Writing a Music Business Plan That Works

So let's break this down. Remember that the main aim of any business should be to create and sell products for a profit. Contrary to what some artists/bands say; they actually need money. Making music should not be ONLY for the love of it but it should be about using your skills in a profitable business manner so that you can live on your gift.

Back to writing a business plan that works; In essence, a business must be penned around the 3 ways to grow a business mentioned earlier and the successful workable business plan must be primarily focused on these 3 elements including a few other essentials.

The next question you may ask is, "How do these 3 ways to grow a business relate to writing a workable business plan?" Here is the answer:

1. Increase the number of customers buying your products. No music business can survive only on a handful of fans unless your price points are £1000's. It is therefore crucial that the business plan outlines all the means and methods through which the business plans to grow its' fan base. This is not just listing a few ideas but flesh out in detail how you, as a music entrepreneur, plan to bring in the necessary number of fans to make the business profitable.

2. Sell More to the Same Customers. The customers that buy your first album can also buy your T-Shirt and pay for tickets to the gig. Later on the same clients can also buy the DVD of the event. Your business plan should detail the process through which products can be created as well as means of making the clients purchase these products. The business plan should also be focused on why people will buy the products and the likely quantity of purchase.

3. Increasing The Sale Value of Each Product. I believe Trent Reznor of Nine Inch Nails made the process of selling different priced products to fans very popular. He gave away 9 tracks as a free download, sold 36 tracks for a few dollars, with the top products selling for $300 a piece, making nearly $1m in just a few days. For any independent artist/band, the business plan must be persuasive in the manner it presents the way it plans to sell products of different values to the same customer. It could be that you create different sets of products that can be sold to the same person. This could range from the download, to the physical CD, then a box set, a leather jacket with your branding, and so on.

Remember that writing a business plan that works must be focused on creating a business that works, so time must be taken to research the industry and bring together the right ingredients to ensure success.

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