Why do you make music? Is it to become famous? Or is it to live off the profits of an art that you love?

Music is a business (that’s why it’s called the music business). If you’re starting a business with the main aim of selling it (or you just want to get famous from it) then you should probably get out now.

For most of us, a record label is the end goal to our efforts and this isn’t a bad thing, as labels do still have a place. That said, they should still be very much towards the end of your business plan.

So, what is a record label? A label is a big bank with connections. Traditionally, a label will help finance your record, put it out and then promote it. They will help with merchandising, tour schedules and budgeting. They provide a loan and then decide how it is spent.

There’s no doubt that many top artists would not be able get to the very top without one, but for lesser acts, it is often a loan they are unable to ever pay back.

The irony is in the point at which a label benefits most, is when you no longer need one. They are there to essentially make a good business better.

There are also many more streams of income around just being in your band. Teaching, writing for others, recording for other bands and departmental work are all much more satisfying that waiting tables. Could you use these sources of income to build your business and presence?

In a world of seven billion people, not just one person can win. You’re unlikely to be able to please everyone. If you can get 1000 people to spend £100 a year on what you put out (music, tours, merchandise) then you’re in for a considerable profit. More than enough to do this full time.

You should never stop learning and the key is in providing consistent, quality materials and content, as well as having a belief in what you do.

It’s become a cliché now, but the internet is wonderful thing. Design and order your merchandise, network with venues to book your own gigs and use money that you’ve learnt through doing what you love to get in a professional studio.

Build the business and let the label come to you. Only then should you decide whether signing over your creation is right for you.