DON'T STOP THE MUSIC BUSINESS

Would it be PURE BLISS to have a room full of people “in love” with the music business despite the trade’s financial woes during the last decade?

The question has been ringing in my mind since attending the NARM convention in Chicago a year ago. Is it the nostalgia of being in the mist of music retailers wrangling over how they need more marketing attention from major labels and large independents? Was it networking in the hallways with reps from entertainment marketers, international record companies, local music labels, or the owner of a popular St. Louis record store who lamented: “I made more money last year than most of the people in that room” (music retailers conference)? Could it have been attending a Sony Music sponsored artist showcase like those written about in Clive Davis’ memoirs as if it just jumped out of the book?

Although the answers to the aforementioned questions do not resolve the question of pure bliss, they contribute to a certain truth. The kind of truth that would inspire hardcore music business professionals in a stormy commercial season where financial trade associates shy away or forsake the music industry;  the type of partial truths in a group of reasons why students are courageously pursuing a formal music “business” education on undergraduate and graduate levels (despite amassing school debt in a tough economy).

Attendees of the NARM convention and students of higher education do share a commonality – a willingness to evolve, problem solve, and keep the music trade revolving like a CD in a disc player. A similar component found in the minds of the music professional and the student is identical in function as a part in a disc player – a laser focus! It is like no other time in my personal journey in the music business during the last fifteen years that such an intense attention for the trade has existed.

Has the analysis of a stagnating music industry caused my focus to intensify? Did the reality of having to settle the investment in music business education strengthen my foresight? Is the constant news reporting about the downsizing of giant record companies and record store bankruptcies enhancing my resolve to succeed?

Whatever the reasons illuminating my laser-beam focus, it is with confidence in the skills gained from pursuing a music business bachelor degree at Columbia College of Chicago and entertainment master degree from Full Sail University that my will is to DON’T STOP THE MUSIC BUSINESS!

__________________________________________________________________________________

REFERENCES:

1)   NARM 2010 Conference in Chicago; http://www.narm.com/events/happenings-recaps/

2)   Clive: Inside The Record Business; Clive Davis with James Willwerth; Chapter 5, Section 4, pp. 81-83

SHOW MUSIC STORES THE MONEY!

Funding a music business record store comes with familiar start-up challenges.  The types of financing available for a music store are generally identical as those for other business.  Several of the options for generating monies for a business venture involve getting loans from a bank.  Asset-backed or equity loans require a guarantee of some form of collateral (i.e. equipment, property, etc.); however, since equipment used for operating the business could be jeopardized in the event of defaulting the loan, then, an asset-backed loan may be risky.  If sharing ownership or administrative control with investors is an option, then, venture capitalist or business angels may be another funding option. A split of the profits from the business revenues, as well as, managerial or operational support for the business is what venture capitalist will exchange for financing. The SBA or Small Business Administration of the U.S. Government offers several grants and loans for qualifying business owners.  Although grants awarded by the SBA do not have to be rapid, a loan must be repaid on a time schedule and with a predetermined interest amount. A few innovative approaches towards getting funding for a record store could be explored outside of traditional loans. If there are supporters from among relatives and peers, then, another alternative for financing may be borrowing money from family and friends.  If securing a loan from banks, venture capitalist or friends and family is not a preferred route, then, offering supporters of independent record stores a chance for ownership is another option.  Patrons or enthusiast of music stores may be willing to jump at the chance to invest in a genuine interest. Ultimately, if it’s a bank loan, venture capitalists, loans from personal supporters, or community investors, a time will come when realizing the vision of a music store will mean asking someone to show you the start-up money.
__________________________________________________

REFERENCES:

1)   How to Open A record Store; http://www.ehow.com/how_4465183_open-record-store.html?ref=Track2&utm_source=ask; Lynda Moultry Belcher.

2)   Record Shop: How To Get Your Own Record Shop on Track; http://www.startups.co.uk/record-shop.html