5 Things Music Therapists Should Know About Business

As faithful readers know, I have recently been going through the process of turning the Online Conference for Music Therapy into the Online Conference for Music Therapy, Inc. We are now officially official, and off to the races as a business entity. As I've been going through this process, I've been thinking about all the stuff I do not know about being part of a business - hence this post.

Here are 5 things every music therapist should know about business (whether they are employed by a facility full-time, or heading off on their own journey of private practice)...

1. Know about different types of business models. What type of business do you work for? What is the difference between a non-profit, not-for-profit, or for-profit model? What is the difference between an Inc and a LLC? How does the IRS differentiate between the various models? What are the ramifications for choosing one model over others?
2. Find people to help you figure all this out. Seriously, without our attorney and accountant, I would be completely lost. It is worth the money to pay someone to assist with the process and to be available whenever you have a question than to stumble along and hope that you are doing things right.
3. Many businesses fail within the first five years. This is a long-held belief in the world of business and seems to be something to think about as you enter into any type of entrepreneurship. Don't despair, however, if you have a good business model, lots of assistance from those who know about the ins and outs, and a way to sustain yourself without too much debt accrual, you should be able to figure it all out. http://www.gallup.com/businessjournal/178787/why-new-companies-fail-during-first-five-years.aspx
4. The role of a business owner never ends. There may be times when you just don't want to promote what you do to make money, but you may have to do so anyway. It is important to make a commitment and then stick with it. You can't run a successful business by doing things haphazardly. You just can't. I once heard a music therapist say, "Oh, I don't pay taxes on what I earn as a music therapist. We pay enough taxes on my husband's income already and decided that we couldn't afford to pay taxes on my income." Um, no. That's NOT what the IRS thinks, and they'll win any lawsuit that comes out of that type of thinking. Many business owners find that their job is not a 40-hour workweek, but consists of late nights, early mornings, marketing discussions, constant advocacy, and appointments with other professionals for advice and guidance. Being a business owner takes lots of energy, effort, and attention.
5. Some people are better employees than business owners. This is my role in the realm of business. I am a MUCH better employee, working for a facility where I do not have to make business decisions, than I am a self-promoting independent business owner. In order to run my own business, I have had to find my niche and comfort zone. I do not want to have to make cold calls to facilities in order to find my next contract. I want someone to tell me, "Go here and do this." It is much simpler for me. I can fill a need through webinars and clinical training, through continuing music therapy education coursework and product development. Music therapy things for music therapists!

I am an advocate for requiring music therapy students to go through a course on basic business considerations. I wonder if there are students who are doing so right now. If so, I would love to see the texts that they are assigned (I need to read up on some of this stuff) and see what others feel is important to teach future music therapists about this very important topic.