11.1.5 Case study: Getting into the music business

Music was Christopher's life, and he had started at least half a dozen bands in his 10-year career. None of them made any money, and whenever he earned anything he spent it on new equipment. But he had grown skilled in recording and producing music. Other groups were always willing to hire him to produce their recordings.
"I could make a living producing music," Christopher thought. "But I don't want to work in someone else's studio. I'd have to set it up as my own business, so I could work on my own music, too."
He did some research and wrote out an estimate of what it would cost to set up a recording studio. He knew it would be hard to borrow money, because his work and credit history were irregular. He thought that if he saved up enough to get started, his family could give him a loan and maybe invest in the business. He'd grow the business from there. That would mean freelancing for other studios and saving his money for a few years. But he could use that time to work with his contacts and line up jobs.
With careful preparation and a start-up fund, Christopher felt he could launch a business that would let him earn a living doing work he liked and develop his own musical interests, too.
Lessons Christopher learned:
- Planning lets you identify financial needs and problems, and find ways to overcome them.
- Planning is an essential step for setting up your own business.
- Sometimes you can finance your business plans without going to a financial institution.
- Planning how to use your money is especially important when you are on a limited budget or your finances are irregular.
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