Since starting my business last year, I’ve really made it a point to be disciplined with documenting my expenses and making sure all my financials are in order.  Although, I think there’s still room for improvement, my accountant tells me, I’m one of his best clients

So how did I get such praise? Although a few accounting and excel classes in college I’m sure helped, my experience as an admin assistant processing expense reports, reallly helped me in the long run.

One of the main things I feel have helped me stay on track is my “expense notebook”, a place to keep track of all my receipts!  It’s a bit time consuming, but I tape each receipt to the notebook in chronological order.

I also utilize my google calendar, by adding mileage, toll, and any expenses I incurred for a meeting or event, in the notes area. It’s an easy way to keep information organized. Last but not least, I created a spreadsheet that makes all the information easy to read and calculate come tax time.

Another best biz practice is to check in quarterly with your accountant to assess whether or not you need to file taxes. Breaking up the year into quarters to evaluate your financial statements, and pay taxes, definitely helps ease the stress of a cutting a big check to the IRS the following year. By filing quarterly you can break up the payments, and hopefully end up with a nice return instead.

If you don’t have an accountant, check out California Lawyers for the Arts (www.calawyersforthearts.org) as a resource, they offer workshops year round. You can also contact my accountant, Jotham Ty at jotham@tyacpa.com

2010.

New year, new decade… I’ve decided that one of the areas of my life I’d like to put more energy into is my financial health.

The first step is to adjust my outlook on how I spend money.  Having a small business has made me realize I need to also approach my personal life like I would a small business.

income = revenue
spending = expenses
savings = profit
monthly bills (rent, phone, gas, insurance) = overhead

If you can begin managing your money like a small business, you might think twice about how and where you spend your money, and time.

There’s a lot more work involved in getting to a level of financial fitness that I feel good about, but having the intention, purpose, and setting goals, is exactly what needs to happen first.

First of the year, the decade, the beginning of financial success…!

UPDATE,  1/3/09 – I just came across this article from the LA Times, “Money Resolutions to make in 2010″, that has some very helpful advice about the topic of financial health.  Read it when you get a chance, it may save you $100 this year.

LINK: http://www.latimes.com/business/la-fi-cover3-2010jan03,0,7066429,full.story

In all business situations, knowing about the laws surrounding the industry you’re involved in, is essential to the longevity of how successful the business becomes.  Contracts, agreements, and all other transactions, whether monetary or not, should be legally documented.  Why? Because, these are the rules, regulations, and expectations, of what the deal is… Once both parties agree on the terms, it leaves little room for someone to not follow through with their end of the deal.  Those who fail to come through, will have a weak argument to battle in, or outside of the courtroom.

The higher the stakes, the more you realize how important it is to invest time and money in the legal aspects of your business.  This is something entrepreneurs should do first, to protect your assets is a top priority.  So when I got an email about a music business seminar happening in the Bay from Kofi Acquaah-Arhin (Papa Lo Down’s attorney/legal advisor), I thought I should let you know as well.

The Volume 2009 – Music Business Seminar, an all-day educational event for the Bay Area music community, is the perfect place for independent artists to learn more about this element of their career.  I highly suggest attending, especially since the fees are WAY less than many music industry events.

Check below or go the website www.calawyersforthearts.org for more info:

Financial stability is a constant struggle for many, if not all, artists and entrepreneurs.  In today’s economic climate we are constantly reminded that times are rough, that it’s going to get worse, that we better be extra careful with how we spend and save money.  Our parents blood pressure rises as real estate declines, and we announce we’re going to pursue our passion instead of keeping that stable 9 to 5.  So what’s the best thing you can do for your financial health? LEARN THE MONEY BUSINESS.

Educating yourself on money matters should be part of your business plan as an artist, and even just for your own sanity.  Stressing about money leads to all sorts of drama, let’s not go there… Instead, let’s feel confident about the choices we make, understand our credit report, be conscious of where your money goes, and how that will effect where money is saved.

With that said, check out the services offered by Consumer Credit Counseling Service San Francisco. This is a nonprofit organization, whose mission statement is to provide comprehensive financial counseling and education, and help consumers achieve financial independence through debt reduction, home ownership, and improved money management skills.  Although they are based in SF, they do provide phone counseling nationwide, and I’m sure other cities have similar organizations if you do some research.

I highly suggest registering for their free workshops on a variety of money management topics (i.e. Downsizing Your Debt, Steps To Financial Success, Basics of Money Management), that will make the life of an independent hustler a lot more enjoyable knowing you’re in control of your bank account.

www.cccssf.org

Tech Rider – A set of requests or demands that a performer will set as criteria for performance. A document which is provided in advance for a show, defining the types of equipment to be used, the staff to be provided, and various business arrangements.
*more info HERE.

The purpose of a tech rider is to protect you, the artist, and the promoter/venue from any techical difficulties that may arise during a performance. The tech rider can also be used as a checklist to make sure everything you need is present and functioning smoothly for your set.

What do you need to make sure you can put on the best show possible? Some areas to look into for your own rider may include:

- sound equipment (mic’s, turn tables, monitors, mic stand, etc.)
- lighting
- merch table
- food & beverage requests

The information you provide will most likely change over time and I suggest updating it every few months, especially after a tour. Once you have confirmed a gig make sure you send the tech rider to the promoter and FOLLOW UP a few days BEFORE the show to make sure everything you’ve requested is being met.

Kiwi wrote about his own experiences HERE – along with a sample of his own Tech Rider for reference.

Trent Reznor of Nine Inch Nails gets it.

read article – “How to Make $1.6 Million In a Week, by Trent Reznor”

By providing different options in price points and product assortment Trent has given his fans power over their purchasing experience. And on a psychological level, we all crave power in some respect, even if it comes to how, where, and what price we buy our music.

I think we could learn a lot from the success of Mr. Reznor and apply these methods to our own hustle. Start thinking of ways you can create different price points and products for your own merchandise mix, providing options and power over the experience for your fans/customers.

On a financial level, not everyone has the same disposable income to play with, creating different price points allows your customers/fans with different income levels to afford your products. And if they really love your music they will keep investing in you and purchase more over time.

Pennies make dollars, and 500 purchases at $5 = $2500 more in your pocket than giving away your music, (even though there might be 1000 people that download it for free).

every penny (customer) counts.