Create Your Business Plan To Inspire Future Profits
Mention to people that you need a BUSINESS PLAN and watch them quiver in silence. Many people find this topic horrifically dreadful. Rightfully so. However, it is not as scary as you may think. It is one of your best tools to guide you to success and correcting your mistakes. I will show you how to get through this process with no fear and a ton of excitement. Yes, excitement!
Lets Start Here: Pro Forma
Get the complicated part out of the way first. Speculated income is difficult if your first starting out, but easier if you have a little experience in your field. This is what is called a pro forma. You may or have heard the term when seeking financing, “Show me your pro forma”. It's just a spreadsheet of your projections of money you will make and loose. I want to show you how to use and create it for success.
Remember, I stated that you can build a ton of excitement, well here is where you get it from the pro forma. A pro forma is actually a guide to help you achieve your goals. Following it step by step and being creative on your decision making to meet those goals will keep you enthused. Understand, it is going to take time and experience to reach those goals, so, let's have fun in trying to get there.
How much money do you want to make a year?
Throughout my career, I’ve seen an independent artist make up to $200,000 a year after taxes touring. I’m talking artist with 5 plus years of experience baring fruit from their work. This may seem unreachable, but it can be attainable Let's figure it out with this example.
Remember start small and build up>
Below is just a speculation.
Net $ 60,000 (1st annually) This is what you bring home after taxes))
(State & Fed)
45% $ 27,000
Expenses for year 52 weeks
travel @ $200 $ 10,400
food @ $57 $ 3,000
hotel @ $60 $ 6,240
Gross (Need to Make) $106,640
60% Touring $ 63,984
52 weeks of touring:
1 shows a week $ 1,230.50
2 shows a week $ 615.25
40% Other income $ 42,656.00
*Studio work $ 4,730. 55
*Merchandising $ 4,730. 55
*Streaming $ 4,730. 55
*Music sales $ 4,730. 55
*Songwriting $ 4,730. 55
*Performing Royalties $ 4,730. 55
*Mechanical royalties $ 4,730. 55
*Sync Royalties $ 4,730. 55
*Memberships $ 4,730. 55
*This is just a projection you can make changes as your fit. You can charge more in some areas and less in others. The goal is to meet home your gross projection.
The idea is for you to create a pro forma based on the experience you will acquire. Then you can see how much further you can or desire to go.
This is just a rough draft or idea of how to create a basic business plan to follow. You don’t have to reach for such a large number: Be modest start low and build. Try to make enough help you function to continue your quest. Try to stay focused on the task. The music industry is 10% the music and 90% business.
Keep in mind, eight hours of sleep is a LUXURY, so make every minute count.
There is a lot of inspiration in planning to achieve your goals.