Getting a business up and running from the ground up is a tedious task. Many new businesses don’t make it past the first few years of operation. It takes a lot of planning, resources, and of course, money. Starting a music business is no different than starting any other type of business except in that it may be slightly harder. According to Loan.com, to get a small business loan to launch a music business, you will be evaluated on: your financial stability, the viability of your business plan, any federal incentives, and your ability to find investors (www.loan.com).Many people believe that they can just simple walk into a bank and get a small business loan. This is just simply not true. In opening a new business, you need to have personal credit to use in order to receive a business loan. Then, once the business starts to make a little profit, you can use your company’s assets as collateral to provide the bank with proof of your financial stability which can help lower your interest rates (www.loan.com).
The music industry is a tough one. It goes up and down and, as of lately, can be highly unstable. When you are out looking for a loan to start your business, you need to make sure you understand how to become successful in an industry that is constantly battling against you. When you present your business idea to the bank, you need to present to them with keys, important factors which are: experience in the industry, success had so far, a need for your business, resources you plan to use to market and promote the business. Also, you will need financial projections and estimates for the first, third, and fifth year of the business (www.loan.com). All in all, the more information brought to the bank, the better your chances are in securing the loan.
Federal incentives and investors are very important for new entrepreneur. The Small Business Administration will guarantee some loans to young or economically disadvantaged entrepreneurs (www.loan.com). Investors are what is needed to truly take your business to the next level. For those trying to start businesses in the Orlando area, the Winter Park Angels are your best bet. They are a group of accredited investors who provide equity capital to early-stage entrepreneurial companies located in Florida (www.winterparkangels.com). They are open to any/all types of business ideas as long as you come prepared and offer a product or service that is different from any other and can have great results (profit).
Starting a business in the music industry can be tough. With the right tools, resources, and people behind you, your vision can be executed into reality. So, don’t wait any longer to chase your dreams; it’s been here waiting for you all along!
(Resources: Photos courtesy of http://careercopilot.com/8-tips-for-running-a-successful-business-meeting & http://businessbeginners.net/uncategorized/on-angel-investors/attachment/angel-investors-can-finance-a-business-to-success-if-they-think-its-worth-the-risk/. Information courtesy of www.winterparkangels.com & www.loan.com)
