Business Plan

Why Do I Need One?

Congratulations for making it this far through the business development course! The good news is the majority of the creative brain bending thinking work is now done, it is now a matter of compiling everything you have already decided into one neat and uniform document.

We have already covered, many times before in this course, that your music is looking at your career as an artist in the same way an entrepreneur looks at their new start-up. Your business plan is your singular document which encapsulates your entire plan answering the main questions:

1. 1. What is your product
   2. Who is your audience
   3. How will you make money 

When introducing new members to your team, going for private investment, bank loans or public funding – your business plan will be the key to your success. No one can predict the future, but a well constructed business plan which shows a decent ROI will be as good as when pitching to these entities.

We would highly recommend only completing this module should you have already completed modules 1 – 9 of this whole Business Development course. 

What’s Included

Most business plans are broken down into the same unified format and following this setup will place you in great stead with anyone reading it on the other end. Although this is your entire creative life, the reader – who may have to read 20 other business plans that day – will not appreciate it if they have to work hard to find the key information.

Executive Summary

This is the top-line summary for the whole project. Who is included in your project? Where was it recorded? How did the project come about? Remember back in modules 1 and 6 when you created your mission statement? Add that in here too! Keep it short, punchy and to the point. Some people find it easier to write their executive summary at the end of the business plan bearing in mind everything they include throughout. 

Think back to module 5 – Narrative – you will have identified all that is about you as an artist there. The language defined in this module will lead the language used in this element to your business plan.

Product Definition

Here is where you include your project finer details – your “product” is your music project. In this segment, explain what makes your project different and why does this stand out against all the other millions of projects being released at the same time.This is the first time you are able to captivate the attention of the reader and make them want to part with their money to pay into your project. 

It’s well worth mentioning your goals and objectives that you identified in module 2 – Goal Setting – in this segment too. If the reader can see early on that you have a strong idea of what you want to achieve with the project, it will assist them in deciding if they want to back it or not. 

To think of this in non-music terms, this is where a company will include their USPs, copyrights, manufacturing process, R&D and any technology. So for music, this is not too far different:

• • • Manufacturing process = writing, recording & production
    • Unique Selling Points (USPs) = What makes your music and visuals stand out
    • Copyrights = who has majority splits in the project
    • R&D = Personal and creative development worthwhile mentioning 
    • New technology = new sounds / production techniques

Market Analysis

This section will show the reader of your business plan that you have assessed the area of the market you will be releasing music into and have concluded that there is a space for your own. 

Include here the SWOT analysis you will have completed in Module 1 and answer these questions:

• • What is your market? (genre, where people will hear your music)
  • Who are your competitors?
  • What are your music’s strengths / weaknesses?
  • What is the expected demand for your music?

Marketing Strategy

This whole area will have been covered in module 7 of this business development course so it is time to extract the edited highlights from your marketing plan and implement this here. This segment will answer the following:

• • Who are you selling to?
  • Which marketing channels will you use?
  • How much budget will you assign to this?
  • When will you shout about your project? 

This is also the place to reference your branding guidelines and all you constructed within them in module 6. Branding 🤝 Marketing – remember this. They go hand in hand and cannot be effectively rolled out without each other. Your marketing channels must absolutely reek of your branding and this should be spotted from a mile off. 

Financial Planning

Similarly to all other elements to the business plan so far, you will have covered all your financial planning in modules 3 and 4 of this course. 

This is where you will explain the project’s financials. Include your targets and estimates throughout the project. Additionally, here is where you will detail the sources of funding you aim to use or are already currently using. 

Budget

Every project needs a budget. This will include all your costs for project including (but not limited to!):

• • • Studio costs
    • Production 
    • Content creation
    • Promotion
    • Consultants
    • Marketing
    • Travel
    • Features

Do not miss a single item off your budget sheets – even if it is a large cost and you are worried it will put potential investors. Same goes for the smaller costs, these add up in the end so make sure you don’t miss them out!

What Leads to Failure

Poor Assumptions

Even the strongest business plan can fail due to an abundance of different reasons. The primary reason is over or under assuming your projections and outcomes This will stem from poor research.

Poor assumptions can lead to a lack of cash flow and before you know it, your project is dried up and over before you really got going. 

To alleviate this, get yourself a mentor who is well versed in writing and investing in successful business plans. Ask them to tear it apart in the same way an investor, a bank, a funding organisation or a new member to your team will do if it doesn’t make complete sense.

Make it Make Sense

Not being direct and to the point – think twice about which information you include. Your project is your baby and you are / should be extremely proud of it. However the recipient of your business plan is only interested in the core details. Don’t fluff up your point, keep it easy to understand – bullet point areas if you need. 

For you, you will understand your concept inside out but to someone reading about it for the first time, you need to cut the “nice to know” from the “you need to know this”. Adding in too much information can make it hard to follow and confusing.

Does Everything Add Up?

Double, triple and quadruple check those numbers – then send it to at least three other people to run the numbers too. The quickest way to make it look like you have no idea what you are doing, is to present a business plan where the numbers don’t add up. 

Where Did You Hear That

Anyone can put anything in a business plan – it doesn’t make it fact. If you are making a point regarding the market you are entering, stats about the industry or anything that isn’t common knowledge – reference where you found this information. It will reinforce to the reader that you have in fact done your research and you really know your stuff.

There is heaps of research out there, go find it – saves you the effort of having to do any of it yourself. It goes without saying – make sure the research you reference is reliable and trustworthy!

Task

Go ahead and construct your full business plan! Using everything we have covered in this module – nay – this course! 

Remember, keep things sleek, professional and to the point. Each section should be no olonger that a page or two. 

Also, you are not bringing a new product to market – music is music – however, you are bringing yourself and your unique branding / messaging to the industry. 

Contents:

1. 1. 1. Executive Summary 
      2. Product Description
      3. Market Analysis
      4. Marketing Plan
      5. Financials
      6. Budgeting + Projections