The notion of a band being a business is one that few musicians are willing to accept. A band that does not accept this fact is still running a business but is probably running it very poorly and losing countless financial opportunities. Accounting, Management, and Marketing are all crucial factors in achieving success in this cut-throat industry.
Any venture desiring success must first define what success means to them. Is success playing 50 shows per year? How about 50 shows per year to crowds of 500+ fans. Or even better, 50 shows per year to crowds of 500+ fans paying $10 for tickets. Whatever your definition of success, it must be determined from the start. That definition will be your goal and should always be your your guiding light.
"Failing to plan is planning to fail." It's a cliche'....and a handy one to bare in mind. You have your lofty goal of selling 10,000 albums per year. That is a great goal, but no goal is worth a dime if you don't know how you are going to get there. So many times, musicians take a haphazard approach to their operation. They know they want to be the next Led Zeppelin, but planning it out is too boring. They "need" to be out there playing shows and living the rock lifestyle. Wrong! Sure, shows are important. But, if there are 12 people at your show, including your parents and a couple aunts and uncles, that show is likely a waste of your time. It might be good practice, but once you're past the beginner's stage, it's time to get serious.
So, now that you're sold on business planning, here's how to do it. There are many variables that must be addressed in your business plan including marketing, competition, operating procedures, personnel, finance, and accounting. Seriously, all of these must be addressed. To have fans you need to market. That's pretty obvious. You need top of the line marketing materials, so people take you seriously. What other bands out there are begging for the same gigs that you want? What do they play? How good is their show? Can yours be better than theirs? These are all questions you have to ask yourself. Fans are going to go to the most entertaining show, so you need to be competitive with the other acts in your region.
How will you run the band? How many times per week will you practice? What time are these practices? How many songs need to be rehearsed/written at each practice? These things must be planned out, or too much time will pass with nothing accomplished. Who is going to buy the van, PA, and other equipment? It may be necessary to look into financing and work with your band to find options that work for you. And finally, the most boring of all, accounting. You will sell albums, T-shirts, hats, tickets, and a multitude of other merchandise. You must know what you owe your suppliers for these items, when it must be paid, how many you need to order to satisfy the demand of your fans, how much you must charge to turn a profit, and how much tax you owe.
There you have it. The primary components of any worthy business plan. If you're serious, figure out how you're going to get there first and be persistent.
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