Starting s record label

[quote]seanl (23/11/2010)[hr]I recon that after events, label is probably the best way to make money out of this business…if you’re good at promo that is (in both cases)



Also, If the track is successful on your tiny label than there will be no problem with getting big one to back it! think Denis Ferrer Hey Hey



I’m not saying that you can get salary out of it, but you’ve got more chance than producing alone.



[/quote]



Yep, surely cant do any harm to have your finger stuck in more then one pie (just dont tell the mrs)

Hi, I think this is a good idea. The one thing I can offer is about the structure of the business.

You don’t need to incorporate to run a business in the UK, but for a record label I think you would be taking a huge risk if you didn’t. If you run it as a sole trader you are liable for everything, if you release a track with  an uncleared Abba sample, you will loose everything you own.

You can have a clause in your contract that states it is the artists responsibility to clear samples, but that isn’t how the law sees it, as the publisher you would be responsible.

If you incorporate as a limited company and become a director your own money and property are protected, they can only come after what the company is worth.

Get a good accountant, use his address as the company registered office, so he gets all the companies house and HM Revenue letters and can respond for you, and be prepared to pay him.

If you make money, he will pay for himself, if you don’t make money he shoudln’t cost more than a few hundred pounds a year.

But you do need to make some money, HM Revenue doesn’t like companies that make a loss.

Ants advice is totally sound the risk of starting as record label as a sole trader is just too high - an accountant is also a must for a limited company as well as a comprehensive buisness plan which would be a requirement for accounts and banking purposes



On the making money front remember most companies don’t break even untill the 3rd year of trading - which should be reflected in your buisness plan as if you say your going to make £100K in the first year especially these days no one will take you seriously



You probably won’t have to worry about VAT registration but if you do make a profit over the vat threshold be warned custom and excise make tax inspectors look like the teletubbies

A business plan is a great idea and a really good exercise to go through, it can really help get your ideas together. But you don’t need one to open an account, unless you are asking your bank for money they won’t care. Bank business accounts charge for everything, paying money in, taking money out, statements everything. But you should be able to get them free for at least a year, if not two.

the only thing i will say is that if you are trying to find ways to do it on the cheap or cut corners then you may as well not bother, that’s not putting the idea down. personally i think if someone is prepared to invest time and money into a record label then there’s a good chance it will succeed because there are a million record labels out there that don’t bother.



I think there are to ways to approach opening a label



Full On or Not at all

[quote]TheAnt (23/11/2010)[hr]



You don’t need to incorporate to run a business in the UK, but for a record label I think you would be taking a huge risk if you didn’t. If you run it as a sole trader you are liable for everything, if you release a track with an uncleared Abba sample, you will loose everything you own.



[/quote]



spot on

[quote]Jon_fisher (23/11/2010)[hr]I think there are to ways to approach opening a label

Full On or Not at all[/quote]

I also think this.

On the subject of releasing your own material. You are right, there are loads of labels that are just vanity publishing, but if you can find someone who you trust to A&R you, someone who will tell you when something isn’t good enough and you will do as they say, even when you disagree then why not release your stuff?

Good record labels have great quality control, that is the thing missing from most digital only labels with thier scattergun approach.


me personally... im just trying to make great music. hopefully if I continue to make great music I can eventually build a following and make a name for myself. remember I'm not talking about DJ gigs. I'm talking about great productions.

IMO the first tracks If and when I sign will be to real/bigger labels.

If I am lucky enough to actually start building a name for myself....

THEN i would start my own label. at this point ur selling tracks. have a name.

sell your own tracks. make 100% of the money instead of just whatever %

this is what the big guys do.

see Wolfgang Gartner, Deadmau5, Armin, PVD, do i need 2 continue?

[quote]UnitedVision (23/11/2010)[hr]

me personally… im just trying to make great music. hopefully if I continue to make great music I can eventually build a following and make a name for myself. remember I’m not talking about DJ gigs. I’m talking about great productions.



IMO the first tracks If and when I sign will be to real/bigger labels.



If I am lucky enough to actually start building a name for myself…



THEN i would start my own label. at this point ur selling tracks. have a name.



sell your own tracks. make 100% of the money instead of just whatever %



this is what the big guys do.



see Wolfgang Gartner, Deadmau5, Armin, PVD, do i need 2 continue?[/quote]



you could sell and distribute then you really would make 100%

[quote]Jon_fisher (23/11/2010)[hr][quote]UnitedVision (23/11/2010)[hr]

me personally… im just trying to make great music. hopefully if I continue to make great music I can eventually build a following and make a name for myself. remember I’m not talking about DJ gigs. I’m talking about great productions.



IMO the first tracks If and when I sign will be to real/bigger labels.



If I am lucky enough to actually start building a name for myself…



THEN i would start my own label. at this point ur selling tracks. have a name.



sell your own tracks. make 100% of the money instead of just whatever %



this is what the big guys do.



see Wolfgang Gartner, Deadmau5, Armin, PVD, do i need 2 continue?[/quote]



you could sell and distribute then you really would make 100%[/quote]





only if you had your own store…but even then you’d need pay for credit cards, etc

so it’s never going to be 100 % unfortunately :crying:

Yeah the risk of losing everything cos of a clearence issue simply to make no money, take up alot of time and pretty much no reward just isnt worth it.

all very interesting… but not very positive!



time to do some research into LTD’s etc etc, cost it all up, look at work flow blah blah and take it from there think when I get a chance

[quote]gofunk (24/11/2010)[hr]all very interesting… but not very positive!



time to do some research into LTD’s etc etc, cost it all up, look at work flow blah blah and take it from there think when I get a chance[/quote]



Not sure all the advice should be seen as negative - if you went to any small buisness startup advisory service they would tell you the same thing - be very weary and know your product and your market and what you want to realistically acheive



Anyway best of luck