Music Project Feasibility and Viability Study

What a good one includes

• A granular cash flow projection mapping out every anticipated expense, from session musician day rates to fuel costs, against conservative revenue streams.
• A clear break-even analysis calculating exactly how many tickets, streams, or physical records you must sell to cover your initial investments.
• A realistic timeline and operational roadmap detailing deadlines, vendor dependencies, and equipment requirements.
• A comprehensive risk assessment outlining potential threats, such as low ticket sales or gear failure, paired with actionable backup plans.
• A localized market analysis identifying your target demographic, current local competition, and the best distribution channels for your specific genre.
• A thorough inventory of existing assets versus what needs to be hired or purchased, ensuring no unexpected overheads pop up mid-project.

Common mistakes to avoid

• Overestimating optimistic revenue streams, like assuming merchandise sales will cover all touring shortfalls without historical sales data to back it up.
• Omitting hidden administrative costs such as liability insurance, performance rights licensing, or local merchant processing fees.
• Underestimating the timeline required for vinyl pressing, promotion, and shipping, which can lead to missed release deadlines and rushed fees.
• Failing to plan for personal cost-of-living expenses, leaving the artist financially strained while waiting for the project to generate a return.

Frequently asked questions