Music Recording Producer Business Plan Leave a comment

Mt. Hood Records is an unusual but sustainable business model for a record label. Hillary MacQuilliams established the company as an Oregon registered LLC. The business operates to promote several Portland based bands, all with the common element of improvisation.

Analyse Industry

A few large corporations dominate the retail music industry. These corporations hold 87% of CD sales in this country. 8% of the sales are controlled by Indie record labels, a less commercial version of the large corporations. The remaining 5% comes from a mix of record labels. Most labels use a shotgun approach when it comes to sales. They sign up a lot of bands and hope one or two make it big. Record companies are able to make huge profits by signing up bands that are commercially successful. Indie labels are similar to the record companies, but they are more selective and may not choose the most profitable bands.

Products and Services

Mt. Hood Records is an independent record label based in Portland that caters to a select few Portland-based bands. Mt. Hood Records has adopted the business philosophy of promoting a small number of bands to ensure long-term sustainable growth. This is in contrast to signing up several bands and hoping that one becomes a commercial success. This approach is appealing to only a few bands. It allows bands to be able to focus on the label’s specificity and intimate nature. Bands are aware that the label will only promote a handful of bands and they won’t be forgotten in the shuffle.

The Model for Business

This record label will need a lot of hard work and little revenue for the first year to be successful. This can be quite hard for many businesses to accept. Mt. Hood Records, it is important that realistic expectations are set up upfront so there won’t be any unexpected surprises in the future. Additionally, the investors (friends and family) are aware of these parameters and have given their blessing. This will take considerable effort but with realistic expectations and the right management, it can be done.

Management

Mt. Hillary MacQuilliams is the founder of Hood Records. Hillary is a veteran of the music industry. Hillary started her college career with 180 South, and went on tour immediately after. Hillary and her band set up their own record label in order to produce a studio album. This was to support the month-long tour. Hillary acknowledges that this was not a genuine attempt to create a record label. It was more of a novelty to have started a label and released their own CD.

Hillary enrolled in law school following the breakup of the band. Law jobs were difficult to find upon graduation. After no luck in her job search, Hillary began to consider something in the music industry because of her passion for music. She did extensive research to develop a sustainable business model by creating an exclusive local record label. Mt. Hood Records.

1.1 Objectives

• To become the premier local music label, based on CD sales, within three years.
• Sign up for at least five clubs within the first 3 years.
• Three years to reach profitability

1.2 Mission

Mt. Hood Records is an independent record label with a local focus. Their mission is to promote local bands and increase record sales. Mt. Hood Records was established to promote the bands it represents and make a fair profit.

1.3 Keys to Success

• Promote promising bands.
• Avoid signing up too many bands. This will reduce the effectiveness of promotional efforts.
• You can have fun while you work.