Building A Record Label

Building A Record Label

This article contains content on how to build a record label.

The industry of music is in a rapid change. The digital music distribution brings a whole new opportunity for the independent record label. Nowadays, it is so uncommon to hear an indie artist finding a success in the mainstream music; Arctic Monkeys has conquered the billboard chart, Gossip, Maximo Park, Bloc Party are some of the artists that will encourage you and tell you that excelling as an indie record producer is no longer a fantasy. This thorough guide in starting, building and running your record business will definitely help you understand the entire process of starting your own recording company.

How to Start a Record Label

Building a record label appears to be an enormous task; you need to think about the contracts, the talent, and the manufacturing. Here’s how to get you started.

Yours Business Plan

Of course, every business venture needs a business plan. It wouldn’t cost you a lot just to manufacture a few hundreds of copies, but if you are planning to sign some artist and hit the music chart, it will probably cost you more. You will need to seek the help of a marketing expert, distributor, radio plugging and PR; obviously, their service will not be cheap. That is why you need to be clear about your goal. A great way to align your budget with your goal in building a record label is to create a business plan. It will not only give you a clearer insights about the steps that you need to take to reach your goal, it is also an essential tool to entice the investors in investing their money on your independent record label.

Legal Structure of Your Business

Before building a record label, you need to choose the business structure of your company. There are four options to choose from; limited, partnership, sole trader or limited liability. Sole trader would be the least expensive and simpler to operate. Being a sole trader means that you are liable for everything, the charges, the taxes, thee earnings and the debt. Partnership is consists of two people working together, sharing their skills and knowledge to build a better independent record label. Limited Company can have diverse form of assets and have their own legal personality. In the event that you are planning to open your record label in the U.S., the same provisions may apply.

Some Legal Issues

When you are building a record label, there are various legal issues that you need to deal with such as the recording contracts, licensing deals, producer contracts, clearance, publishing deals, band agreement, consent, trademarks and copyright notice.


In the event that you have no proven record in the field of independent record label then the distributor may be a bit reluctant in doing business with you. Distributors are necessary to get your records outside. There are companies that offer their services in helping you get your music in the stores.

In conclusion, building a record label is a risky business. You have to understand that you need to keep your mind focused and never lose track of your goal to survive in this industry.