First of all, how established is the label? You should check for the level of professionalism on the label's web site, of course, to tip you off. Some Record Labels are huge companies that have hundreds of acts to promote. These are the labels that carry the most popular, commercially viable rock bands and singers. They can offer artists huge sums of money to sign with them and they've got the experience and to promote them heavily. There are several things that need to be done before a record label can begin producing work. This is the time for planning out the record labels future. It's important to write everything down and work out all the details of how the label will be run. Setting realistic goals and accurately projecting revenue and expenses not only directs the company towards it's goals, but it also helps lure in future investors.