Note which music they stock. If they are heavy into one genre, covertly ask someone why they have so much, or why there isn’t more of a different type. Get a real feel for which music they are selling. Observe the total stock. Seeing how much inventory they have on the shelves may indicate their financial strength or their preferences. Look where they stock specific music. Are they using end-caps for top hits or for collector items? Do they have rap near the front of the store and classic rock buried in the back corner? Try to determine which type of store they are, and what type of people visit their establishment. Compare prices for all their stock. Try to determine which items are selling for higher valuations. See which items are hot. Look for marked-down stickers and sale stickers to gauge which items may not be the most popular at the moment.
Read magazines like Billboard, Music Week, and Musical America Worldwide. Supplement the strictly music magazines with entertainment magazines like Entertainment Weekly, Rolling Stone, and Variety. [1] X Research source Look at music information online. Focus on the services that offer streaming radio like Pandora, TuneIn Radio, Vevo, iHeart Radio, Spotify, and Jango. Browse these services for the trending hits, the music that is rising up the charts, and the top rated playlists. Check the charts. Go to the Billboard 100, MTV’s top 20, or the top iTunes downloads. [2] X Research source Study successful records and hits. Are ballads currently popular? Is music from the south taking off? Look at the music currently succeeding to understand what’s popular and what might sell.
Look for competitor weaknesses. If all the record businesses are focusing on the classics, offering obscure and underground records could be a great way to develop a following your competitors are missing. Choose your favorites. If you have a particular love or interest for a genre or era of music, focus your attention there. Be the authority on “Malt Shop Oldies” or “Honky-Tonk Country. ” Offer in-store opportunities related to the music you offer. Customers could listen to samples of the records, or you could provide small amounts of trivia related to the records being offered. Think about your target audience. If you’d like to attract a specific crowd, you may want to research the demographics of your area. This will help you not only determine the market, but also the items that may attract their attention.
Flyers are great for advertising. Include pertinent information about your business and put them in mailboxes, on doors, on car windshields, and on bulletin boards citywide. Newspaper ads reach a wide audience. Include enough information to be found and remembered, but choose your words carefully. Once you write your ad, get in touch with the local newspapers. Create a local radio or tv ad. Come up with an eye-catching offer or a catchy jingle for it to be memorable. Once you start to get customers, have some give testimonials for your shop. Create a social media presence. Aside from having ads on Facebook and other sites, be sure to post regularly and respond quickly whenever someone mentions your shop’s name or services.
Let the employees choose the music they listen to when they work. Provided they aren’t listening to music with which you have issue, letting them choose their favorite music will create a pleasing environment for them. Give employees records as bonuses. When an employee goes above and beyond, reward them with some choice merchandise. Allow the aspiring musicians who work for you to perform on their off-days. Having live music in a location is a great way to draw in a crowd.
Consider the area. Do you want to start a new business in a run-down area? Will a record shop be looked at kindly in a small, rural environment? Make sure your store matches the overall image of your location. [3] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source Factor in the proximity to your competitors. Setting up shop next door to your rival may not be the best move. Look for complementary businesses, places that identify and align with your shop’s offerings. For instance, if you’re focusing on 50’s records, a malt or ice cream shop would be perfect. Determine if there will be available labor. Depending on the record shop, there may be a need for highly knowledgeable musician staff or entry-level employees. Know which type you need and ensure the employees are available in the area. Include your plans for the future. Do not pigeonhole yourself into a smaller location if you anticipate expansion in the near future. Find a location that has sufficient space for excess stock, rooms for supplementary offerings (maybe a private studio), and whatever else you want aside from future expansion. There are good parts of town and bad parts of town. Steer clear of the locations rife with crime, especially things like break-ins. Not only is this a potential hazard for a business, but customers and employees won’t want to come to a store when they feel in danger. Contact the local planning agency to determine what kind of zoning regulations there are. You’ll need to know whether it is commercial or residential, and whether or not any building is permitted. [4] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source
Industry details - Research the industry size, potential for growth, current trends (e. g. music’s movement away from vinyl towards digital), and the customers likely to frequent your store. Look at your potential competition - record shops as well as all-purpose music shops - and how you’ll compare. Market data - Why would your customers come to your record store? Find out who your potential customers are and whether their numbers are likely to grow. Determine their purchase impulses and interests. Factor in the size of your potential store’s market, and how you plan to gain the percentage you desire. Calculate financials - Service costs like material cost, labor, gross margin, and overhead need to be figured out. Comparing your prices to competitors is an absolute must and determines if you plan on charging more – perhaps for exclusive content or better-trained staff – or less than your competition. [8] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source Factor in what the others charge for records as well as CDs, the cost for newer products, and the price trends for specific genres.
Get a government loan or grant. There are multiple types of loans available, like the 7(a) General Small Business Loan, Microloans, and Real Estate & Equipment Loans. Research if your business is eligible for one or multiple types. [10] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source Venture capitalists are a great way to get financial support. With the right sales pitch and business idea, you could spark the interest of someone willing to either loan you the money or buy into the business itself. [11] X Trustworthy Source Harvard Business Review Online and print journal covering topics related to business management practices Go to source Ask local artists if they would be willing to contribute. Many small bands and singers struggle to become noticed. By offering your shop as a potential source of revenue, new fans, or place to play shows, they might be willing to contribute. Approach artist managers in the area. They typically have the pulse of the music industry, and access to influential people in it. With knowledge of everything from where to get large record supplies to booking gigs, they may chip in to your business idea if you wow them with your plans. [12] X Research source Music teachers are a potential great source of information and funding. Not only could they could steer classes, students, and tutors to your location, but they may also be aware of funding in the local area. Perhaps a school/university sponsorship of some kind could be used to add value. Consider crowdfunding. Whether you choose Kickstarter, Indiegogo, GoFundMe, Fundable, Micro-ventures, Tilt, the list goes on and on. Find one that fits your desires, and pitch your campaign to those who may contribute.
Proprietorship – If you don’t plan on having employees, and you plan on keeping it small, being a sole proprietorship may be a good option. The primary benefit to this is the lack of cost to establish your proprietorship. The primary detriment is the lack of tax advantage. Partnership – Much like the proprietorship, a partnership – technically more than one person – has no major tax advantages, and members report gains and losses when filing their own taxes. Additionally, members of the partnership have ultimate responsibility and liability for any losses the business incurs. Limited Liability Company (LLC) – Starting an LLC allows for members to reap the financial benefits, and be taxed according to their investment, while avoiding potential judgments or debts. You can form a LLC as an individual or with a group. One major tax advantage is each member’s share is taxed at their individual tax rate, and not the tax rate of the business. [13] X Research source [14] X Research source
