Write your music business plan now! Put your vision on paper for a road map to success.
Download a business plan outline at the end of this blog.
Write your music business plan. It is at the heart of our recording studio. Check out the video to see how much we value that foundation.
People don’t plan to fail they fail to plan
Written by Charles Acoba, Executive Director of Jungle AE.
In my recent Jungle Raw Interview Chief Engineer, Excel Cruz, asked me why to write a music business plan is important. I responded with a short answer that people don’t plan to fail but fail to plan. That will save time which is a commodity that nobody will ever get back. Business planning is a tool for fund-raising. It’s an understanding of where the business is today and where the business should be in a certain amount of time. Business planning is how your business is put together.
They have many business plan outlines out there
but the ones I put together have three sections: the Executive summary, Marketing and Financial plan. These plans have raised me over half a million dollars for various ventures. I usually start at the end. I put together a 3 – 5 year forecast with expected revenues, expenses and profits. After that, I build a marketing plan around it. If I cannot justify a solid marketing plan for the revenues I go back, then I redo the forecast. Once I finish the Financial and Marketing plan, I put together the Executive summary. This summary has my short and long term goals. It also includes a staffing and operation plan.
Everything in this plan has to make sense if one thing seems off then it will need to be fixed. Writing out this plan helps review everything at once and you can see things that may have missed. For example, you want to open up 4 stores after years 2 but did not account for rent or insurance for the additional openings. You will then need to go back to the financial plan to account to try and get a more accurate profit/loss for the years to come. With a solid plan, go out and raise funds from investors. Since you have already thought about ‘what is in it for the investor, then all the questions they may have, you have already predetermined how to answer.
Goals without deadlines are just dreams.
Do not confuse your dreams with goals. Dreams are free. Goals do not come without a price (time, money, effort, sweat). How much are you willing to spend to get to your goals? Goals have deadlines. Little wins in the time frame needed to make goals happen are crucial. Dreams are just dreams. People maintain their dreams their whole entire life without ever reaching it. Now with all that in mind, the goals you set in your business plan needs to be realistic.
You are the only person holding you accountable for results on a daily basis. Your plan becomes a baseline for monitoring your progress. If you say you want to complete a certain task by a certain date and it gets done early, you can ask yourself why. Did you occur an unexpected breakthrough? Did someone put in a heroic effort? Or did you just overestimate? What you learn will help you do an even better job next time.
The way your business is put together is very important,
especially for attracting the best people to put on your team. When people on your team know exactly what they are required to do and understand your business, then less complications will happen. Putting this all together in your plan can help pre determined detailed reactions when choosing people to put on the team. Plus, the written record of your goals coupled with a track record of delivering against those goals sends a message loud and clear: You understand your business and can deliver the results you promise. Great team members will respond to that message-as will banks and investors the next time you need to raise money.
To write your music business plan is not just a tool for raising funds but to manage yourself and business, the operations and recruiting. I have attached the outline of the business plan that has raised me over half a million dollars and in different ventures.