Two Expert Views on the Value of Business Plans

      Are business plans necessary or not? This seems to be a serious debate as of recently. However, in order to intelligently answer this question for yourself, it would be wise to find out what various experts have to say on the subject first. Following this advice, here is an examination of two expert views on the value of business plans, from Tim Berry and Rhonda Abrams.

      Tim Berry has been a business plan expert since 1974, and since then he has authored or co-authored several books on business planning. Additionally, at Entrepreneur.com he serves as their business planning coach. He graduated magna cum laude from the University of Notre Dame with his BA in Literature, received an MA with honors from the University of Oregon in Journalism, and obtained an MBA from Stanford as well. Berry is the founder and president of  Palo Alto Software, Inc. He has also been to 13 countries presenting business-planning seminars, and has taught entrepreneurship and business planning at University of Oregon for the past 11 years. Berry adds to his qualifications as an expert on business plans, since he reads and reviews approximately 50 business plans per year for the Willamette Angel Conference (WAC) as an investor member.

      Rhonda Abrams is a foremost authority and best-selling author on entrepreneurship and small business. She is a USA Today syndicated columnist and has written numerous articles for Inc.com. She graduated from UCLA and attended Harvard University for her master’s degree. In 2011, Abrams received the Top Small Business Influencer award, and she has spoken at many conferences, workshops, and meetings. Rhonda Abrams has provided advice to thousands of people seeking expertise on business planning for over 15 years. She is also the president of The Planning Shop, a company that assists entrepreneurs with starting, running, and growing their own businesses.    

      What are some of the critical and key components that these two experts say investors are looking for in a business plan? Tim Berry mentions in his article that elements such as updated project sales, cash flow, costs, expenses, and key performance measurements should be included and stated very concretely. He also suggests that you should state numerical, objective performance goals in order to be able to track results. In a NAFE Magazine article, Rhonda Abrams succinctly states the following: an effective business plan should contain a narrowed presentation of your competitors, what their pricing structure is, what makes your company unique compared to many other similar companies, along with the exact start-up and operating costs for your business. Each expert has suggested varying key elements that are essential for capturing the eye of potential investors and making your plan stand out, but one thing they both agree on is that your information needs to be specific and concrete. In my opinion, these experts have provided very sound business planning advice indeed!

The Importance of Foley Sound

      Have you ever wondered how films are able to have original dialogue replaced with another language, and yet the background sounds are still in tact? How is that possible? It is possible through the art of Foley sound, a technique founded by a man named Jack Foley, which is usually the recreation of sounds such as footsteps and clothing rustle. It can also include other sounds, such as basketball dribbling, clinking dishes, doorknobs being turned, bells ringing, doors slamming, etc. Foley sound is the group of those types of sound effects performed by a Foley artist on a Foley stage in a Foley or post-production audio studio, usually on cue with the actions in the film seen on a screen as they are performing the Foley sound, during the post-production stage (after the film shooting ends).

      One main reason for the use of Foley sound is for the dubbing of films that need a foreign version of the original. However, another reason Foley sound is important, is that it provides more control over the sound for the media being worked on, especially for films, television shows, commercials, or videos that do not have animation as the sole content. When boom operators record dialogue for these types of media, they are supposed to try to avoid capturing the original sources of the types of sounds that Foley artists recreate after the fact. The reason for this is that if the background sounds created from physical action are too loud, such as footsteps in snow or the rustle of a nylon jacket, then those sounds might overpower the dialogue such that it is difficult to hear. By adding Foley sound after the fact (to replace the original sounds), then the overall sound design can be better controlled in the mix; to ensure that the dialogue and Foley are at the right levels, for an optimal audio and overall viewer experience.

      Adding Foley sound also adds depth to media that would otherwise seem and sound very incomplete or hollow, with just dialogue and music. When watching a movie, television show, or even a commercial, it would seem very strange if the actor were walking outside on concrete without being able to hear any footsteps whatsoever. The audience might think that something is wrong with the station or DVD they were watching, since most people are used to hearing these Foley sounds; even if they do not even realize it, or are even aware of what is required to ensure these sounds are present in entertainment media.

      Today, many Foley sounds are often created without the use of Foley artists, Foley stages, or Foley studios, because numerous sound FX are available in digital sound FX libraries, and the budgets for entertainment projects might be limited. These sound FX libraries can be either purchased, or created by an audio engineer through the use of keyboards and digital audio workstations such as Pro Tools. However, the quality of those sounds might not be as good as the Foley sound created by a veteran Foley artist like John Roesch, who has worked on notable films such as “Frozen” and “Inception”, and video games like “Final Fantasy X”.

      The bottom line is this, some type of Foley sound is very important for many types of entertainment and advertising media. Films, animation, video games, commercials, and television features need Foley sound to enhance the sound design by creating a rich tapestry background for that media. Without this type of audio, the audience may not be interested or engaged in the media because of the lack of depth. For obvious reasons, this shows how vitally important Foley sound actually is. If you are still not convinced, take a look at this short video that demonstrates the art of Foley and how important it is:

An Examination of SEO (Search Engine Optimization)

SEO stands for “search engine optimization” or “search engine optimizer”, and according to Search Engine Land, it is the undertaking of obtaining traffic from the free and organic listings on search engines such as Google, Bing, and Yahoo. Typically, SEO consultants/agencies provide website owners with services such as: keyword research, site structure/content review and development, online business development campaign management, specified market/geographic expertise, SEO training, and website development advise from a technical standpoint. It is recommended that one should hire a SEO company or consultant, upon planning to launch a new site or redesign a site. There are both ethical and unethical SEO businesses, so consumers need to do the proper research to ensure that they have hired the appropriate one. Unethical practices could include: promises of #1 ranking on a particular search engine, unsolicited email sent by the SEO company, deceptive or misleading content created on a client’s behalf, ownership of shadow domains that funnel users to a site by using redirects that are deceptive, offers to sell keywords in the address bar, and other deceptive black hat SEO techniques.

One example of a major SEO company is SEO.com, whose clients include Dell and Mrs. Fields. This company has successfully been able to increase organic traffic, ranked keywords, and revenue for these companies and others through its methods of Internet marketing plans that are strategically based upon search engine optimization, search optimized web design, social media marketing, and conversion optimization, all used to dominate the client’s online competition. One example of how it affects the revenue of client competitors from a content provider perspective is the following: SEO.com has been successful in facilitating almost a 200% increase in monthly sales for one of their clients in just a matter of months. This most certainly had to have put a significant dent in the pockets of that client’s competition, because obviously those customers have been lost to said competition. Based upon this client and others that SEO.com has worked with, SEO agencies can certainly be beneficial in adversely affecting the revenue of competitors when one has a larger business. 

If one has a smaller business, the common sense opinion is that they would fare better to either hire a SEO consultant or DIY (after much research on the subject of SEOs), possibly because of a limited budget. When considering a choice of the type of SEO agency or consultant, or whether to utilize one at all; when building a website or if you have a business that incorporates the usage of the Internet for increasing revenue; one should definitely keep in mind that SEO strategies have increasingly become a significant part of business, for Internet marketing, over the past decade.

      Today, there are three pillars of a great SEO strategy, which are: publishing high-quality content that does not get ignored, ensuring that numerous people link to that content (link building), and capitalizing upon social media, which is now the most popular form of communication, especially online. Online social sites are the most common form of social networking, where people with common interests or friendships can communicate, share personal content and information, and make new contacts through current contacts they are linked to. Facebook, Twitter, LinkedIn, Instagram, and other significantly popular online sites are examples of social media that are highly used today by most everyone (young, old, personally, and professionally). Apparently, data from social media is currently being used as a search engine-ranking factor, since likes, shares, and tweets are being tracked and incorporated into ranking. Furthermore, Jason DeMers mentions in this article about the three pillars of SEO, that social media is an excellent tool for increasing dissemination, reach to other consumers, and the ability to be shared. 

      Regardless of what one’s business situation is, SEO strategy is extremely important due to the fact that we are in a digital age where the Internet is a critical part of any marketing plan. As such, it demands optimization of any avenues that can potentially enlarge a company’s customer base, and thereby possibly increase revenue streams. I recommend research of SEOs to anyone with a website or Internet business, and for those with a startup business, to watch this embedded YouTube video entitled “SEO for Startups in Under 10 Minutes”: 

      

Symphonic Distribution: A Comprehensive Review of a Music POD/Aggregator Website

      For musicians, artists, songwriters, and/or music producers, having an optimal avenue for music publishing is very critical. It is even more important when one is independent, and not backed by a major label, publishing company, or investor. Today, it has become easier than ever to self-publish through signing up with one of the multiple Print-On-Demand (POD)/aggregator sites. However, with so many choices available now for aggregators, like CD Baby, TuneCore, and INGrooves, how does one know which one to choose? The trick is, to choose the best fit for you and your professional needs. Reading articles such as this Squidoo article, talking to other music professionals who have self-published, and comparing sites is a great place to start. After doing this, and reviewing what several POD sites had to offer, in my opinion, Symphonic Distribution seemed to offer the most variety of services for reasonable and varied pricing structures.

      Whether you are an independent artist or record label, Symphonic has different distribution pricing plans that you can choose from, based upon your status (artist or label), desired royalty percentages, and fan base. They take all of the hard work and difficulty out of the publishing/distribution process because they will deliver your musical content to any of their 300 worldwide partners with stores, such as iTunes, Beatport, Amazon, and Spotify. They also offer daily and monthly sales reporting from their retail partners, for your review and monitoring of statistics, for calculating artist royalties, or for mailing out promotional materials. They also offer an array of other personalized services that offer great benefit, making this an aggregator that minimizes the need for going to multiple companies in order to get things done. For example, they offer: marketing support; mastering services; YouTube management and monetization; sync licensing; CD pressing services; graphic design; website hosting; and even music video production. Their contract term for each option is two years, and unfortunately that contract cannot be cancelled during that time. However, it is a non-exclusive agreement, and even though there is a one-time set up fee in most cases, it is not requested again when the service is renewed.

      For an artist, the pricing structure is as follows, with 100% of royalties/rights retained; and free ISRC/UPC, customer service, 24-hour distribution, distribution to 300 partners, and promo mailer for each option:

•        Mini Album – (1-5 Tracks) for a fee of $10.99
•        Small Album - (1-10 Tracks) for a fee of $19.99
•        Medium Album - (1-15 Tracks) for a fee of $29.99
•        Full Album - (1-20 Tracks) for a fee of $39.99

      For a record label, the pricing is a bit different, but for each option the label would also receive the free ISRC/UPC, customer service, 24-hour distribution, distribution to 300 partners, and promo mailer for each option, without an annual or maintenance fee:

•       70% Royalties – ($100 Sales Threshold) $0 upfront and pay $0 per release
•       80% Royalties – ($300 Sales Threshold) $0 upfront and pay $0 per release
•       90% Royalties – ($500 Sales Threshold) $200 upfront and pay $0 per release
•       100% Royalties - ($0 Sales Threshold) $500 upfront and pay $100 per release

      They offer a wide variety of choices for both artists and labels, and they make it quite easy for you to compare their services to the services offered by other POD/aggregator sites, through the label pricing charts displayed on their website. I invite you to investigate this site, as well as any of the others mentioned here, or any that you can find on your own. Regardless of which one you choose, whether Symphonic Distribution or another, be sure to take the time to thoroughly research your decision because, as with this company, you may not have the option to cancel the contract once you sign up. Happy POD/aggregator hunting!

An Unconventional View of Digital Publishing/Distribution From an Independent Music Professional: Ricardo Miranda

      As an audio professional creating musical content, it will eventually become important to actually publish and distribute those products if any type of success is desired. Therefore, it is necessary to both conduct independent research, and to consult with other professionals in your field who already have experience in this area. With this in mind, I recently contacted Ricardo Miranda, an independent dance music producer, songwriter, and arranger, who has been in the music industry for over 13 years. He created his digital label in 2007, Noble Square Recordings, as a result of his frustration with the fact that major vinyl distributers were closing down all over the world due to the rising popularity of digital music distribution. Since he has had quite a bit of professional experience with digital publishing and distribution, I asked him various questions on the subject for the purpose of concluding my research.

      First, I asked Ricardo about how he publishes and distributes his music as an independent label executive.  Currently, under his publishing company, Ricardo Miranda Music, as well as through outside independent labels, his music is distributed directly through the following distributors: Traxsource in the U.S.; Juno Records in the U.K.; Wasabeat in Japan; What People Play in Germany; and Groove Distribution, for vinyl, in the U.S. He was previously with ASCAP, but left recently due to a failure to receive all of his royalties, so his publishing company is temporarily unrepresented by any performing rights organization. However, his entire writer publishing is currently handled by PRS for Music in London.

      Logically, my next question for Ricardo was whether or not he had ever used any POD companies, such as CD Baby, TuneCore, or INGrooves, but he responded that he had not used one to date. Since he was able to make direct distribution connections really early on, with companies that were in their infancy stages at the time, he never had to use any aggregators before.

      My third question was about what Ricardo thought about the current digital music distribution platform, and today’s music content overall. He stated that he believed that a lot of music is really horrible today. His reasons are multiple, but his main thought was that people who are not really musicians or professional artists are making sub-quality music because of the ease and availability of programs and home audio equipment, without the benefit of true experience or skill. Furthermore, he stated that because these people are making such high volumes of sub-standard music so quickly, it almost downgrades the worth of other good records because it makes the shelf life of all records extremely short. Ricardo further elaborated that there are so many people putting out independent records daily, which are being bootlegged by the minute, so it is hard for independent music publishers to make any money off of their distribution of creative content. His last comment was that it is even harder when an aggregator has to be paid as the go-between, and the only way to really make any money now, would be to get involved with making music for movies, TV shows, commercials, video games, and other forms of media.

      When I asked Ricardo about his thoughts on major distribution outlets such as iTunes and Amazon, he stated that they are really profiting the most in his opinion, from aggregator fees and the fact that they are providing web space for a high cost in the music marketplace. He further stated that they are actually acting somewhat as record labels, except for the fact that they do not have to handle any of the creation/production side of musical content. His last comment was that they are almost like a mall, leasing space to business owners who can’t afford to set up their own freestanding storefronts, which makes it harder for independent business owners to successfully make money.

      Miranda’s final advice to other independent songwriters, producers, artists, and label owners in regard to producing, publishing, and distribution of creative content, was that digital sales are really not the best avenue for making money. He went on to explain that it does however provide an avenue for marketing and promotion of musical content, so you need to make strategic business decisions about which companies you will use for publishing/distribution, based upon your financial and/or media exposure needs. Despite the fact that he does not currently use POD/aggregator sites at this time, he still feels it is necessary these days for most people to distribute music. Out of the companies he researched recently, he found Symphonic Distribution to be the best choice in regard to services offered for the pricing structures available.

      Ricardo Miranda’s personal opinions about the current state of digital publishing and distribution are probably not the norm for most independent music professionals. However, it is always a good idea to obtain the pros and cons of all choices, before making a final decision about which direction to go in. At the very least, after your research has been conducted and opinions gathered, you should be able to make an educated and informed choice that should be a good fit for you in the end.

An Entertainment Industry Expert Consultation With Charles F. Matlock, Esq.

      When starting any business, it is prudent to consult with various experts in your field, but this is especially true for the entertainment industry, due to the many intricacies it holds. One of the most important experts an entertainment entrepreneur should consult with is an entertainment attorney. This is crucial in order to obtain expert legal advice that can protect you, and your business, from possible legal problems or disasters. In keeping with this suggestion, I recently contacted Charles Matlock, Esq., an Illinois entertainment attorney, who has been practicing law since 1996. Since AOAP is a new company, and there are other entrepreneurs who have either started, or are planning to start their own entertainment business also, I thought it would be a good idea to ask this attorney some questions about liabilities, resources, and general advice.

      My first question was regarding any general advice on things I should include, or not include, in my company business plan. Attorney Matlock stressed the importance of having a good entertainment lawyer review the plan in order to be informed of your legal boundaries. He stated that this was especially important because of the fact that entertainment companies generally deal with intellectual property (IP), and having an attorney who has a good grasp on law concepts relating to IP is critical because the lawyer can anticipate what could possibly happen. Attorney Matlock also suggested that the people who would have a working relationship with AOAP, such as engineers, songwriters, and sound designers, be included in the business plan. By identifying those individuals with impressive backgrounds and/or credentials who are key personnel for your business, this bolsters the credibility of the business as a whole in the eyes of prospective lenders and investors. Even if you are unable to list the names of these key resources, you should at least be able to specify what makes them unique, special, or an asset to your business. He said that this should help your business to stand out among many other similar companies in your area.

      My next question for Attorney Matlock was about industry liabilities that I would need to watch out for with a new entertainment company. The first thing he stated was that it is really important to have strong non-compete clauses and nondisclosure agreements, for employees or independent personnel working with the company.  Specifically, it would be smart to have legal documents that deal with nondisclosure and IP matters together, because of situations that can arise from those two matters. Matlock explained that there may be individuals who want to exclusively work for your business, and those who do not. Therefore, you might want to have an agreement that includes a “First Right of Refusal” concept, where you have the right to enter into a business transaction with the other party before anyone else can. He stated that this contractual right, or something similar, would protect you in situations where someone chooses not to exclusively work with your company.   

      Additional liabilities Attorney Matlock warned to watch out for, are liabilities incurred through people who enter or work in your place of business, due to wild/inappropriate behavior or unexpected accidents. Some people in the entertainment industry tend to have very colorful or interesting personalities, which could lead to incidents causing damage to the premises, or to the people there at the time. To protect yourself from this type of liability, he said it is critical to have good insurance for your business right from the start. The last liability Matlock mentioned, dealt with avoiding the possibility of going to court through the use of arbitration clauses in contracts.

      My third question was about suggested industry resources to use for my business. Attorney Matlock stated that it would be a good idea to establish relationships with unions such as SAG and AFTRA, and with entities that hold entertainment workshops and conferences that are in keeping with your intended purposes. He also suggested another organization called JAMS, which would be a good resource because they deal with dispute resolution.

      My final question to Attorney Matlock was whether or not he had any general advice for me as a new entertainment entrepreneur. He was adamant about the fact that I definitely needed to have more money than I would think that I needed, because things in entertainment are quite expensive. He pointed out the need to have money to pay for things such as equipment, location space, licensing, equipment infrastructure, sampling clearances/permissions, attorney fees, and other necessities. He stated that sometimes you can get items second hand or receive discounts, but not always, so you need to be prepared ahead of time to pay full price just in case. Attorney Matlock also suggested that you make the effort to surround yourself with people who have the utmost integrity, and to also try to pick seriously talented personnel and team members with great people skills. He also stated that as a business owner, it is important to know the extent of each person’s talent, and to only expect from them what you know they are able to offer.

      The advice given to me by Attorney Matlock was in response to specific questions I asked for my own entertainment business. However, his recommendations are excellent nuggets of wisdom from a seasoned expert that can serve as sound advice for any entertainment entrepreneur just starting out. Most importantly, take the necessary steps beforehand to protect your business from liability, by seeking legal counsel, and utilizing the appropriate entertainment resources available to you.