The Foundational Five Steps
1. Write a business plan for your record label.
2. Pick a name for your record label and trademark it.
3. Incorporate your business, preferably in Delaware.
4. Apply for bar codes from the UC Council.
5. Register a domain name and build a web site.

The Next Seven Solid Steps
6. Start signing artists and pressing up records.
7. Hook up with a record distributor.
8. Hire a publicist (or do it yourself).
9. Hire a radio promotions company.
10. Start selling records.
11. Get a good accountant.
12. Pay your artists, on time and in full.

Aside from having good music to release, establishing contractual agreements with your artists is absolutely key to the success of your label. The Internet has become a prime source for all types of legal information, making the DIY ethic more appealing and easier than ever. Why pay thousands of dollars in professional fees when you can find excellent legal advice and other resources for free? Protecting your rights and securing business deals are crucial when working in the music industry, especially if you work independently or in a small company. If you are an independent record label owner, a solo musician or band member, a DJ, music producer, manager or booking agent, consider the importance of using legal contracts to define terms of agreement for any and all business transactions.

Go to Step #7: Hook up with a record distributor.