The Rock world is littered with artists suing their business managers. Now, where some of these managers are just bad people, I think like most of us the Business Manager just took on too much. I am sure you have heard that Johnny Depp is currently fighting with his Business Manager in court. The dollar amount I last heard was around $650M. YIKES!
I won’t assume to know the details of their situation, but still not a place I’d want to be as a Business Manager.
I get it; it can be daunting to try to wrangle your talent while attempting to reign in their spending at the same time. Sometimes, people do not listen. I am sure that the added strife between them and you can’t be comfortable. I know that managing people’s money is usually easier than managing their emotions, and you are doing both.
As a Business Manager, you are most certainly using a CPA(s) (as you should). May I be so bold to suggest adding a CFP® to the team? Let me guess you don’t know what we are or do.
Yea, the CFP Board has not been the best at advertising our particular designation.
Here is the synopsis; CFP® stands for Certified Financial Planners. As CFPs® we are held to a higher ethical standard and have a fiduciary duty to our clients. Most of us have investment licenses (myself included) and can help with both the investments and planning. This allows CFPs® to help you invest and plan for things like tours, and other expenses or major goals.
As CFPs we are trained to uncover key objectives, financially speaking of course; and we put a plan together to manage those objectives with a path on how to get there.
Once the plan is in place it is simply getting your artist to stick to the plan.
By doing this, it should take the pressure off you and allow you to focus on the parts of the job you love most.
In other blog posts, we will talk about investment strategies for self-promoting bands, but that day is not today. If you have questions or want to tell me how great I am please feel free to email me at firstname.lastname@example.org or follow me on twitter @melrocksmoney.
Also swing over and check out our YouTube channel ‘Hot Moon Financial’.