Twitter is cool. I like it and I use it. However, the gassing is so nauseating that I’ve had to delete it from my mobile phone. I love music and I respect artists, but some of them are living with the fairies in Disneyland.
With that being said, let me explain who I am and what I do. I have a blog. I call it a website/outlet. I do interviews which I’m partially good at, I’ve written in a few newspapers and magazines and I also write editorials called #Rutalk. I’m affiliated with all the major record labels and PR companies. But, fam, I’m not an A&R. I’m not your PR and I can’t sign you to any record label.
I constantly get spammed unsolicited music on my timeline with Tweets promoting YouTube views, RT this and RT that, which has been proven to be pretty irrelevant in relation to actual success achieved in the music business. It’s honestly the blind leading those who never saw. I know people will disagree, but let me get my point off.
Today, a lot of upcoming artists rightly highlight lack of investment and needing to be signed. I’ve got an idea for them.
Why don’t you go to your bank, sit down with the manager, and show him or her your business plan to make it in the music industry? Don’t forget to show them your Twitter followers and YouTube numbers as collateral. I mean, isn’t this where your accolades are? Surely then, this should be your basis to your commercial viability, no?
I’m a person who personally doesn’t care about these YouTube numbers. You can go and howl at the moon with those stats. To be very real with you, artists that are going with the YouTube buzz tactic need to pay homage to Soulja Boy because, like it or not, you’re all using his formula.
Do you remember how people used to try and clown Soulja Boy? But this guy had a hit record that took him around the World a couple times over by utilising the power of the Internet. Tell me, what’s the difference in what the rest of these artists are trying to accomplish today on Twitter – without the success?
The only difference is that they’d say ‘our content is different‘. You have to seriously question the methods and tools that people are using to build their dreams. Imagine how it was when they built the pyramids all those thousands of years ago and someone wanted to replicate that by using cotton and wool. Would it work?
Instead of always complaining about lack of investment on one end and gassing about viral stats on the other end, why don’t you keep things basic and measurable?
If you want to buy a home you would go to a bank for a loan or mortgage. If you have a business plan you would usually go to your bank for the same thing too. So before you are quick to diss labels, they are the ones fronting up a lot of the RISK CAPITAL.
Don’t let the internet confuse us all that the original foundations and pillars of business have been irreversibly turned upside down. It hasn’t. It’s just evolving and if all goes bad on the internet, go to your bank manager for investment. you’re a business aren’t you? you’re a commodity? You’re going to blow?
The point i’m making in all seriousness is this, know that you are attempting to enter the The Music Business, not the The Music Charity, not The Music Studio, not The Music favours, not The Music friends, not The Music Twitter but The Music Business.
And yes, i am all for talent being nurtured and developed whether its by a label or not, but ultimately it comes down to the music. And that is where your real value is.
Check out some examples of what a bank manager requires of you before investing, below.
This guide should give you the confidence to get started on the route to securing the finance you need to proceed.
“Bank managers will want to see solid evidence that your business has the means to pay the funds back – as well as enthusiasm for your idea.”
It’s essential, now more than ever, to talk your bank manager’s language when you want to secure a loan to fund your start up. You’ve had months, even years, of thinking about your business – what great service you’ll offer; how you’ll be able to fit work around your family; what fantastic profits you’ll make but bank managers will want to see solid evidence that your business has the means to pay the funds back and they won’t be swayed by pure enthusiasm for your idea (although this will definitely help).
Go back over your track record in employment and business and quantify the skills and experience you will bring to your venture. This is about more than rewriting your C.V, it’s about pinpointing your strengths, recognising your weaknesses and showing examples of both. For example, you might have twenty years’ experience managing a team for a previous employer; you could have overseen the successful sales strategy for a new product; perhaps you’ve already worked in your chosen sector and know it intimately; you may even have launched a business before and learnt from its success or failure.
Put any relevant information in your business plan and back it up with solid evidence – testimonials from past customers and employers; any awards or industry recognition; the records of people who have worked for you. Combine a passion for your business with a real understanding of the unique skills you can bring to it and you’ll do a lot to convince a bank manager that your funding application may be worth a closer look.
No business is recession-proof, but showing a bank manager why you think your business will work now, when the economy is in a downturn, will give you a head start when it comes to funding. Before going into any finance meeting, consider these questions that a lender is likely to ask:
- · What is your business idea?
- · How do you plan to develop it?
- · Who are your customers?
- · How will you market your business?
- · Who are your competitors?
- · How will you fund it?
- · What is your vision for its future?
- How is your business sector performing?
- Could you buy a business rather than starting one from scratch?
- What is your credit history?
- What capital do you have?
- Will you be able to service a loan?
- How much security can you offer?
By researching the answers to these questions, you will develop a believable, measurable, promotional pitch for your start-up idea. Practice what you want to say and how you want to say it. Do this in front of family, friends, other business owners and professionals such as your financial advisor or solicitor. They can help pick out points that are unclear, pinpoint any gaps in the information and hone your presentation to give you the best chance of success.
Don’t expect any bank manager to just take your word for how great your business will be. You’ll need to back up your argument for funding with documented research and thorough financial forecasts.
Your plan: essential documents
A strong, clear and concise business plan is the strongest tool you have for securing funding.
While every plan contains the same basic information , a smart plan will tailor details for the person reading it; in this case, making sure you show a bank manager when and how they will get their money back.
The current economic situation also means that banks expect a more extensive level of detail when it comes to profit forecasts and cashflow projections. It may not be enough to show a year’s profits; monthly and seasonal breakdowns will illustrate the real financial nitty-gritty of your business.
“A concise business plan is the strongest tool you have for securing funding”
Do your financial homework and prepare these documents before you ask for your loan:
- · A complete business plan, with details of your capital, cash balance and cashflow patterns, profit and loss forecasts, and sales forecasts for the next three to five years
- · Your assets and how you will secure the loan
- · Past three years’ accounts for any previous businesses you have run
- Employment record, highlighting significant achievements
- References and testimonials from previous employers and customers.
This is the guy who’s business model you are using, pay homage!
Random ramblings from @MrAmaru
Editing by @karolynsgoneout
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