Saving Money

After polishing and presenting my business plan, I decided that I should work and save money to actually start my business.  While I search for employment to keep a steady income, it is best for me to find ways to receive and save money.  As an entrepreneur, it is wise to have a budget if I want to start a business venture.  I found a list of financial tips from Under30CEO that may help you with finance savings.

Set Goals

Setting goals helps you decide on how you invest your money.  Be sure to have realistic goals.  We cannot all become billionaires overnight.  Start off small, and then build your way up.  It shows that you are consistent with what you want in your business and life.

The Best and Worst of Times

Along with setting goals, you should always have a backup plan.  Things happen in life and some things we can’t stop.  Instead of complaining about how you are the victim, you could put some money aside “for a rainy day.”  When those unanticipated events happen, you have money reserved for emergency.

Track Your Money

When I see something new that comes out in stores, I am always ready to buy it.  However, if it is too much money, you should try to buy last year’s model. Whether you buy the new or old model, you should always keep records of your purchases.  If it is certain equipment, you can write that off during tax time.

This is only a portion of what can do with your money.  If you are aware of what you have to spend and what you spend it on, you should be well on your finances.  For more tips, check out Under30CEO.  They have plenty more tips on what you can do with your money as you build a business.

Funding Alternatives

Everyone knows that money is a large factor in starting a business.  As I build my business plan, I have been looking for resources such as loan agencies and alternative funding agencies, to grant my business money as a loan or investment.  I have reviewed a few funding websites that could benefit to my cause.

One website I researched for funding was the U.S. Economic Development Administration or EDA.  This website offers sections including federal funding opportunities, programs, and even a newsroom.  The federal funding opportunities section involves different grants and investment priorities like the Disaster Relief Opportunity, An Advanced Manufacturing Jobs and Innovation Accelerator Challenge, and the EDA’s Planning and Local Technical Assistance Program.  EDA also have investment programs such as public works, community trade adjustment assistance, and trade adjustment assistance for firms.

Another funding website I checked out was the Community Development Venture Capital Alliance or CDVCA.  They are a non-profit company that offers equity money to start-up businesses.  This company provides consulting services for businesses that want to start a CDVCA fund.  Some services involve start-up, performance and operations, government programs and fund raising, and investor services.  They offer national and international funds.

I can see both of these being having an advantage with my company.  As my company grows, I will want to give back to my community.  These companies offer charity options, which would look great for my company.  It would add publicity to the area and the community around my company.  Another advantage with CDVCA is that they offer consulting.  They have the expertise to plan charity funds rather than a regular finance officer.

Although I have discussed two companies, there are plenty of funding alternatives that can be useful.  The websites for these companies are at www.eda.org and www.cdvca.org.  Also check out CFED and NCIF for more funding options.

Business Plan Improvements

When it came to business planning, I had an idea of what I wanted to do but I did not know about the resources that I had to research.  The possibilities always stayed in front of my thought process of making my business plan but I did not realize the mistakes that could or will happen.  From the last post, Cheryl Snapp Conner from Forbes stated that leader of a business need a strategic perspective.  I learned that if I don’t have standby answers or resources in hand, my business would fail.  In my business plan, I went into detail about my customer will be obligated to do when we discuss the agreement before the recording starts in the studio.

From the last post, Judy Robinett, from the Forbes website, talked about moving forward after having failures.  I learned that businesses change, and with that, customers change their ways of acquiring what they need.  It is important to stay consistent and up to date with trends in my industry.  In my business plan, I had to update and add some features in the long-term opportunity category.  For instance, with my company, it is best that if a type of music is popular, it is our job to be creative and differentiate ourselves from the normal music.  Carlos Slim from a Second and Park article stated, “True corporate creativity can be helpful to both business and society.”  I learned that it is best to accept change and to add something new to the change.

I want investors to look at my company’s strengths.  Although we provide some of the same services as my competition, we have a few differences that can bring in more customers.  I also think investors should look at my technology category.  Some of the equipment that is needed to run a recording studio I already own.  I would need funds to get some of the outboard equipment that I don’t have so I can compete with the other recording businesses.

Experts in Business Planning

I went to Forbes website and I was able to find some professional business planning experts to research and share relating concepts with my followers.  One of the experts I researched was Cheryl Snapp Conner. Conner is the founder of Snapp Conner PR, a public relations agency.  According to snappconner.com, she has engaged in strategic programs for companies around the United States. 

A Strategic Perspective

On Forbes website, Conner talks about how leaders must have a calculated viewpoint.  It is best to have any problems set with a solution but be open to suggestions.  This is important because what investors look for in potential clients is how they work out situations if something goes wrong.

Choose Your Battles Wisely

In Forbes, Conner mentions that at times, it is best to be quiet and listen.  Sometimes, not speaking and opening your ears is more powerful than talking, especially during intense times.  This is vital because if an investor disagrees with an idea, it is best to just listen before replying to their argument.

Another business expert I researched was Judy Robinett.  She, herself, is an investor and an advisor for start-up companies according to Forbes.  On her website, judyrobinett.com, it states that she received awards for her work, including the Malcolm Baldrige Award for Medical Excellence received from former President Bill Clinton.

Learning and Moving Forward from Failure

With any business, there will always be failures.  Robinett mentions on Forbes that most beginning businesses fail three times before striking success.  It is important one must accept that failure and not give up because failure is a small part of having success.

Having Relationships and Connections

It is important that with any person you run into, connect with them in some way because it might help in the long run.  Robinett mentions in Forbes that without connections and relationships, it is hard to succeed and you’ll more likely to fail.

A Producer's Life

For a while now, I have discussed many things about starting a music/overdub studio.  But then I realized that I have not discussed my ultimate goal, which is to be a great music producer.  Being a producer does not mean making “beats.”  Being a producer means being a musician, composer, songwriter, sound engineer, but mostly, an all-around visionary.  Dan Conner mentioned on a blog on The Stereo Bus that, “producers are the people who decide how best to artistically and creatively represent the artist in a release.” 

It has been helpful through the past year to learn and apply facts and tips about the entertainment business, especially the music industry.  I have learned that although someone has talent or an art, it is best to properly own it.  This is true because everyone in the industry wants to own a piece or all of one’s intellectual property.  For instance, I read an article in Variety about Journey’s producer Roy Thomas Baker suing Sony Music for unpaid royalties.  Although I am an independent music producer, it is important for all producers to negotiate how the royalties will be split between themselves and a label. 

Being a music producer has its good and bad moments but that comes with the territory of the business.  With any business however comes with troubles but as long as you work hard with your craft, you will gain twice as more than what you have lost.  With that being said, having experience in the music industry pays off.  For example, I read on The Hollywood Report about the legendary producers, Quincy Jones and Pharrell Williams being honored the ASCAP Founders Award and the Golden Note Award for their hard work in creating wonderful music. 

I believe music is a lifestyle and I feel that music production is my contribution to the world. To learn more about producers, their duties, and other things dealing with music, check out The Stereo Bus.

Branding

For the past few months, I have been researching and planning to build my recording company.  I have also looked up information on branding and marketing.  As a producer, I have improved on my music but I am behind on branding myself.  For the entrepreneurism inside all of us, we should create and build onto a brand that speaks to the masses.  I read an article from the Under30CEO website, where they interviewed the award winning creative director, Ray Hirschman.  He has worked with television and radio advertisements for Mounds Almond Joys, ITT, Macy’s, and more. Hirschman talks about how brands can progress or destroy your business.  Here are a few outlines about branding:

Creating The Brand

A brand can consist of a logo, slogan, or tagline.  When making a brand, it must communicate to the consumer without it being too simple.  It should also separate itself from the competition. 

Brand Equity

Once you have a brand, you should be consistent with it to build equity.  Once people start spreading your brand through social media or word of mouth, your business will begin a growth of a fan base.

Brand Relevance

As your brand grows, you must be relevant with the current culture.  For instance, according to a Music Business Journal article, Pepsi and Twitter combined forces since Pepsi consumers use Twitter.  With brands, you cannot afford to be outdated with the times.

Clever Brands

When coming up with a slogan or logo, be sure it gives meaning and depth beyond words.  Make sure it isn’t modest or too wordy.  You might have to research other brands to get an idea of what you want your brand to represent.

In conclusion, having a good brand makes all the difference between your business having success or a disaster. Below is a video that shows why branding is important.  Take some time and do some research on your industry to come up with a brilliant logo or slogan.

 http://www.youtube.com/watch?v=JKIAOZZritk

Cerebro Coming Soon...

Hip-hop artist, Loser X and I will be releasing a hip hop/nerdcore EP called, “Cerebro EP.”  This album is like listening to a comic book.  “Cerebro EP” is dedicated to the Marvel X-Men character Professor X.  This album has everything a nostalgic nerd wants.  We used content from comic based cartoons, anime shows, and even video games.  We plan to release this EP as a free download to see how the public responds.  We plan to promote the EP at comic, video game, and anime conventions around Tampa and Orlando in Florida.  Our target market is heavy at these types of conventions.  We also plan to promote the EP on social websites like Facebook and Twitter.  I believe that it is great to stay in touch with fans online and in person.  I read an article from makeitinmusic.com about lessons on how to connect with fans as an artist.  One way to be proactive with fans is to be approachable.  Using Twitter helps you interact with fans and other professionals in the industry.  Depending on how you use Twitter, people can see you as a professional and a casual person.  Getting to know your fans good because you can get feedback about your music or you can have the fans participate in the decision of the next single to be released.  Another way to connect with the fans is to give away free music or gifts.  Now, people, especially fans, want more “bang” for their money, so you have to give a little extra. For instance, after the release of our EP, we will give codes to receive a digital comic book that follows the EP.  Staying positive about your online presence is a plus towards your fans.  Everyone likes to criticize or give his or her own opinions when it comes to music.  Although it comes with the territory, you have to be positive about other people’s opinions.  Although this EP is a different approach towards hip-hop, it is something new and it will get the respect it deserves.

Phunky Update

It has been a while since I posted a blog entry, so here is some good news on the journey of Philonius.  I am now a producer of Tunnel Vision Records, an LLC that supports independent artists without the use of 360 deals.  In the past couple of months, I have been working with independent artists in Orlando like hip hop artist Niko Is, soul singer Reilly, hip hop artist Kilam, just to name a few.  It has been a great experience to work on music with other artists because usually I work alone and then send my material to the artists.  Even though I work with a label, I am still an independent producer.  This is great because I can still make the music I want and still get paid.

I have also become a member of BMI.  BMI or Broadcast Music, Inc. is a company that collects license fees so the artists or producers can receive royalties.  With BMI, if you are a publisher, you can join for free.  I can only join one property rights organization (PRO) and it lasts for two years.  I have learned that in my business within accounting, I can belong to all three PRO’s but within three separate accounts.  As a producer, some of the artists want me to use samples in songs.  I read on the ASCAP website that they will clear the samples, which saves me time from asking different record labels for licenses.  It costs a bit extra for ASCAP but it will be worth it in the long run.

It has been a leisurely paced journey to success but success does not happen overnight.  I have done so much but to be honest, it is only the beginning.  I am fine with my goals keeping me motivated and my business plan keeping me on edge.

Don't Worry, Music! I'll Protect You!

Learning about entertainment law has made me realize that I should look into covering my intellectual property.  I have also learned much about contracts and the compartments within a contract.  For my business plan, I want to be sure I am covered with IP and brand protection.  I listened to some podcasts from the Entertainment Law Update Podcast website with Gordon Firemark, Esq. and I have learned a few things about some types of IP protection.  I have noticed that running a studio has plenty of liabilities.  Although their will be some bumps in the road of running a business, I don’t want to make obvious mistakes that could cost me a great deal of money.

One thing I learned from the Entertainment Law Update Podcast is that the client must read the entire contract before signing.  On Episode 23 of Entertainment Law Update Podcast, Firemark talks about how a restaurant sued a reality show for displaying their visual arts.  The restaurant, however, signed a release for the TV show to use and edit whatever they have filmed.  As I develop my business plan, it is important for me to have my clients sign a waiver, notifying the risks and that my business is not reliable. 

Another lesson that I should apply to my business plan is a way to keep track of my copyrights.  As a producer, I know that once I release my instrumentals, other people will use them.  However, I would want a clearance from the user.  Therefore, for my business plan, I want to avoid copyright infringement with sending clearances.  For instance, in Episode 13, Firemark discusses the copyright infringement case of Jay-Z vs. Nafal.  Even though the sample that Jay-Z’s producers used were not under the 76’ copyright law, it is still best to ask for permission.

My business plan will have a budget for copyright and trademark purchases.  It is a small price to protect intellectual property.  The podcasts were very informative about how the laws apply within the entertainment industry.

Sometimes, Sharing Is Not Caring

Although internet radio stations, like Pandora, are popular to music listeners, file sharing is still a major problem in the music industry.  There have been some instances where some music swappers have been tried in court, whether it was an individual or a company.  However, how can you determine what the punishment or how heavy the punishment should be when it comes to file sharing?  For example, I read an article on Bloomberg’s website about Megaupload’s company wanting to dismiss their $175 million dollar case.  They mentioned that they couldn’t be persecuted because the company is based in a different country.  But then I read an article in Lawyers USA about how the U.S. District Court made a 28-year-old pay almost $68,000 just for downloading 30 songs.  I believe that the courts should be stricter on foreign companies that infringe copyrights in the U.S. because if everyone who contributes to file sharing gets punished, and maybe it would stop.  I read an article in USA Today that even with all the court cases happening dealing with file sharing, people are not scared of authority and are not stopping illegal downloading.  It hurts everybody when file sharing happens and it has definitely affected the music industry but with more internet radio stations, file sharing could decrease and artists and labels can keep their rights.

Read It Before The Pen Bleeds It

One of the first rules of entering the music business or any business in the media is to hire a manager.  As an artist, one must research and choose a manager that suits their career needs.  Not only an artist should researching to see what types of managers are out there, but also looking up what a manager does for an artist.  When hiring a manager, the artist must read and negotiate an agreement or simply, a contract.  Once the contract is signed, the artist must abide by the contract or some clauses could come into play.

At times, artists are so eager to release albums and perform at shows, that they forget or simply don’t pay their managers.  For instance, I read a Kings of A&R article about the hip-pop group, LMFAO, getting sued by their former managers.  The group supposedly owes their managers millions of dollars and they were alleged of breach of contract.  Artists and managers should have a reasonable relationship.  They should have a partnership that is partly friendship and fully business.

As for artists, I think they should at least negotiate over the original contract if a major label or something else comes up that is better.  For example, I read an article on Contactmusic website about the lawsuit against pop star, Ke$ha.  Das Communications were suing her for 14 million dollars for a breach of contract.  They said that she was influenced by the other manager to leave their organization.  It isn’t rare that this situation happens where an artist finds a better deal with another manager and he or she just leaves their former manager high and dry. 

To avoid confrontations with contracts, artists and managers must have communication the best way they know how.  Without communication, an artist could end up in more trouble than needed, and managers could end up losing plenty of money.

Deal Makers

This past weekend, I had the chance to interview Andre Devond, the CEO and Founder of Solid Video Productions.  He works with professional, digital, commercial, online, and high school video productions.  I interviewed him because he introduced me to audio mixing and we have worked together on many occasions. I also chose to interview him because I hope to create a joint partnership with his company and my overdub production company.

We talked about how he uses the five core concerns with his clients and employees.  His status is high due to the fact that he is the only private video company in Wilberforce, Ohio, and he has connections with NewsCenter 7 WHIO-Dayton.  His autonomy is great because he is his own boss.  He started his company in 1995 and since then, he has the freedom to run his business his own way.  With affiliation, he is treated like a professional amongst his colleagues.  Devond mentioned that he shows appreciation to his employees by telling them they are doing a great job when the project is complete but he would not mention it during the project.  He said that he does this because if he shows appreciation during the project, that could lessen the drive within his employees to complete their portion of the job.  He also shows appreciation to his clients by giving them discounts and notices on his services.  He believes that his role is fulfilled when the final product is a success for the client.

Andre Devond mentioned that he separates the problem from the people by making it his problem.  For example, if a client has an issue with making it to the video shoot, Devond will go out of his way to find transportation for the client.  I believe being flexible with my customers and my business is an advantage to negotiating with other companies.

Hooray! Buying Music is Awesome Again!

From the past few years and from the past blogs of mine, I have talked about how music sales have dropped due to free downloading markets.  There is finally some good news in the music industry.  According to the Kings of A&R webpage, consumers are starting to buy music again.  On the Market Watch page from the Wall Street Journal, CD buyers have increased by 2% compared to the 78 million from last year.  I believe that this is great news because it felt like I was the only one who still bought CDs.  This is also great because CDs have a better listening quality than MP3s.  Some people predicted that CDs would be obsolete but people still like the CD format familiarity.

Paid downloads have also increased in sales.  Market Watch states that internet download music sales have increased 45% in 2011.  And on the other hand, P2P file sharing has decreased 13% from last year.  The music industry is offering more music outlets like Spotify and Pandora so consumers will not have to steal music or share hard drives.  On Mashable’s webpage, it states that after Limewire was shut down, file sharing has decreased in the past year.  The Market Watch also states that in the UK, they have made music file sharing illegal and people will be fined as if it was fraud or human trafficking.

The music industry is still in the rough end, but it is shedding light on sale increases.  This gives me hope for my business in the music business.  Like Adele or Katy Perry or Kanye West, I want to give the consumer what they paid for, which is good quality music.  With that being said, I want to set goals and check statistics on how much money I’m making from CDs and artists coming to record at my studio.

Views on Music Finances

As I seek more information on entrepreneurship and music, one question always comes back to mind: where will the money come from?  Since I am not a wealthy billionaire with a mansion on the mountainside and 25 nice cars, I will need to find other ways of increasing my budget.  As I prepare the numbers for my overdub studio, I realize that I need to sell my worth to other businesses and the people who are interested in music.

One way I could find money for investing into my studio is to try out a bank loan.  Banks these days are having rough times and they will not invest their money to a business that could possibly not succeed, especially if it is music related.  I read an article on theguardian.com that in the U.K., most banks will not fund independent studios or music groups due to being too risky.  This article was startling because even though this was in the U.K., it is still the same type of problem in the U.S.  I need a niche to get over the fact that it is a studio.  It would also help if I can improve my credit score.  Although I don’t have any outrageous account charges, I still have plenty of college loans to pay back.

My other options to funding my studio are to go to a finance company, use kickstarter.com, or ask other people.  With a great business plan, a music finance company would understand my case.  However, I have a few partners who would be interested in starting this business with me.  Kickstarter is a great way to express my idea for building my business to the world.  It could possibly help me with raising money and communicating with potential clients.  Once I know my market niche and options, it should be easier to find studio funding.

RIAA Knows Your Music

The Recording Industry Association of America (RIAA) is one of the major trade organizations in the music industry.  This association keeps sales records of a majority of music released from major record labels.  They also control legalities and policies of artists and record labels.  The RIAA plays a major part of the four major music companies of the world such as EMI, Sony Music, Warner Music, and Universal Music.  This organization is important to the music industry or my industry because piracy is rampant today and it is important to receive earnings from music record sales.

The RIAA consists of a Gold & Platinum Program, which recognizes artists and songs that have sold millions.  I read on their news page that digital singles have doubled compared to last year.  The biggest single sellers were Adele, Lady Gaga, and Lil Wayne.  I see this being an improvement in the music industry because consumers are still buying music instead of downloading it illegally.

I also read on the RIAA news page that they recently announced, with the International Intellectual Property Alliance, that China, Russia, and Canada are the worst offenders in copyright infringement.  It bothers me that they put this on their page because the U.S. is just as bad with copyright infringement.  Although some major share filing companies, for instance Megaupload, have been shut down, there are still plenty of file sharing applications for illegal music use.

In the future, I tend to fill out an application and join the Recording Industry Association of America. I have their RSS feed in my Google Reader because it is important to stay updated on record sales of today’s artists.  On Twitter, I am following the Senior Vice President of RIAA, Jonathan Lamy, Vice President, Cara Duckworth Weiblinger, and Director of Communications, Liz Kennedy.

Passion in Music

I have a passion for music in general.  Whether it is listening to it or making it, I love music.  I love music so much, I would do it for free for the rest of my life, if that were a choice.  I watched a lecture from Benjamin Zander on Ted.com and he talks about how anyone can have a passion for classical music and how one’s passion can influence others.  There are a few points in his speech that sparked my mind and my interests in my life.

One point Zander mentions is that we can’t just think about our visions step by step but we must think about the vision in the long run.  I took this to heart because it feels that I have looked at my dream step by step and not looking at the whole picture.  My dream is to not only share my productions, but peoples’ voices with the world.

Another point from his lecture was about the job of being an orchestral conductor.  He states, “He depends, for his power, on his ability to make other people powerful.”  As a producer and engineer in my company, I want my customer to feel like they have the power when I provide my services.  If singers come into my studio, I want the singers to leave with a powerful product in hand.  If voice actors come in my studio, I want the voice actors to leave with confidence that they have given a powerful performance.  Saying this leads to another point Zander mentioned stating, “…who am I being, that my players’ eyes are not shining?”  If my clients are not confident in what they are doing, then I’m not doing my job.

Although he specifically talked about classical music, but I feel that this could apply to any music genre or any passion in general.  I have put in a lot of time in my education and experience to build an opportunity for others with talents in entertainment to express themselves behind the microphone.  As I learn more about the industry, I hope to reach my dreams using my passion for music.