First of all, you should do business promotions in a way that grab the attention of artists. Without getting the attention of artists, it would become very difficult to get success in this business.
Try to make contacts to those artists who are producing their own music and make deals by taking responsibility of publishing and distribution aspects.
If you want to work with new artists who have not yet established their bands, then you have get a studio and all equipment required in music.
Before contacting to artists, you should visit their fan pages and listen what they have produced. It will help you in selecting the right people for your record label.
Also keep an eye on the upcoming talent which will play a vital role in your business as only a single potential artist can make your record label famous.
If you also want to record your own music, then you should arrange for a studio along with all equipment. Record the performances of upcoming artists and then edit it in a perfect manner.
You can make contract to these new artists either by purchasing them money and get the whole rights, or you can pay them royalty with every copy of their work sold.
You can also offer your services to the leading artists in the publishing and distribution deals for their work. Publishing deals will help you in getting more benefit for your record label while distributing deal will earn you a little less profit. In both ways, you will earn profit and your company will grow.