MUSICIAN AS ENTREPRENEUR, BAND AS BUSINESS

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Musician asEntrepreneur

CALLS TO ACTION

FileforanLLCforyourband FileforanLLCforyouPublishingCompany Writeaplanforyourbusinessdescribingwhatyou

willbedoingin1to2yearsandhowyouwillac-complishthegoalsyouset

Why You Are An Entrepreneur With Big AdvantagesInthisSectionyouwillhearfromsevenmusicindustryprofessionalsdiscussingwhymusiciansareentrepreneursandsmallbusinesses.

Mostpeoplewhowanttostartabusinessthinkofaproductorservicethattheycanprovideormakeandsell.Itsallabouttheproduct,whyitsneeded,whatitdoestomakepeoplesliveseasierorbetter,whatgapdoesitfill,andwhyitssocool.

Themusicianhassimilartraitstoanentrepreneurbutmusiciansandartistsdonotthinkofthemselvesasentrepreneurs.Anentrepreneurcreates,builds,sharesandsellsaproductorserviceforwhichheorshehasabsoluteconviction.Anentrepreneurbelievesthatwhattheydomattersbutiftheycantsellit,iftheycantconvinceothersofitsnecessity,theyknowthatthereissomethingwrongwiththeirstrategyortheirproduct

Why You Are a Businesss 3

MUSICIAN AS ENTREPRENEUR, BAND AS BUSINESS

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andtheyadjusttheirstrategyorproductaccordingly.

Makingmoneyfromwhatyoudoisntsellingout;itisanindicationthatotherpeoplevaluewhatyoudo.Beingpaiddoesntmeanthatyouvecompromisedyourmusic.Itmeansthatyouarelivingyourvaluesandstayingtruetowhatyoubelieveandthatyouhavefoundawaytomonetizeyourpassion.Itmeansthatyouareauthentic,genuine,trustworthy,respectedandthatyouaremakingmeaningthatisworthyoftheattentionofotherpeople.Itmeansthatyourvaluesareaalignedwiththeirvaluesinsuchawayastocreaterelationshipsandconversations.Suchabeautifulrealityisunworthyofcynicismanddoubt.Itis,ontheotherhand,mostworthyofenhancement,continuity,nourishmentandsustainability.

Musiciansaresmallbusinessesonthehoof.Smallbusinessisthebackboneofoureconomyandentertainmentisthenumberoneexportofthiscountry,forbetterorworse.Roughlydefined,thecreativeindustriesofthiscountryaccountforalmostathirdoftheGDP.Theculturaleconomyisaneconomicforceineverycommunityinthiscountry.Youareanessentialmemberofthatculturalcommunity.

ThewordentrepreneurcomesfromtheFrenchwordentreprenmeaningtoundertake.Andgoingbackfurther,fromtheLatinintermeaningbetweenoramongandtheverbpenderemeaningtotake.AnentrepreneurissomeonewhoDOESsomething,whoundertakes,whotakesaction.

Musiciansarenaturallyentrepreneurial;theyhavethesametraitsthatwenormallyascribetoanentrepreneur:

Wantstoworkforthemselvesanddoesnotwanttoworkforsomeoneelse

CancommunicatehisorherideasHasoriginalideasandarecreativepeople

Isnotafraidtotakerisksbutdoeseverythingpossibletomitigatethem

Artists House Articles:

TheImportanceOfSettingGoalsAndTrackingProgressForEntrepreneurs

TheSharedCharacteristicsofEntrepreneurs

WhyItsAGreatTimeToBeAMusicIndustryEntrepreneur

Artists House Editors guides:

EditorsGuide:Entrepreneurship

EntrepreneurshipforEducators

StartingYourOwnIndependentLabel

Artists House Keyword Searches:

Entrepreneurship MusicIndustryToday IndependentLabels Partnership Organizations Mentor Finance Networking Motivation

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Seesopportunityandtakesit

Understandstheconstantneedforinnovationandimprovement

Isaproblemsolver,acandoperson,acloser

Overcomesadversityanddoesnttakenoforananswer

Hastheself-confidencetofightforwhattheybelieve

Ithinkmusiciansandartistshavethesesamequalities.Foranadditionalperspectiveonthisidea,seeGeorgeHowardsarticleonArtistsHouse,TheSharedCharacteristicsofEntrepreneurs

Musicianshaveanothermajoradvantagethattheytakeforgranted:theyunderstandthemethodologyofimprovingeveryday.Itscallpracticing.TheycanfocusforhoursatatimeonimprovingtheirskillsandabilitiesontheirinstrumentswithoutconsultingFacebook,withoutsurfingthenet,andwithoutTweetingeverydetailoftheirotherwisefascinatinglives.The12year-oldguitarplayerwillsitonthecornerofhisbedandpracticeStairwaytoHeavenuntilhegetsit,skippingfoodandtextingifhehasto.Nothinggetsinthewayofadeterminedmusician.

Thethirdmajoradvantageofmusiciansandartistsisthattheycanmakewealthouttheirimaginations.Thisisaphenomenalability.

Doyouwritesongs?Doyoumakesoundrecordings,videos?Doyouwritestoriesormethodbooks,doyoutakephotographsorproduceothervisualworks?Federalcopyrightstatutesprotecttheseandothercreativeworks.Thesestatutesprovideyouwithexclusivelegalandbusinessrightsthatyoucanmonetize,asyouwilllearnasthecoursegoeson.Allofthesepursuitsandrightsthatattachtothemmakebusinesses.

Assoonasyoumakeyoursongtangible(itcantbejustanideainyourhead),whetheryouwriteitonanapkinorrecordittoyouriPhone,acopyrightiscreatedandsixexclusiverightsattach.(Registrationdoesnotmakecopyright,theactofcreating

YouTube Links:

EricaOlsensvideosforVirtualStrategistaboutbusinessplanningareshort,tothepoint,andpackedwithgoodinformation.Hereisalistofwhatyouwillfindatthatlink:

SWOTanalysis:Howtoperformone

HowtowriteaMissionStatement

HowtowriteaValuesStatement

HowtowriteaVisionStatementthatinspires

Thesecrettostrategicplanning

ChoosingyourStrategicObjectives

Howtoperformcustomersegmentation

HowtodevelopCompetitiveAdvantage

CommonPitfallsinStrategicPlanning

HowtosetSMARTgoals

Howtodevelopkeyperformanceindicators

Howtodevelopactionplansforyourbusiness

Strategicplanningwithabalancedscorecard

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aprotectedworkcreatesthecopyright.Youregisteryourcopyrighttocreateremedies,aswewilldiscuss.)

Twooftheseexclusiverightsaretherighttocopyandtherighttodistribute,thatis,toreproduceandshare.Ifyouhavetheexclusiverightstocopyanddistributeyoursong,amongotherthings,whatdoesthatmakeyou?

Itmakesyouamusicpublisher.YouhavethesamerightsofUniversalMusic.Youmaynothavethesameresourcesandthesamereachbutyouhavethesamerights.OnlyYOUhavetherighttomakecopiesofyourworkandtodistributeit.Thatswhyyouareabusinesswhetheryouwanttobeornot,whetheryoulikeitornot.Acreativepersonisbasicallyinthepublishingbusinessbecausealloftherightsthatattachtotheircreativeworkhavetodowithmakingthemavailabletothepublic.

Thepointis,thecreativeactofcomposingamelodyorwritingalyricmakesyouasmallbusiness.Itwasntaboxyoucheckedoraformyoufilledout.Ithappenedtoyouautomaticallyandwithoutyourpermission.Youronlychoiceatthatpointiswhetheryouaregoingtorunyourbusinesseffectivelyornot.Thedefaultsettingisornot.

Youhavethetraitsofanentrepreneur,youcanimproveandinnovateeveryday,andyoucanmakewealthoutofyourimagination,sowhatareyoumissing?Youremissingtheunderstandingthatyourcreativeworkmakesyouabusinessandthatyouareresponsibleforit.Youdonotunderstandbusiness.Youthinkeconomicsisforgeeksandmoneyisnotthemeasureofart.Youthinkthatmakingmusicmakesyoufreebutofwhat,fromwhat?Youhavenoideathatyouarefarmorefreethanyouthink.

Iheardafemalerapartistsayonetime:youdidntknowtillItoldyounowItoldyounowyouknow.

Inotherwords,nowthatyouknow,itsonyou.ThatsthewayIfeelaboutmusiciansandartists:onceithasbeenexplainedtothemthattheyhavealloftheseopportunitiesandrightsthat

Books:

TheArtoftheStart,GuyKawasaki

TheProfitableArtist,PeterKolb

FromGoodtoGreat,JimCollins

BusinessModelGeneration,AlexanderOsterwalder,YvesPigneur

PickFour,SethGodin

TheCluetrainManifesto,RickLevine,ChristopherLocke,DocSearls,DavidWeinberger

TheLeanStartup,EricRies

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makethemabusiness,itsonthemtomonetizethoserights,torunthebusinessesthattheserightscreateinawaythatcreatessustainability,thatmakesitpossibletomakealivingfromdoingwhattheylove,fromwhattheycareaboutthemost,fromwhatgivestheirlivesmeaning.

Thisabilitytocare,tofollowyourbliss,tousemethodtoimproveandinnovate,appliestoanyotherundertakingyoumightchooseinthefuture.Andengagingincreativethoughtandcreativeworkwillnotonlygiveyourlifemeaningandpurpose,itwillmakeyouabetterperson,amoregivingandsharingperson,abettercitizen,abetterparent,abetteranything.

Thiscourseisdesignedtohelpyourunthebusinessesyourworkscreateinamoreeffectiveandsustainableway.Youwillhearfrommanyexperts,youwillheardiscussionsofeverymajoraspectofthecreativeenterprise,andyouwillunderstandandtakespecificstepstoaccomplishyourdailyactionplans,yourmonthlytacticsandyourlong-termstrategies.

Theonlywaytofindoutifyoucanhaveacareerinthecreativeartsistoengageinit.Asongwriterwritessongs,aperformerperforms,apainterpaints.Itisnotamystery.Andyouwillhavetoreadbooksandaskquestionsandengageyourfansifyouwanttohaveacareersellingthemstuff.

Disciplineisntamatterofchoosingbetweenthingsyoudontwanttodoandyoudowanttodo.Itisamatterofchoosingamongthethingsyouarecapableofdoingandwanttodo.Ifyouwanttogetreallygoodatsomething,tobeonething,likeamusician,youllneedtofocusalmostexclusivelyonthat.Thatincludessharingwhatyoudowithmorepeople.

Thecircleofcreativityisnotcompleteuntilyoushareyourworkandthatactionrequiresvariouscreativeskillsetsthatresultincopyrightsinmostifnotalloftheeightcategoriesofcreativeworkprotectedbyfederalcopyrightstatutes.

Beingacreativeartistisamatterofself-definition:whoareyou?Whodoyouwanttobe?Whatdoyoureallycareabout,what

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doyoulove?Afteryoubegintoanswerthesequestionsandyouworkashardasyoucantomaketheanswerscometrue,thenperhapsyouwillbefortunatetofindsomeonetosharethatlifewith,inwhicheventyouwillmostcertainlylivehappilyeveryafter.

Makemusic,makemeaning,makemoney.

Business EntitiesAsMaggieLangepointsoutinhervideoclip,onceyoudecidethatyourbandoryourmusicisworkingandyouwanttobemoreformalaboutitsorganization,youllneedtoconsidertwothings:thecorporatestructureofyourbusiness(es)andtheagreementthatgovernshowabandoperates.

Thereareseveralwaystoorganizeyourbusiness:soleproprietorship,apartnership,asub-chapterScorporation,alimitedliabilitycompany(LLC),oracorporation(Inc.).Oneofthereasonsthatyouorganizeanentitythatisseparatefromyourselfistoinsulateyourselffrompersonalliabilityfortheactionsandconsequencesofyourbusiness.

TheeasiestandcheapestwayofdoingthisistofileforaLLCwiththeSecretaryofStateofwhateverstateinwhichyoulive.Itsusuallyadownloadableformanditsahundredbucksorso.Fillitout,paythefee,andthestatewillsendyouwithacertificatethatrecognizesyourcompanyasanindependententity.ThesemeansthatyoucanopenabankaccountinthenameoftheLLCandthatanyliabilitythatattachestotheactionsundertakenbytheLLC(yourband,forexample)isconfinedtotheassetsofthatentityandexcludeyourownpersonalassets.

InLouisiana,whereIlive,intheabsenceofanyofficialdocumentrelatingtoyourband,thestatewillconsideryou,bydefault,ageneralpartnership.Thisisnotnecessarilythebestresultforyou.IfyouareabandandyoutakemoneyforplayingagigyouwillbedeemedbyLouisianatobeageneralpartnershipintheabsenceofanoperatingagreementforyourLLCorcorporation.

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Thatmeansthatiftheresanaccident,everyoneinthebandwillbepersonallyliableforanydamagessufferedbytheinjuredparty.Italsomeansthatifoneofthememberswantstoleaveorisaskedtoleave,theyhavetobeboughtout.Theyareentitledtoapercentageoftheassetsoftheband.Soiftherearefivepeopleintheband,theneachmemberisentitledto20%oftheassetsoftheband(andisequallyresponsibleforanydebt,bytheway).

Thiscouldgettrickyandcouldresultinthebandhavingtoraisethemoneytobuyoutthememberofthegroupwhosbeenaskedtoleave.Whatareyougoingtodo,sellthePAorthevan?No,youdontwanttodothat.ThatswhyyouneedanoperatingagreementforyourLLCand/orabandagreementamongthebandmembers.

Inanoperatingagreementorbandagreementyoucansetforthwhatittakestogetridofsomebody,whattheyareentitledto,theconsequencesofthedeathofoneofthemembers,whatpercentagevoteyouneedtobuyorsellequipment,whoownsthenameoftheband,howthesongsaresplitup,etc.

Anotherconsideration:ifyouwanttocreateabusinessentityforyourpublishingcompanyyoushouldenrollwithASCAPorBMIbeforeyoufileforyourLLC,mostlybecauseASCAPorBMIwillnotletyouuseacompanynamethatsomeoneelseisalreadyusing.WhenyousignupforASCAPorBMIyouaresigningupasawriterANDapublisherandtheywillaskyouforthreepossiblenamesforyourcompany.

AfteryouhavefixedthenameofyourpublishingcompanywithASCAPorBMI,THENyouregisterforyourLLC,andifIwereyou,IdregisterthecopyrightsinthenameoftheLLC.YouwouldneedasongwritersagreementwiththatLLCbecauseyourpublishingcompanycannotpublishyoursongsunlessyouassignyourrightstoitINWRITING.WelltalkmoreaboutthisinthePublishingsectionofthecourse.

ThepointisyoushouldregisteryourpublishingcompanywithASCAPBEFOREyouregisteritwiththestate.Ifyouregister

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withthestatefirst,youmayendupbeingrejectedbyASCAP(orBMI)becausesomeoneelseisalreadyusingthatname.ThisisnttheworstthingthatcouldhappenbutitwillmeanthatyourpublishingcompanyisnotpartofyourLLCunlessittransfersitsrightsinthesongstothatLLC,inwriting.

Itsimportanttorememberthatforpurposesofthelaw,yourLLCandyouasapersonaretwoseparatepeople.OnereasonyoumightwanttomakeyourpublishingcompanyanLLCis,again,toinsulateyourselfpersonallyfromanyliabilityfortheactionsoftheLLC.

Youcantdoallthiswithoutalawyerunlessyoureverycareful,verydiligent,andfullyinformed.Besttoconsultalawyer.Mostlawyerswillseeyouforaninitialmeetingatnocosttoyousothatheorshecangetanideaofwhatyouneedandforyoutogetanideaofwhatitwouldcost.Anybusiness-orientedlawyercouldhelpyouwithyourLLCfilingandwiththecreationofanoperatingagreement,butonceyougetintospecificcopyrightandmusicbusinessissues,youshouldlookforalawyerwithexperienceandknowledgeintheentertainmentbusiness.

Business PlanningThisisadeepwellandbusinessplanscanbe50-100pageslong.Butstartfromwhereyouare.Thinkintermsofstrategy(wheredoyouseeyourselfinafewyears),tactics(howdoyouimplementyourstrategyoveraperiodofmonths)andnextactions(howdoyouaccomplishyourgoalsinaperiodofdaysorweeks).IliketothinkofthisasStrategicObjectives,TacticalGoals,andActionPlans.EricaOlsenvideosonYouTubeareparticularlyinstructiveinrespectofthesematters.BesuretowatchhervideoonSMARTgoals:Specific,Measurable,Attainable,Realistic,andTimely.

Forexample,letssayyouareplaying3gigsamonthto50to75people,youvesoldafewhundredCDsandmaybeevenafewhundredt-shirts,youhaveamailinglistof300people,youhave200Twitterfollowersand200Facebookfriends,andmaybeyou

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writeafewsongsamonth.

Letsstaythatinayearortwoyouwouldliketodoubleortriplethosenumbers.Thatwouldbeyourstrategic,long-termobjective.Yourtacticswouldbetheshort-termgoalsthatyouwouldsettoachievethoselonger-termobjectives.Thesearethingsyoucanaccomplisheachquarteroreachmonth.So,howdoyouincreaseyournumberofgigs?Whatwouldbeyourgoalsfordoingthat?Writingaplanallowsyoutothinkthroughtheissues,toorganizeyourefforts,toalignallofyoureffortstoaccomplishyourgoals.

Howwouldyougoaboutincreasingthenumberofgigsyouplay?Howaboutimprovingyourshowandmarketingitmoreeffectivelyanddoingeverythingpossibletomakeitamemorableevent?Soyourgoalwouldbe:get150peopletoyourlocalshows(upfrom75).Youwouldthenmakealistoftheactionsthatwouldberequiredtoaccomplishthat.Whenyoucandraw150peopleinyourlocalcommunity(NOTincludingyourfamilyandclosestfriends)youcanexpandinconcentriccirclesfromwhereyoulive.

Drawacircleonthemap,halfthediameterofwhichisdeterminedbythenumberofmilesyoucandrivetoandfromagiginoneday(youcantaffordhotels).Thenyoulookintothevenuesandcollegesinallofthosecitiesandtownsandyoumakealistandyoucontactthem.Makealistofthebandsyoucouldopenfororwhoplayinclubsthatyouwouldwanttoplayandconnectwiththem.Maybetheycanopenforyouinyourhometownandyouopenforthemintheirs.Shareaudiences,sharedata,makefriends.

Youllhavetoromancethetalentbuyerswithyourwebsite,yourSoundCloud,yourelectronicpresskit,etc.YoumighteventakeascoutingtriptothenextclosestcityandintroduceyourselftotheclubsandthetalentbuyersandgivethemyourCDandpresskit.YoucouldtrytogetyourFacebookfriendsinthosecitiestocometoyourgig.Theseareallsubjectsofyouractionplans.

Youractionplansareveryspecificandcouldbequitenumerous.Itsreallyjustagroupofto-dolistsconnectedtogoals.Thatis,

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howareyougoingtoaccomplishthegoal?Ithinkofactionplansaswhat,why,expectedoutcomes,whosresponsible,whenaretheygoingtoaccomplishtheaction,andhowmuchmoneywillitcost.Andthereshouldbemetricsinvolved,somemeasurementofhowyouknowyouareaccomplishingwhatyousetouttoaccomplish.Actionplansaccomplishgoals;goalsaccomplishstrategy.

Thinkofitasaroadtrip.Ifyoudontknowyourdestinationthanyourejustdrivingaroundwithnoplacetogo.ButifyouknowthatyouwanttogotoSeattleandyouliveinAtlanta,youknowyoucantakemanydifferentroutestogettoSeattle,somemoredirectthanothers.YoucouldactuallygoeastbutitwouldtakeyoualongtimetogettoSeattle,anditwouldrequireaboat.

Ifyoureaband,itsimportantthateachpersoninthebandbeheadedinthesamedirection,thattheywantthesamething,otherwiseyourejustabunchofguysorgirlswhoarehavingfunplayingmusic.Ifoneofthememberswantstogotograduateschoolandanotherwantstogetmarriedandanotherhasafundaygig,allofyouarenotgoingtomakeittoSeattle.

Andgiveeveryoneinthebandspecificresponsibilities,specificjobs.Everyoneshouldhavespecificactionplanstoaccomplishforthebandtomoveforward,toaccomplishitsgoals.Thebandisabusinessandsomeonehastodotheworkofthebusiness.Forexample,onepersonbooksthegigs,onepersondoesthemarketing,onedealswiththesoundguyandvenuestaff,onecountsthemoney,onetakescareoftravelarrangements,onedealswiththeguestlist,onetakescareofthemerch,etc.

Therearemanybooks,scoresofbusinessschools,dozensofmusicindustryprograms,amultitudeofYouTubevideos,anever-increasingnumberoffreeandcheaponlinecoursesonbusinessplanningandentrepreneurship.Thedisciplinesofbusiness,donewellcreatetheartofbusiness.Applytheartofbusinesstothebusinessofyourart.Andlikeyourart,youwanttoconstantlyimprove,trydifferentthings,takesomechances,makeplans,dothework,communicateeffectively,knowyourmarket,andmakecoolstuff.Youwanttobeabletokeepdoing

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whatyouloveandthatmeansyouhavetomakemoneyfromit.ApplyingbestbusinesspracticestoyourartisthemosteffectivewayIknowtomakethathappen.

Goodluck!

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PARTICIPANTSNAME TITLE CLIPTITLE TOPICS TIME

1.DaveStewart

RecordProducer;Songwriter;MemberoftheEurythmics,LosAngeles,CA

ArtandCommerce

Art/Commercedivide;ifwantotherstolovewhatyoudoyouhavetoentermarketplace;commercecanleadtocompromise,sticktoyourownvision

2:19

2.JayCooper

Chair,EntertainmentPractice,GreenbergTraurig,LosAngeles,CA

LearnYourBusiness

Musiciansneedtounderstandtheirbusiness,howtheygetpaid

:41

3.GeorgeHoward

COO,Norton,LLC;AssociateProfessoratBerkleeSchoolofMusic,BostonMA;Musician;Producer;Educator;Attorney;Author

Strategy Entrepreneurship;mission,vision,values;strategy;measurablegoalsandactions,reducevariance,beaninformedperson,maximizeassets

5:44

4.MaggieLange

EntertainmentAttorney,ofCounsel,PerkinsSmith&Cohen;AssistantProfessor,BerkleeCollegeofMusic,Boston,MA

Entity;BandAgreement

Bandagreements,trademarkthenameofyourband,howisthemoneydivided,arethesongwritersroyaltiessplit?Whatistheformofyourbusinessentity,partnership,LLC,Inc.

3:22

5.JerryGoolsby

Professor,MBAProgramDirector,CollegeofBusiness;Hilton-BaldridgeEminentScholarofMusicIndustryStudies,LoyolaUniversity,NewOrleans,LA

BusinessPlan Bandasbusiness,ithelpstohaveaplanthatdealswithgoals,whodoeswhat,timelines,andvariousothercomponents

1:58

6.DaveNeupert

CEO,M80Services,LosAngeles,CA FailureIsNotAnOption

Failureisnotanoption;lookfortheholeinthemarket,itsalifestyle,astateofmind,allconsuming

2:20

7.JimEllis RecordProducer;Songwriter;Composer;Musician,Atlanta,GA

YouAreABusiness

Thinkofyourselfasatinybusiness;whatyoudoandwhopaysforit,haveyourquicksellrap,dontlooklikejustwokeup,ifyoureaplayer,whohiresplayers,youhavetobeintowin

2:10

TOTALTIMETOTALCLIPS

18:377