Music Business Entrepreneurship

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MusicBUSINESSEntrepreneurshipPresented by Leena Sowambur

© Leena Sowambur and Positively Music. All Rights reserved 2013

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#darkermusictalks

@positivelymusic

@darkermusictalks

@leenasowambur

@tommydarker

Hashtag!Tweet It! Facebook It!


MusicBUSINESSEntrepreneurship

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Contents

• Purpose• Your Tasks• About Me• Definitions• The Bigger Picture• Music Business Application and Trends• How To Be A Music Industry Entrepreneur• Case Study• Summary• Homework


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Purpose

• To clarify the concept for you.• To equip you with some theory for bigger

picture thinking.• To stimulate your thinking.• To help you work out what it means to you.• To give to some take away actions points to

get started.• To re-charge your entrepreneurial spirit.


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1. Write down any insights, ideas and action points during this session.

2. Make sure you schedule (date and time) , review and act on your points!

3. You will be given mini exercises during the session.

4. You will be given “homework” please tweet and Facebook to us your progress over the next fortnight using the tags provided.

Music Business EntrepreneurshipYour Tasks For This Discussion



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Why is this the best time in history to be in the

music business?

Music Business EntrepreneurshipQuestion For Your Consideration


MusicBUSINESSEntrepreneurship#darkermusictalks

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• Started out when I was just 4 years old! • Chose Education Pathway – primary and secondary school and

university. • Now I have over professional 12 years in the music business,

starting off in digital and progressing through to entrepreneurship.

• Worked for Sony, and with Warner, EMI and Universal. I directed numerous international, European and national digital marketing and PR campaigns for superstar artists from Beyoncé to Take That.

• “Positively Music,” dedicated to entrepreneurship and digital business training to the music industry.

A Bit About MeHi, I’m Leena!


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8© Leena Sowambur and Positively Music. All Rights reserved 2013

Definitions - EntrepreneurExercise #1 - Your Thoughts?

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What is an Entrepreneur?


Definitions - EntrepreneurWhat is it?

(Entrepreneur) someone who organizes a business venture and assumes the risk for it.

(Source. Princeton.edu)

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Definitions - EntrepreneurshipWhat is it?

Entrepreneurship is the act and art of being an entrepreneur or one who undertakes innovations or introducing new things, finance and business acumen, in an effort to transform innovations into economic goods.

(Source. Wikipedia.)

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Definitions - EntrepreneurshipWhat is it?

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(Source. Anon.)


Definitions - EntrepreneurshipKey Words

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KEY WORDS

FINANCE

BUSINESS

RISK

INNOVATION



Definitions - EntrepreneurshipExercise #2 – Your Thoughts?

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FINANCE

RISK

INNOVATION

BUSINESS


Definitions - EntrepreneurshipHelp Is At Hand!

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KEY WORDS

FINANCE

BUSINESS

RISK

INNOVATION

More Later


The Bigger Picture


Importance – General Landscape

• Important for economic growth, productivity, innovation and employment.

• Entrepreneurship is the solution to faster global PESTAL change and challenges.

• High income and high human development countries have made entrepreneurship a priority due to the recent Depression.

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The Bigger Picture


• In every previous downturn, new SMEs have pulled the economy out of recession.

• Job creation is typically located in small businesses and new businesses rather than in bigger companies.

• Innovation typically comes from newer, smaller, more agile businesses with access to little to no cost infrastructure.

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Importance – General Landscape


• Creating jobs.

• Promoting regional balance e.g. setting up businesses in regeneration areas.

• Reducing the concentration of economic power.

• Stimulates equitable distribution and creation of wealth.

• Improving the standard of living - providing new products at a lower cost – e.g. the internet.

• Enabling export trade with other countries.

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Importance – General LandscapeThe Bigger Picture


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To Sum up

(Source. Sir Richard Branson. The Telegraph 2011- http://bit.ly/eZkrLl)

“Building a dynamic entrepreneurial culture is one of the key characteristics of a healthy economy. A society which encourages new business and recognises the importance of start-ups and small firms will be successful on the global stage.

Firing up a new generation of entrepreneurs will be a crucial part of our recovery and essential for creating sustainable growth in Britain over the next decade and beyond.”

The Bigger Picture

http://bit.ly/eZkrLl

http://bit.ly/eZkrLl


The Bigger Picture


Music Business

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HOW DOES ALL THIS APPLY TO MUSIC BUSINESS?


Music Business EntrepreneurshipExercise #3 – Your Thoughts

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Where are we right now?

Typical Industry Lifecycle reflecting

music industry


Music Industry Lifecycle

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Where are we right now?

Typical Industry Lifecycle reflecting

music industry

Music Business Entrepreneurship

OVERLAP



The Current State Of The Music Industry

• Music Industry has been in recession for over a decade.

• Recording, publishers and touring whilst resilient are still challenged.

• The Music Industry doesn’t make as much money as it used to.

• Technology has changed the way fans consumer music and therefore the status quo.

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• The music industry is down 64% from its peak in 1999.

• The music industry is actually down 45% from where it was in 1973.

• 10 years ago the average American spent almost 3 times as much on recorded music products as they do today.

• 26 years ago they spent almost twice as much as they do today.

(Source. Business Insider - http://read.bi/gSSbLi)




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(Source. Business Insider - http://read.bi/gSSbLi)



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(Worth $168 Billion – 2011)



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TREND!



Music Industry Historical Trends

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Music Business EntrepreneurshipMusic Industry Historical Trends


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Exercise #4 – Your Thoughts?

The Music Industry is an example of

Creative ___?___

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Exercise #4 – Your Thoughts?

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DESTRUCTION




Joseph Schumpeter 101

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• Joseph Schumpeter, an Australian economist in the 1930s.

• Economic growth happens in waves.

• These waves are extended periods of technological revolution.

• These waves mean old industries e.g. cassette tapes are destroyed and replaced by new industries e.g. CDs

• Economic activity increases = more jobs = more purchases = more demand = more jobs.



To Sum Up

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Entrepreneurship is a key driver of economic growth

Where the opportunistic entrepreneur can engage in new tech to disrupt the status quo and get an edge on the major players. E.g. Sean Parker


• Creating employment in the music industry.

• Promoting regional balance e.g. setting up music businesses in regeneration areas.

• Reducing the concentration of economic power – so music industry power agencies have less control.

• Stimulates equitable distribution and creation of wealth.

• Improving the standard of living - providing new products at a lower cost – e.g. access to online music education.

• Enabling export music business trade with other countries.

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To Sum UpMusic Business Entrepreneurship


To Sum Up

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CALL FOR ENTREPRENEURS!


To Sum Up

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• Took a step in promoting entrepreneurship as a centrepiece of economic growth and stability around the world.

• Helping entrepreneurs launch and grow startups that eradicate poverty, generate wealth and improve lives.

• Foster entrepreneurship worldwide as a tool for development.

• Education is the first step toward empowering the citizens of the world through entrepreneurship.

(Source. Kauffman http://bit.ly/17SDuje 01/07/13)

http://bit.ly/17SDuje

http://bit.ly/17SDuje


Music Business EntrepreneurshipGetting Started

HOW DO I GET STARTED?

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Exercise #5 – Your Thoughts?Music Business Entrepreneurship

Is It For You?

1. Can You Take Risks?2. Can You Make Decisions On Your Own?3. Can You Take Rejection?4. Can You Negotiate And Persuade?5. Can You Solve Problems Creatively?6. Can You Ask For Help?


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Exercise #6 – Your Thoughts?Music Business Entrepreneurship

What habits do you think you need to succeed as an entrepreneur in the music industry?



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10 Habits For SuccessMusic Business Entrepreneurship


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When And Where?Music Business Entrepreneurship

START NOW SO YOU ARE READY FOR RECOVERY


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When And Where?Music Business Entrepreneurship


Music Business EntrepreneurshipPre-empting Problems

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KEY WORDS

FINANCE

BUSINESS

RISK

INNOVATION




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FINANCE

BUSINESS

LEARN ITPRACTICE IT



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INNOVATIONNEW STANDARDS IN QUALITY,

EXPERIENCE, AND SALES



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RISKASSESS

PLANSAFEGUARD

MONITOR

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• Get A Vision That Is Bigger Than You• Set S.M.A.R.T Goals• Business Plan – 3 years to 10 years• Get Learning• Get Help• Fail as fast as you can


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Music Business EntrepreneurshipActions

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http://vimeo.com/40068650


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Music Business EntrepreneurshipCase Study – Jamal Edwards




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• Started with a £200 camcorder filming his friends rapping on YouTube.

• Started 8 years ago• YouTube was only a year old at

the time (Timing is everything)• Acted alone for 3 years• Travelled all over London to get

rap footage and interviews.• All times of day and night• All weather conditions.


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• Estimated fortune of up to £8m, • He appeared in the Sunday

Times young power and rich lists

• Signed a deal with Sony RCA to run his own record label.

• Verified Twitter A/C = 130K plus followers


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• Columns in RWD, The Observer, The Guardian, The Independent, Dazed & Confused, the Sunday Times Style magazine

• Assistant production credits with the BBC, Tiger Aspect Productions

• The Google Chrome Advert crashed the SB.TV website due to searches for “Jamal Edwards”

• Quote “Have a niche, create a unique selling point. Be creative and chase your dreams, don’t stop. Don’t accept any knock backs.”


Music Business EntrepreneurshipPersonal Benefits

Exciting : High risk and lots of adventure

Independence: Be Your Own Boss

Flexible: Your time is your own

Money: “You don't get paid for the hour. You get paid for the value you bring to the hour.” – Jim Rohn

Exit: You can plan your way out and your next project

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Music Business EntrepreneurshipPersonal Benefits

Freedom!

Work whenever you want, wherever you want, and however you want.

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Why is this the best time in history to be in the music

business?

Music Business EntrepreneurshipQuestion



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Music Business EntrepreneurshipWhy is this the best time in history to be in the music business?



Answer:-

Now YOU can be part of leading it and shaping it

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Your Homework

#darkermusictalks

#darkermusictalks

@positivelymusic

@darkermusictalks

@leenasowambur

@tommydarker© Leena Sowambur and Positively Music. All Rights reserved 2013

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THANK YOU!

Where To Find Me

www.positivelymusic.co.ukwww.facebook.com/positivelymusicwww.twitter.com/positivelymusicwww.facebook.com/leena.sowambur [email protected]


http://www.positivelymusic.co.uk/

http://www.facebook.com/positivelymusic

http://www.twitter.com/positivelymusic

http://www.facebook.com/leena.sowambur

mailto:[email protected]