Starting a Successful Record Label

• 1). Create a Brand
  
  In order to sell anything, whether it's music, art, movies or household products, it helps to have a good a brand. A brand identity is a direct way of showing your customers who you are and what you stand for. Your brand can be simply a reputation or a persona, or even a symbol. When people acknowledge you as a brand, they consistently identify you with certain qualities and are interested in learning more about you. Start by thinking of a name and a design, logo or look that encapsulate what you want you label to be about.
  
  
• 2). Get to Know Your Audience
  
  To build your brand, you need to know who you're building it for. Take the time to do some research on who you would like to make music for. Find out whether there is a cultural or social common ground that you can either relate to or give a voice.
  
  Learn about your audience by listening to the music they like. Frequent dance clubs and talk to your local DJs about what they play in what gets the best response in the club. See local bands live, gauge their connection with their fans and talk to venue managers about who is pulling in audience. Try blogging online or using social networking sites to talk about groups or songs, and evaluate the responses you get. Get as much feedback as you can from the people who listen to the kind music that you want to focus on.
  
  
• 3). Learn How to Pick Artists
  
  Picking artists to record for your label is the make-or-break element of the business. Your artists are your product, and you want to sell quality. It's important to have a strong sense of what you're looking for - what kind of sound, look and attitude the artist has, or could have with a little development. Major recording labels look for artists that already have somewhat of an idea of how they would like to be branded. Some independent artists that go on to record the major labels already have a following. These are the type of artists to look for: people who are not only talented, but driven. The reason you look for this type of recording artist to work with is the same reason major labels want them: because they have proven themselves as hard-working and dedicated to the craft. The recording business is not a business that rewards someone who dreams idly, but it does reward those who work hard to make their dreams come true.
  
  
• 4). Learn How to Pick Your Producers
  
  Now that you know your audience and you have a recording artist or two, it's time to get down to the business of recording music. To record good music, you need a good producer. A good music producer is one who can translate ideas into music. You need to develop relationships with several music producers with experience or raw talent in your music genre. Network in your local music scene to discover who is up-and-coming. Try holding auditions online to find the best talent in your area. Keep your ear to the ground for talented producers who are trying to establish themselves, and who might work with you for free for a producer's credit or profit share.
  
  
• 5). Money
  
  Finding financing for your record label can be a challenge, but it is not impossible. Start by putting aside funds for seed money, and network to connect with potential investors. Have realistic ambitions and work piece by piece: the best way to approach financing is to start small and raise funds project by project. Look for people willing to invest small sums in single projects.
  
  
• 6). Recording
  
  You might want to consider investing your own money in a basic digital recording setup - recording software, a MIDI sound card, and a USB microphone - to create demos. When your artists have developed their tracks and are ready to record, you'll need to rent studio time and hire engineers to record, mix, and master.
  
  Consider your possible formats for distribution - will you be manufacturing CDs and packaging, or will you be selling music as digital files over the internet? Think about your audience and what format would be the most effective use of your funds while giving you the most potential for profit.
  
  
• 7). Marketing to Your Audience
  
  Be active in your local music scene: go to shows, pay attention to the trends and personalities, stay informed, and make connections to spread your profile around. Take advantage of online music communities, social networking sites, or other digital means that may help you get your record label noticed. The key is and always will be identifying with your customers and making the best music possible for them. Be attentive, work hard, and with a little luck, your record label will be a success.