?
4.Promotion what is your advertising & publicity strategy? What
programs will you use to get your business moving?

15. Classroom Exercise
• Think of a successful music consumer product and carry out a
marketing mix assessment for it P,P,P & P
• Feedback your results to the group

16. Business Marketing
• End this section with a specific measurable description of how
you will reach your goals.
• List how many calls, emails, performances you will carry out
to achieve success.
• Attach any diagrams/artwork that corresponds to your
business in the appendix at the back of your plan.
• The majority of the plan should be in black and white, easy to
read & professionally written.

17. MANAGEMENT DESCRIPTION
• List each member of your management team and describe
what they do to make the business successful
• Explain specific duties of your manager, lawyer, agents, band
members etc.

18. FINANCIAL PLAN
• Create a spreadsheet forecasting the best and worse case
scenarios including potential sales.
• Include ALL income and expenses.
• Prepare a break even analysis showing exactly when you
intend to become profitable.
• Finish your plan with a chart that highlights these figure for
the next 3-5 years.

19. The End