Business

Getting Your Business Model In Place For A Sustainable Music Career

By Srishti Das
December 04, 2017

With evolving Business in the Music Industry, it's time to take Business seriously

Music is art, music is an expression, music is simple and a freedom of thought. However, when you want to do what you love and make it enough to sustain yourself, you need to make money. Money turns everything into commerce and thus business. Many people would think, this digresses from art. The fact of the matter actually is that it is almost impossible to survive comfortably in the music industry without a well thought out business model in place. Be it for an artist or a startup. If you chose to take it up, that's what one of your first steps should be.

What is a Business Model?

A Business Model is basically a company's plan on it will raise money and make profits. It explains what products or services the business plans to manufacture and market, and how it plans to do so, including what expenses it will incur. For a good business model, you need to know the value proposition for the business. A value proposition is a straightforward statement that differentiates the company from it’s competitors. This requires a good understanding of what the competition is and what the need gap in the ecosystem is. Together they form the perfect value proposition for sustainability.

How Do I Plan My Music Business? | ---> Business Model Canvas (BMC)

The long, boring never-ending business models are now outdated. We need to create a to-the-point B-plan and get on executing without wasting anyone's time. Afterall, you only get the first 60 seconds to make an impact. A business model describes the rationale of how an organization creates, delivers, and captures value. The BMC is a tool that can be used to translate a business model into nine building blocks that show the strategy of how a company intends to make money. The main purpose of a business model canvas? Foster understanding, encourage discussion, creativity, and analysis.

Together these elements provide a pretty coherent view of a business’ key drivers–

Customer Segments: Who are the customers? What do they think? See? Feel? Do?
Value Propositions: What’s compelling about the proposition? Why do customers buy, use?
Channels: How are these propositions promoted, sold and delivered? Why? Is it working?
Customer Relationships: How do you interact with the customer through their ‘journey’?
Revenue Streams: How does the business earn revenue from the value propositions?
Key Activities: What uniquely strategic things does the business do to deliver its proposition?
Key Resources: What unique strategic assets must the business have to compete?
Key Partnerships: What can the company not do so it can focus on its Key Activities?
Cost Structure: What are the business’ major cost drivers? How are they linked to revenue?

While we know this isn’t the most enjoyable activity. 5 hours of your life in a locked room is all it takes and continued thought which will develop your plan further on a day-to-day basis. This not only helps you streamline your work and thought process but also gives you the clarity that will make you more confident about what you are most passionate about. A career in music. Stay tuned for the next article to know and understand some of the Music Industry’s most popular business models. Until then, here’s some Business Model Canvas's to help you start designing your own BMC.

If you ask me, there’s no better time than today to start your music business in India. We are growing, and growing fast! Everything is fresh, new and relevant! All we need are smart entrepreneurs to enter this space. Fortunately, the country’s start-up ecosystem is in our favor and at a time when even the biggest (oldest) music companies are in turmoil, take this as your big opportunity to enter the untapped market! Its high time Indian Music Industry established itself independently! – Aparajita Misra, Executive Editor, Loudest.in

Tags Business Slider How-To Music Business How to Business Models Music Industry Business Model Canvas

Getting Your Business Model In Place For A Sustainable Music Career

With evolving Business in the Music Industry, it's time to take Business seriously

What is a Business Model?

How Do I Plan My Music Business? | ---> Business Model Canvas (BMC)

Together these elements provide a pretty coherent view of a business’ key drivers–

Customer Segments: Who are the customers? What do they think? See? Feel? Do?

Value Propositions: What’s compelling about the proposition? Why do customers buy, use?

Channels: How are these propositions promoted, sold and delivered? Why? Is it working?

Customer Relationships: How do you interact with the customer through their ‘journey’?

Revenue Streams: How does the business earn revenue from the value propositions?

Key Activities: What uniquely strategic things does the business do to deliver its proposition?

Key Resources: What unique strategic assets must the business have to compete?

Key Partnerships: What can the company not do so it can focus on its Key Activities?

Cost Structure: What are the business’ major cost drivers? How are they linked to revenue?

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