For many years, independent record companies have been facing the conflict between authentic and commercial. Insisting on their own principles and following them in the real world is the hardest part for most independent productions. Therefore, this research studies an independent record company in Taiwan using a system dynamics approach, to get a deeper understanding of how an independent record company operates, to find out how the business is affected by its own beliefs, and to simulate the policies with the system dynamics model. According to the research the following conclusions were reached: 1. The decisions and the knowledge of the founder are key to maintaining the business model of the independent record company. 2. Main income of the indicated companies mostly comes from being a contractor of concerts and other related cultural activities. It shows the evolution of a new business pattern. 3. Simulation of lower quality products leads the customer base to dwindle and lose faith in the label. 4. The income of the company is based on the structure of the independent production, so if the company wants to fix its financial problems, it should re-arrange the whole revenue and expenditure model, or it will result in side effects, even leading company into debt.