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Wednesday, May 25, 2011

Role Of Business Manager

Business Manager

The business manager is the one person on your team who handles all your money and earnings. This person collects it, keeps track of it, pays your bills, invests it if you want and makes sure you file tax returns. This team member you must make sure this person is legit and has experience because it is your money. The state of California has no rules and you need no creditials whatsoever to be or become a business manager. You also don't need to be a certified accountant either. You are probably thinking that you didn't go into the music business to become this big time investment wizard. This means you are turning your money that your band has earned over to someone who has no more finachial training than yourself. However, you should be focused on your music and winning millions of fans and keeping them happy with your material. Numbers and money can and are intimidating and this makes anyone nervous. This is why you hire a team to deal with the daily issue of the business. This is why I urge everyone to put the effort into hiring the  correct team members. Remember that everyone you choose for your team is a major investment and hiring the correct people can effect how successful your band becomes. Just be careful when it comes to business managers!
 When picking a business manager it is vital that you check this person out and make sure they have references and don't choose someone brand new. Make sure that they have a successful track record. Make sure that they have some sort of certification. When making your own music, your manager is vital!

Business Manager Checklist

1. Make sure that you request and get finacial reports often. I would highly recommend monthly reports form the business manager. Make sure that you and your band members can understand the reports and they track every single penny that your band earns.

2. Make sure what the business managers philosophy is? Are they conservative or wreckless.

3. If he or she is a CPA(certified public accountant)? I would advise you that they are.

4. How much do they charge and fees? They can be paid two ways. They can get %5 of everything you make or hourly. This will have to be agreed upon by both parties. One or the other but never both of them.

5. Make sure you find out exactly what this person is going to do for you besides just pating the bills. Make sure that they do your tax returns. Some will charge you extra for this. I would make sure that this is included in the contract and this is included in the %5 or the hourly rate, not an extra fee. This can be pricey.

6. Does the business manager want a written agreement? Yes, have one to cover your butt.

7. Do they represent music clients? Make sure that they do. This shows you that they are specialized.

8. Make sure they have what is called E and O insurance. This stands for errors and omissions insurance. Get a copy.

9. Hire someone in the United States. To many loopholes and different rules and regulations.

10. Will this person object being audited? You should be able to audit this person to see if everything is fine with your money and there are no issues.

These are some of the major factors to connsider when hiring a business manager. This is all for today. To record your own music at home click here.