Choose multiple prospective names for your business and rank them in order. You may need options when you register your business. Decide what genre of music you want to work in and start using the Internet and local clubs to scout talent. At this point you are not ready to start talking to any acts yet, but it is a good idea to know what is out there.
Your local government office will have information on how you can register your business. You will need to register your business to open a bank account and do anything in your business name. Having the multiple name ideas helps because you may want to register a name that has already been registered. Rapcointelpro.com recommends avoiding wasted time at the registration office by having multiple names ready. Check with your state taxation office to see if you will need to have a sales tax certificate to do business in your state.
It is easier to get prospective talent interested in your label if you have your own office in which to interview them. Being a record label is as much about image as substance, so have the image ready before you start doing business. All you need is a single-room office big enough for your desk and maybe a conference table with four seats.
Indiehiphop.net suggests getting your record label domain name purchased early on as well. Do not stop at the .COM name. Also purchase the .NET domain name as well. Many domain hosting services offer significant discounts to people who purchase multiple domain designations at once. It is worth the investment to make sure no one else can take your company domain name.
The music business can have its ups and downs. Incorporating your business will protect your personal assets from lawsuits. Trademarking your name will mean that no one else can use your company name or logo without your permission.
You will be dealing with a lot of contracts that, unless you are a lawyer, will not make complete sense to you. Hire an entertainment lawyer who can not only help you read the contracts you are given, but they can also create the contracts you will use and help you negotiate with the lawyers from the acts you want to record.
A record label is a business. It is always a good idea to hire an accountant to help you look after your finances in any business.
As a label you will want access to recording studios and producers you can trust to get you a product you believe you can sell. Talk to several different recording studios and then develop business relationships with two or three of them. Ask for discounted studio time pricing if you buy blocks of hours, and try to get a priority relationship where you will be able to get an act into the studio on a few days notice rather than waiting weeks.
Sometimes a good record distributor will help you establish relationships with radio programmers in other towns. Find distributors that deal in your genre of music, and try to negotiate bulk pricing with them. If your distributors cannot help you find radio programmer contacts, then do that search on your own and make some phone calls. Your record label is not going anywhere without good distributors and reliable radio contacts.
Network with the local live music clubs as well as any of the acts you are thinking about signing. Not only can the clubs help you to find new talent, but the clubs can also help you host a showcase of your newest act to try and jump start record sales.