HOw do I start my own production company

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datboylamar

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I know its very easy to go around saying I have a Production Company..but I wanna know how to REALLY own my own production company..Im a young cat who cant wait to take over the music biz...but I want to be able to get out there. Ive done a few tracks for a few people here and there...I wanna know what all do I need to know in order to start my own?? What are the requirements?...Do I have to register and all of that?....Could some one point me in the direction to the information I need? Thanks Alot.
 
Please, don't crosspost. It just annoys people and you won't get an answer.
 
Own your own production company? On a professional level!? Go to school for many many years... first get a degree in business or even an MBA or PhD. Then, if you know your shit with the industry look into expenses of owning and operating your own studio... lease or buy a building... acoustically treat building or rooms for recording, this right here could easily run you over $1M for something professional. A professional business requires a professional staff... plan on paying your receptionist $40,000/ year... in a professional operation you'll also need a whole bunch of staff to operate, IT, engineers, marketers, publicists, a custodian... probably you'll spend at least $1M / year on labour costs. Equipment.. figure at least $100,000 likely 5 times that for professional gear. Agressive advertising... shit.. sky's the limit, plan at least $1M in your first year.

So let's see... in your first year of operation you're looking at probably $3M to $4M (at least)in business expences to get your business of the ground. Gotta start doing a lot of work, charging clients a lot of money for a few years to fill in that hole, you'll be seeing red for a very long time.

Now that you know the costs (and don't take my word on this, I don't own a professional studio and I'm not affiliated with one) you have to figure out where that money is going to come from. Go to the bank.. they'll say "Four Million Dollars... ok sir, where is you collateral on the loan?" So now you need financial backing and in large amounts... Start calling up the nerds you got along with in high school who are now making big bucks at Microsoft and Dell and pitch your case.

Now, I'm not trying to get you down on your dreams but you have to realize that your dream of taking over the music biz is really just that... a dream... now come to reality and look at step by step what you want to do in the music biz and how to achieve each one of those goals. Good luck to ya, and realize you got plenty of competition out there who want to do exactly what you want to.

Scott
 
borednbuzzed said:
A professional business requires a professional staff... plan on paying your receptionist $40,000/ year...
Click to expand...




Don't even tell me you have maids that clean your house for you? :D



Give a highschool or collage girl a $7-9 an hour job that has major bragging rights and you can skip the high salary. :)
 
BNB: Don't let the tail wag the dog. Professionals are professionals in spite of all that stuff, not because of it.
 
Yes, but if you're talking about taking over the music biz, you better know every aspect of it... I was just mentioning costs and education involved. A professional engineer who doesn't know a damned thing about business will not be taking over the music business... (he may work for the guys who are tho.)

datboylamar was asking how to go about owning a production company... he said "I am a young cat who wants to take over the music biz" implying the most professionalism in every aspect of his work and business... I simply laid out very ruggedly the education and costs that would be needed to fulfill such a dream. I would not say that it is focusing on the small details "letting the tail wag the dog" as ryanlikestorock said. I'd say that if you're serious about doing something on a grand scale you best figure out a plan of action and know what the fuck you're getting into otherwise you'll just be on forums talking about how you're gonna be the best producer ever.
 
I think BNB hit it directly on the head with the true cost being 4 -5 million dollars.

I know for a fact that the studio will cost 2 million dollars
 
WTF are you guys talking about? A production company produces a product. Plain and simple.

If you want to be a legal company then you need a DBA license (doing business as) so you can open a company bank account. If you can put out a CD then yes you are a production company. If you can make a profit then you are a successful production company.

Publicists, receptionists, IT guys and a marketing dept? Whatever. Who starts up a business from scratch with all that staff?
 
Hey man, if you read the kid's post he says "I am a young cat who wants to take over the music biz" I don't think he meant just getting a dba license, I think he meant about being a big shot Class A studio producer

But yeah, to legally do business you need to register with the state and federally so the man can rape your income.. Just take cash only and report only a minority of actual income from producing.

BUT a good thing about being a legal business is you can write off so much shit as business expenses.
 
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borednbuzzed said:
Hey man, if you read the kid's post he says "I am a young cat who wants to take over the music biz" I don't think he meant just getting a dba , I think he meant about being a big shot Class A studio producer
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The BIGGEST rockstars and the BIGGEST producers started with nothing.

Look at P.Diddy....his ass is a mogel and he started with nothing. He didn't need a million dollars. Look at (cringe) Russel Simmons. He did it too. You can burn your own CDs now or get them pressed in any number you need. People can talk on the phone and do their own business...they don't need to hire someone. You don't need a lawyer.........you just write the contract out line by line in English and in 12 point type.....you don't need to pay artist massive money right off the bat because they get a bigger percent off the actual sale of everything since you are not fronting all the bigtime flash and promotion.
 
Taking over the world means doing it yourself. When you do it with money and hire out, then its just being handed to you.
 
P Diddy did however start with a college education and some key contacts. And Russell Simmons was key in birth of hip hop and also attened college.

I am not saying anything about someone having to attend college to get a good education, I took one semester and quit... I am just pointing out that the people you mentioned are not by any means morons... Well, P Diddy is but he is also a very good bussinessman
 
But in selfowned business, a college education is meaningless in terms of credentials. No one is going to promote you becaue you are the boss. And Russel Simmons being involved in the explosion of hiphop is BECAUSE they did everything themselves.
 
You're right, a college education is meaningless in self owned business, but an education is not. Whether it be from college, or other experience to go into business with the intent of being a big shaker in the industry requires the skills, connections and money to do so. If you lack in one of those areas you have to make up for it... most people would lack in money so they'd have to make up for it with connections and talent and eventually the money will come in. Then they'll be the big shot NYC or LA producer.
 
You can have all the 'equipment' and fancy trappings you want, but a production company must be able to do ONE thing above all others: MAKE A COMMERCIALLY ACCEPTABLE PRODUCT! Period.

As with all Industries, ours does come with a bit of baggage, i.e., now that you've made this great product - what the hell do you do with it to make any return on it - even if it be for the glory alone? In short, what do you do with a master once you’ve made it? Most jackass it with their delusions intact.

The FIRST thing you want in your bucket is CONTACT to be able to deliver a finished production to the POWERS - not the receptionist or a low-level paper shuffler - but a POWER who can say "YES!" to spending the money required to exploit the product. Once you have that CONTACT, those who are in the market for getting their products done - and done right - are more amenable to using your production services.

You can RENT great facilities, and those who have them can always use the money! So your own place can come in good time.

In the mean time, get yourself INFORMED as to HOW this Best Of All Industries really works, and HOW to run a business as a business.

TDA
 
This thread is kind of dumb.

THe answer is: if you have to ask, then you are nowhere close. If you don't even know what a production company entails, how can you say for sure that you want to be doing it??

You have to be really good at something before you can be hugely successful at it. And for crying out loud, you have to know what it IS before you can be good at it!
 
bsanfordnyc

Not so!

I know a bunch of Registered Chefs, able to prepare anything edible, and every one of them have failed at running their own restaurants. They neglected to find out the up’n’down sides of the BUSINESS of the business they chose to be in. They can cook anything, but handling finances, people and business related deadlines is just beyond their current scope. And there’s a lot of other trades people in my association in the same boat.

You’re not far off the mark though. Every trade comes with some good and bad elements attached. So it’s a good idea to search out such things before making what could become a life-long commitment. The information, pro and con, may take some effort to find and sort through but that does not change the bottom line requirement to “know”.

datboylamar

Take a READ of our site - http://www.vmgworldwide.com - and you’ll get an overload of information ABOUT entertainment and recorded music as a business. There’s an article “Production, Do It Right The First Time!” that is so simple to follow that ANYBODY can make a commercially acceptable product. But as I said above, a Production Company must offer more than a good finished record. It has to be able to place the finished product with the POWERS of $$$ to exploit the thing :-)

And right there is where the ignorant get creamed every time. Either they manufacture, thinking 500 discs is enough to take on the multi-billion dollar Time Warner, they ‘shop’ the product WITHOUT the ExP share of the budget, or they ‘get signed’ to a shelving contract that will last longer than Planet Earth. You’ve got a lot to learn, and you’re in the Best Of All Industries.

Best of luck.

TDA
 
Hey General....FUCK OFF YOU FUCKING SPAMMER. I HOPE YOU DIE. SOMEONE NEEDS TO CUT YOUR THROAT. YOU HAVE NO REASON TO BE ON THIS BOARD. YOU HAVE ADDED NOTHING OF INTEREST FOR ANYONE. FUCKING IE AND GO TO HELL. YOU JUST WANT TO PROMOTE YOU COMPANY. IF I EVER SEE YOU OR HAVE A CHANCE TO DRIVE THROUGH NEW MEXICO I AM GOING TO MAKE A POINT TO KICK YOU MOTHERFUCKING ASS.
 
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