When you start a record label, finding music to release and finding distribution channels is a bit of a chicken and egg situation. Distributors want to know that you have some music ready to go before they will commit to working with you (in most cases), but musicians will want to know that you have distribution before they sign to your label. Sometimes, when you're starting an indie label, unsigned musicians will be willing to come on board before you find distribution. That is your best case scenario. If you can't get this lined up, there's not much you can do but try to juggle a little bit and work on getting soft commitments from people. Here are some things to keep in mind about distribution:
Digital distribution is much easier to find than physical distribution. Aggregating services like Tunecore will put your music on sites like iTunes and Amazon. You can set up these services from the word go, so you don't have to wait around with good releases on your hand that you can't move at all.
Some physical distributors will work with anyone, but your ideal situation is to land a distribution deal with a company that is selective about the labels they work with. These companies will actively get involved in selling your releases to the stores and will often help you advertise your releases. These sorts of companies usually want to know that you've got a busy release schedule planned - they don't like working with a label with one release.
Distributors sometimes often M&D deals - they pay for manufacturing up front and recoup it from sales. This helps with your cashflow in the short term, but these deals are becoming more of a rarity.
