Term
| What is the formula that defines Profit? |
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Definition
| Revenue - Expenses = Profit |
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Term
| What question does a mission statement answer? |
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Definition
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Term
| What is a vision statement? |
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Definition
| describes your view of the future of the industry or market. |
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Term
| What is a values statement? |
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Definition
| your code of ethics, or the operating principles that are fundamental to your business, and unlikely to change over time. |
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Term
| What are the 2 strategic questions to consider before going into business? |
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Definition
What do I want to accomplish?
How much am I willing to risk? |
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Term
| What are 3 key elements in any music business? |
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Definition
What's the business?
What's the market or target customer?
How does everyone get paid? |
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Term
| What 3 things should you do before going into business? |
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Definition
The market overview
The feasibility or risk analysis
The business plan |
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Term
| In what types of entities are businesses organized for tax and legal purposes? |
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Definition
Sole proprietorship
LLC
Partnership
Corporation |
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Term
| What are the four major record labels? |
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Definition
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Term
| Who is the customer in the music business? |
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Definition
| whoever pays you directly |
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Term
| what are the two kinds of competition? |
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Definition
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Term
| Define Direct competition |
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Definition
| similar businesses in the same product category |
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Term
| Define Indirect competition |
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Definition
| any product that goes after the same target customer's attention and money |
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Term
| What are the 5 key aspects of business? |
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Definition
Product development
Product delivery
Sales and marketing
Accounting and finance
Management |
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Term
| What are the 4 key responsibilities of management? |
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Definition
planning
organizing
motivating
controlling |
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Term
| What 3 conditions must be met before starting your own business? |
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Definition
Have a business plan
Have funding to cover business and personal expenses
You are comfortable taking risks |
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Term
| What are 8 benefits of writing down your business plan? |
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Definition
Road Map
Opportunity Management Tool
Stress Management Tool
Measuring stick
Catalyst for your business work
Competitive Weapon
Fund-raising Tool
Team-Building Tool |
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Term
| Who can also benefit from the business plan? |
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Definition
Investors
employees
vendors |
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Term
| What are the 3 things that a business plan describes? |
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Definition
What you are going to do
How you are going to do it
The consequences |
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Term
| What are the 5 Chapters of a business plan? |
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Definition
Description of your company
Description of products
Market overview and marketing strategy
Management team and organizational overview
Financial summary |
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Term
| What section is the largest portion of the business plan and carries the most weight with financial people and investors? |
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Definition
| Market overview and marketing strategy |
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Term
| How long and detailed is a business plan? |
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Definition
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Term
| What is the 6th chapter and what does it include? |
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Definition
Appendix or reference section
-Includes Organizational charts, job descriptions, sample materials etc. |
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Term
| What 4 key questions does a brand positioning statement answer? |
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Definition
What business are we in?
Who are our customers?
What makes us special?
What's in it for everybody? |
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Term
| What is the "Elevator Test" and what is it used for? |
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Definition
Answers, What do you do?
Used for networking |
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Term
| What is the biggest challenge facing any music person or music business? |
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Definition
| Keeping your customers focused on you and your product |
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Term
|
Definition
| developing products & exposing them for sale to specific customers |
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Term
|
Definition
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Term
| What are the 4 functions of marketing? |
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Definition
Planning & positioning product
Communicating with target market
Managing customer relationships
Advertising and promotion |
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Term
| What are the 4 functions of Sales? |
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Definition
Achieve Sales objectives "hit the numbers"
Participating in events
Managing Sales Territory
Handling Administrative Tasks |
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Term
| What are the 7 links in the marketing chain? |
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Definition
Product strategy
Pricing Strategy
Promotional Strategy
Sales channel strategy & place of business
Salesforce strategy
End user & buyer profiles
Competitive environment |
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Term
| What are some examples of music industry products? |
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Definition
Record sales
Live performances
Music publishing
merchandise
business services
etc |
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Term
| What are the 6 phases of product life cycles? |
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Definition
Research & Development
Introduction
Early Growth
Late growth
Maturity or saturation
Decline |
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Term
| What are the 3 key factors that influence pricing? |
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Definition
Supply and Demand
Pricing conventions & traditions
Sales & marketing ability |
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Term
| What are the 3 basic pricing strategies? |
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Definition
Low-cost producer
Differentiation
Hybrid |
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Term
| What typically happens in the music industry with unrealistic pricing? |
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Definition
Can't make a living
Pricing out of the market
Costs get out of control
Inaccurate or limiting image or reputation |
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Term
|
Definition
| Create indelible images of product in minds of target customers |
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Term
| What are the 10 promotional tools? |
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Definition
Advertising
Publicity
Sales literature
Demos & collateral materials
Direct marketing
Trade events
Key influencer relations
Identity Items
Showcase performances
E-commerce |
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Term
| What are 3 key questions about your promotional strategy? |
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Definition
Do I have to use all 10 tools?
What can I afford?
What if I can't do all of it myself? |
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Term
| Who are the four main players in maximizing a music career? |
|
Definition
Personal manager
Business manager
Attorney
Agent |
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Term
| How many songs should be included on a demo CD? |
|
Definition
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Term
| Why is it important to have the best song first? |
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Definition
| set a good first impression |
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Term
| Who is the first person on the artist's "team"? |
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Definition
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Term
| Why should an artist be cautious about getting a lawyer to shop a CD? |
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Definition
| they consider it important to maintain there credibility with the record companies |
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Term
| What suggestions does Passman give to screen the "sharks"? |
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Definition
Get references
Consult team
Look beyond sales pitch |
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Term
| To what two positions in a corporation can you compare the role of a personal manager? |
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Definition
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Term
| What are the 7 items listed as major aspects of the managers job? |
|
Definition
Helps with business decisions
Creative Process
Promotion & publicity
Assemble management team
Coordinates tour with agent
Liaison with record label
Buffer for outside world |
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Term
| What is the typical range of commissions that a manager earns? |
|
Definition
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Term
| What is the typical term of a management agreement? |
|
Definition
|
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Term
|
Definition
| time from commencement of record to end of promotional activities |
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Term
|
Definition
| time from commencement of record to end of promotional activities |
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Term
|
Definition
limits manager's income after termination of the contract
"Step's-down" over 5 years after term |
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Term
|
Definition
| If person you hired, retires, dies or leaves the company, you can legally terminate contract |
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Term
| What is the role of the business manager? |
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Definition
| Handles financial obligations |
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Term
| What credentials or licenses are required to become a business manager? |
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Definition
| none, but needs to know accounting |
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Term
| Why is it risky to have family members as a business manager? |
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Definition
| damaging to personal relationships |
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Term
| How are business managers customarily paid? |
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Definition
| Paid hourly, by monthly retainer, a percent, or a combination |
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Term
|
Definition
| attorney spends time negotiating deals |
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Term
|
Definition
| advance payment to attorney |
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Term
| What are a client's options if an attorney reveals a conflict of interest? |
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Definition
hire another attorney
waive conflict |
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