As an independent musician or a record label executive, the effective management of your business financials cannot be taken for granted. After all, apart from your passion to become successful and fulfil your dreams, you also want to make lots of money. More appropriately put, you want to make wise decisions as regards money. Here, you will find 10 ways to manage your financials.
1. Think of Being Independent
This has its perks if handled well. Being under a record label means that a large chunk of your earnings will be going to them.
2. Become a Business
To become a successful independent artist, you need to handle your career like a business. Engage in financial management.
3. Have a Business Plan
A business plan will give you a financial blueprint. With it, you can know the right direction to take at any point in the future. Hire professional business plan writers to prepare one for you.
4. Have a Budget
A spending plan is important for any business. Make sure you are determined to stick to the budget, unless in cases where you have to make adjustments for better spending decisions.
5. Get Interested in Financial Matters
You may never have the time as a busy music artist, but it is advisable to check the financial records of the record label you are under regularly. If you do not show an interest, you may be allowing some unfair practices go unnoticed. Realizing later will only lead to expensive legal battles. This also applies to label executives.
Bookkeeping ensures that you keep track of your financials easily. You will have a record or spreadsheet where all the money that is going in and out of your business is documented. As a label executive, you need to check your records regularly.
7. Hire Financial Experts
It is best to let the professionals handle financial matters if you have the money to employ their services. Many independent artists do not have time for bookkeeping, record checks, and other tasks; especially the mainstream ones.
8. Always Seek Legal Advice
You need a lawyer to get you through possible legal matters or battles. You also need someone to advise you on how wise it is to start a court battle in relation to legal fees.
9. Save Money
You may be making so much money that splurging may become an addiction. It is advisable to save a significant part of that “excess” money for a possible rainy day.
10. Invest in Passive Income Streams
Music is your life, but it should not be your only source of income. Delve into passive income streams in case you stop earning a significant amount from music in the future. Your returns can be used to re-invest in your music career.
Do not be like music artists who made a fortune only to become broke due to poor spending decisions, and disinterest in the financials of the record label they were under. Label executives should also be organized with the right team on deck for better financial management.