One of the foremost issues for up-and-coming artist’s, who are trying to make their mark in the industry, is the ability to generate a steady cash flow. If you are not attached to a major label then you will not have access to the benefits that come with the backing of a corporation, such as money and other financial resources.

Unfortunately, for new artists, starting a successful career can be difficult without substantial financial backing and this backing can be tough to find. With this comes the task of finding money from outside sources. So how do you go about getting enough money to fund your musical career?

While it may be a bit easier for an artist who is living with their parents or relatives and not have the financial burden providing for a family, it can be a real struggle to keep enough cash coming in. The typical artist who is new to the scene is not going to be able to make enough money on their music alone, at least not until some success is achieved.

It is possible to maintain a normal 9 to 5 job while still striving to become a professional musician but it can be difficult to find the right balance between work and music. Not to mention having a job is going to limit the amount of time that you will have to spend making music.
An alternative to getting a job is to borrow money from friends and family but this does not come without its problems. Eventually, these people will be expecting repayment and if you are unable to pay, it could cause strain in the relationship.

Finding Investors for Your Music Career
A great way to get access to large amounts of money that will help to cover all related expenses is to find investors who are willing to put forth significant amounts of cash in the hopes that you will eventually see financial gain. You can use these investment funds for a variety of facets including band marketing, hiring staff and printing promotional items, such as t-shirts and posters.

Unfortunately, the drawback to using money that was given to you by investors is the fact that you will be in debt to those people. Although these investors may give you some extra time to start generating cash, in the end, they are going to expect a return on their investment and if you haven’t found success, this can be a major issue.

Three Forms of Investment
If you are considering the investment route, then you will need to be aware of the various types of investments to consider.

• Private Equity
  As the name suggests, private equity investments are loans that are given to you through a private company and in this case, the firm that is making the investment will be able to determine the criteria for repayment.
• Venture Capital


  Similar to private equity, venture capital is also money that is accessible through the investments of others. Unlike private equity, however, venture capital is usually only granted to those that have a high potential for growth and this does not typically include independent musicians.
• Angel Investment
  Perhaps the best opportunity for a musician to secure funds from investors is through angel investments. These loans are given based on the concept that you will work hard to achieve your goal and in time these investors will be paid back.

Once you have considered the different types of investors, you will need to choose one that best suits your needs. It is important to communicate with those individuals that truly understand your needs and are able to wait any length of time for their investment to come to fruition. Just remember that your hard work and determination will be the deciding factor on whether you are able to repay the loans and satisfy investors.

Finding Investors
There is an array of places where you can get leads on investors, such as by doing Internet searches or visiting small business development centres. It is also worth checking with local businesses to try and secure an angel-type loan so that you will have more freedom to make your own decisions.

Those that are most likely to give you a loan or invest in your future will be those that have ambitions themselves, particularly those within the music industry. By aligning yourself with investors who have similar interests there will be less pressure to succeed quickly, as they will be more willing to wait for the return on their capital.

The primary obstacle in finding the right investors may be your location. If you live in a rural area, then it is less likely that anyone will be willing to front money to help one’s music career. If you reside in a large city, then there is going to be more opportunities to locate potential investors.

Points to Consider:
It is vital that you research the background of any investors that you are going to meet with so that you have an idea of what they are going to be looking for.
Look to others that are in the music industry and have found success on a level that you are trying to achieve. These people may have inside information that could be valuable to a musician who is new to the scene.

Formulate a sales pitch that is specially tailored toward your ambitions. Since a pitch is essentially just a way of asking someone to give you money, you need to make sure that you make a strong case as to why you deserve the money.
Consider working with someone who knows the business side of the music industry. They will be able to help guide you in the financial aspects of the situation and they will probably have a lot of valuable advice.

Before making a pitch, be aware of the competition levels within your genre. Investors are going to be more apprehensive to invest if there are a number of other artists out there trying for the same thing.