Biomedical engineering senior Mark Schmitz turned a class project he did in his junior year into a record label. Granted, it took the help of a few friends and a grant from ASU's Edson Student Entrepreneur Initiative Beneficiary to get The Grid Records started.
Every year, Edson awards $200,000 to 10 to 15 student-led entrepreneurial ventures. The Grid Records received $15,000 the first day of spring semester to start their label.
The Grid Records, a label for Phoenix hip-hop artists, is owned by 22-year-old Schmitz. The Grid team also includes biochemistry senior Patrick Freeman, 23, public affairs; interdisciplinary studies senior Scott Ebsen, 23, business operations; 20-year-old Brian Tillman, information systems manager; and marketing junior Michael Freeland, 20, accounting.
Schmitz said he has always been involved in music. For three years he interned for Atlantic Records, which hosts artists like Paul Wall, AC/DC and T.I. Schmitz is a self-taught guitar player, and attended New York University's music production school in 2004. He was promoting Atlantic's hip-hop artists at Phoenix shows when he said that he realized that Phoenix had no hip-hop representation. This was the inspiration behind The Grid Records.
Schmitz said his main goal is to be Phoenix hip-hop's first regional representation.
"My mission is to pioneer a cultural movement," said Schmitz. "I grew up here, and a lot of people are unaware of the experiences I've had in this city, the events that fuel the passion. I want to see Phoenix move forward."
It was a few failed attempts to get Phoenix hip-hop artist Atllas onto Atlantic that drove Schmitz to develop The Grid's business plan.
The management of The Grid Records are all white guys working in the stereotypically black hip-hop industry. Schmitz said when he first started working with black members of the hip-hop industry, they looked at the white guy like he didn't belong.
"It's ultimately about respect and trust," added Schmitz, "and that comes with time, building relationships and positive performance. In the end, we are all here for the same reason and want to earn a living doing what we enjoy."
The Grid is a young label still working to build a name. But Schmitz said there is still resistance toward the label.
"At first glance there can be that tension, but once people see my dedication, understand that I'm a musician and witness my commitment to music, they see I'm not here for just the quick buck and I begin to develop those positive relationships," said Schmitz.
Having friends in the business can also help. "I have plenty of friends who vogue for me, like [local rapper] Ol' Green," said Schmitz.
The five guys have developed a progressing business, but the design began as a project for Schmitz's entrepreneurial studies course. The class was assigned a seven-page business plan.
Schmitz wrote a 52-page proposal.
Tom Duening, director of entrepreneurial programs, became a mentor for Schmitz after introducing him to Edson. Schmitz said this mentorship gave him the opportunity he needed to break into the scene. After all, 86 business plans were submitted to Edson and only 10 projects were awarded funds.
Thanks to the $15,000 from Edson, Schmitz was able to get The Grid off the ground.
Schmitz said The Grid has interest in four artists; nEw york, Judge, Ol' Green and Atllas. However, only two deals have been closed -- with nEw york and Ol' Green.
"The public discounts how hard it is to completely sign an artist," said Schmitz.
One of the artists, Atllas, who is 26, has been featured on MTV and in XXL Magazine.
"Atllas is on his own path right now, but as we continue to work together toward securing an investment, relationships stay positive. Once we lock our investment, we can move forward with Atllas," said Schmitz.
"We can go farthest with Atllas right now, " said Freeman, the public affairs point for The Grid.
The first part of the Edson money is going toward contracts supplied by an intellectual property attorney from Chicago. Another sum has gone toward a professional photo shoot. The rest has gone toward promotional CDs. These CDs feature artists working with The Grid. So far, 2,500 copies have been made.
The group has to promote, especially because it's courting private investors. "$15,000 will not hold The Grid Records for long," said Schmitz.
Schmitz said right now there are three private venture capitalists interested in the label. They found these investors completely by chance, Schmitz explained, through a friend of Schmitz's who works for a mortgage brokerage firm.
The development project is in addition to the record label. They say they're ready to break into real estate and help out the community. The goal is to build a six-story building with four studios inside, said Schmitz. Studios A and B will be for international and Grid recording artists, while studios C and D will be for community use.
"It will be like a YMCA for music, where the community can come and record for free," said Schmitz.
Schmitz said the studio's expenses would be covered by money coming in from the commercial lease agreements of the businesses housed in the office building. "We could offer recording time for free, as well as paying an audio engineer. I have a network of local audio engineers in Phoenix, and hiring one would not be a difficult task," said Schmitz.
However, Schmitz said the project would take years to complete.
The label name was created early on. While on a road trip through Nashville, Schmitz said he was thinking about Phoenix.
"I wanted something catchy, edgy and urban. Then I remembered how the streets were set up in a grid, and that stuck with me. I even remembered yelling out loud, 'Grid!'"
The men of The Grid Records are confident they will be successful. While reading ASU President Michael Crow's New American University design imperatives, Schmitz said that The Grid Records' mission statement shares many of the same philosophies.
The label is trying to get a deal where The Grid artists perform at all ASU's home football games.
"We are working with an internal group of ASU alumni who are organizing pre-game events for the fall," said Schmitz. So watch for a stage in front of the main stadium entrance next fall.
Reach the reporter at megan.m.salisbury@asu.edu.
