Where is Your Money Coming From?

Many people today still have no idea that there is help out there if you want to become an entrepreneur and open your own business.  This comes not only in the development stages, or even the business planning stage, but you can also get assistance with the financing.

We do not have to rely completely on loans anymore.  Thankfully, there are companies out there that are willing to become investors.  But do you know where to look?

The question that is commonly heard regarding this area, is where do we find investors that would be willing to help with your company?  With the ever-evolving internet and technology, we are able to connect with investors everywhere, regardless of our location.

One site that connects investors with businesses looking for money is the Opportunity Finance Network (OFN).  According to their website they:

          The opportunity finance industry finds and finances opportunities that others miss.  We see the           

          world differently.  Where others see risks, our industry sees possibilities.  To us, people are  

          people.  And every person deserves opportunities - good, family-wage jobs; decent, affordable 

          housing; healthy foods; locally owned stores; quality schools.  We believe and invest in these 

          opportunities.  For all.

In order to be eligible for a loan, you must first become a member.  The application for financing is as follows:

          Application for Financing

          The purpose of OFN's financing is to aggregate and distribute capital in ways that create and
          foster opportunities for Members, other key financing partners, and the people and
          communities they serve to develop a high-volume financing system benefiting low-income and
          low-wealth people and communities.

          CDFI Criteria Overview for Loans and Investments

          OFN underwrites loans to and investments in Community Development Financial Institution
          (CDFIs).  Prior to beginning the underwriting process, OFN staff must ascertain that the CDFI
          meets the following minimum mandatory requirements.  CDFIs must:

• Have a primary mission of community development and/or serving economically disadvantaged people and communities.  For organizations that are part of a larger corporation, the parent corporation must also have a primary mission of community development.
• Be a Member in good standing (i.e. current on dues, completed annual survey, etc.) of OFN, or commit to becoming a Member prior to closing the financial transaction;
• Demonstrate that the use of capital is consistent with OFN's mission;
• Be a private, independent financial intermediary;
• Use financing as a key component of their community development strategy;
• Have a demonstrated track record of at least two years of community development financing;
• Demonstrate the capacity to use capital productively;
• Demonstrate at least two years of operating surpluses in the last three years.

          OFN will not invest in: government-controlled organizations, wholly-owned bank subsidiaries, 

          or multi-bank community development corporations.

          Application Process

          Applications for financing are considered throughout the year.

          OFN staff will review all completed applications to determine if the applicant meets OFN's 

          financing criteria.

          Staff will contact the applicant to inform them if OFN will move forward with the application 

          and begin an underwriting or if the application has been declined.

          Underwriting Process: The underwriting process requires an in-depth analysis of the 

          applicant's organization and will require conference calls with key management.  At this time, 

          the analyst may request additional information in excess of what was submitted with the 

          application.

          Investment Committee Review and Decision: Final decisions are made by the Investment 

          Committee, which on average meets every six weeks.  Applicants will be notified of the 

          decision by phone and in writing.

Programs that they offer include:

          Business Model for Growth: A Workshop for Small Business Lenders helps CDFIs grow their 

          small business lending capacity.

          Performance Counts is an industry-led collaborative effort to develop industry standards and 

          best practices around financial statements and financial management and an industry forum for 

          sharing information, documents, and ideas on these topics.

          Small Business Financing Initiative, a partnership with Goldman Sachs, provides national 

          training opportunities for CDFIs and other community lenders to scale lending to small 

          businesses in underserved communities.

          Small Business Leader Award for Mission-driven Lenders recognizes innovation and growth in 

          mission-driven small business lenders.

          Wells Fargo Diverse Community Capital will distribute, over three years, $50 million in debt 

          (lending) capital and $25 million in grant capital to CDFIs that are expanding lending to 

          diverse small businesses, with a priority focus on African-American businesses.

          Wells Fargo NEXT Awards for Opportunity Finance celebrates the opportunity finance industry 

          - its creativity, accomplishments, and enduring importance.

          Youth Opportunity Pledge commits OFN's network of CDFIs to originate $1 billion annually in 

          new financing that benefits young people of color across the U.S.

Another site that one might seek for financing is the Association for Enterprise Opportunity (AEO) the Voce of MicroBusiness.  They offer:

          TILT Forward Network: The largest, most diverse (and newest) network of CDFI small 

          business loan funds and other nonprofits that work with underserved entrepreneurs in the 

          United States.  The network is designed to accelerate identification and adoption of critical 

          innovations in the way that small businesses and aspiring entrepreneurs in low-wealth 

          communities access capital and guidance on the path to capital.  The network formally 

          launched in May 2016 with 13 inaugural CDFI loan funds.  The network continues to grow, 

          including CDFI banks and service providers.  Interested in learning more about how your 

          organization can benefit from joining?  Click here to learn more.

          DreamFund: DreamFund creates scale benefits to support lending to small businesses in low-

          wealth communities.  These benefits accrue to small businesses, CDFIs and investors alike.  It 

          does this by performing two functions: 1. licensing products from third parties and making 

          them available at below-market rates to qualified applicants; 2. aggregating capital from 

          funders seeking to target their investments and limit their risk (and diligence) to the prospective 

          performance of the loans.  DreamFund's unique structure mimics the safety and security of a 

          for-profit Special Purpose Vehicle (SPV) within a 501(c)3 tax-exempt charitable organization.  

          Interested in learning more?  Contact thalevy@aeoworks.org.

          Project CUE: AEO won the Treasury Department's CDFI Fund Innovation Challenge with a 

          proposal to design, build and test a solution to connect small businesses that financial 

          institutions can't effectively serve to community lenders.  The Project CUE solution enables 

          financial institutions to direct small business credit applicants they can't serve to the high touch 

          guidance and resources of community development financial institutions.  The CUE system 

          works both as a turnkey referral program fro banks and as a qualified lead generator for 

          community lenders that offer products and services that might be a better fit for the business 

          owner.  To get your organization involved in Project CUE, sign up at bit.ly/signupCUE.

The major benefit of this site is that they connect your business with other successful organizations, businesses, and mentors.  They also provide an area for you to promote your products and services all while networking.

According to NIBusinessInfo.com.uk:

          The main advantages of equity finance are:

• The funding is committed to your business and your intended projects.  Investors only realize their investment if the business is doing well, e.g. through stock market flotation or a sale to new investors.
• You will not have to keep up with costs of servicing bank loans or debt finance, allowing you to use the capital for business activities.
• Outside investors expect the business to deliver value, helping you explore and execute growth ideas.
• The right business angels and venture capitalists can bring valuable skills, contacts and experience to your business.  They can also assist with strategy and key decision making.
• In common with you, investors have a vested interest in the business' success, i.e. its growth, profitability and increase in value.
• Investors are often prepared to provide follow-up funding as the business grows.

          The principal disadvantages of equity finance are:

• Raising equity finance is demanding, costly and time consuming, and may take management focus away from the core business activities.
• Potential investors will seek comprehensive background information on you and your business.  They will look carefully at past results and forecasts and will probe the management team.  Many businesses find this process useful, regardless of whether or not any fundraising is successful.
• Depending on the investor, you will lose a certain amount of your power to make management decision.
• You will have to invest management time to provide regular information for the investor to monitor.
• At first you will have a smaller share in the business - both as a percentage and in absolute monetary terms.  However, your reduced share may become worth a lot more in absolute monetary terms if the investment leads to your business becoming more successful.
• There can be legal and regulatory issues to comply with when raising finance, e.g. when promoting investments.

No mater how you go about getting your financing, make sure you do your research.  Know who you are trying to get the money from.  It is important for you and your investors to be able to relate to the business that they are presented.  By knowing who you are seeking funds from, you will be able to personalize your business plans and presentation directly towards them.

So no, ads yourself, who do you want to supply the funds for your business, and how do you want them to do so?  By answering these questions, you will begin to narrow your field of potential investors, and be able to find the one that is perfect for you and your company.

The Power of a Plan

The best thing that you can do for your business is to look for advice from people within the industry.  Experts in the field can help to steer you in the right direction, to aide in the development in your business plan, and hopefully help to get you investors.

If you do not have the funding to get your business off the ground on your own, you have a few options.  You can look for a loan, ask friends and family to contribute money, use your savings and investments, or look for investors.

Author, entrepreneur, business plan expert, and Angel Investor Tim Berry graduated with a MBA from Stanford, a MA in Journalism from the University of Oregon, and a BA in Literature from the University of Notre Dame.  He is also a teach, provides a curriculum for other teachers on how to write business plans, and does workshops on business planning.

According to Berry (2005), before any money is exchanges, investors are looking for:

• A management team with a proven track record.

While you personally may not have experience within your field, look for potential employees that can aide in the success of your business.  If you are able to find the right people, you and your business have a much better chance at succeeding.  Along these same lines, try and diversify the experience that your team has.  By doing so, you will be able to have many areas of knowledge and skills covered.  If everyone is equally qualified, with the same skills, then there will probably be at least one area or department in your business that has a high chance of failure.  Try and have them all covered, so that you will be able to succeed.

•  A defensible product with a competitive advantage.

According to Berry (2005), this involves having a tangible product.  By having something that can be physically purchased or give, you will have a much easier time predicting whether or not people will want or need it.  By having a service for the product, it is much more difficult to track the need and usage.  But, as long as the product or service is unique and there is a demand for it, the investors are likely to take a greater interest into your proposal.

• Reasonable valuation.

Going into any meeting, make sure that you know two things.  What your company is worth, or will potentially be worth, and know how much of the company's shares/ownership that you are willing to hand over to those investors, if this is your plan.  If you are overestimating the value of the company, the investors will think you are crazy, and will more than likely look no further into your business plan.  They will not take you seriously.

• A clear statement of the investment offering.

If you are truly ready and prepared for an investors meeting, then you need to have all of the legal documents prepared as well.  It lets the investors know that you are serious.  While there may be changes made to the documents before anything is signed, they will see that you are committed to this potential opportunity.

Berry continues stating that venture capitalists are also interested in:

• A shot at increasing the value of the company from whatever they think it is now to about 100 times that in three to five years.
• A plan that requires at least a $3 million investment -- in fact, the more the better.  Your plan has to show that the money is carefully planned and really needed.
• A plan that has several other similar investors ready to invest at the same time.  Venture capitalists find safety in numbers so they don't want to be the only investor in a deal.
• A clearly state exit strategy.  Investors like to see that you've thought ahead to how they're going to get their money back on the deal.

Chuck Blakeman is not only a successful entrepreneur, but also an author and business advisor.  He has built 10 different businesses across the world.  Blakeman has taken his years of experience within the business industry and now provides mentoring and peer advisory for business leaders worldwide.

In his blog, Blakeman says that "The problem is life.  It keeps getting in the way of our best plans, and no matter how well we plan how to get where we want to go, as soon as we start moving, the world and life starts messing with our plan.  It simply never works out anything like we planned, and the farther out we are planning, the less likely it is to work out" (Blakeman, 2012).  His idea is that while we can have our business plans in place, we cannot predict the future.  If we try to stick to this plan, then we will not be able to grow.  We have to take the twists and turns that we are given, and make them work to our best advantage.  The benefit that having a plan can give us though, is to try and work out any possible situation.  If we have a number of potential outcomes in place a head of time, we will have the best laid plan for handling them as they happen.  This way, we will not be completely shocked and thrown back when something happens.  We will have that plan in place, and our reaction to the potential disaster will be that much quicker, as well as being that much more effective.

The point that Blakeman is trying to make is that, as an entrepreneur, you can make it without having a plan.  If you close to have one, do not follow it too strictly.  Be flexible in your plan, it will take you farther if your are.  He says to "Never use "how" for long-range planning.  Use "why", "where" and "when" for the long-range stuff.  Once you know exactly where you want to end up and when, then ask "How do [I] get from where I am to the next step?"  Come up with a plan to get through the next few weeks, then ask short-term "how" again.  And do it a thousand times on the way to your objective" (Blakeman, 2012).  By continually reworking your plan, you will be keeping up with what life throws at you, the challenges that come your way.

Both Blakeman and Berry have very different views on what is important when starting a business.  While Berry's advice stated above is specifically directed towards acquiring investors, he believes strongly that every company should have a business plan.  Your success depends on how well it is developed, and if you follow it.  Blakeman on the other hand believes that you should "Implement now, perfect as you go" (Blakeman, 2014).

Personally, I think that both of these experts are right.  There is a need for preparation and research.  But, there is also something to be said about straying from the plan.  Sometimes we can make things better if we go off the books.  Use your knowledge and training to improve your company.  Yes, start with a plan.  We all have to start from somewhere.  But, constantly reevaluate it.  By providing continual feedback to the original plan, you just might create a business that is stronger than the one you had originally envisioned.

References:

Berry, T. (2005, September 12). What Investors Look for in a Plan. Retrieved October 29, 2016, from https://www.entrpreneur.com/article/79834.

Berry, T. (n.d.) Business Plan Expert Tim Berry. Retrieved October 29, 2016, from http://timberry.com/business-plan-expert/.

Blakeman, C. (2012, August 05). How: the worst, most asked planning question. Retrieved October 29, 2016, from http://chuckblakeman.com/2012/8/texts/how-the-worst-most-asked-planning-question.

Blakeman, C. (2014, October 28). One Learned Skill Contributes to Success More Than Any Other. Retrieved October 29, 2016, from http://www.inc.com/chuck-blakeman/new-gallup-research-one-learned-skill-contributes-to-success-more-than-any-other.html.

Chuck Blakeman | About. (n.d.). Retrieved October 29, 2016, from http://chuckblakeman.com/about.

Newlands, M. (2014, June 05). 5 Things Investors Want to Know Before Signing a Check. Retrieved October 29, 2016, http://www.entrpreneur.com/article/234536.

 

You Are in Control

There are so many different options available for musicians and songwriters to get their music out to the public today.  You could go the traditional route and sign with a label.  This takes a lot of the control away from you as an artist.  It is the label that makes the marketing and promotions decisions.  They may also have the control over what music gets to reach a recording studio, let alone what makes the cut.  This seems to be true for many of the artists that are just starting out.  Those that are well established are able to retain so much more power over the decisions involved in their careers.

If you are an artist that wants to keep all of the control, you do have options.  Technology has come so far, that now almost anyone can create, publish, distribute and promote their own music.  You do not need to rely on the labels and distribution companies anymore.

Whether you are an individual artist or a band, there are choices out there for you.  The best thing that you could do is to create and setup a label.  By doing so, you will be able to approach digital distribution companies.  If you want someone to be in charge of distribution your music, be it directly to stores or through other aggregation options, this choice allows you to have human interaction.  You will be able to get advice and immediate support.  Unfortunately, this option still costs a lot of money.

Signing up with aggregators and other digital distribution platforms directly is a great option for those  that want almost total control.  Here, they allow you to upload your music.  You can decide what information is available and design your own artwork should you choose.  With this option, you get to choose which stores your music is distributed to.

There are many choices in companies for you to pick from.  Tunecore, CD Baby, DistroKid, Ditto, MondoTunes, and Symphonic are all platforms that that offer a variety of prices, services and features for you to choose from.

When deciding on which platform you want to grow with, if this is the direction that you decide to take, you have to weigh some very important aspects of each site.

• Know how creative you are, or plan to be.  Having a platform that allows you to upload an unlimited amount of content may be best for someone that is constantly creating material.  On the other hand, having a site that collects and distributes your royalties may be more important to you.
• Decide how much of the ales profit you want to retain.  While some sites offer you to keep 100% of the profit, they may find some other way to get your money by being charged for its various services.
• Research the fees involved.  Some may charge you a one-time fee, while others will charge you for each upload.  They can also have hidden charges.  You may find that you are being charged to have your music in more stores outside of the primary store offerings, charged for pre-orders, and even to have UPC codes (which are only needed for physical products or to be registered wth Soundscan).
• Know what stores are available to you.  If you have one specific store that you are looking for, you will more than likely have to ask the platforms specifically.  Most sites offer that same primary stores, so make sure you do your research if you have one that you really want.
• Research payment schedules.  If it is important to you that you get paid right away, then find that platform that offers this option.  Knowing when you get paid can be extremely important for those that are just starting off.

Bottom line, decide what is most important to you and/or you band.  This will help to narrow your options down.  The best thing for you is to get your music out there.  How you choose to do this is entirely up to you.  But before you do, do your research.  You can be in total control of your career, if you decide you want to.  Have faith and take the leap, you never know what can happen.

The Dark Side of Touring

There have been a variety of issues surrounding the music business.  Many of those involving injuries.  Not just of the artists, but those surrounding them.  When fans are excited to attend a show of their favorite artists, they do not think about all of the challenges that it takes to get that artist on to the stage.  For the performance to go off without a hitch.  Unfortunately, sometimes accidents happen.

As an artist, the questions to ask yourself, your band, your manager, or your records company are: Are we prepared if we have to cancel a show or a whole tour?  Can we issue refunds if we cannot rook that show or tour?  If the tour cannot be cancelled, do we have the money to find and compensate a replacement act?  What about the venue expenses or even medical expenses?  Do not forget about the funds lost from advertising?

If you have not asked yourself these questions, then you need to get on it.  Accidents happen.  You cannot plan for them, but you can be prepared for when they occur.  This is where liability insurance comes into action.  Making sure that you are covered for the unexpected.

As a musician, you are typically running around stage getting the audience pumped.  But if you are like Dave Grohl of the Foo Fighters, then you never planned on something happening.  He fell off the stage at a concert.  While he had the energy and adrenaline to continue on with the show after being bandaged up backstage, his broken leg caused the band to cancel 5 shows on the European tour.  This is something that was not predictable, but had the band not been prepared, things could have been much worse.

Unfortunately, it is not just the band that can get hurst at shows.  At an Adele show, a piece of rigging fell and hit a fan in the face.  In another incident, it was the fans that caused the injuries.  Fans attending a music festival in Tempe rushed the stage when the band Rebelution began playing.  One concert goer felt like he was being trampled every five minutes due to the amount of people that attended the concert.

Sadly, accidents can happen at any time.  Following a performance at a Luke Bryan concert, the stage collapsed after a forklift crashed into it during takedown.  Four people, including a stage hand were injured.  In another incident following a Luke Bryan concert, three lighting crew members were injured in a car accident.  This can happen to anyone, at any time.

What is the cause of so many injuries?  Why are there more accidents happening lately?  Could this be due to a malfunction of equipment, lack of preparation, sleep deprivation, or lack of safety measures?  It could be one or multiple factors that are attributing to these incidents.  Whatever it is, we need to make a change.  Be strict about safety measures.  Make
sure that you hire a competent, professional crew.  Give people breaks on the job.  Have food and beverages provided, as well as "rest breaks."  Having people that work for you that are well rested and hydrated can be an important factor when it comes to safety.  Most importantly, make sure that all equipment is checked for safety. If a piece of equipment fails, then it can be detrimental.  Make sure that you are taking every measure possible to ensure the safety of the crew, the musicians, and the audience.  We cannot control people's actions, but we can do our best to control the environment.  As Stephen King said in Different Seasons, "There's no harm in hoping for the best as long as you're prepared for the worst."

Dave Grohl, in his open letter, said "We wouldn't be here if it weren't for you guys.  And I mean that. I thank you from the bottom of my heart.  And I will do everything I can to comeback and give your a night to remember for the rest of your lives AS SOON AS POSSIBLE."  Musicians would not be where their are if it were not for their fans.  They need to respect that appreciation and admiration.  Give back to those that love them.  Hope for the best, but be prepared for the worst.

Negotiations on the Road

Having the opportunity to interview a person in the field that you are interested in is something that does not happen all that often.  Especially when it comes to the entertainment industry.  This industry gives off the illusion that people are unreachable.  Where, in most case, the people within the field are very willing to reach out and assist others wherever they can.  We want to help others make it in this business.  Mike McGrath is one of those people.

Mike McGrath has over 30 years of experience on the road.  Having held many positions including: Tour Accountant, Tour Manager, and Tour Security and Logistics.  He also travels and gives lectures around the country.  He has worked with artists including Rascal Flatts, Reba McEntire, The Judds, and Tim McGraw.  Currently, McGrath is the Road Manager for Blake Shelton.

I had the opportunity to ask Mike McGrath a few questions about his role with negotiations within the entertainment industry.  Here is what he had to say:



NW: "What is your experience working in the industry?"

MM: "I've been involved in the concert touring industry for over 30 years.  I am tour manager specializing in tour accounting and venue security.  Two acts that I worked with early in my career promoted their shows in-house.  I therefore learned tour accounting on a deeper level than if I was solely an artist representative."

NW: "What is your experience with negotiating in the entertainment industry?"

MM: "The shows on a concert tour are negotiated between the promoter and the booking agent.  Occasionally, I am consulted in the contract phase of the deal, but primarily, my negotiating responsibilities are focused in the actual show settlement.

Present in a typical show settlement are the building/venue manager, the box office manager, a promoter rep and the tour accountant.  The first step is to reconcile the box office statement (ticket sales, comp tickets, taxes and fees).  Next, we review all building expenses (rent, staffing, stagehands, etc.).  Finally, the promoter expenses are added (insurance, performing rights fees, support acts, etc.).

If anything doesn't match up with the original budget, or if the amount appears to be out of line, it gets questioned.  If a resolution cannot be quickly reached, we may put the issue aside and continue to see if more questions arise.  At the end we discuss and negotiate the discrepancies.  The process greatly depends on the financial success of the show.  When there is lots of money on the table it's much easier to find a mutually satisfactorily solution."

NW: "What is your most memorable experience with negotiating?"

MM: "My favorite settlement negotiating memory was back in 2003.  The terms were unique.  It's common for a deal to be "a guarantee versus a percentage after expense, taxes and fees."  This tour had a third option - "versus 75% of the gross."  This arrangement was considered a test or study so each day, around 5pm, I would do a pre-settlement and call the manager with a forecast.

At this particular show, the promoter was on track to lose about $50,000.  I didn't tell the promoter rep right away however.  I wanted him to stay motivated to trim the costs.

At the end of the settlement that night, I informed the promoter that the artist would like to give them back $50k.  He literally jumped out of his seat with joy and relief.  He also promised to immediately book future shows for the artist.

The move created amazing goodwill and the money was most likely recouped over the following years."

NW: "Did you have any tough negotiations?"

MM: "If I think about it, I could come up with many stories of "spirited" negotiations.  One that comes to mind was fairly recent and involves bonuses.

All the shows on this particular tour were bundled into one contract.  Part of the terms were bonuses to be paid at certain sales marks (for example, an additional $5,000 at 10,000 tickets sold; another $5,000 at 11,000, and so on).  I was involved in the discussions with the attorney prior to the tour and asked the question - Is it mathematically possible for a show to hit the bonus sales marks but be a financial loss for the promoter?  We all agreed that the wording of the contract stipulated that, yes, we still would be entitled to the bonus payments in that case.  Well...that, indeed, did happen and the promoter felt they should not have to pay."

NW: "How did you diffuse that situation?"

MM: "In the case above, we debated the issue to no end that night.  We had two paths of recourse.  The first was to consult the booking agency and lawyers the following day.  The other was to just put the issue aside, along with any future disagreements, and review it all at the end of the tour.

At the headline level the same artist and promoter representative's cross paths many times.  So, although disagreements happen often, they rarely get personal."

NW: "Is there any advice that you can give for handling negotiations, or in any other area?"

MM: "If someone stays in the business long enough, they will see the same people over and over.  Early in my career there was no online ticketing system, we used "hard" tickets.  At the end of the night we had to count the "deadwood" (the unsold tickets) to determine the number of tickets sold.  I asked a promoter once if it really mattered if I actually counted them.  He advised that I would get a reputation of someone who didn't count and that could matter in the future.  

The fact that some rich entertainers end up broke is a testament to the saying "it's not about how much money you make, it's more about how much you keep."  If you can save $1,000 a show for 100 shows, that's $100,000, that's significant.  If you do that, you can prove that you can pay for yourself. Few positions can do that.  If you handle money, keep that in mind.

My point is that you need to build a solid reputation.  It follows you through your career and is instrumental in your growth and possibly getting future jobs."

NW: "Are there any tips for success that you might have for succeeding in the industry?"

MM: "In life and work I stress integrity.  A solid work ethic and moral character are important.  In certain genres, this business can foster an environment of partying.  If you're in a position of responsibility, stay healthy and sober.

The strengths of artists and musicians are generally in the creative/artistic realm.  The need people like us who are organized.  Information and communication are paramount."



To the average person, negotiations can be scary.  They have been given such a bad reputation through the media.  Mike showed me that while they can be stressful, they can also be fun.  Whether it be a disagreement about payments or a miscalculation of funding, it is our jobs and reputation on the line.  We need to think about who we work for, what kind of reputation we want to have, and what needs to be communicated.  As Mike said, "you need to build a solid reputation.  It follows you through your career and is instrumental in your growth and possibly getting future jobs."

References

Blake Shelton. (n.d.). Retrieved July 10, 2016, from http://www.blakeshelton.com/

Full Sail University. (2016, February 03).  Tour Management 101: Managing Risk on the Road.  Retrieved July 10, 2016, from https://www.youtube.com/watch?v=4gujdJKkeGE

McGrath, M. (n.d.).  LinkedIn Profile.  Retrieved July 10, 2016, from https://linkedin.com/in/mike-mcgrath-1b473642

McGrath, M. (2016, July 09).  Negotiations on the Road [E-mail interview].

Mike Curb College of Entertainment & Music Busines.  (2012, February 06).  Mike McGrath 02.06.2012 [Photograph found in Mike Curb College of Entertainment & Music Busines].  In Flicker.  Retrieved July 10, 2016, from https://www.flickr.com/photos/curbcollege/sets/72157629209038885/comments/

Rascal Flatts. (n.d.).  Retrieved July 10, 2016, from http://www.rascalflatts.com/

Reba.com. (n.d.).  Retrieved July 10,2016, from http://reba.com/

Speer, D. (2014, February 20).  Pollster Live! 2014 Panel - Go Ahead, Make My Day: A Show's Perspective from Back of House.  Retrieved July 10, 2016, from http://www.pollstarpro.com/live2014/schedule-makemyday.htm

The Judds. (n.d.).  Retrieved July 10, 2016, from https://www.facebook.com/thejudds/

Tim McGraw. (n.d.).  Retrieved July 10, 2016, from http://www.timmcgraw.com/

On the Road to Awareness

          We have all heard the stories.  A musician/band or celebrity become famous, then they become an addict.  It happens so frequently that we have become desensitized to it.  We almost expect it.  The thing is, we never stop to ask ourselves why this is happening.  Or what we could do to change it.

          When our icon first starts out, they are not famous.  They have a routine, practice, audition, perform, and repeat.  They may have a job to maintain a certain lifestyle, and a fairly normal home life.  All in all, they live for the routine, just hoping that one day they will be paid to do what they love, whether that is acting or making music.  The monotony of it all is something that they live for.  It is when they have gained their star status that things start to go awry.

          

          It is extremely difficult for anyone to go from a high level of adrenaline and happiness to a low level, one containing sadness or depression.  We typically would call this a bipolar disorder, yet this is exactly what we ask of our celebrities.  On stage performing adrenaline is coursing through their bodies.  They are on an extreme high, usually not requiring any type of extra stimulation (i.e. drugs or alcohol).  Yet when they are done performing, they get onto a bus or plane and head to their next destination.  They crash.  They have nothing routine to do, no requirements of them except to get to the next show and do it all over again.  In his article Insomnia, anxiety, break-ups...musicians on the dark side of touring, Luke Britton says that, "For many, the contrast between the highs of a successful show and the anti-climactic low that often follows can be hard to adjust to, a phenomenon that has been termed 'post-performance depression', or PPD" (Britton, 2015).  According to Kate Nash, "When you're on tour, you know exactly what you're doing and what's required of you.  There's a routing.  It's tangible what you stand for because it's right in front of you.  You come off tour and you're like, 'Fucking hell, what is the point?  What am I doing with my life" (Britton, 2015)?

          

          In an article for the Guardian, Grammy-nominated producer Mat Zo (Matan Zohar) states that, "Ninety-nine percent of touring is the airports, the hotels, sitting in a metal tube for up to 16 hours at a time, it's easy to let your mind and body slip into decay, even for a person with a healthy emotional state.  For those with anxiety, hotel rooms are like prison cells" (Britton, 2015).  He also says that "Relationships are compromised, partly because it becomes difficult to relate to people with a more stable lifestyle.  Your problems and cares become radically different to the other people in your life."

          

          In a study of the music industry done by Help Musicians UK (Hamilton, 2015), they found that:

• 67% said they had on occasion suffered depression or other psychological problems
• 75% said they had experienced performance anxiety
• 68% said they had experienced loneliness or separation from family and friends
• 62% said they had experienced relationship difficulties

          With so many people suffering in some form, what can we do to help?  Not only the public, but also the industry.  It is the music manager that should have the best relationship with its artists.  "A good modern music manager will protect their client's emotional, mental and physical state just as passionately as their business interests.  It's a role that can make all the difference for artist who may be struggling with the demands of stardom, along with any other mental health challenges they harbor," says Fiona McGugan in her article for the Guardian (2016).

          

          It is the responsibility of the industry to recognize when someone is struggling.  To get them help should they need it, and most importantly to listen.  Listen to what they are saying, but more importantly to what they are not.  Look at their body language.  How they act.  You can usually tell when someone has something on their minds, if they are having difficulties and struggling.

          

          As representatives for not only the label, but also the artist, me need to make sure that the artist is healthy.  Singer-songwriter Rumor Shirakbari said it best, "Maintaining an artist's health is in the best interest of everyone - label and the management as well as the artists themselves.  For that reason, there needs to be more investment in acts' wellbeing: making sure the schedule is reasonable, hiring a good PA, getting the best doctors, making sure they have access to counseling even on the road.  We talk a lot about sustainability; remember that an artist's health is at the core of that" (McGugan, 2016).

          The industry should not be shaming people for mental health disorders, or doing drugs to keep their minds either active or inactive.  We need to stick together and get them the help they need.  More artists would be willing to come forward and admit they have a problem if they knew that people would listen and not judge.  This should be what we strive for (Monroe, 2015).

          

          The movie Amy, a documentary about Amy Winehouse, has helped to do just that.  We are bringing the desired attention to the issue at hand, while not judging others.  Her struggle with depression, drugs, and an eating disorder has helped others in her situation.  It has also helped the industry to realize that there are other ways to handle problems with an artist.  That we should not just turn our attention to something else and ignore what is right in front of our eyes.

          

         

          There are different groups available to assist the artist, others that are struggling mentally, as well as the management.  Here are a few:

• MusicSupport.org
• Music Managers Forum
• Help Musicians UK
• British Phonographic Industry
• Samaritans

          The more that we bring an awareness to this issue, the better chance that we give to the individual struggling to survive another day.  We can help to bring recognition to this issues yearly during Mental Health Awareness Week, which takes place May 16-22.  We can also do this by just talking about the issue more.

Live Nation

When you think about going to a concert, the first company that comes to mind is Live Nation.  Live Nation is now the leading concert and festival operator in the world.  They have made a name for themselves within the music field with divisions in ticketing, concerts, artist management, and marketing. 

Recently, Ticketmaster has entered into a secondary sales market.  This helps get tickets into the fans hands, and allow others that won’t be able to use them earn money.  It also helps to prevent ticket scalpers.  Keeping money out of the hands of people that are driving the cost of tickets up is a big plus.  Nobody wants pricing driven up, especially when we are already paying a fortune for the highly desired artists.

Live Nation acquired Ticketmaster years ago, and have continued to build their business. The procurement of Bonnaroo, a four day music festival in Tennessee, gaining majority stake in the company C3 Presents, an artist management and marketing promotions company in Texas that has worked with the White House, and the purchase of Big Concerts, a concert promotions company in South Africa, have all aided in the business becoming a staple.  With these purchases, Live Nation has vastly expanded its footprint across North America and 37 other countries.

As Michael Rapino, Live Nation Entertainment president and CEO, says: "Our mission at Live Nation is to connect fans with the artists they love in every corner of the globe.”  They have succeeded at doing just that, and continue to look to the future.  They are looking to streaming music shows online, which will allow its customers to see a live concert in the comfort of their own home. 

With so much control over the industry, is it any wonder that they are the leaders in their field?  They are changing the face of the entertainment industry!