MADE

The reason most businesses fail isn’t because business is risky. It’s because many business people do risky and stupid things. Business, especially in the Internet age, really isn’t all that risky. Time is the main investment.

I’m always shocked at the number of people involved with an indie record label in some way who don’t fully realize that a record label is a business.

Doesn’t it seem like everyone today has their own indie record label? Record labels today litter the landscape like cat turds in a kitty box. If I got a nickel for every guy who told me he was part of or thinking of becoming part of an indie record label, I’d be pretty damn rich by now. Thing is, in my experience, usually a record label just consists of a few guys with a loud, crappy MySpace and some recording gear who yearn to be taken seriously, but who are usually doing little more than just screwing around.

And they don’t know it. They think they’re not screwing around. In fact, in their minds, they’re 100% convinced that they should be taken seriously. But in reality, they’re just screwing around. I know that sounds harsh. But the uncomfortable truth is that many people who think they’re running a real record label need to open their eyes and see how badly they’re shooting themselves in the foot through the downright silly and sometimes stupid decisions they make.

A record label is no different from any other business in that regard. When it comes to sound decision making there is one crucial area that usually spells death for most music ventures. It’s the main reason why most record labels either never get off the ground or run out of steam. It’s called leadership.

The way most record labels start out is that a few people will get together because one person sings well, the other produces and the other is good with numbers or knows management or something like that. They realize that if they put their talents together they can create a business that produces and sells music.

In the beginning everyone is super excited about all the possibilities and they all think they’re the hottest new thing out and they’re going to take over the world. I actually saw that on one band’s MySpace. They said they’re, “Taking over the world.” But then the rubber meets the road. They actually have to take action and do the numerous daily chores that the business requires to succeed. The real world hits them like a fist.

Time passes by and the enthusiasm begins to wear off. It wears off because people begin to realize that dreaming alone isn’t sufficient. To build a real business they realize you have to constantly do many small, boring, unglamorous tasks you may not like. And you have to do them day after week after month after year.

And over time, all the tiny little things that the business requires add up and spin out of control, unless there is someone there to keep them all in order. The producer isn’t meeting deadlines, the artist is often late to recording session, etc.

You see, the problem with most record labels isn’t that people aren’t making enough decisions. The problem is that nobody’s really in charge to make sure that the right decisions are being made. Many people think that because record labels are about music, that business principles don’t apply as much. But even though a record label is about music, it’s ultimately an instrument to generate money. There needs to be somebody at the top who oversees everything with an iron fist if necessary.

Some labels will have two CEOs. They’re usually friends who decide that they can wriggle their way out of having to be their friend’s boss or subordinate by sharing power equally. But it doesn’t work that way. It’s a very stupid thing to share power like that because business isn’t about friendship. It’s about decisions and profit, and everybody’s not equal.

There needs to be that one guy at the top who makes sure deadlines are being met, projects are being completed, relationships are being maintained and a million other things. Otherwise you just have a bunch of jackasses who think they’re running something. Call this head person the CEO, Director or whatever you want to, but the title’s not important. It’s the character and judgment of that person that counts.

Lots of record labels do have people who call themselves CEOs, but so many times, they’re leaders in name only. You can’t just slap a title on somebody and expect them to lead. A person needs qualifications. There are four absolutely crucial things to look for when deciding who it is that’s going to lead a business.

The first is intelligence. Forget all this 7 theories of intelligence BS. Smart is smart. You know it when you see it. A leader must be able to carefully, clearly and objectively analyze situations, think into the future and strategize in order to take the label in the right direction. If you can’t plan several years into the future, you shouldn’t be a leader, plain and simple.

Second, a leader needs to be a good communicator. That means being the most articulate and good at dealing with people. Not just verbally, but through writing too. It doesn’t necessarily mean being outgoing. In fact, if somebody tells you this crap about being a “people person,” know that they’re probably not fit to lead anything other than their tongue. Being a good communicator is about knowing how to sell ideas and make other people feel at ease.

Third, they need to be curious about learning new things. The last person you want leading anything is some guy who hasn’t read a single book since 12th grade English class. Or who doesn’t even trawl the Internet every single day for information because he’s hungry for new ideas. Or a guy who never asks questions because he’s got too much pride. Otherwise, the company goes nowhere and the competition wins.

Fourth, a leader needs to be able to take responsibility for his actions. If he makes a mistake, he should be able to take the blame. If things go well, he should be able to praise everyone else before praising himself. A true leader leaves his ego at the door. Like a true captain, he should be willing to go down with his ship.

By: Twitter Buttons