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Music Festival Business Plan

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Music festivals are popular events offering a diversity of music and entertainers. When developing a music festival business plan for music festival events, one of the first bits of information provided is the type of music the festival will offer. The music industry is broad and includes classical, country, pop, rock and roll, and many others. Many music festivals offer a variety of music and set up multiple stages so people can choose to listen to their preferred types of music. Music festivals are held indoors in convention centers or auditoriums, or outdoors in open fields or on city streets. Finding the right venue is critical to success because a site that is too small will lead to potential disaster. The business plan needs to clearly describe the activities that will take place and other information like the following:

  • How the community benefits from the music festival, i.e. local vendor sales, attracts tourists, promotes cultural arts, offers local talent opportunities, increased sales at local hotels, restaurants, and retail stores, etc.

  • Licenses and permits required by city or county for holding festivals

  • Plan for booking artists and the entertainer contracts already signed

  • Ticket prices and other revenue sources like sponsors, sales of food, t-shirts, souvenirs, vendor booth rentals, program book advertising, and so on

  • How tickets will be sold, i.e. via website, in local retail establishments, by volunteers, etc.

  • Target audience, i.e. local, regional, national or international

  • Music festival marketing plan to broadcast event and promote early ticket sales, i.e. press releases, flyers, radio, television, newspaper, social media, website, etc.

  • Planner and operator experience in arranging and managing music festivals

  • Event staff infrastructure for office operations, event planning, and onsite music festival operations

  • Insurance requirements for festival liability, cancellation due to unanticipated events, space damage, etc.

  • Audience demographics

Starting a new music festival is considered a risky operation. Many cities require upfront fees before giving event approval, assuming the event is held on city streets. These fees cover the additional expenses the cities incur when festivals are held, like additional police presence and cleanup. The financial plan needs to be realistic in terms of projected revenues and include all likely expenses from tent rentals to band fees. Investors will be looking for proof the music festival planner has considered risk management strategies that address the possibilities of low attendance, bad weather, no-show entertainers, loss of sponsors, etc.


Our support in developing a music festival business plan

It requires extensive planning and successful marketing to hold a successful music festival. Developing the music festival business plan is an important process because if forces business owners to think through the many details that can make or break events. OGS Capital consultants can help the entrepreneur planning to hold a music festival successfully develop a business plan that is ready to attract the right type of event investors.

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