Have you been thinking about how to start your own songwriting business, and don’t know how? This guide will help you. It will show you everything you need to know about starting a songwriting business from scratch or joining an existing company.
But before we show you the step-by-step guide to starting a songwriting business, let’s further whet your appetite about starting your own business. Gone are the days when writing a song is merely done for fun; you can now earn a good income from it. Most of the popular songs you hear today – even the ones that received the prestigious Grammy awards, were not written by the artists. A songwriter wrote and sold them to the musicians.
So, do you think you have what it takes to write amazing songs that people would love to listen to over and over? Here is how to make a business out of that talent.
How to Start a Songwriting Business
#1: Plan your business
Planning your business is the first step to take when looking to start your own songwriting business. And that includes answering some important questions about the business part of the art. Some of such questions are:
How much do you need to start a songwriting business?
How much you need to start a songwriting business depends on a couple of factors. That includes if you will be starting from scratch or joining an existing company. Another factor is if you will be starting on a small scale, operating from home, or getting a standard and well-equipped studio.
If you choose to start on a small scale, it is not going to cost you so much to get your business off the ground. But if you are looking to open a studio, you will need more than $5,000 to get that running. And the bulk of the money will go into getting a space and buying necessary work tools and software applications.
Can you make money from songwriting?
Of course, you can make good money from writing songs. As a songwriter. You can get paid royalties for your songs. That means each time your songs are played, performed, or used, you will be earning a token from them. That’s just one of the ways you can make some bulks from your songs.
How much money can a songwriter make on one song?
Every unit of your song sold, whether as vinyl, CDs, cassette, etc, you are guaranteed a royalty. This royalty, however, varies from country to country. For instance, in the U.S., a songwriter can earn about $0.091 royalty per song. That means every time your song is played, you earn nine cents. Now imagine that you have about 20 hit songs that are being played everywhere. How much do you think you will be able to make per week? A lot, right?
Who is your target market?
Songwriting business has a wide range of customers. In fact, we can say your target market is everyone because virtually everyone listens to songs. However, your main target customers as a songwriter are music artists, music publishing companies, music production companies, and advertising agents.
#2: Research and understand the industry
Songwriting is part of the music production industry, which is an industry that is arguably thriving at the moment. The industry has a huge number of players that are presently making huge profits from their talents and gifts.
If you will be venturing into the songwriting business, it will be smart to first do your research to better understand the industry. Learn about the complexes and challenges you are likely to face along the way. Identify key players there and study what they are doing that is presently working for them. You can get all these in a variety of ways. Buy books, browser the internet, listen to podcasts, etc. to tune in to the world of songwriting.
#3: Learn the art
Songwriting is an art, and the more you master it, the better your chance of making good money from it. Search for various music lyrics, check out song sites and take your time to see how their lyrics are written. Pay close attention to how the words were chosen as well as the rhyme patterns.
Familiarize yourself with songs that have made it big in time past and study how the writer did it. All these will get you prepared for success when you finally open up for business.
#4: Choose the right niche
Like every other industry, the music industry is made of different niches. If you will become a successful songwriter, you will need to identify a niche you think your talent and skills are most suitable for and go into it. While some songwriters could be creative, writing lyrics of songs about anything, some songwriting companies major in certain niches, such as:
- Children’s music
- Hip-hop or rap
- Classical music
- Blues
- R&B
- Dance hall music
- Reggae
- Rock music
- Country music
- Classical music
- Acapella
#5: Decide whether to start from scratch or join an existing company
When starting a songwriting business, you don’t always have to start from scratch; you can join a company that is already making good records. You can partner with such a business or even buy it. However, know that most of the successful songwriting businesses you see around today all started out from scratch and they were able to build something great. So you can do it too.
#6: Choose a perfect location for your business
The location you choose for your songwriting business is very important. You need to look out for places where there is high demand for songwriting services. See if you can get yourself a space in a central location. It will greatly help your business.
However, if you are starting out on a small scale, you don’t necessarily need to rent space while starting out. You can use your home for your studio and gradually build a brand from there.
#7: Identify who your major competitors are
More than many other industries out there, competition in the music production industry is intense. To be successful there, you will need to know who your major competitors are and understand what they are doing. That will give you a better idea of how to go about your own business, building an edge above the competitors.
Being negligent of your competitors will only mean failure to your songwriting business. So, it’s important you take it more important.
#8: Raise the money you need to start
Now that you understand how your songwriting business will be launching – whether from home or renting a studio, you should have an idea of how much you are likely going to be needing as startup capital. So, the next thing is to devise a means to raise the money.
If you will be needing a standard studio, then you will be needing a lot of money to finance the business. If you have a solid business plan, you can consider walking up to banks and other financial institutions to secure a loan to start the business.
On the other hand, you can start your songwriting business with money from personal savings, friends and family, grants, or investors.
#9: Choose a legal entity for your business
You have to be careful when choosing a legal entity for your business because it goes a long way to determine how the business can grow. You can choose from a sole proprietorship, partnership, or Limited Liability Company. If you are starting small and working from home, a sole proprietorship might be the best option for you.
#10: Get the necessary documents and personal certification
Although there is no formal training or special certification required to become a songwriter. But you will need a form of informal training that will expose you to the rudiments of songwriting and music production as a whole.
Getting a form of certification can aid and effectively manage and grow your songwriting business. On the other hand, you will also need some documentation to open the business, especially in a place like the U.S. Some legal documents you need are:
- Tax Identification Number
- Business license
- Employment agreement
- Certificate of incorporation
- Insurance policy
- VAT registration, etc
#11: Find customers and promote your business
As a new business, finding customers may not be very easy from the onset. But putting some things in place and concentrating on giving the best, you will naturally earn good customers for your business. However, there are some tips that can help you gain customers to your songwriting business, such as:
- Networking and building connections with potential customers and other businesses
- Offer free trials so people can gain some trust in your business
- Give incentives for referral
- Find a perfect location for your business
- Create a professional website
- Use social media to promote your business
- Install your billboards in strategic areas
- List your business in local directories and yellow papers
Final Note
Starting your own songwriting business may be the best option if you think you have the skills and talent to put up great song lyrics. You don’t need a huge amount of money to do this – you can start out from your home. There is also some flexibility with the business. If you are not convenient with starting out from scratch, you can partner with an existing songwriting business or even acquire it.
