How to Start an Independent Record Label

Starting an independent record label, like starting any other business, requires a well-conceived plan with clear goals.

Step 1: Write a business plan Write a business plan to demonstrate to potential investors that you know what is involved in running a label.
Step 2: Raise capital Put together a budget, and raise the capital necessary to form and run the business. Funds can come from personal savings, loans from family or friends, bank loans, or investors.
Step 3: Choose a name Choose a name for the label.
TIP: Check with local, state, and federal laws to ensure the business is properly registered.
Step 4: Contract a band Contract an artist or band that makes great music and record their album.
TIP: Pick a band that is willing to tour. A record label suffers if the band does not tour.
Step 5: Contact the press Submit the band's record to the press four months before the release date. This increases the chances of getting a review around the release date.
Step 6: Send press to distributors Send any press about your label or its bands to music distributors.
Step 7: Make the album available Have the album available in stores and online so the fans who didn't buy one at the concert can get an album with little hassle afterwards.
FACT: Did you know? The original record players used wax cylinders that were 4¼ inches long.