Topping The Charts

of the retail list price for their CDs and typically settle invoices within 60 days. They will also require several promotional copies of your music, so be prepared to part with some freebies.

Form alliances: A savvy record label owner has a network of people he can contact for advice and help in the business. Build relationships before you need them by joining an industry organization and visiting clubs and radio stations to talk up your label.

Build a buzz: People can’t buy your music unless they know it exists. But it’s up to you to spread the word. Book your artists at conventions, charity organizations, shopping malls, and other venues where they may be able to perform live and attract a following. Also, use flyers, posters, and “street teams” to build awareness. Street teams pass out T-shirts, hats, and other promotional items at concerts, festivals, and other events.

Roll up your sleeves: Starting a record label is not for the faint of heart. There is a lot of hard work involved, and since most new labels can’t afford to hire a huge staff, label owners often have to wear many hats. To ease the pressure of operations, consider setting up an internship program.