Doug D'Arcy, former president of Chrysalis Records and today head of music consultancy Songlines, said: "The major labels have given the music industry a bad name.
"Because they're big, they dominate the media. But they're not the business we know."
Alan said major record labels were simply not good at spotting talent.
He said: "The past is owned by multinationals. The future will be owned by whoever gets there first. If you see the next Nirvana, sign that band. Make that record. People will come knocking at your door."
Mark Jones, founder of alternative label Wall of Sound Records whose signings include the Propellerheads and Reverend and the Makers, added: "Being independent is about bringing new music to people and changing people's lives. It's about giving people a platform to do that."
And John Webster, a former senior executive at Virgin records who today heads the Music Managers Forum, said: "I ignore majors. They're not in my world."
Alan believes major labels are not concerned with finding new talent, but instead rely on poaching the best acts from smaller labels.
"If you look at the people at the top (of major labels)," he said, "they're not interested in music. They're interested in investments."
Mark added: "That's not about music. It's about figures.
"What happens on TV on a Saturday night has removed it even more from
music.
"Britain has got talent."
There was a pause on the panel before moderator Phil Patterson, of UK Trade & Investment, took the hint and said: "But not on TV on a Saturday night."
Alan said independents were able to thrive because so much great music was ignored by major labels.
He said: "Everyone on this panel started in the same place - not having any faith in anyone else. That's a good place to start because if you have no faith in anyone else, you won't let yourself down."
But Alan warned that, as an independent, money could be tight.
He said: "As an independent, the only thing you own is your debts.
"You can be independent of everything apart from money."
Phil emphasised the importance of bands owning their own copyright and said bands needed to make sure they have strong support networks.
Alan said artists should concentrate on what makes them stand out - their music.
"Artists should forget about that side (the financial side) and concentrate on being really good at what they do," he said.
"The only thing that will attract anything is them being good.
"There's a lot of people who are looking for talented people because we don't have talent. If there's another Amy Winehouse out there, people will be looking for them."
Later he said: "If you into HMV and look for CDs by Neil Young, you don't buy them because he's a great businessman. You buy it because they're great songs."
Mark said: "There's only two types of music - good or bad. That's it.
"Music is made with passion and belief - it's you - or it's not."
Once artists are signed, Alan said, they needed to be prepared to devote some of their time to promoting themselves.
"I've never known one artist who enjoys promotion," he said. "But you have to do a certain amount."
Earlier, Doug told the story of how he helped turn Chrysalis into one of the biggest labels of the 70s and 80s, with artists including Blondie and Spandau Ballet.
"My one constant is looking for something new," he said. "I was never satisfied with what I had. I always wanted top know what else was out there.
"That led me to some very strange places. Once I went to Cologne to record with Karlheinz Stockhausen, another I ended up doing a jeans commercial."
Meanwhile John, who was instrumental in founding the Now! series of compilations, talked about the story of Virgin Records and how he was part of the musical team that supported Sir Richard Branson's entrepreneurial vision.
He said: "Richard Branson is not a record man. He's an entrepreneur.
"The first record we put out, which nobody else would put out, was Tubular Bells. That's a good way of starting a record label if you don't have finance.
"In the 70s we put out weird records. When punk came out we put out punk.
"We famously signed the Sex Pistols. Co-founder Simon Draper didn't want to sign them, but Richard Branson could see money there and sign them.
"The turning point came when there was a drummer in a band who wanted to put a solo record out."
That said John, didn't sound too promising at first.
"But the drummer was Phil Collins and the song was In The Air Tonight," he smiled.
Asked for their closing remarks, Alan said simply "believe".
Doug said: "The future is rosy."
John said: "There's a lot of people out there who can help you. Use them."
And Mark said: "Get out there and do it."