Fund Your Own Career
If you are an artist looking for investors to jump start your music career, the first person to look at is yourself. Most people are aware of the average funding options, such as saving money from your job, selling items you own, setting up a crowdfund, or applying for grants and scholarships, but has anyone ever told that you can register an LLC and fund your own career?
Starting a business
Not everyone wants to start a business because it appears to be a lot to manage, but getting an LLC doesn’t mean you have to put together a business from start to finish.
When you have an LLC, you can establish business credit. Business credit is important to funding your business, or in this case, your music career. Most businesses are started with a line of credit. This is the easiest and fastest way to get your business off the ground.
When you establish your first line of credit, the most important thing to do is to make every payment on time. The stronger your payment history, the more money banks are willing to give you.
A guide to funding your music career
Building business credit is a short process that you can do on your own without any professional help. Below is a guide you can follow to help you get started with funding your music career.
Step 1: Apply for an LLC ( can be in your birth name or artist name)
Step 2: Apply for an EIN # ( you can apply for a free EIN on Irs.gov)
Step 3: Apply for a DUNS # ( this is your business credit profile)
Step 4: Apply for a line of credit (do not apply for a credit card or a loan for a new business because you most likely will get denied. Start with vendor credit or NAV 30 accounts such as Crown Office Supplies. They cater to new businesses and help you establish credit. After you have built your credit for at least 3 to 6 months of on-time payments, you can confidently apply for a secured or unsecured credit card with any bank you choose.
Sticking to the plan
Remember, your goal is to build your business credit score so that you are attractive to banks. You can grow from a $700 credit limit to $1000. From $1000 to $5000. From $5000 to $10,000 and so on. This is not new information. This is how most businesses grow to become billionaire companies; by using other people’s money. You then take that money and make more.
Your financial growth should also come with a business plan that puts your money in the right places. You should have a set budget where you can use the money for studio time, marketing, travel, and anything else that helps you toward your goal.
Be responsible with your money
It is easy to see credit as free money, but if you abuse this credit, you can end up putting yourself in a lot of debt. Managing your credit lines does not have to be difficult. Use what you need, and then make small payments as soon as you can. Remember, this is about using credit to jump-start your career. If you remain focus, you can change your whole life.