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Some of the current Indie Label successes started small but now enjoy worldwide recognition. Just look at Domino who launched Franz Ferdinand and Arctic Monkeys.

So where do you start if you want to set up your own label?

Huddersfield's able label

Raw Talent mulled the big questions over with the Yorkshire-based Timeless Music Project's PAT FULGONI. Pat also runs independent label CHOCOLATE FIREGUARD RECORDS who've had success with Kava Kava and La Cedille. Pat then pulled in MICHAEL FULLER to join the discussion. Michael is Head of Business Affairs at AIM, the Association of Independent Music. A frenzy of questions from us and what great advice from them. Read on.

RAW TALENT:听 Before launching a label, what do you need to think about?

MICHAEL FULLER:听听 I would suggest that the first thing to do when thinking about starting a label is to draft a business plan and try and set out your plans for the following:听 A&R; funding the label (loans, friends, grants, etc.); income and expenses (record sales, digital, broadcast income, licenses, overheads, staff, production, manufacturing, promotion, etc.); joining collecting societies (PPL, MCPS, PRS); joining trade associations (AIM, BPI); artist contracts; personnel (lawyer, accountant/bookkeeper, A&R, sales & marketing, promotions, new media, etc.). You should do everything in your power to maximise your income and minimise all of your outgoings. You can get some good general advice about starting a label from the General Resources section of the AIM website at www.musicindie.com.

RT: Is it best to start off small and release one band or a compilation of bands?

Kava Kava

PAT FULGONI: I think it's best to start off small. It's better to do one release as well as possible than bodge a few. And remember, the artist will have high expectations!听 A compilation can also be a very good way of starting because it enables a small label to reach out to the fan bases of a few bands rather than just a single artist. I've seen a lot of local labels spring up like this recently and certainly Chocolate Fireguard's first release was a compilation. It proved good exposure for both the artists featured on the CD and the label.

MF: Unless there are compelling reasons to do otherwise, it is usually best to start off small so that you can properly keep track of things. Once an artist is signed they will expect you to be totally focused (both emotionally and financially) on their project and you do not want to spread yourself too thinly.

RT: Before a label is established, how do you go about getting the word out, marketing etc?

MF: Island Records used to have a poster in their offices that said 鈥淭his is what happens if you don鈥檛 promote鈥�.听 And underneath the poster there was 鈥渘othing鈥�. This is undoubtedly the most important item that you will be spending money on. You should try to maximise any free online promotional vehicles that are available (e.g., MySpace, YouTube, etc.), but you will need to think about the extent to which your artist needs the support of a professional plugger for radio, press and club promotions. However, remember that you will need around 12 weeks to pick up coverage from monthly magazines, radio and reviewers. And be careful as while it is possible to strike good deals, promotion costs can be very expensive.

PF: PR can be incredibly expensive so chose carefully before employing a plugger. A good plugger can really make the difference, however. if you simply haven't the budget to pay for the services of a PR company, there is much that you can do yourselves. Trawl through the internet for contacts, radio shows, websites and magazines relevant to the style of music you are contemplating releasing. Build a database. Network with other labels. Send out promo packages asking the contacts to review or play your music. If possible you should also encourage your act to perform live. This can really help get the word out, as can free internet marketing via websites like MySpace, YouTube and Bebo.

RT: Distribution?

MF: It is very difficult at present to secure a physical distribution deal at present, but there are still deals available. You should try and identify the distributors who work with labels and artists that are similar to yours, as they will have experience of how to go about selling your type of product. If you cannot get physical distribution, try licensing your tracks to a larger label that may be putting together a compilation album or distributing the records yourself and selling at gigs and festivals.

RT: The great Indie labels of the late 80s were eventually swamped by the majors with a few notable exceptions but Independent labels now seem to be enjoying a resurgence - why is that do you think?

Sex Pistols: Were YOU there?

MF: I think that you have to consider the historical aspects of the business to fully understand the fluctuating fortunes of the independents. A significant reason for the growth of independents in the 1960鈥檚 and 1970鈥檚 was their skill at servicing niche markets that the major labels were ignoring. Good examples of this are labels such as Island, Virgin, Factory in the UK, and labels from Motown through to Def Jam in the USA. Major label attempts at working with niche or controversial artists were mixed (i.e., EMI and the Sex Pistols). And if you factor in that some indies were heavily reliant on just one or two key artists being continually successful (e.g., Mike Oldfield) making them vulnerable to the record industry downturn of the early 1980鈥檚, then it is perhaps not surprising that a large number of the pioneering indies were acquired by the majors.

So what about the present? There鈥檚 little doubt that the music industry is still coming to terms with how to go about making the transaction from analogue to digital and it would be surprising if there weren鈥檛 one or two difficulties. However, independents by nature have always been innovative, adapt well to market changes and are the first to experiment with new trends and business models. There are now a plethora of new smaller labels with low overheads that are able to use new technology to produce good quality music and successfully get it to market (e.g., Nizlopi, Sway, etc). The new independents are much more varied in terms of size and genre and are operating a much wider range of business models than in previous years.

RT: Pat, your label had great success releasing Kava Kava in the first instance. What did the band's success do for raising the label's profile?

RT: Since then, and subsequent successful releases, how much easier it is for you now to get radio stations and music journalists interested in your new bands and the label itself?

PF: It can be easier. Early on, I met the excellent Mary Anne Hobbs at a music industry do in Liverpool and was really encouraged when she said something like 'ah Chocolate Fireguard..... I've played a load of your CDs'听 That said, it can actually be more difficult if like Chocolate Fireguard Records you are determined to release a variety of styles. For example it's unlikely that the same DJ or journalist who supports jazzy French hip hoppers La Cedille and their album 'Vu Du Large'听 would automatically support the more dancier and rocked out style of a Kava Kava release and visa versa.

RT: Give us some idea, day to day of the running of an established label

PF: It is very important to learn how to use your limited time and resources as efficiently as possible. Certainly smaller labels with limited budgets have to be prepared to multi task. If I am gearing up for a commercial release, I am typically involved in coordinating artwork, press campaigns, arranging studio time, overseeing mastering sessions, liaising with the artist, with manufacturers, distributors and shops, dealing with mail order enquiries etc etc. You must also set aside time for accounting, book keeping, sales reports and listening to demos. Where necessary, in the past I have also acted as an Agent for bands that have been signed up to the label, encouraging them to gig as much as possible so that they can develop their sound and help promote their releases. If the band doesn't have an Agent yet and time and contacts permitting I can get them a gig at say Glastonbury or in Switzerland, then it is in the interests of the label, the release and the artist for me to do precisely that......

RT: And finally, a word of encouragement for someone setting up a label?

Indie Hero: Creation's Alan McGee

MF: A few years ago at the In The City conference in Manchester, there was an Independent Label Summit in which Jon Webster (BPI) hosted a Keynote Interview with Richard Russell (XL Recordings), Tony Wilson (Factory Records), Chris Blackwell (Island Records) and Alan McGee (Creation Records).

What I found interesting was that they all said that at some point in the early parts of their careers, they were all close to bankruptcy and were all advised in no uncertain terms by various people (bank managers, other label bosses, etc) that the music they were producing was not up to scratch and they should immediately stop trading as there was no way that their businesses would ever become successful. Of course we know that they all ignored this advice and all ultimately became successful. Whilst it鈥檚 clearly not possible for every label to achieve this level of success, you must have strong belief in your artists and their music and be prepared to give them every opportunity of achieving success. There are some useful references that are now available to budding label bosses which should help you to operate your businesses in a professional manner and avoid taking unnecessary risks, so make sure that you check them out and talk to established labels. For comprehensive advice on running an independent record label you should read the 鈥楢IM Guide to Survival and Success in the Music Industry鈥�. You can purchase it from the AIM website for 拢10 + VAT and it is free for AIM members.

Kaiser Chiefs

PF: I think regionally speaking, 2007 is a very good time to set up a label in Yorkshire. Recent success stories like Kaiser Chiefs, Arctic Monkeys and Corinne Bailey Rae are stories we should be really proud of and they prove that the industry isn't as London-centric as you might at first imagine. There is, as a result, a great deal of interest in the region's music. Overheads such as rent are much cheaper up here than it is say in London and this factor greatly contributes to the sustainability of independent labels. Furthermore the expanding digital download market place brings with it much cheaper ways of releasing music too. A word of caution though. It is very important to research your artists carefully. Make sure they are committed. It would be tragic if you have invested a load of money and energy in a band only to find that they fall apart before you even get to release their product! That said, if your dream has always been to release a record and you really believe in the artist, why not give it a shot? That artist might even be yourself. If anyone has a go at knocking your confidence, stay focused and let it roll off you. Go for it and may the force be with you!

The Association of Independent Music is a non-profit-making trade organisation for independent record companies and distributors in the UK.

The Timeless Music Project is a Social Enterprise which since 2004 has been supporting and drawing attention to West Yorkshire's music industry through the delivery of a variety of innovative projects.