Business Development

Just a few weeks back I had the wonderful opportunity to research the works of business moguls Steven A. Gedeon, Ph.D., MBA. and Mexican mobile tycoon Carlos Slim. In doing so I have discovered ways of approaching and incorporating the ways of both Carlos Slim and Steven A. Gedeon into my own business plan. Equipped with tact and knowledge of how to, most likely, create a successful business. They each express how they have a set of questions that are their guidelines in knowing whether this will be a successful venture or not.

Most of all it was Carlos Slims’ detailed set of questions that I have incorporated into my own business and is the same set of question that during my development I can revert back to in an effort to ensure.

•       “[What did you initially think your initial business model was? (Initial business model hypotheses)

•       What did you build/do? (Built first product, talked to users, etc.)

•       What did you learn outside the building? (Parts of our feature set/business model were wrong)

•       Then what did you do? (iterated product, changed business model, etc.)

Repeat steps 1-4.]”

Although I was most baffled about what I thought my initial business model was, I shaped, molded and soon discovered just exactly what it is I should be developing. Although I know that I have created something for the world to see, I also know that t begins with a start: That start being the investors that are going to invest in my company. I believe the most important thing to the investor is not just what they will get back from the company but what exactly my niche will be, as well as the projected financial report. Anyone can develop a business plan but it takes detail to put it into position.

http://bragmedia.com/blog/?tag=music-industry-talk

www.ryerson.ca/tedrogersschool/bm/faculty_staff/bios/gedeon.html

Carlos Slim Helu & family". Forbes. Retrieved June 5, 2013.

http://www.newyorker.com/reporting/2009/06/01/090601fa_fact_wright

Business Moguls

Recently I have reviewed the strategies of successful business moguls and entrepreneurs. In doing so, it was the ways of Business Steven A. Gedeon, PhD, MBA. Gedeon received his PhD from the world renown Massachusetts Institute of Technology and is currently a professor of Entrepreneurship and Strategy at the Ted Rogers School of Management. Gedeon himself has developed and created a great host of businesses. He also writes and reviews the works of other businesses as well.

Thing I have come to be so fond of in his work is his set of questioning that he has in which he feels is quintessential for a successful business. Although none of them can be proven as facts, a man with such a level of establishments and credentials, one should watch carefully when attempting to develop a business. For further detailon Gedeons writings visit www.ryerson.ca/tedrogersschool/bm/faculty_staff/bios/gedeon.html.

Another successful business mogul that caught my attention was Mexico’s telecommunications mogul Carlos Slim. Slim is the chief executive officer of Telemex and America Movil. From 2010 to 2013 Slim was the richest person in the world, due to his large number of share holdings in several conglomerates, until Bill Gates took the throne.

Like Gedeon Slim has a business model with a set of four questions that he asks when developing a business:

•       “[What did you initially think your initial business model was? (Initial business model hypotheses)

•       What did you build/do? (Built first product, talked to users, etc.)

•       What did you learn outside the building? (Parts of our feature set/business model were wrong)

•       Then what did you do? (iterated product, changed business model, etc.)

Repeat steps 1-4.]”

It is arguably this concept that has kept Carlos slim one the wealthiest men in the world for the last few decades. As aforementioned, although these moguls’ method for success may not be fact, one should listen when a repeated billionaire speaks.

Carlos Slim Helu & family". Forbes. Retrieved June 5, 2013.

www.ryerson.ca/tedrogersschool/bm/faculty_staff/bios/gedeon.html

http://www.newyorker.com/reporting/2009/06/01/090601fa_fact_wright

Music Management Risks

The music business in itself is a tough business to work with. When working in this business as a manager or management company one has to consider all music management risks and prepare proper reaction when an unwarranted action occurs. For instance, over the last decade the music management risks have been extreme due to the excess of piracy via the Internet. These types of music management risks are those that any management team in today’s industry has to work extra man-hours to diminish the inevitable ability to illegally copy music from the artist.

 

There are even more music management risks to 

be discussed with the ubiquitous distribution of digital music. Some older artists have an issue of whether or not digital music should be treated as a license or sale. According to Ben Sisario (2011), in an article published by the NY Times “Four years ago, the producers who discovered Eminem sued his record label, the Universal Music Group, over the way royalties are computed for digital music, which boils down to whether an individual song sold online should be considered a license or sale. The decision made was one that would benefit the production company and Eminem millions of dollars for years to come, as well as set precedents for other artists. As stated by Sisario, “Eminem’s contract stipulates he gets 50 percent of the royalties for a license but only 12 percent for a sale.” In layman terms, if this were to remain the standard, there would be an injustice for the artist signed to a label more than a decade ago, with music sold online, due to the fact that digital music was not in use back then. Hence, the artist and production team makes a lot less money for a technology that wasn’t developed during the time of the signing to the label. The result of this case ruled in favor of the production company ruling digital music to be considered a license. This is more music management risks and precaution for any manager or management team to consider when working with an artist signed before the commencement of the sale of digital music to insure adequate revenue is received for the artist as is rightfully so.

 

In more recent news, like the popular band “Radiohead,” “R&B singer “The Weekend” suggests a new business model based on free music. The weekend released a new and very popular album via the Internet for free. Some would consider this a nightmare for the manager because of the lack in music sales, ergo lack in revenue.

Needless to say, there are several music management risks that a manager and or management company can encounter when maneuvering about in this business. 

http://www.nytimes.com/2011/03/28/business/media/28eminem.html?pagewanted=all

http://bragmedia.com/blog/?tag=music-industry-talk

Entertainment Podcasts

In a podcast entitled “A seminar in Copyright Law with Entertainment Lawyer Greg Eveline,” Greg Eveline was asked what he thinks about copyright law. His reply was powerful and extremely in favor of the musician. Eveline mentioned that the entire entertainment industry all evolves around copyright law. “It is the only right enumerated in the constitution” was a statement made by Attorney Greg Eveline as he corroborates his claim by explaining that all copyright is is the ownership of a property.  As an aspiring CEO of a management team I agree and understand his statement about the exclusive rights to the music in having it owned. One always has liability risks when dealing with music. Conversely, the escape of this is if you own the copyrights, then you own the song.

Attorney Mark Davis in a seminar at Loyola University assists students in helping them understand how to approach copyright in the music business. He breaks down the roles of what he feels the ownership of a song is broken down into; “four roles: Artist, Publisher, Writer and record label.“ Mark Davis then defines what is copyrightable as “anything that is an original expression in fixed form.” It is important that one completely understands this when going into any area of the music business. I found that this podcast has elucidated things that I have heard over the years by the plain language that is used.

Mark Goldstein, a retired attorney of 25 years and current professor at USC Thornton School, expresses his opinions on a more facilitated skill set to work in the music business. He says that one who has worked in the music business already would be a much better communicator and manager to represent someone because of having been on both sides of the table. That is, the creative side as well as the business side. Although none of these things are fact patterns, they are beneficial and helpful information due to the fact that they are coming from experienced individuals that have been in the industry for years.

http://www.youtube.com/watch?v=JhRhf4fY5as

http://www.youtube.com/watch?v=Ei50ZKq0Y_k

http://www.youtube.com/watch?v=6fqDLx0jFF0

Artist Management Liabilities

The music business is a tough business to be in. It’s one filled with sharks and smooth criminals. Having said that there are many caveats that one must consider before deciding to be engulfed with this work and these types of people. Artist managers can sometimes be the best and worst person in the music business and sadly it’s the artists that suffer the most if they don’t pay attention to who they have on staff.

At any given moment the managers run the risk of being sued from anyone they are doing business with. Be it the artist themselves or someone rom the business, venue Internal Revenue Service, etc. I aspire to run my own management company and in doing so I have had to do some extensive research on the actual many tasks of the managers, in addition to what the artist management business is responsible for. It is understood now that “the managers have to understand their managerial duties from all perspectives,” according to an article from Music Industry Form Contracts. Otherwise they simply run the risk of being sued. What is the most conundrum of the job is that the artist is the face of the product but the manager does all of the hands on duties to get the job done. The public hardly ever sees the managers as much as they do the artist themselves but the managers is the one with his or her hands on everything that the artist is into. Like a business with products, the managers make sure that the price, product, promotions, and locations are correct but the product, like the artist must sell to operate the business successfully and if it does not it is the manager’s fault.

Having said that one must consider the liabilities that come along with being an artist manager or when operating in the music business with a management company. 

http://movies.yahoo.com/news/appeals-court-raises-damages-award-music-piracy-case-202331291--finance.html
http://www.lacostamusic.com/record-labels/manageracloserlook.htm