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Hi Mate,
I'm in your seat, setting up a tech house/techno label.
Besides the obvious purpose of releasing great music, It's an output for my own material as well. The ambition is to save up all the (small) accumulated profit, in order to press some releases on vinyl.
Before approaching a distributor, you should have at least 3-5 releases "ready for release", that means mastered, cleared, contracts signed with the artists. This way you'll show the distributor that you're serious about what you do, and that their investment in time and effort for your label will grow a seed to a serious business venture. I've heard stories about label managers getting "tired" after two releases, ending their business - which explains why many distributors have pretty hard criterias with accepting labels today.
You should definately go for it! I'm sure it's a really interesting process, as well as a fun project! Good luck
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