Get funding. If you're unable to finance the show out of your own pocket, you'll need to raise funds. Some options would be getting a bank loan or finding corporate sponsors. Be prepared to show potential funding sources a detailed written proposal outlining exactly how you plan to produce/promote the concert and what kind of return they can expect on their investment.
Find an appropriate venue. A good-size nightclub will do for most small concerts. If you're planning to produce a festival, benefit or multi-act showcase where you expect an audience of several hundred or thousand people, look into larger halls such as your local civic center or auditorium. Many parks have ampitheatres for outdoor concerts. Be prepared to pay a rental fee to the venue and provide proof of insurance coverage for your event.
Set a date. Usually this will be determined by the dates your venue has available. Negotiate with the venue owner to get the most advantageous date, such as a weekend. Try to avoid scheduling your concert on dates where other big events are going on in town that might compete with yours.
Purchase an insurance policy for your event. Check with the venue and find out what their requirements are for coverage (usually a set dollar amount to cover any damage to the venue), then contact an insurance agent experienced in special event policies.
Book your band(s). If you are producing a festival, charity concert or showcase, this can be the trickiest part. Popular bands are often booked several months in advance, so finding bands that are available on your chosen date isn't always easy unless you have plenty of advance lead time. Don't wait until the last minute to book your acts, or the groups you want will probably not be available.
Sign contracts with the concert venue and bands outlining the concert date, terms, payment, and any other special considerations. Always get binding agreements in writing should disputes arise later. Most band contracts specify the band's requirements for sound equipment, lodging, meals, transportation, and special backstage requirements such as refreshments (in industry terms, this is called a "rider" and is attached to the performance contract). Follow these specifications to the letter - you want your performers to be happy.
Rent a sound system (also called a P.A. system) for your concert according to the exact technical specifications of the artist's contract rider. If you are not sound-savvy and these terms are unknown to you, hire an experienced stage manager to coordinate the P.A. rental, hire stage hands, and manage the stage crew. A good stage manager is well worth the money, as they will keep the concert running on time and ensure all runs smoothly backstage.
Set your ticket price. Based on what the market will support and what your goals are, you'll need to decide what to charge for admission. Is this a free concert? Will your only revenue be from concessions and merchandise sales? If charging admission, will you be offering advance tickets or wristbands through local outlets, or simply collecting cash at the door? How will the funds be managed? Who will handle the cash box to make certain the money is secure? Who will pay the bands after each performance? For larger concerts, it makes sense for you to hire a trustworthy accountant to keep track of all income/expenses.
Promote your show though local radio and TV stations, newspapers, magazines, record stores and other music venues. Print up posters and post them in conspicuous legal spots around town. Do some ticket giveaways on local radio shows to stir up interest. Submit press releases to every media outlet in your area and try to arrange artist interviews. Create a website with information on the concert, bands, venue maps and parking information, and online ticket sales.
Hire security. All large concerts and festivals must have some kind of security; this is nearly always a requirement of insurance coverage. To protect the performers, prevent crime and attendees getting hurt, good security is essential. Depending on the size and scope of your concert, you can either hire a few men from a private security firm or off-duty police officers.
Sell booth space to local artisans, food and drink concessionaires, nonprofit groups and other merchandise sellers. Not only does this help you recoup some of your production costs, it also gives concert-goers something fun to do between acts. Also arrange catering with the food/drink concession sellers to provide refreshments for the performers and crew backstage.
Provide bathroom facilities. If your outdoor venue does not already have adequate restroom facilities available on-site, make sure to rent enough additional port-a-potties to accommodate the size of crowd you are expecting.
Control access to the venue. Have clearly marked entrances and exits for smooth flow of traffic in and out of the concert. Make sure there is plenty of safe, well-lit, secure parking and/or shuttle buses to transport concert-goers. To keep gate-crashers out, you may need to install temporary fencing around the grounds in outdoor venues. Cordon off the backstage area and have it guarded by security personnel. Print up backstage and crew passes for performers, personnel and authorized guests.
Stay on top of all aspects of the concert on the day of the show. As the promoter, it is ultimately your responsibility to ensure not only customer satisfaction, but the satisfaction of the performers, stage crew, and venue owners. Your #1 goal should be seeing happy, smiling faces all around.