Record Label Company
Prepared By
John Doe
(650) 359-3153
10200 Bolsa Ave, Westminster, CA, 92683
http://www.example.com
Business
Plan
[YEAR]
Bring music to life
Information provided in this business plan is unique to this business and condential; therefore,
anyone reading this plan agrees not to disclose any of the information in this business plan
without prior written permission of the Company
Table of Contents
Executive Summary
5
Introduction
6
Mission
6
Objectives
6
Keys to Success
7
Financial Highlights
7
3 Year prot forecast
8
Business Summary
9
Start-up Summary
10
Startup cost
10
Funding Required
11
Ownership
12
Products and Services
13
Market Analysis
15
Market Segmentation
16
Market Analysis
16
Target Market Segment Strategy
17
Service Business Analysis
17
Competition and Buying Patterns
18
Strategy
19
Sales Strategy
20
Sales Forecast
20
Sales Yearly
21
Detailed Sales Forecast
21
Marketing Strategy
22
Competitive Edge
22
Milestones
23
Record Label Company | Business Plan [YEAR] 2/38
Web Plan Summary
24
Website Marketing Strategy
25
Development Requirements
25
Management Plan
26
Personnel Plan
27
Financial Plan
28
Important Assumptions
29
Brake-even Analysis
29
Projected Prot and Loss
30
Projected Cash Flow
33
Projected Balance Sheet
34
Business Ratios
35
Record Label Company | Business Plan [YEAR] 3/38
Business planning that’s simpler and faster than you think
Creating a business plan using Upmetrics to start and grow a business is literally the easiest
thing in the World. Simply read the instructions and ll in the blanks. It’s as simple as that.
Upmetrics has everything you need to create a
comprehensive business plan.
❛ ❜
AI-powered Upmetrics Assistant
AI-powered insights to streamline your plan
Not sure where to start? Upmetrics’ AI Assistant will
automatically generate ideas for each section of your plan and
offer improved versions of your writing, adjusting for tone, voice,
and grammar or spelling errors.
Financial Forecasting Tool
All the nancials are calculated for you
Forget the complex formulas and clumsy spreadsheets —
with automatic nancials and drag-and-drop forecasting, you
can nish your plan faster and be condent that your
numbers are accurate.
Business Plan Builder
Guides you like a business mentor
Upmetrics’ step-by-step instructions, prompts, and the library of
400+ sample business plans will guide you through each section
of your plan as a business mentor.
Introduction
Start writing here..
Mission
Start writing here..
Objectives
Start writing here..
Before you think about how to start a Record Label business, you must create
a detailed Record Label business plan. It will not only guide you in the initial
phases of your startup but will also help you later on.
To unlock help try Upmetrics!
Fearless Records is a standard record label company that proposes to be based in 500
Madison Avenue New York, NY 10011, USA. Our aim of starting this business is to work in
tandem with both established and upcoming music artists in the United States of America and
other countries of the world to help to launch their musical career or take their musical career
to the next level as the case may be.
Our Head Oce will be located in New York City, but we will have our branch oces in major
cities in all regions of the United States of America – with the rst two years of operation we
would have set up our oces in the following locations; Las Vegas, Los Angeles, Dallas, Texas,
and Boston.
Fearless Records is going to be a self-administered and self-managed record label/musical
company. We will work towards becoming one of the largest managers of reigning musical
artists in the United States of America and other parts of the world with musical album hits
back to back in the music industry.
We are quite aware that the record label/music business requires a huge capital base-
especially for the purchase of world-class studio equipment and music/artist promotion, which
is why we have perfect plans for a steady ow of cash from private investors who are
interested in working with us. We can condently say that we have a robust nancial standing
and we are ready to take on any challenge that we encounter in the industry.
As part of our plans to make artists under our label and our customers our number one priority
and to become one of the leading record label company in New York City, we have perfected
plans to work with our clients to deliver music projects that can favorably compete with the
best in the industry at an affordable and reasonable price, within the stipulated completion date
barring any unforeseen circumstance and also to help artistes under our record label gain
international recognition within a short period of time.
Fearless Records is to become a specialist in turning upcoming musical artists into stars/
celebrities and already made music artists/stars into mega – superstars. Fearless Records will
at all times demonstrate her commitment to sustainability, both individually and as a record
label, by actively participating in our communities and integrating sustainable business
practices wherever possible.
Fearless Records will be owned majorly by Dexter Clinton. Mr. Dexter has been able to cut his
teeth in the music industry both at the national level and international level. They have an
To unlock help try Upmetrics!
Fearless Records exists as a locally based record label whose mission is to promote local
music groups, increasing live appearances and record sales. Fearless Records have been
established to promote its bands and at the same time make a fair prot.
To unlock help try Upmetrics!
To become the premier local music label, based on CD sales, within three years.
Sign at least ve groups within the rst three years.
Reach protability within three years.
To unlock help try Upmetrics!
Fearless Records
Fearless Records
Fearless Records
Record Label Company | Business Plan [YEAR] 6/38
Keys to Success
Start writing here..
Financial Highlights
Start writing here..
Choose promising bands to promote.
Do not sign up for too many bands, otherwise, the effectiveness of promotion will be
diluted.
Work hard and have fun.
•
•
•
To unlock help try Upmetrics!
The company's start-up requirements are $55,464, of which $7,600 will be provided for by the
owner's personal investment. The rest will be obtained through loans.
We expect to be able to charge a 50% markup to our business clients. Thus, if an employee is
being paid $10 per hour, we are charging the client $15 per hour. The company predicts that it
will be able to produce sales of approximately $300,000 by Year 3. The company does not have
any direct cost of sales; we track payments to placed individuals as regular payroll.
To unlock help try Upmetrics!
Fearless Records
Fearless Records
Record Label Company | Business Plan [YEAR] 7/38
3 Year prot forecast
Year1 10,000 500 6,000
Year2 12,000 800 8,000
Year3 14,000 1,200 10,000
Financial Year
Sales
Gross Margin
Net Prot
Record Label Company | Business Plan [YEAR] 8/38
Start writing here..
Start-up Summary
Start writing here..
Startup cost
Expenses 1,550
Assets 1,800
Investment 2,050
Cost distribution
Amount
Fearless Records, located in New York is a new, independent record label focusing on
alternative rock music.
We seek to nd and sign up-and-coming alternative rock bands based in the New York region.
By nding underground talent and improving their marketing and appeal to a broader music
audience, we will be able to build a stable of artists with signicant customer bases. This will
translate into signicant sales of music (CDs, MP3s), concert tickets, and related products (e.g.,
merchandise).
To unlock help try Upmetrics!
Fearless Records will purchase the following equipment needed for the start-up phase of the
business:
Laptop computer
Various printed material
Fearless Records will initially be located in Dexter's home. For years two and three a small
space will be used primarily for inventory management and sales operations.
Fearless Records will be operating on no revenue for the rst year with low overhead. Fearless
Records will rely on the owner's investment and money from friends and family. It will be too
dicult to secure bank debt due to the long period of time before revenue.
Dexter will not take a salary for the rst two years. This becomes less important since she will
not be securing unfamiliar investors or bank debt which typically wants the principal to draw a
salary. For the rst year, Hilary will be making investments of sweat equity.
•
•
To unlock help try Upmetrics!
Fearless Records
Fearless Records
Record Label Company | Business Plan [YEAR] 10/38
Funding Required
The detailed startup requirements and expenses are given in the table below.
START-UP FUNDING AMOUNT
Start-up Expenses to Fund $6,650
Start-up Assets to Fund $21,350
TOTAL FUNDING REQUIRED $28,000
Assets
Non-cash Assets from Start-up $2,000
Cash Requirements from Start-up $19,350
Additional Cash Raised $0
Cash Balance on Starting Date $19,350
TOTAL ASSETS $21,350
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
TOTAL LIABILITIES $0
Capital
Planned Investment
Dexter Clinton $10,000
Family and Friends $18,000
Other $0
Additional Investment Requirement $0
TOTAL PLANNED INVESTMENT $28,000
Loss at Start-up (Start-up Expenses) ($6,650)
TOTAL CAPITAL $21,350
Record Label Company | Business Plan [YEAR] 11/38
START-UP FUNDING AMOUNT
TOTAL CAPITAL AND LIABILITIES $21,350
Total Funding $28,000
Ownership
Start writing here..
The company has been founded and is primarily owned by Dexter Clinton. Dexter has invested
personal funds in the business and will seek additional investment money from friends and
family.
To unlock help try Upmetrics!
Fearless Records
Record Label Company | Business Plan [YEAR] 12/38
3.
Products and Services
Record Label Company | Business Plan [YEAR] 13/38
Start writing here..
Before starting a Record Label company, you must take many things into
consideration such as you must consider what types of services will you be
providing to your clients. Deciding your services is extremely important since
it helps you plan other components of your business so make sure to
consider it before you think about how to start a Record Label business.
To unlock help try Upmetrics!
Fearless Records is a new, Portland, New York-based record label. Fearless Records is taking a
new, unusual approach to band promotion and CD sales. Instead of competing with the large,
ultra-competitive national record labels, as well as the larger Indie labels, Fearless Records will
adopt a regional, intimate approach where they concentrate on several local bands. By working
with only a few bands at once, Fearless Records is able to offer a much more specialized and
attentive level of service for their bands. This will be their competitive edge, something no other
record label can offer.
Operations will begin with the production of a compilation CD. This will be a CD that features
many different local artists. There will be no charge for a band to place a single on the CD, in
fact, they are encouraged as it offers a visibility outlet for the band. This favors bands that are
trying to gain visibility within the local market. They are interested in having as many people
become familiar with them since as more people know about them, they are likely to secure live
gigs and possibly produce a CD and receive revenue from CD sales. Within the rst year, two
compilation CDs will be produced. These will be free for the bands to be on and there will be
free distribution of the CDs. Enough expectation and anticipation for the up and coming bands
will allow Fearless Records to soon begin to charge for releases.
At the same time that the CDs provide visibility for the respective bands, it provides visibility for
Fearless Records. This is key for Fearless Records' business model. They need to be known as
a hard-working/promoting record label. This is important because the stronger the label
appears, the more attractive the label becomes in terms of being an exclusive promoter for a
band.
While the compilation CDs are released, Fearless Records will be working with a variety of
parties for networking purposes. The rst is local radio stations. Being able to get airplay for
the CD depends on relationships with the key decision-makers at the various stations. Fearless
Records will also be working with various record stores, developing relationships with them so
that as some of the bands on the CDs become known and there is consumer interest, Fearless
Records can begin to sell the CDs. Lastly, Fearless Records will be working with the different
clubs to get the band's live gigs. Playing live to local crowds will be one of the most productive
activities in terms of developing fanfare.
As the label becomes well known locally, it will become attractive for local acts looking to sign
up with a record label. Fearless Records will be looking to sign up a total of no more than ve
bands at any one time. This will allow Fearless Records to offer specialized and intimate
promotional assistance.
As the bands begin to sign on, the next tasks are to assist in the production of a studio CD for
the band. Once the CD is cut key activities will be aimed at record sales and live show
To unlock help try Upmetrics!
Fearless Records
Record Label Company | Business Plan [YEAR] 14/38
Start writing here..
Market Segmentation
Start writing here..
Market Analysis
Record Stores 30
Financial Year
Units Sold
The most important component of an effective Record Label business plan is
its accurate marketing analysis. If you are starting on a smaller scale, you
can do marketing analysis yourself by taking help from this Record Label
business plan sample or other Record Label business plans available online.
To unlock help try Upmetrics!
Fearless Records will target two primary market segments, record stores and consumers at live
shows. These will be the sources of income so they will be the main targets. Initially, Fearless
Records focus will be to develop visibility within the community, enough to be able to sign up
bands which are the key to revenue generation. The need to sign up bands will drive the
marketing activities that Fearless Records will undertake in order to generate revenue in the
future.
To unlock help try Upmetrics!
Fearless Records has identied two target market segments which will be the main targeted
customers.
Record Retailers - This segment sells CDs to the end consumers. This is the retail channel that
typically moves the greatest quantity of CDs. The ability of the record stores to move decent
quantity takes time, it does not occur initially. The bands must develop a name for themselves,
through the compilation CD release as well as through live performances in order for the record
stores to be willing to sell their material. This customer segment will be used to sell the
compilation CD and band CDs eventually, although not initially.
Consumers at Live Concerts - This segment attends live music performances, typically at the
local level. While at the show, enjoying the music, they often purchase a CD of the band that
they are currently viewing. This is, more often than not, an impulse purchase. They hear the
music, they are impressed and they decide they would like more material from the band.
Additionally, the patrons will also purchase the compilation CD as a means of hearing new
music.
To unlock help try Upmetrics!
Fearless Records
Fearless Records
Record Label Company | Business Plan [YEAR] 16/38
Consumers at live performances 70
Financial Year
Units Sold
Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
Record stores 5% 23 24 25 26 27 4.09%
Consumers at live
performances
7% 18,776 20,090 21,496 23,001 24,611 7.00%
Total 7.00% 18,799 20,114 21,521 23,027 24,638 7.00%
Target Market Segment Strategy
Start writing here..
Service Business Analysis
Start writing here..
Fearless Records has chosen these two distinct market segments because they are the main
source of revenue. Fearless Records will remain focused on their important marketing activities
aimed at developing visibility for the record label, however, ultimately it comes down to CD
sales for business viability and the record stores and consumers at live performances being the
source of this revenue. This is a fairly intimate industry, most of the industry participants within
a region know each other. Keeping this in mind, networking will be the most ecient and
effective activity. The only way to get into record stores is by showing potential record sales.
The way you begin to do this is to have good contacts within the stores to get the right people
to listen to you.
Another source of revenue will be the buy out of a band from their Mt. Hood contract in favor of
a larger, national label. These events will not be marketed for, they will tend to occur on their
own. This source of revenue is, however, tracked in the sales forecasts.
To unlock help try Upmetrics!
In general, the record industry, at least when based on overall sales, is a highly concentrated
national industry. There are several huge international corporations that control the bulk of
record sales. For bands looking to break through into national stardom and signicant record
sales, this is the distribution/promotion channel that they must concentrate on.
There are also the "Indie" labels which are broader than regional companies but do not have the
same breadth as a national player. The Indie labels can be quite large, they just tend to do
business in less commercial ways. Many Indie labels can support national acts who are
professional musicians.
The last segment of the market is local record labels who typically support musicians who are
not professional in the sense that they typically have day jobs that occupy their time in addition
to the musical interests. Most of the regional labels must concentrate on a region that
encompasses at least one state, often two or more. There are very few labels that will only
concentrate on a specic city such as Fearless Records in Portland, it is often too dicult to
To unlock help try Upmetrics!
Fearless Records
Fearless Records
Record Label Company | Business Plan [YEAR] 17/38
Competition and Buying Patterns
Start writing here..
National record labels - Atlantic, Sony, BMG labels, etc. These distributors care about one thing,
CD sales. The more CDs they sell, the more money they make. Bands do not get much
individual attention. They are carefully trained to develop mass appeal. Commercialization is
key. These companies' mantra is widespread acceptance, not niche fringes.
Indie labels - Sub Pop, Ropeadope, Ozone, etc. These companies are also quite concerned
about CD sales, however, they tend to choose bands with less commercial appeal and exploit
whatever niche that band exists in. This competitor also faces the pitfalls of not being able to
offer specialized attention as their "reach" is also quite broad. They are basically a smaller,
better-behaved version of the large record labels. They are only concerned ultimately with CD
sales and achieve these goals with less commercial means.
Regional labels - This is almost a catch-all gathering of labels, with so many different types
participating in the space. Some labels are similar to Fearless Records (not in Portland or
Seattle however) where CD sales are key but are looked at more holistically so that a band's
health and popularity are concentrated on, recognizing that if this is addressed, CD sales will
fall into place. There are also many different types of labels that represent a large number of
bands within an area, not having the same reach as the larger companies, and not caring much
about the bands themselves, just like the larger labels.
To unlock help try Upmetrics!
Fearless Records
Record Label Company | Business Plan [YEAR] 18/38
Start writing here..
Sales Strategy
Start writing here..
Sales Forecast
Start writing here..
After identifying the market demand, market trends, and the potential
customers of the startup, the next step is to dene an effective strategy for
attracting those clients. Like marketing analysis, sales strategy is also an
important component of a Record Label business startup and must be
properly planned before you think about starting your own Record Label
Business.
To unlock help try Upmetrics!
Fearless Records will leverage their competitive edge of low overhead and low band count
ensuring intimate specialized care and promotion for the lucky few bands that it represents.
Fearless Records will employ a marketing strategy that concentrates on developing a large web
of networks to assist the visibility of their label as well as developing visibility for the brands it
represents. Fearless Records will be extremely active in the local music scene as an effective
way of plugging their bands. Lastly, Fearless Records will have an aggressive sales strategy
with the goal of getting as many record stores as possible to assist with sales of the various
CDs as well as having a heavy live gig schedule as another outlet for CD sales.
To unlock help try Upmetrics!
Fearless Records' sales strategy will focus on the two main sources of revenue: record retailers
and consumers at shows. Fearless Records will be in constant communication, always
attempting to negotiate agreements for record sales with retailers. Because Fearless Records
is small in terms of the bands that they represent, they are able to offer retailers an unusual
arrangement where unsold CDs can be returned for credit. This is quite similar to the magazine
industry where retailers of magazines can get credit for unsold issues. This is a great idea but
is not practiced with the CD retailing industry. This advantage will make it easier for Fearless
Records to get into various retailers, an otherwise dicult proposition due to the extraordinary
power and inuence of the major record labels. In essence, it creates a risk-free value
proposition for the retailer.
Fearless Records will also address the need to sell CDs at live performances. As mentioned
earlier, CDs purchased at shows are, more often than not, impulse purchases. The viewer is
impressed by the live performance of the band and in a show of support or a desire to have
more material from the band they buy a CD. It is likely that other bands' CDs will be sold by
leveraging the goodwill of Fearless Records. Studies indicate that consumers are more likely to
experiment with new bands if the bands are found on a record label that the consumer is
already familiar with and has condence in. In essence, it is using the positive halo effect of the
label to sell other bands the label represents. This is further reinforced by the common element
of improvisation that Fearless Records represents. If the customer appreciates the element of
improvisation then they are much more likely to try another improvisational band, especially
when it comes with a "seal of approval" from the record label.
To unlock help try Upmetrics!
Sales will be slow initially. It is forecasted that the rst two compilation CDs will be handed out
for free. Sales revenue is not anticipated yet. By the third compilation, Fearless Records will
have signed two bands and this will be the beginning of revenue-generating CD sales. Once
bands are signed, Fearless Records' legitimacy will be developed and they will be able to begin
to generate revenue both on band CDs as well as the compilations.
Sales will also be generated through online website CD sales. Margins for online sales are quite
good because it eliminates the retail layer of the distribution channel. This will be Fearless
Records attempt to capture revenue from the powerful Internet sales channel.
An additional source of revenue is contract buyout. At some point, there is the possibility that
one or two of the bands will receive an offer from a larger record label for national distribution.
In all of the band's contracts, there will be a buy out clause that will allow a larger label to buy
out the contract. This is in recognition that Fearless Records has limited distribution and if a
band does indeed "make it" they will need to move onto a new label that has an established
distribution system. Having this clause and the phenomenon of a band or two moving on is of
value to Fearless Records because it allows them, in turn, to sign on another new band. This is
To unlock help try Upmetrics!
Fearless Records
Fearless Records
Fearless Records
Record Label Company | Business Plan [YEAR] 20/38
Sales Yearly
Year1 895,665 45,000 78,451 12,354
Year2 1,004,512 24,512 45,784 45,522
Year3 1,245,587 12,458 41,215 45,112
Financial Year
Record retailer sal
Live concert recor
CD sales from we
Contract buy-outs
Detailed Sales Forecast
Detailed sales forecast data is provided in below table:
SALES FORECAST YEAR 1 YEAR 2 YEAR 3
Sales
Record retailer sales $0 $28,090 $39,076
Live concert record sales $0 $19,000 $24,090
CD sales from website $0 $15,070 $25,600
Contract buy-outs $0 $20,000 $55,000
TOTAL SALES $0 $82,160 $143,766
Direct Cost of Sales
Record retailer sales $0 $11,236 $15,630
Live concert record sales $0 $6,650 $8,432
CD sales from website $0 $5,275 $8,960
Contract buy-outs $0 $0 $0
Record Label Company | Business Plan [YEAR] 21/38
SALES FORECAST YEAR 1 YEAR 2 YEAR 3
Subtotal Direct Cost of Sales $0 $23,161 $33,022
Marketing Strategy
Start writing here..
Competitive Edge
Start writing here..
Fearless Records' marketing strategy recognizes the fact that the value in the label is
intrinsically based on their reputation within the music community. Mt Hood Records needs to
be known as a premier label, creating a compelling reason for bands to sign up with them.
Fearless Records will develop its industry visibility through the release of the various
compilation CDs. The goal of these CDs is to get the word out about Fearless Records. This will
assist in securing their initial bands. This will be done through aggressive networking. Fearless
Records will be in close contact with who's who in the Portland music scene, for both retail
recordings as well as within the live music scene.
Once a few bands have been secured, it then becomes Fearless Records' marketing strategy to
plug the bands as much as possible. This again will be done by leveraging all of their
networking contacts. One effective way that Fearless Records will be marketing their bands is
to line up as many live shows as possible. For a local scene, it is very important for the bands to
be performing quite often, this is the fastest way that demand is generated within a specic
community regarding a band. Once the shows have been lined up, Fearless Records will almost
always man a booth where the concert-goers can buy CDs, learn more about the performing
band, as well as providing more information about the other bands that they represent. While
this takes time and effort, it is this passionate effort that will assist Fearless Records in
becoming a viable label, not immediately, but over time and hard work.
Other activities, as intuitive as they may seem are (not an exhaustive list):
calling up newspapers and inviting them to sessions, basically letting them know what is
going on
submit press releases
nd good story angles for the print media
list every show played by the bands
coddle the radio stations
develop press kits
get professional-quality photos.
•
•
•
•
•
•
•
To unlock help try Upmetrics!
Fearless Records will employ a two-pronged competitive edge. The rst edge prong is having a
low overhead. Fearless Records' oce will be in Dexter's home. There is not an immediate need
for oces, as all work can be transacted from her home oce. Additionally, unlike many record
labels, there will not be a recording studio to support. Signicant costs are saved by renting
studio time as needed. There appears to be no time in the foreseeable future that would dictate
the need for a dedicated studio.
Fearless Records will also use their other competitive edge prong by retaining a low band
count. Fearless Records will have ve or fewer bands under contract at once. While this will
reduce the chance of large records sales associated with having many different brands under
their label, it does allow Fearless Records to offer the bands it represents very specialized and
intimate care. This is quite unusual in the industry. Most record labels have many different
brands under the contract; that is the nature of the industry. It is very dicult for a band to pick
up a contract that differs from this arrangement.
Fearless Records recognizes the opportunity to get away from the status quo and operate
under the business philosophy that specialized customer care and attention is the best way to
make money in the long term. Unless you have tons of marketing money volume is not the way
to make sustainable prots. Each of Fearless Records' bands, therefore, receives far better
plugging and placement. Anytime Fearless Records is in a networking activity, they can plug all
of their bands at once due to the small number.
This approach to specialized care can be seen in the athlete representation eld. Two current
great cyclists have adopted the approach, bucking the same trend within the athlete
representation industry. Both Lance Armstrong and Kevin Livingston have both chosen contract
To unlock help try Upmetrics!
Fearless Records
Fearless Records
Record Label Company | Business Plan [YEAR] 22/38
Milestones
Several milestones have been established and will act as a set of goals and a tracking mechanism for
achieving the goals. While the milestones are initially static, they can be dynamic if needed. Please see
the following table for detail regarding the milestones.
Milestone Start Date End Date Budget Manager Department
Business plan completion 1/1/2021 2/15/2021 $0 Dexter
Business
Development
First compilation released 2/15/2021 5/1/2021 $0 Dexter Marketing
Second compilation
released
5/1/2021 9/15/2021 $0 Dexter Marketing
The rst band signed 2/15/2021 10/30/2021 $0 Dexter Sales
First revenue stream 10/30/2021 2/28/2022 $0 Dexter Sales
Band representation
currently full
10/30/2021 6/30/2022 $0 Dexter Sales
Totals $0
Record Label Company | Business Plan [YEAR] 23/38
Start writing here..
Website Marketing Strategy
Start writing here..
Development Requirements
Start writing here..
Fearless Records' website will be an excellent source of information dissemination and CD
sales.
The different bands will be listed with information about their music, bios, etc.
Music samples of the bands will also be available. The samples will be available as
streaming media as well as downloads in a compressed format.
Touring dates will also be posted on the site encouraging people to attend the live shows.
CDs will be sold over the website. Sales info is captured under sales forecasts. The e-
commerce module to the website will be outsourced and the costs are captured within
direct costs of goods sold for online sales.
•
•
•
•
To unlock help try Upmetrics!
The site will be linked to the various Portland entertainment guides such as Willamette Weekly.
Fearless Records will also submit the site to several different search engines. Lastly, the URL
address will be prominent on all printed material and correspondence.
To unlock help try Upmetrics!
The site will be developed by a computer science student.
To unlock help try Upmetrics!
Fearless Records
Fearless Records
Fearless Records
Record Label Company | Business Plan [YEAR] 25/38
Start writing here..
Personnel Plan
Start writing here..
PERSONNEL PLAN YEAR 1 YEAR 2 YEAR 3
Dexter $0 $0 $30,000
Sales $0 $12,000 $13,000
Distribution $1,600 $12,000 $13,000
TOTAL PEOPLE 1 3 3
Total Payroll $1,600 $24,000 $56,000
The management plan is also an important component of a Record Label
business plan since it gives you an estimate of the staff required for your
startup as well as the costs incurred on their salaries. So, make sure to duly
consider it before thinking about how to start a Record Label Business. The
management plan of the Record Label business is as follows.
To unlock help try Upmetrics!
Dexter Clinton rst got her feet wet in music after college. After graduating with a Bachelor of
Arts degree, Dexter and band-mates of 180 South decided to start their own record label to
support a regional tour. The goal of the record label was primarily self-promotion and personal
satisfaction. By creating their own label, they could release their one studio CD. They did not
expect to generate prots from this, they saw it as an opportunity to support their tour with a
CD. They toured for a month straight, throughout NY, PA, and NJ, playing almost every night,
driving to the new venue during the day. The tour was quite an accomplishment, but it really did
not make any money, just covered expenses.
Dexter then earned a J.D. degree from Lewis & Clark Law School in Portland, New York. During
the summer of her rst and second year, she interned at the Department of Justice (DOJ) but
was unable to nd a job after graduation.
At this point, she deduced that she could leverage per passion for music into a job, and once
again start a record label. This time around she would be able to rely on her husband's income
for the household for the rst year or two of her new business. Dexter recognized that in order
to build a sustainable label she would have to forgo revenue and keep overhead low for the rst
year. If she could weather this nancial burden she could make the business model work.
To unlock help try Upmetrics!
Dexter will be the primary employee. She will be working long hours, often with her husband's
help, but after some sweat equity, the business model will begin producing revenue. Dexter will
not take a salary for the rst two years in order to build the business. For year three she will
draw a salary. Dexter will hire two other employees to assist her.
Sales- this position will sell CDs at concerts by being present at a booth or table at the
various live performances.
Distribution- this position will be responsible for the distribution of the CD to the retailers.
•
•
To unlock help try Upmetrics!
Fearless Records
Fearless Records
Record Label Company | Business Plan [YEAR] 27/38
Start writing here..
Important Assumptions
The nancial projections of the company are forecast on the basis of the following assumptions.
These assumptions are quite conservative and are expected to show deviation but to a limited level
such that the company’s major nancial strategy will not be affected.
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10,00% 11,00% 12,00%
Long-term Interest Rate 10,00% 10,00% 10,00%
Tax Rate 26,42% 27,76% 28,12%
Other 0 0 0
Brake-even Analysis
Monthly Units Break-even 5530
Monthly Revenue Break-even $159 740
Assumptions:
Average Per-Unit Revenue $260,87
Average Per-Unit Variable Cost $0,89
Estimated Monthly Fixed Cost $196 410
The last component of a Record Label Business plan is an in-depth nancial
plan. The nancial plan crafts a detailed map of all the expenses needed for
the startup and how these expenses will be met by the earned prots. It is
recommended that you use our nancial planning tool for guiding you
through all nancial aspects needed to be considered for starting a Record
Label business.
To unlock help try Upmetrics!
The following sections presents important nancial information.
To unlock help try Upmetrics!
Fearless Records
Record Label Company | Business Plan [YEAR] 29/38
Projected Prot and Loss
Revenue
$967,563.90 $1,126,256.25 $1,318,688.25
Music Sales
$115,200 $120,960 $127,008
Unit Sales
96,000 100,800 105,840
Unit Price
$1.20 $1.20 $1.20
Concerts and Live
Performances
$450,000 $495,000 $544,500
Unit Sales
15 17 18
Unit Price
$30,000 $30,000 $30,000
Merchandising
$402,363.90 $510,296.25 $647,180.25
Unit Sales
26,824 34,020 43,145
Unit Price
$15 $15 $15
Cost Of Sales
$228,496.09 $251,161.39 $279,906.82
General Costs
$228,496.09 $251,161.39 $279,906.82
Marketing and Distribution
Costs
$184,236.22 $195,029.22 $208,717.45
Advertising
$40,236.22 $51,029.22 $64,717.45
Distribution fees
$144,000 $144,000 $144,000
Music Production Costs
$44,259.87 $56,132.17 $71,189.37
Studio Rental
$30,847.84 $39,122.60 $49,617.04
Producer Fees
$13,412.03 $17,009.57 $21,572.33
Revenue Specic Costs
$0 $0 $0
Personnel Costs (Direct
Labor)
$0 $0 $0
2024
2025
2026
Record Label Company | Business Plan [YEAR] 30/38
Gross Margin
$739,067.81 $875,094.86 $1,038,781.43
Gross Margin (%)
76.38% 77.70% 78.77%
Operating Expense
$526,562.35 $565,735.56 $610,935.79
Payroll Expense (Indirect
Labor)
$356,700 $365,889 $375,323.52
Management Team
$142,500 $146,775 $151,178.28
Label Manager
$75,000 $77,250 $79,567.56
Marketing Director
$67,500 $69,525 $71,610.72
Creative Staff
$108,000 $110,160 $112,363.20
Producer
$57,600 $58,752 $59,927.04
Sound Engineer
$50,400 $51,408 $52,436.16
Administrative Staff
$106,200 $108,954 $111,782.04
Administrative Assistant
$43,200 $44,064 $44,945.28
HR Manager
$63,000 $64,890 $66,836.76
General Expense
$169,862.35 $199,846.56 $235,612.26
Studio and Production
Costs
$51,009.14 $61,377.28 $73,878.37
Studio Rental
$45,644.35 $54,573.34 $65,249
Equipment Maintenance
$5,364.79 $6,803.94 $8,629.37
Marketing and Promotion
$60,378.21 $69,167.22 $79,432.74
Advertising Campaigns
$48,378.21 $56,312.82 $65,934.42
Social Media Promotion
$12,000 $12,854.40 $13,498.32
Operational Costs
$58,475 $69,302.06 $82,301.15
Oce Rent
$39,123.72 $46,776.93 $55,927.39
Utilities
$19,351.28 $22,525.13 $26,373.76
2024
2025
2026
Record Label Company | Business Plan [YEAR] 31/38
Bad Debt
$0 $0 $0
Amortization of Current
Assets
$0 $0 $0
EBITDA
$212,505.46 $309,359.30 $427,845.64
Additional Expense
$17,423.53 $16,878.30 $16,299.41
Long Term Depreciation
$14,664 $14,664 $14,664
Gain or loss from Sale of
Assets
$0 $0 $0
EBIT
$197,841.46 $294,695.30 $413,181.64
Interest Expense
$2,759.52 $2,214.28 $1,635.41
EBT
$195,081.93 $292,481 $411,546.23
Income Tax Expense /
Benet
$0 $0 $0
Total Expense
$772,481.97 $833,775.25 $907,142.02
Net Income
$195,081.93 $292,481 $411,546.23
Net Income (%)
20.16% 25.97% 31.21%
Retained Earning Opening
$0 $188,081.93 $478,562.93
Owner's Distribution
$7,000 $2,000 $2,000
Retained Earning Closing
$188,081.93 $478,562.93 $888,109.16
2024
2025
2026
Record Label Company | Business Plan [YEAR] 32/38
Projected Cash Flow
Cash Received
$967,563.90 $1,126,256.25 $1,318,688.25
Cash Paid
$757,817.97 $819,111.24 $892,478.02
COS & General Expenses
$398,358.44 $451,007.94 $515,519.09
Salary & Wages
$356,700 $365,889 $375,323.52
Interest
$2,759.52 $2,214.28 $1,635.41
Sales Tax
$0 $0 $0
Income Tax
$0 $0 $0
Net Cash From
Operations
$209,745.93 $307,145.01 $426,210.23
Assets Sell
$0 $0 $0
Assets Purchase
$70,000 $0 $0
Net Cash From
Investments
($70,000) $0 $0
Amount Received
$150,000 $0 $0
Loan Received
$50,000 $0 $0
Common Stock
$0 $0 $0
Preferred Stock
$0 $0 $0
Owner's Contribution
$100,000 $0 $0
Amount Paid
$15,840.15 $11,385.38 $11,964.27
Loan Capital
$8,840.16 $9,385.40 $9,964.27
Dividends & Distributions
$7,000 $2,000 $2,000
Net Cash From
Financing
$134,159.85 ($11,385.38) ($11,964.27)
2024
2025
2026
Record Label Company | Business Plan [YEAR] 33/38
Summary
Starting Cash
$0 $273,905.78 $569,665.41
Cash In
$1,117,563.90 $1,126,256.25 $1,318,688.25
Cash Out
$843,658.12 $830,496.62 $904,442.29
Change in Cash
$273,905.78 $295,759.63 $414,245.96
Ending Cash
$273,905.78 $569,665.41 $983,911.37
2024
2025
2026
Projected Balance Sheet
Assets
$329,241.78 $610,337.41 $1,009,919.37
Current Assets
$273,905.78 $569,665.41 $983,911.37
Cash
$273,905.78 $569,665.41 $983,911.37
Accounts Receivable
$0 $0 $0
Inventory
$0 $0 $0
Other Current Assets
$0 $0 $0
Long Term Assets
$55,336 $40,672 $26,008
Gross Long Term Assets
$70,000 $70,000 $70,000
Accumulated Depreciation
($14,664) ($29,328) ($43,992)
Liabilities & Equity
$329,241.77 $610,337.37 $1,009,919.33
Liabilities
$41,159.84 $31,774.44 $21,810.17
Current Liabilities
$9,385.40 $9,964.27 $0
Accounts Payable
$0 $0 $0
Income Tax Payable
$0 $0 $0
2024
2025
2026
Record Label Company | Business Plan [YEAR] 34/38
Sales Tax Payable
$0 $0 $0
Short Term Debt
$9,385.40 $9,964.27 $0
Long Term Liabilities
$31,774.44 $21,810.17 $21,810.17
Long Term Debt
$31,774.44 $21,810.17 $21,810.17
Equity
$288,081.93 $578,562.93 $988,109.16
Paid-in Capital
$0 $0 $0
Common Stock
$0 $0 $0
Preferred Stock
$0 $0 $0
Owner's Contribution
$100,000 $100,000 $100,000
Retained Earnings
$188,081.93 $478,562.93 $888,109.16
Check
$0 $0 $0
2024
2025
2026
Business Ratios
Year 1 Year 2 Year 3 Industry Prole
Sales Growth 4,35% 30,82% 63,29% 4,00%
Percent of Total Assets
Accounts Receivable 5,61% 4,71% 3,81% 9,70%
Inventory 1,85% 1,82% 1,79% 9,80%
Other Current Assets 1,75% 2,02% 2,29% 27,40%
Total Current Assets 138,53% 150,99% 163,45% 54,60%
Long-term Assets -9,47% -21,01% -32,55% 58,40%
TOTAL ASSETS 100,00% 100,00% 100,00% 100,00%
Current Liabilities 4,68% 3,04% 2,76% 27,30%
Long-term Liabilities 0,00% 0,00% 0,00% 25,80%
Total Liabilities 4,68% 3,04% 2,76% 54,10%
Record Label Company | Business Plan [YEAR] 35/38
Year 1 Year 2 Year 3 Industry Prole
NET WORTH 99,32% 101,04% 102,76% 44,90%
Percent of Sales
Sales 100,00% 100,00% 100,00% 100,00%
Gross Margin 94,18% 93,85% 93,52% 0,00%
Selling, General & Administrative Expenses 74,29% 71,83% 69,37% 65,20%
Advertising Expenses 2,06% 1,11% 0,28% 1,40%
Prot Before Interest and Taxes 26,47% 29,30% 32,13% 2,86%
Main Ratios
Current 25,86 29,39 32,92 1,63
Quick 25,4 28,88 32,36 0,84
Total Debt to Total Assets 2,68% 1,04% 0,76% 67,10%
Pre-tax Return on Net Worth 66,83% 71,26% 75,69% 4,40%
Pre-tax Return on Assets 64,88% 69,75% 74,62% 9,00%
Additional Ratios
Net Prot Margin 19,20% 21,16% 23,12% N.A.
Return on Equity 47,79% 50,53% 53,27% N.A.
Activity Ratios
Accounts Receivable Turnover 4,56 4,56 4,56 N.A.
Collection Days 92 99 106 N.A.
Inventory Turnover 19,7 22,55 25,4 N.A.
Accounts Payable Turnover 14,17 14,67 15,17 N.A.
Payment Days 27 27 27 N.A.
Total Asset Turnover 1,84 1,55 1,26 N.A.
Debt Ratios
Debt to Net Worth 0 -0,02 -0,04 N.A.
Current Liab. to Liab. 1 1 1 N.A.
Liquidity Ratios
Net Working Capital $120 943 $140 664 $160 385 N.A.
Record Label Company | Business Plan [YEAR] 36/38
Create a winning business plan that gets you funded
Creating a stunning and investment-ready plan requires no writing, graphic designing, or nancial
planning expertise.
Upmetrics has all the features required to help you create a comprehensive business plan—from start to nish.
Make no mistakes, it’s the modern way of planning to structure ideas, make plans, and create stunning pitch
decks to awe investors.
Pitch decks that impress investors
Create pitch decks that provide a visual
representation of your business, engage
investors, and make them want to invest in your
business idea.
Interactive plans in no time
Import business plan sections like—SWOT
analysis, comparison tables, and others to create
an interactive business plan. No designing skills
are required.
Stunning cover page designs
With Upmetrics, you have the liberty to choose
from multiple stunning cover page designs.
Choose a creative design and make your plan
stand out.
500+ sample business plans
Simply import a template from our library of
sample plans into the editor and start
customizing it to make it yours. It takes only a few
clicks to get started.
Online sharing made simple
Upmetrics makes online sharing quick and easier
for users. Easily share your business plans with a
link while tracking reader activity.
Collaborate with team in real-time
Invite team members, initiate conversations,
discuss ideas & strategies, share feedback, and
work on a business plan in real-time.
