Another important thing to think about when setting up your record label is the amount of money you’re willing to spend on it. Things like registering a record label will cost you money, as could releasing people’s material and promotion efforts. If the record label is just a name and brand you want to build up with your music being the main focus, you shouldn’t look to invest financially in the label but instead into your music. If however you want to build a strong record label that runs professionally in the eyes of the law, you will have to spend money.
If you’re releasing other people’s music too you need to think about how much money you’re going to spend on them if any. When setting a budget, try and stick to it. It’s easy to over spend and have finances get out of control, causing a bad knock on effect for the finances in the other areas of your project.