Your music lays a foundation for everything you do in the business world. As your popularity increases opportunities will inevitably arise. Starting a venture to support your music will leverage your position as an artist, while enterprises in other areas can have the same effect and even outlast your music career.
A business allows you to have more control over your income, but artists don’t always have time to dedicate to a business full time. However, working with a team of people you like, trust, and respect who have expertise in your line of business will give you the ability to implement your ideas. Many artists start with a small team to gain a greater share of a current situation, ie touring, merchandise, music etc. Further business ideas can be found by reviewing your highest and most regular outgoings, and by looking at ways to save time and money for people.
In Robert Kiyosaki’s bestselling book, Rich Dad Poor Dad, he talks about the cashflow quadrant:
• A signed artist relies on income from the record label in the same way an employee would from their employer.
• A hands on artist releasing their own music independently is self employed as their presence is required to keep the operation going.
• An artist who owns a label is a business owner. They have staff to help release music with little or no participation from themselves. They are not required to be present in the day to day running of the business and are able to generate income from music released on the label and provide opportunities for other musicians.
• Someone purely providing funds for a business to operate is an investor and seeks only to receive a share of the profits.
On the left side of the cashflow quadrant time is traded for money. Most businesses start here, but creative people have the tools to design ways to excel on the right side of the quadrant. A strong company must have the ability to operate without you so try not to build the business around yourself.
Kiyosaki advises us to move to right side of the quadrant where money is generated without having to be present. But how can you make this a reality? First, identify gaps in the market. You don’t have to start a creative business, however you can still add creative flair. Decide on the business you want to start and get to know it inside out. Gather information on when and how to scale up by focusing on building a business system that runs smoothly in your absence.
– Identify gaps in the market
– Build a team
– Build a system