Question: I’m a young musician trying to sign my first record deal. I consider myself more of an “artist” than a business person. I know in order to get my music heard I need distribution, but it seems like I’ve got to give up a lot in order to get a little out of a label, at least, until I’ve got some hits. Any suggestions for a “creative” entrepreneur?
Answer: It’s time that musicians like yourself get “plugged in” (and I don’t mean into an electric synthesizer). You’re in a very tough industry as you know lots of heavy competition. And with all of the mergers and consolidation, there are really only five mega-corporations in the music industry today EMI, Sony, Seagram, Time Warner and BMG. Unfortunately, they’re focused on a lot of things that aren’t necessarily creative, like manufacturing, inventory, marketing and distribution. What artists tend to forget is that these big guys take a lot of risks and not just with new artists, because superstars lose money too!
So I guess you’re wondering where the “plug” comes from. The Internet, of course!
Sign your deal with a record company, it will give you great exposure and a chance to make it to the major leagues. Just try to carve out the freedom to market yourself on the Internet as well either by setting up your own Web site or working with others.
Marketing your product on the Internet is going to give artists like yourself freedom of choice. David Bowie just marketed a brand-new single on his Web site. Sure, he gave away the copies, but he proved that 300,000 copies can be marketed online and he got the names of 300,000 fans, so he can market other products to them directly. He was also able to put out a single, even though he was out marketing another album.
There’s so much more to tell about this subject, but I don’t have the space to go into more detail. Do get a copy of the September issue of Upside magazine. It’s got some great interviews and articles that you’ll find helpful.
Q: Because we run a small graphic-design firm, my partner and I split up client presentations. I went to pitch a new client and he went to one of our largest clients for a new project. I am much better at presentations, but I thought since it was an old, established customer, he could handle it. I was wrong. He totally botched up the meeting, insulted the client’s partner, and not only did we lose the project, I think we lost the account! What can we do?
A: You mean, when “Oops” isn’t enough? You need to sit down and assess the damage as soon as possible. You might be able to overcome the hurt feelings from insulting the partner with a lot of groveling, but when you say “botched” up the meeting, the question is, “how much damage did he cause?”
If the clients hated the presentation, i.e. didn’t like the graphic design or structure, you might be able to go in yourself and get a second chance. Try and find out what they really hated about it first so you can go in the opposite direction. Call the boss’ assistant and try and find out exactly what is going on. Set up a lunch or dinner with the partner and try and smooth things over.
I hate to say the obvious, but you probably lost the project. But the good news is, you might be able to salvage the account long-term. Whatever you do, don’t push too hard to get the job. Try and rebuild the relationship, that’s much more important.
Even if you do lose the account, stay in constant contact, and even offer your assistance for free. You’re going to have to give a little extra if you want to keep this client.
Q: My husband and I started our own business two years ago. Both of us left our careers and for a while it was working out great. Now we’re in a slump, and it looks like we’re going to have to shut the business down. It’s so hard to give it up, but what else can we do?
A: When two people who depend on the same income start a new business, they have to be aware there are a lot of risks and sacrifices. Maybe now one of you can go back to a full-time job working for someone else to bring in some cash flow, and the other can try and keep the business going.
Try and scale it down to a workable level for only one of you to manage. If you need to, the one working full time can take over on the weekends and the one working the business can get a part-time job to make ends meet.
It’s really hard to support yourself without a steady income, unless you are independently wealthy. But if you love what you do and love being an entrepreneur, don’t give up. Make it happen!
Q: The summer’s almost over and as a single mother running a sole proprietorship, I’ve been traveling so much that I haven’t had a chance to take my kids away for a vacation. I’m feeling terribly guilty. Any relief?
A: Stop feeling guilty first. That sure isn’t going to help anyone. After all, you are working to support your kids, so they can have nice things and live in a decent home.
But I may have some relief for you. There are some hotels that will make it less complicated to take your kids on a business trip. According to the Travel Industry Association, about 24 million business trips included children in 1996, and that number has been growing. There are videos for kids available at the front desk (or there must be a Blockbuster in town), plus most hotel chains have Sega or Nintendo in the rooms.
Major hotels often have day care services available as well. Some hotels might even have a children’s camp that would include day trips and fun activities while you’re out with clients. At least the kids will get some time away from home, and instead of spending your evenings alone and feeling guilty, you can spend some quality time with family.
It may not be a perfect family vacation, but remember there’s always next year!
Lorraine Spurge is a personal finance advisor, author and business news commentator. She can be reached at (818) 705-3740 or by e-mail at [email protected].
