Disclaimer: The aim of this article is information and enlightenment; please consult a solicitor for individual professional advice.
MUSIC: A BUSINESS OF PROFESSIONALS
If your music-making is a profit-making business or you intend to make it one, then you need to start treating it like a money maker. In any case, something that takes a lot of your time and puts some dime in you pocket should be treated with seriousness.
To do this, do not underestimate the necessity of using professionals in your business. When I say 'professionals', I do not necessarily mean the ones in dark suits, swinging leather briefcases, I lay more emphasis in what they know and how practical it is to you as a singer, producer or whatever role you play in the music industry.
There are a number of such professionals you would need, but I'll list a necessary few:
1.) A lawyer. By far, one of the most important, and I'm not being nepotistic. If you intend to make money from your business, it's important that you create a legal business structure that identifies the major stakeholders in the business, and what their stakes are. Identifying the people and their stakes may be your prerogative, but documenting it and creating a structure is best left to a lawyer. As it is advisable that you create a profit-sharing structure that works, your lawyer will help you with the preparation and documentation.
A lawyer will also come in handy during negotiations and the drafting of agreements, and generally making sure that you stay out of trouble.
2.) An agent (or manager). I use the term 'professional' rather loosely when associating it with an agent. This is because most 'agents' in Nigeria are anything but professional. In any case, it's quite important to get someone who is very knowledgeable about the peculiarities of the Nigerian music industry. In your association, with an agent, you should be careful, though (see the October 2010 article "You and Your Agent" for in-depth information on your relationship with your agent).
3.) A business consultant. This person's job description is to 'show you the money'. The main necessity for this 'professional' is to advise you of opportunities within and without the music industry, so that you can save and invest your money wisely. Sometimes, the best person for this position, may not necessarily be the phonetics-speaking 'suited-up' consultant, it could just be a person with a knack for identifying and following up opportunities for wealth creation. Get that person on board. It's cool if this person can combine book-keeping, accountancy, and tax consultancy with the job, if not, you need yet another professional for that.
4.) The financial consultant. Now, it's the duty of this person to deal with the numbers and figures- book-keeping, accountancy, and tax consultancy. When you earn profit, like we hope you would, you will be subject to the payment of tax. The professional should be able to advise you on the relevant and best legal (working with your lawyer, and business consultant, of course) position for you.
Of course, there are various other 'professionals' involved (publicity and media, artiste development person, stylists, etc), but the above-listed ones are the must-have for the core business part of your endeavour.
Choose these professionals clearly on what they know and how practical and relevant their knowledge is to you. And when you get them on board, please, listen to them.
Be on top on things. It's never early to stay in control of your 'business', or if you prefer, your money.
Copyright 2011 Tinukemi Alabi
Comments/Questions: tinukemi@gmail.com
