Start-up promoters also can find funding an issue but funding can be can be found in several ways. In Scotland an open funding grant can be applied for from creative Scotland.
Creative Scotland is a government run initiative to provide funding to help promote the creative industries in Scotland. Crowd funding is also a popular way to find funding. It works by going online and asking for small donations form lots of people to find your funds. Private investors or a bank loan is another option. For anyone to fund your idea you need to present it to them and if they like it they’ll provide a loan or funding. The reason the government are willing to fund things such as creative Scotland is because there is still revenue to be made in the end product as they will gain review in the form of taxation and also events such as music festivals provide a massive income boost to the Scottish Tourism Industry.
An artist or promoter all need to make the decision on how their business will be formed. The most common formations are sole trader and partnerships.
A sole trader business is started by a single person that prepares the business plan and organises their own finance. The main benefits are, anyone can start their own business, the owner can take all his own profits, it’s easy to set up or close down too. A sole trader has completed control and can make all their own business decisions.
The main cons are the money in the company will be limited and there isn’t that variety of knowledge and expertise.
A Partnership is formed when two or more people set up a business.
Pros of a partnership are it is easy to set up and you have someone to share start-up problems with. The burden of decision making can be shared and hopefully more skills and knowledge will be available in a partnership. The disadvantage is you might get your own way and differences in styles and personal aims can get in the way and cause issues. It can also be a pain and cause things to be a bit slower if you need to consult your partner on any decisions
If the limited company route is taken then the company must be registered with www.companieshouse.gov.uk under the under the Companies Act 1985. Certain documents must be sent to the Register of Companies, a Memorandum of Association which records the company’s name, address of the registered office and its objective, Articles of Association, Form 10 & Form 12. A limited company carries responsibilities, and penalties for failing to meet these responsibilities.
The pros of a limited company are that a limited company provides more status and banks and investors tend to favour limited companies
The cons of a limited company are that the company details are held on public records. Accountancy fees are usually required and additional administration is required or there are penalties.
Another thing to consider for a promotor is how their artist is going to receive money from their work. A collecting society such as PRS in the UK allows artists the right to let other people use your work or prevent them from using it if you wish.
It would be difficult to protect an artist’s right’s so a collecting society will manage the rights to your music. PRS in the UK will enforce your right, sell people licenses to use your music, collect and pay you your royalties. They will also organize royalties to be paid to you by other collecting societies from other countries.
Artists will have a contract with their promoter and it is not uncommon particularly for larger acts to have certain clauses in their contract such as the minimum and maximum time a band can play, the fee for the band and details for the venue such as time. A Rider may also be added to the contract such as what they require to be in their rooms such as snack and drinks.
There are many opportunities to network and promote a band whether this be at a gig, large mainstream festival or a boutique festival. For a promoter or an artist there are many things to consider such as the logistics of setting a festival or gig up such as the logistics and the regulations with regards to Health and Safety for employees and the audience as well as consideration of how the company will be formed. Once formalities are sorted then there is promotion and marketing to deal with and then exactly how an income will be created whether it’s through sponsorship, funding or collecting royalties for your work. One thing is for sure it takes the involvement of many people for it to work and communication is key. Entertainment and the creative industries is fun to be part of but what is clear is that is still a business and a professional approach is required.
Moodle Riverside Music College
www.hse.gov.uk/pubns/indg163.htm. (n.d.). HSE.