How Do I Start a Music Store?

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How to Start a Music Store

  • Choose a business structure
  • Get licensing and insurance
  • Sign a lease at a great location
  • Calculate costs
  • Define your niche
  • Connect with the local music scene

Costs of Operating a Music Store

  • Lease costs can range from $1,500 to $3,000 monthly
  • Fixture and display costs range from $10,000 to $50,000
  • Rent varies by region, with Manhattan being higher than Florida
  • Singles typically cost $1.29-$1.99 while albums are around $10
  • Launching a small music store costs between $50,000 to $150,000

Profits in the Music Industry

  • If a $100,000 inventory turns six times yearly, annual sales could reach $840,000 with a gross profit of $240,000
  • Rent and utilities may cost $3,000 monthly, while staffing could be $5,500
  • Mainstream stars provide significant profits to music publishing companies
  • Uploading music files benefits artists, but distributors still handle royalties and essential duties

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