If you have recording equipment, starting a label isn't hard at all. It just takes alot of time and dedication. First you have to find artists, next record a few tracks and put them into CD or record form. Then you can either take them and sell them out of the trunk to get "start up" money. Then establish your label as a small business (see local laws). What I have done was make a bunch of copies and give them to college radio stations to get regular rotations, and now we have people wanting the purchase the record. Then hit up local clubs. Then go through Discmakers and get a bunch of copies to give to mom and pop shops off consignment. If you sell enough units, a major label will sign you to a label deal.