Hi everyone. I know you love me! Especially when I talk about business! Right? Cause I know it all right? Haha! Well I don’t claim to know it all. But there are certain things that I am good at. You can take my “credentials” for what ever you want but I have been very successful all my life in business management and will continue to be. Some things change, some do not. Management isn’t a thing that changes very much. Management is exactly what it says in the name in EVERY industry; Managing people. Simple as that.
It seems that with certain people, and some groups of people, my qualifications on these topics has come into question. Well let’s see if I am qualified to spew out the word vomit I so often do about the topic of business and management:
-At age 17 I got my first supervisor job! w00t! I was in charge of people! I ruled over my minions with an iron fist.
-At age 18 started and successfully ran my first company. It was profitable too. Not to mention our nifty soft-goods line was very popular.
-At 19 I was a manager of a retail store. By 19.5 two of the stores were under my authority. By 21 I moved to the men’s buyer and that elevated me to a position where all stores and managers were under me. At 21.5 I was head of that position and had completely topped out in that company. Only the owners were above me. Not bad for 4 years. By the time I left that company I had over half a decade of management experience under my belt with just them.
-When I turned 23 I helped start up a consulting company specializing in management training courses and business optimization. Became certified in 3 courses from consulting legend Robert Fritz, and became a trainer for his class “The Managerial Moment of Truth.” The same course that helped Blue Shield of California go from $3 billion to over $7 billion since 2004. And most recently I started my very own skateboard company called Ravage Skateboards (www.ravageskateboards.com).
So with almost a decade of real life experience in some sort of position of authority in a company and after starting two successful companies, I think I am qualified to make the claims I do and YES I do know what I am talking about. You don’t know how my mind works. I think very rationally and logically. In fact I probably can have a more clear understanding of the environment you have been in for years after spending one day there. I am not talking about what you do, that could very well take years, I am talking about how you do it. That’s what really matters.
One thing I hear about is how this and that type of industry doesn’t function like a typical business. For example I hear this one a lot: “The music business is different then other business, it’s not typical” or “the skate industry is different cause of….” But I have to tell you it’s not. At all. All businesses function the same on the fundamental level of the basic business. You have people in charge, people doing the work and (hopefully) customers. There are employees’ payroll, accounting, vendors, equipment and other operating expenses, and so on. The one that someone recently had the cajones to say I don’t know anything about is the music business. So we’ll use that for my example. I have been involved in the music business on some sort of level since I was 16. I started out like anyone else does by going to shows. Then I started to have some friends in bands and just got deeper and deeper until here I am today. As most of you know [Name Removed] is a singer and she recently signed to [Unnamed Major Label]. The day that happened any question of this being a “different” business vanished. It is to the very definition of the word, a business. So for those who don’t know, and some that do but don’t understand it, here is how it works. I am going to use generic business terms so that you can see how it fits and I know what I am talking about without jargon getting in the way.
A label “hires” an artist to create a product, in this case a record with songs on it. Much like a manufacturing company hires people to design and create a product like a TV and then they make it.
After the artist is hired they have to create their product. However they do that is up to them. Sometimes it’s a whole team of people (a band) or just one person (solo). When a band signs a contract it’s like hiring a team to make something. Apple does this a lot, they hire a group of guys to create and build a specific product such as the iPod where they hired the people from another company who already had the basic design done. Artists typically have what are called “demos” which are rough ideas/outlines of the songs for the album but are not the polished final version which is the same thing as a product outline. So what happens in basic terms is; the label hires these groups of people to build a record. That’s straight forward enough right? Think of them as hired employees rendering a service for their company. That’s just like any other business right? Correct.
When it comes to solo artists it can, and usually does get slightly more complex. The artist often uses what’s called “studio musicians” which are kind of like what a temp does in the normal business world. (Note: You can make a great amount of money as a studio musician but rarely do they become stars on their own. Why would you want to be in a band and not be famous though?) Another way to think of what a studio player is to the music business is what a sub-contractor in the construction world. They sign up to do a job, bid their rate, and then the main artist picks the ones they want to use based on the info and hires them to work for them for a certain, usually predetermined time (a tour, an album, a song, or just one show) . There can be several of these in one act. In fact if you go and see a big solo act, such as Britany Spears, live the next time you see that same singer, it will most likely be a completely different band playing behind them. They can be used for anything from recording sessions to live shows, even promo shoots and music videos. Functions just like a regular business too. Wow.
When it’s a band it’s like taking a team that has been working together to create something for you and giving them a raise (and just like in regular business individuals and quit and get fired). This would be the actual construction company that bid on the job. Only these are the owners and share in the profits at the end of the project instead of paying a basic salary like they do to the workers. Simple as that.
Believe it or not there are more people than just the band that are required to make a record (product). There are producers, who oversee all things related to the music. These would be like Architects in the construction world. Usually they don’t work directly for the construction company and are instead hired by them to create the plan that the workers (band/artists) will then build (record). Sometimes though, there are in-house Architects and they do it all themselves (Thrice produced their own last album). There are mixers who are like the job foremen who go around the site and make sure everything is being put together the way the architect told them to put it according to the blue prints. Then there are the masterers, these would be like the people who would do the interior decorating and make sure that everything looks (sounds) and can be seen (heard) the way it looks best and that certain things aren’t too lit up or dim (loud or soft) and that everything is clear and clean. Of course you have all the painters (photographers, art people), and even inspectors (executive producers). Those damn inspectors have to sign off on the whole project before it ever has a chance of being opened to the public or lived in (released). See it’s all the same.
I know this is long, but there is more! Way more. Let’s trudge on! In order to run a successful store/business you have to have someone running it; someone telling the workers what to do and how to do it. Now it helps if you think of the Artist as the CEO here of their construction company and they hired this person (manager) to oversee all operations of his/her business so that they don’t have to do it themselves and concentrate on doing whatever it is they did to get them to the CEO position. Like I talked about in a previous blog it is important to select a good manager that is aligned with your best interests in mind. You don’t want to tell them to go over all those crazy safety rules only to find out they are telling the workers its ok to ignore them and then someone gets hurt and sues you! So remember that always, if they are too easily pushed over and lazy they probably aren’t going to make a good manager. Managers are go-getters. Just as in construction, retail or normal business they need to be aggressive enough to tell those employees what to do and how to do it but also balance handling difficult or sensitive employees or even customers (in this case the label, not the people who purchase the product) with finesse and grace but still get things the CEO wants accomplished, accomplished! Management is an art and the sad thing is if you are good at it, people won’t like you, but that’s ok you’re not here to make friends, your here to get shit done. A lot of managers don’t know that fact right there, and if you do and use it, you’re already better than the other guys. There, now ya’ have the 10,000 ft. view of management similarities, but keep in mind that there is absolutely no difference what-so-ever between what a manager in the music business does and how they operate compared to any other industry at all. Don’t even try and tell me otherwise. You are wrong if you think so. Period.
Next there are tour managers, these are like the supervisors in retail and offices that are here when the manager is away and take care of things like making sure the employees (lighting, sound, drivers) are on time and the that they have everything they need (guitars, mics and etc.) when the rush hits and motivate the employees when the manager isn’t there or isn’t required to be there so the company is still moving forward and accomplishing their daily goals (playing an organized show).
Then there are accountants. Oh wait those are in all industries. There are attorneys. Again, the same. Marketers, promoters, distributors, and all those other things that are in EVERY SINGLE INDUSTRY EVER! They all do the same thing in every industry just with different product. Some distributors sell CDs to Best Buy, some sell T-Shirts to Macy’s and some sell steel to Bob’s Construction Company. I could go into more detail on all of these but it’s really not necessary, I am just proving a point to people who question me on the difference between industries. The only thing that is different is the EXACT thing the people do when they show up. Some play guitar, some hold a hammer, some sell tee shirts. But they are all doing business as usual.
I look forward to anyone trying to challenge me saying that they are different. Please do so below in the comments and I’ll show you, using your very example, that you are wrong. Maybe it’s not me who doesn’t understand the music business; maybe it’s you who doesn’t understand just plain, old-fashioned, business business?