M U S I C A L    E N T R E P R E N E U R S H I P

ASSETS & LIABILITIES

We have all heard the words Asset and Liability. How many of us know what these words really mean in the world of business?. We have an idea. Many of us know that an asset is good for us and a liability is not so good for us. On the surface that is correct. The fact is there are misconceptions about what these two words mean and how they affect our lives professionally and personally.

Liability
A person or thing that acts as a disadvantage (takes money out of your pocket).

Examples:
A car is considered a liability. The average car depreciates in value. It removes money from your pocket. It’s a Monthly expense consisting of loan or lease payments, gas, car insurance and repairs. Unless you are buying and selling cars for a profit, it’s a liability.

Asset
An item of value (anything that puts money in your pocket).

Examples:
Lets look at the home you own, not anything that you rent because that’s a liability. Your home that you own! What’s that? A liability or an asset? it’s a liability! It’s not as bad as your car but if you look close at your home it’s a liability. Why, because you pay a mortgage, repairs, monthly up keep and the list goes on. Your home can become an asset if a portion or section is established for renting.

As a musical entrepreneur the objective is to create, own or be in charge of as many assets as possible. In today’s music industry this offers many opportunities. Not only to create the music content but to own or receive revenue streams from them.

Five Towns College Set-up

→ Musical Entrepreneurship
→ Business Model Basic Outline
→ Legal Structures
→ The 7 Myths of Marketing