An indie label is a record label that is self-funded and not affiliated with one of the three big record labels – Sony, Universal, or Warner. Indie labels span from small hobby labels to major, successful corporations.

The distinction between indie labels and major labels began to dissolve in the 1990s, and several huge independent labels are currently backed by the top three main labels.

Indie labels sometimes face an extra hurdle in getting their music recognized because they generally have significantly less funding to market their music as opposed to large companies.

Despite the difficulties, many indie studios have prospered for many years so if you’re thinking of starting your own Indie label, then you’re in the right place, because today, that’s exactly what we’ll be discussing.

The first thing that you need to think about is if you have the financial resources and time to see this through because your label won’t be up and running overnight, it will require a lot of hard work to understand the ropes and then convert it into a profitable business that will bring you the required return on investment.

Here are some of the areas that you can focus on when you're thinking of opening your own label:

1. What kinds of Indie music will you produce?

There are so many genres and niches of Indie music that you might not be willing to dedicate your life to listening to, so you have to be very clear from the beginning about the kind of artists and musicians you will sign.

Indie music can range from electronic to folk and from R&B to pop and everything in between. Do you have the expertise needed to work with such a diverse range? Will you be going at this venture alone or do you have a team that will help you out? Picking something you have experience in and having people to help you launch the business can be extremely beneficial at least at the very start.

2. Do you have any prior experience in the music business?

This doesn’t mean if you have your own indie band or whether you’ve made music before, this means you have the relevant and required skills to turn someone's music into a successful brand, something that they can profit out of. The hardcore business and money-making side of music.

It will really help you if you do, for example, maybe you’ve worked in a music label before, preferably in one of the big 3 labels, and can lean on your knowledge and experience gained during your time there to launch this business. If not, do you have anyone in mind who will be taking all the big decisions with you? Maybe a friend who worked in the industry before?

You could even learn the ropes on your own beforehand, by volunteering or doing an internship before taking the leap and starting your own brand.

Make sure you have a clear plan for your record label before you start investing money and time into it.

3. Do you have the capital necessary to take a risk?

Having your own record label will not make you a millionaire if you're thinking along those lines. You’ll probably be signing smaller acts in the beginning and these bands probably do not have the star power (yet!) to make enough money.

So, you have to introspect and think about what your motivations behind this undertaking are and whether you have the means to fund a few rough years in the beginning till your business starts to make a name for itself, if you do not, then looking for an investor or a backer can be a viable option if you really want to pursue this dream.

4. What goals do you have for your label?

This can be another great question for you to have an answer to when you’re just starting out. What exactly do you want to achieve with your label? Make sure whatever you aim for is realistic and attainable, having unrealistic expectations will only set you up for failure due to the music industry’s volatility and instability.

However, if you passionately want to recognize talent, develop it and share it with the world, then go for it. Writing down some achievements that you’d like to see happen along the way is a great idea too. For example, having one of your acts reach the billboard charts or sign a distribution deal could be realistic and achievable goals to pursue.

Many indie artists are going the route of having their own label so that they keep ownership of their music.

5. Do you know anyone who’d want to sign with you?

Are there any people in your social circle who have told you they’d sign with you if you had your own label? Do you currently have access to a lot of underground talent that needs help growing? Are you or anyone you know a DJ and have access to the DJ world?

All these things will matter immensely and it's better to get your foot in the door of all these groups before launching your label and realizing you do not have access to a continuously replenishable talent pool.

After going through all these steps, and deciding that you still want to go through with launching your label, you can think about a name and vibe that your studio will be known for.

Along with this you can create the relevant social media presence for it, trademark all of this, and register with a Performance Rights Organization or PRO, like ASCAP or BMI, affiliating yourself with these is a requirement, so make sure you learn about them.

Lastly, you will eventually need to find a team. Your team should include lawyers, distributors, Marketing and Advertising associates, PR and outreach people, producers, and other additions that you may think you need to add at any given moment in time.

Initially, you’ll probably be doing a lot of work yourself but as you grow and sign more bands and musicians, it's only logical to grow your team as well and delegate responsibilities to professionals. Having your own label can be a big undertaking but if thought about and done correctly, it can be a dream come true.