The Business Team

When you are a band that is just starting out in the music industry, more than likely it will consist just of you and your band mates with one of you designated as the leader that will deal with all of the business aspects of your band such as gaining performance gigs to paying for rehearsal spaces.  As a band progresses through their career in the music industry they work in varying levels: the local level (working in the stat in which you live), the regional level (working in the surrounding states of which you live), the national level (working within a country), and the global level (working worldwide).  All bands usually start off on the local level whereby the needs for a management team usually are confined to the band members themselves.

Duties usually include, securing performing gigs, renting of rehearsal space, organizing and pay for all promotional material that includes producing and distributing your own music and merchandise.  For a band that works on the local level these duties are easily dealt with the band members themselves, however the farther they expand their music base to other states the need to hire a management team maybe necessary as the duties could become too great for a band that may very well stay on the road for an extended amount of time making dealing with other duties such as payment for rehearsal space or gaining other performing gigs difficult.
When this occurs, the band will look for a management team that will handle the daily business duties so they can concentrate on making music and performing live.  Should a band be away for extended periods of time they will need to hire a company that can handle their finances.  This person or entity is usually called the business manager.  A business manager monitors the bands' income, expenditures, budget and insurance that also include paying the bands expenses from the income the band makes. Most importantly, they will be aware of the tax consequences of your career. It should be noted that when a band performs live, the promoter or venue will pay you a guarantee that is a gross figure, meaning they do not take taxes from your earnings.  You the band are not an employee of the venue but independently contracted therefore they are not liable to withhold taxes from your earnings.  There are exceptions to this rule however if you are playing in another country.  But a business manager will understand these rules and deal with your taxes accordingly.  A business manager does what an accountant does for a company. Most business managers are CPA's but their specialty is in dealing with the music industry.  This criterion is essential because the entertainment industry has many unique aspects which differ from general business.

A manager is a person who handles the daily business and activities for a band.  Usually a manger is authorized to negotiate deals on behalf of the band and in the bands best interest.  These people also deal with helping procure the band performing gigs or organizing events for the bands to appear in.  Usually a manager is looked for when a band can no longer handle their daily business activities due to their schedules performing and traveling.  As a band progresses from a local or regional level and moves to the national circuit, the job of a manager increases especially if the band receives a record deal.  Now the manager is the bridge between all the companies to the Artist.  They deal with the record companies and the talent agencies to plot the best course for an artist’s career.  Basically they work with all business entities in an Artist’s career that will be most beneficial to the artist and their developing career.

Should a band come across a contract whether it is a contract for a live performance or a record contract or really any contract in general that will affect an artist’s career would want to employ this person or business entity to help review any contracts that may come the band’s way.  This person can be vital making sure that the artist does not sign something that could later on down in the Band’s career be disastrous.  An entertainment lawyer can also be of importance for a band that is touring and needs to put together a legal rider that a band will give to a venue or promoter to sign that will protect the bands rights and also inform of the needs of the band while on the road.

By creating a business team that will handle the daily business of your band while you are away on tour or in the studio recording your new album can be vital to the survival of the business aspects of your band.  If your band has become extremely busy where the daily business duties are becoming too difficult to accomplish due to time, you might want to start looking for companies to help you manage your band.

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