Broadbase Records is a startup record label located in Nashville, Tennessee. Broadbase Record’s mission is to sign and promote local aspiring musicians and talent to establish or further their career in the music industry. Based in Nashville, Broadbase Records will work with various country musicians because of the proximity to its local talent, but will also be open to working with various artists across a range of music genres. Broadbase Records will sign, promote album sales, and book their signed artists to various concerts and festivals around the country. Broadbase Records is made up of a team of two seasoned music executives, Marty Cole and Sasha Gray, with decades of experience in the music industry.
The following are the services that Broadbase Records will provide:
- Artist Recruitment & Development (A&R)
- Record Contract
- Marketing & Promotion
- Collecting & Distributing Royalties
- Music Distribution
- Licensing Deals
Broadbase Records will target new and existing musicians in Nashville, Tennessee that are looking to either establish or expand their music presence in the industry as potential clients. They will also target music venues to partner with, music distribution channels such as Google Music, YouTube Music, Apple Music, Spotify, etc. The other target market are recording studios that have produced local talent and need a record label to represent them.
Marty and Sasha will be in charge of scouting talent and working one-one-one with music venues, concert promoters, and music distribution channels. While Marty and Sasha will be operating the business at the higher level, they will also employ a CFO to handle all financial, tax, and licensing obligations of running a profitable record label. A CMO will also be hired to manage and promote not only each signed talent, but the marketing of Broadbase Records as well.
Broadbase Records will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly qualified team of music producers and executives that come with a long list of industry contacts.
- Dedicated team that will be able to provide its full attention and focus to its signed artists.
- Broadbase Records already come with a long list of partners for artists to choose how they want their music to be distributed and which music venues they want to perform at.
- Clients before profit – Broadbase Records will ensure the artists’ satisfaction with every aspect of the process before taking account profitability. Broadbase Records is about supporting the success of its artists, not just about making money.
Broadbase Records is seeking $500,000 in debt financing to begin operations of the business. The funding will be dedicated towards securing the office space and the office build-out. Capital will be required for the upfront costs needed for the first three music artists Broadbase Records signs. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and working capital. The breakout of the funding is below:
- Securing record label office space, build-out, and design: $100,000
- Three months of overhead expenses (payroll, rent, utilities): $75,000
- Marketing & advertising: $25,000
- Capital required in order to promote new signed artists: $300,000
The following graph below outlines the pro forma financial projections for Broadbase Records.