Also that year Gordy produced records by two brothers, Eddie Holland and Brian Holland. With Smokey Robinson and the Holland Brothers, Berry had discovered three incredible songwriters and producers.
In January 1959, Gordy decided he wanted to take total control of his songs. He borrowed eight-hundred dollars from his family's loan fund to start his own record label, called Tamla. Tamla Records was in Detroit, and the first release was Marv Johnson's "Come to Me". This song became a mid-sized hit and United Artists signed Johnson to a recording contract and Berry Gordy continued to produce him for that label. In 1959, Johnson's "You Got What It Takes" was his first production to break into the Top 10. .
By the late 1950s, Gordy had formed a second label called Motown. Motown provided an outlet for the local talent in Detroit and tons of people started showing up at Motown offices. He also started his own publishing company Jobete Publishing named after his three children Joy, Berry, and Terry. Writers for Motown were published by Jobete which grew to be one of the most powerful publishers in the industry. .
1960 was a big year for Gordy. Smokey Robinson had convinced him that Motown should distribute its own records. So Gordy co-wrote and distributed "Shop Around" by Smokey Robinson and the Miracles. This song became a number one hit and established Motown as an important independent company. By this time Gordy had also set up the Motown Record Corporation, Hitsville USA and Berry Gordy Enterprise. Also, a producer from Motown, Robert Bateman, arranged a meeting with a singer named Mary Wells. Berry signed her immediately. She turned out to be the first real star for the label with a good number of pop hits. Gordy also discovered another singing group called the Distants, but changed their name to the Temptations. He released their first record in 1961. In this same year, a local girl group, named the Primettes, auditioned for Gordy.