Should Independent Artists Look for Investors?
Getting paid consistently is a challenge for independent hip-hop musicians. Because you aren’t a prominent label artist, you won’t have a company supporting you financially.
Getting money to invest in your trade is essential to a successful recording career. How can you make enough money to sustain yourself and your music?
It’s one thing for artists who still live with their parents, but supporting a family is another. Most aspiring independent rappers won’t be able to sustain themselves early in their careers through music sales or touring.
You could acquire a part-time job, but that would take time away from your music, and you want to devote as much time as possible to your craft.
Aside from acquiring a job, borrowing money from family or friends, or crowdsourcing your songs, you may seek investors to support your recording career.
An investment in your music might help you pay for studio time, graphic design, promotion, and more as an independent musician.
The primary disadvantage is that you would be in debt for the investment amount — investors demand a return on their money.
Of course, seeking finance for an independent artist is like any other company. If you can persuade the investor that you are worth the risk, they will invest.
The most excellent approach to comprehend investment for an independent artist is to know your needs. You should watch out for three types of assets:
- Private Equity – Individuals mainly produce private Equity. To finance your project at a pre-determined rate and timing.
- Venture Capital (VC) is a kind of PE. This is not frequently considered for musicians, particularly independent artists.
- Angel Investments (AI) are the best choices. They are wealthy investors seeking to profit from your achievement. They give lesser amounts of funding with less strain and stress than the primary sources.
The choice is made. Most choose the final selection, which decreases risk and investment. So you’ll work with someone who believes in your idea and abilities. In exchange, they finance the project.
Just be sure you can deliver on your half of the contract. But where can you locate the investment you want/hope for? Where can you discover investment in indie hip-hop artists?
According To PaydayNow, The best way to get investors for your recording career is to seek locally. Small Business Development Centers are good places to start looking for music investors.
Also, look for local business angels. The music community is typically more open to them than commercial proposals. An SBDC likely attracts investors who don’t understand your offer or request.
You need an investor with ambition and vision. Most individuals want to lend you money quickly. An angel investor frequently understands your goals. Working with angels allows you to be creative.
The issue is that locating the investment relies on your location. It’s usually preferable to start asking around in your local music community rather than trying to meet someone halfway across the world.
Local investors might also inquire around for better deals. You may now ask other artists and promoters whether you are worth the investment. This facilitates securing the funding.
But investing in you is still risky – what else can the investor think of?
- Do your homework before meeting with an investor, both on them and your proposal.
- Looking at your rivals, the local scene, the effectiveness of your music, and overall hip-hop statistics can help you convey that message.
- You’ll also need to polish your sales spiel. You’re asking for money to compose music, so it better sound good.
- Before meeting any investor or angel, consult a business planner or mentor. What you say must be appealing to an investor, not only yourself or other artists.
- You may not be bringing a business pitch, but always have a strategy. Examine your local competitors and peers. Find out how they are doing and leverage local success stories as your crucial sticking point.
This will show potential investors that you are not following a fanciful fantasy but rather a real and sustained recording career.