Easy Access into the Music Industry

The emergence of online digital outlets has made it easier to break into the music industry. Technology has given music artists an easy pass into their dreams. It is much easier to get a record deal then it was a decade ago. With artist being able to record their music at home on a laptop and distribute it all over the web there are reduced barriers to music creation and distribution. In my opinion the emergence of technology has watered down music on all levels. Technology has taken the essence out of music, I think if the industry wants to see a turn around it has to concentrate more on artist development. Just because a person can make music at home on their computer doesn’t make them a complete artist. The consumer is downloading a song without even seeing an image of the artist. I can remember before you even heard a song from an artist you would know a brief background of where he or she came from.

I think the most important thing music executives need to figure out is: How to get music to fans in a way that makes sense and without losing money. The only suggestion that I have is for the industry to convert over to a digital industry. By this I mean concentrate more on the digital sales and not necessarily the tangible CD. I see the CD going out of existence in the next ten years and music solely being digital. With iPods and cell phones being able to play music the consumer has no need to have a CD anymore. Unfortunately, music artist will have to continue to find creative ways to sell their music until someone finds a way to stop piracy and the leaking of albums. The most creative thing for an artist to do is find something that coincides with the release of their album and join forces to generate a buzz and sales.

http://techcrunch.com/2009/03/08/big-music-will-surrender-but-not-until-at-least-2011/

Funding Options For Starting A Business

There are numerous options to choose from when selecting financing for starting a business. The Community Development Venture Capital (CDVC) is a source that provides funds to businesses in underinvested markets. The CDVC has helped over 100 companies with financing over the last decade, and provides its members with funding opportunities that are affordable. I believe the CDVC is an excellent option for a business with not a lot of cash on hand. If someone has a solid business plan that shows solid financial returns the CDVC will help with investments. 

Another financing option is the National Community Investment Fund (NCIF). This seems to be a good option for a business owner that is associated with a partnering bank affiliated with the (NCIF). The NCIF invests in banks and credit unions that generate both financial and social returns.

I noticed that to obtain financing from the majority of these private funds the individual must have moderate to low income. I think this makes sense because if a person is in the high-income bracket there is no need for financing. I think one of the big things that investors look for in the business plan is the risk of the investment. There is no such thing is a business with no risk. I feel that if you don’t discuss the risk with the investor they will assume you haven’t thought about the risk and not be willing to loan you money.

Another site that can help with starting your business is SBA.gov. They help business owners to determine their financial needs. The SBA gives small businesses a voice within the federal government. The SBA does not directly loan money to businesses, but they play an important role to make sure you are represented in a way that will aid you in the loan process. I feel this is one of the best options for small business owners specifically because they focus on obtaining loans from the banks for small businesses.

What is a Good Business Plan?

Some of the things I learned from the experts profiled is that your business plan needs to make sense to investors. If your business plan doesn’t seem like it will benefit the investor, majority of the time they will reject it. I feel that the most important part of the business plan is the summary. This is the part of the plan that will spark the investor’s interest. Investors will often reject a business plan after reading the first page because the summary didn’t catch their attention.

In my business plan I have made many changes in the financial section. I have learned that investors want to see the exact numbers that will get them a return on their investment. Before I thought you could just write down the total amount you needed to start your business and wait for the investor to invest. But I have learned that is not how the whole process works. In the financial section of the business plan you want it to be broken down for investors to see every component of the business.

Overall I have learned that the business plan is a map, but you still have to keep your hands on the wheel. A lot of people think their business is better off without a plan, but their wrong. A well-crafted business plan can navigate a person through an evolving market successfully. As the times change the plan keeps all the reference points in order so that you can manage change more effectively.

Pertaining to my business plan specifically I think that investors will want to know exactly how I plan to get clients. Investing in a management agency is like betting on a racehorse. But if the investor has enough knowledge about that specific horse and know that it is a winner then he or she can have the confidence that horse will win. I feel that any investor that reads my plan will understand that I am a winning horse and understand the fundamentals of how to run and operate a management firm.

http://timberry.bplans.com/2009/02/some-key-questions-on-business-plans.html

http://smallbiztrends.com/2010/06/business-plan-success-twice-as-likely.html

Abrams, Rhonda 2010. The Successful Business Plan Secrets & Strategies. 

Business Planning Made Easy

In this posting I will be discussing the strategy and tactics of a recognized business plan writing expert. The expert I will be talking about is Tim Berry, founder of Palo Alto Software and bplans.com. Tim Berry has been called the Obi-wan Kenobe of business planning. One of the types of business planning that stuck out to me that Mr. Berry teaches is what he calls “plan-as-you-go” business planning. This type of planning is intended to bring the idea of the business plan up to date with the kind of flexibility and power we have in the tools we use in business everywhere. Most of the focus is on the power of planning the plan and easing up on the form. So what is different in this type of business planning is that it is a process, not just a plan. The “plan-as-you-go” plan is not like the formal business plan you see in business school or read about all over. It doesn’t follow any particular recipe. Every plan is unique in its own way. One of the most essential parts of this type of business planning is the review schedule. If you don’t have a plan review schedule, you don’t have a “plan-as-you-go” plan. The review schedule keeps the people involved aware of the points of the plan, these points keep those involved aware of when and how your going to track progress. Another important part of PAYG planning is developing useful metrics. One useful metric is cash flow.

Tim Berry has some unique views on business planning. He says in his list of principles that “good business plans are never done”. He says that once your business plan is finished your company is finished. Instead of saying your business plan is finished he says you should revise it as needed. He reminds us you should never let your business plan go static. We need to always keep the plan active and on top of things.

Investors want to see your background in the industry and what kind of experience you have in business. Often times small businesses fail because they don’t have the experience or right people onboard in the management team. Investors also want to see that there is a need for your product or service. No matter how unique your product or service is investors want to see if you understand your demographics and can reach your target market.

http://timberry.com/

http://blog.guykawasaki.com/2007/07/how-to-write-a-.html#axzz1RA0Ihly4

http://planasyougo.com/

http://www.nytimes.com/allbusiness/AB12322189_primary.html

Display Ad Business On the Rise

Advertising companies that use display ads have seen an increase in sales over the last six months. Kantar Media estimates display advertising grew 14.6% in 2011’s first quarter. Researchers attribute the rise of display advertising primarily to the growth of college sports tournaments and the high demand of advertising from the automotive industry. I believe that such advertising is a saving grace for struggling industries like the automotive and traveling businesses. I also feel that display advertising could be the future for the music industry to promote new releases.

It is time for a new model to market artists. For example, if a record label purchases a display ad and the consumer clicks on the ad it will direct them directly to that specific artists music content. This will eliminate a lot of searching and unnecessary typing to find information on your favorite artists. Another concept that could be leveraged through display advertising is breaking news display ads. What I mean by breaking news is a news company could purchase a display ad that flashes all of the current news their target market subscribes to. Say for example if the target market enjoys up to date news in the music industry, that particular music news company could provide news to the consumer through display ads. This not only gives the consumer what they want but also at the same time markets the company through display advertising.

I feel that the days of advertising in magazines and T.V. commercials are becoming obsolete. In order for companies to take full advantage of advertising they locate where the target market is going. We currently live in a world where the majority of consumers spend a large amount of time on the Internet and marketers are finding out that the easiest way to reach the target market is through a computer. I think in the next ten years print ads will no longer exists.

http://huguesrey.wordpress.com/2011/06/13/display-ad-spending-jumped-14-6-in-the-first-quarter-report/

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Digital Marketing In the Music Biz

Over the last decade the music industry has taken on a different approach when it comes to marketing music. With the emergence of social media most major music labels are marketing their artists through familiar social media sites such as Twitter. We live in a day and age where the consumer wants the product quick and easy. Social media outlets have allowed record company’s to take full advantage of this concept. I can remember growing up and the only way you could find out if a new artist was coming out was by word of mouth or inside of a popular music magazine or T.V commercials. Now you rarely see a commercial for new artists and music magazines are going under because magazines are coming out online.

Digital marketing in the music business is a hustle. Fans want what’s authentic, relevant, and personal. I feel artist don’t need the label to market their music anymore. With everything being on the Internet all the artist has to do now is find a social media community that accepts him or her in and take advantage of the opportunity. It is much easier to make your way into the industry than before in the “golden era of music”. Before artist had to have talent first and image second. Now the artist can have little or no talent come up with a gimmick and a good marketing plan and be able to sale units.

The days of street promotion and driving from state to state, store-to-store selling records are gone. Technology and Social Media have rewritten the business model for the music industry. This new model is something that has hurt the industry in the short term but I think now that the consumer and the labels are learning how to adapt to this new way of distributing music in the long run the music industry will see the benefits of the digital era.

http://hbr.org/product/nettwerk-digital-marketing-in-the-music-industry/an/510055-PDF-ENG

The World's Most Marketable Athletes

I decided to do come up with my own list of who are the world’s top three marketable athletes. Marketable does not necessarily mean best because it is difficult to compare who is the best athlete when there are so many competing in different sports. I feel the most talented athlete in the world could have a hard time selling ice to an Eskimo. The list that I am going to come up with is based on my opinion of who can generate the most marketing dollars for a company if they signed a endorsement deal with the company today. I think the first thing a company should look at before signing a major athlete to an endorsement deal is the long term potential the client can offer.

Over the last two years the name Usain Bolt caught many peoples attention. Mostly because he is the fastest man in the world and at the same time his last name Bolt is catchy. I feel that companies can use him to sell products based on those two factors. The next athlete I feel could generate marketing dollars for a company is LeBron James. LeBron James is arguably the best basketball player in the world so with that title attached to any product is a plus. James has endorsement contracts with Nike, Sprite, Glaceau, Bubblicious, Upper Deck, McDonalds, and Audemar Piguet just to name a few. The only down side to having LeBron attached to your product is the decision he made to leave the Cleveland Cavaliers and sign to the Miami Heat. Many people didn’t like the way LeBron left the organization and might not buy your product based solely on his decision to leave. But overall signing LeBron James is a win-win for any company. The final athlete on my list is David Beckham. I feel that Beckham has the charisma necessary to sell products and at the same time he is one of the most talented soccer players in the world. By signing David Beckham to your company you are gaining exposure to your product because soccer is the most watched sport in the world. Therefore, I like to call Beckham a global sponsors cause soccer is watched globally.  My honorable mention athlete is Tiger Woods. Even though Tiger had his sex scandal I still feel he has the potential to help sell products. Tiger Woods has a million dollar smile and for the past dozen years he has dominated the sport of golf. He has the ability to relate to a company that has been through tough times and is on a come back.