Mt. Hood Records is an unusual but sustainable business model for a record label. Hillary MacQuilliams established the company as an Oregon registered LLC. The business works to promote several Portland-based bands that share the same element of improvisation.
Industry Analysis
The retail record industry is dominated by a few large corporations. These corporations control 87% the CD sales. Indie record label, which is a less commercial version than the big corporations, controls 8%. The remaining 5 percent is controlled by a mixture of record label companies. Most labels are aggressive in their sales efforts. They sign up lots of different bands and hope a few make it big. Record corporations make huge profits when bands are commercially successful. Indie labels are similar to the record companies, but they are more selective and may not choose the most profitable bands.
Products and Services
Mt. Hood Records is a Portland-based record label that serves a select number of Portland-based bands. Mt. Hood Records believes that it is more profitable for them to sign up a handful of bands and promote them equally, than to sign up many and hope that one is successful enough to flot the rest. This is a good approach for a handful of bands. It provides the bands with the intimate and specialized focus of the label. The bands recognizes that fact that this label will be working hard to promote just a few bands, and that they will not be lost in the shuffle.
A Business Model
To make this record label succeed, it will take a lot more than just a little bit of revenue in the first year. For many businesses this is quite difficult to swallow. Mt. Hood Records it helps that these realistic expectations have been established up front, and will not be an unwelcome future surprise. The parameters have been established by friends and family, who have also given their consent. It will take some effort to accomplish this but reasonable expectations upfront and the right management will ensure that it happens.
Management
Mt. Hillary MacQuilliams has founded Hood Records and will run it. Hillary is an experienced musician. Hillary began touring with her band 180 South right after graduation. Hillary and her band formed their own record company to self-release a studio CD. Hillary knows that this was not an attempt to make a record company work. It was more a novelty to launch a label and publish their own CD.
Hillary enrolled in law school after the tour. Law jobs were very difficult to find after graduation. Hillary was unsuccessful in her job hunt and began to think about the possibility of working in the music industry. After doing extensive research, she developed a business plan that would be long-lasting by creating a local record label. Mt. Hood Records.
1.1 Objectives
- To become the best local music label within three years based on CDs sales.
- Sign at least five groups within the first three years.
- Within three years, achieve profitability
1.2 Mission
Mt. Hood Records is a local record label that promotes local music and increases live appearances. Mt. Hood Records was founded to promote its bands, and also make a fair income.
1.3 Keys to Success
- Promote promising bands.
- Sign up for as few bands as possible to limit the effectiveness of your promotion.
- Enjoy working hard, but have fun.