Implementing Tech Startup Principles To Music Business
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The document discusses the application of tech startup principles, particularly in the music business, emphasizing the importance of ideation, market validation, and scaling. It outlines methodologies like the lean startup approach, business model canvas, and growth hacking to drive efficiency and customer validation. It also breaks down the music business landscape, highlighting various components and emphasizing the need for research and feedback to establish a successful music venture.
Implementing Tech Startup Principles To Music Business
- 1. Implementing Tech Startup Principles To Music Business Ario Tamat, Lecturer, Founder of Ohdio.FM and CEO of Wooz.in SAE Open House
- 2. How Am I Relevant To This? ● Several years in the music industry: Soundbuzz (Asia’s first music download store, launched 1999); Universal Music Group International ● Some experience in TV and movies: BHD Vietnam
- 3. How Am I Relevant To This? ● co-founded Ohd.io (now Ohdio.FM) in 2012 ● CEO of Wooz.in since 2012 ● Mentor for Lean Startup Machine, Gerakan 1000 Startup Digital
- 4. How Are YOU Relevant To This? Introduce yourself!
- 5. Part 1: Principles of Tech Startups On ideally how to build and how to grow tech startups
- 6. Tech Startup Life Timeline Ideation Prototype/Minimum Viable Product Market Validation Market Dominance Scaling Towards A Larger Market Next-step Growth
- 7. Ideation NOT JUST AN IDEA! You need to have: - A problem that you see in the market - Your theory of a solution for that problem - An idea of the who the consumer is - How you are uniquely qualified to provide that solution
- 8. Prototype / Minimum Viable Product After doing customer-focused research about the solution (recommending the Lean Startup approach), the startup should have: - A consumer-facing offering that simulates the product with the minimum of technical requirements - usually just a sign-up page - A more focused customer profile of who would want to pay for this solution - Demonstrated user traction for the targeted consumer group - Identified a business model structure
- 9. Market Validation Startup should have achieved the following: - Sustainable user traction or revenue from business model - Some market recognition in the market - A more mature tech platform - Achieved product market fit
- 10. Scaling Towards A Larger Market Having achieved product market fit, the startup should have achieved the following: - Mature tech platform and work experience - Professionals on team (not only founders) - Have accurate metrics for total addressable market, competition market share, and quantifiable user growth - Mature, adaptable business model
- 11. Market Dominance Startup should have achieved the following: - Mature product roadmap and bug fixing schedule (including fixing non-tech issues) - Own complete and relevant data about user traction, behaviour and purchase preferences with demonstrable user loyalty - Mature company structure - Sustainable, scalable business model
- 12. Next Step Growth At this point, founders would have to be thinking about these points: - Initial public offering - Expansion to other markets/countries - Product diversification or expansions to other lines of business - Mergers and acquisitions
- 13. A Few Tools And Methods Tech Startups Use
- 14. Lean Startup The Lean Startup approach, popularised by Eric Ries, basically focuses on customer validation. An idea is broken down into assumptions (theories), which are then validated or invalidated through intensive and random market interviews with the assumed target customer. For every assumption that is invalidated, the concept gets closer to a very specific, narrow group of customers and a validated problem-solution offering. This can be done without having to even develop an app or program. By going though a cycle of ideas - product - data (feedback), a solid unique consumer offering can be created relatively quickly.
- 16. Business Model Canvas The Business Model Canvas, initially developed by Alexander Osterwalder, basically is a visual mapping of components needed to build (or just describe) a business, and how they relate to each other. It complements the Lean Startup method, which aims for laser-precision customer validation, with a wider view of what components are necessary to support the proposed business model.
- 18. Growth Hacking Growth hacking is a process of rapid experimentation across marketing channels and product development to identify the most efficient ways to grow a business. It’s an interesting way to use science methodology to support data-driven decisions: - Create a hypothesis: this ad banner design will bring traffic from 20yr old males - Test the hypothesis: invest a small amount of money for the ad - Measure the result: how many 20yr old males clicked on the ad - Improve hypothesis, test and measure again This cycle is continued until you can predict user acquisition costs, user response to upgrades, and so on, minimizing market experiment costs in the long term.
- 19. Part 2: Implementing In A Music Business Setting Taking tech startup ways of thinking, methodologies and principles in building a modern music business
- 20. Let’s Agree What A Music Business Is, First - A music label - A publishing company - An artist management company - A production studio - An equipment rental company - A karaoke bar - A …. ?
- 21. A music business is a business in music. It relates to the creation of value through music to be offered to a customer, whether it be a sound recording, a song or score, or any service or profession related to that music. Rock t-shirts? Slank-branded energy drinks? A karaoke mobile app? Music provides increased value to those products, if not as the product itself. The music industry is much wider than just the bands and their labels.
- 22. Where does a music business start? It still starts from an idea. It could be a song, or it could be a service, like how you want to organise a concert for your friend’s band. It always starts with the uniquely qualified.
- 23. Music Startup Life Timeline Ideation Single or First Event/Product/Service Rollout Core Fanbase/Customer Establishment Market Dominance Scaling Towards Larger Audiences/Markets Next-step Growth
- 24. Breaking It Down - Bands Your song is your idea Your recording is your MVP - get people to listen to it to get feedback Your future fans is your target customer - don’t make your cousin listen to your demo, find people who you think will like your song! Find your business model: selling albums, selling merchandise, live shows, what is the most likely way your fans willingly give you money? Take time to research
- 25. Breaking It Down - Concerts Your concert concept is your idea Your first event poster is your MVP - you can get feedback on a concert concept only by a poster The fans of the band in your concert are your target customers - make sure you know who they are, where they are and if they’re willing to spend before booking artists and venues! You can either sell tickets, get sponsors or both - but are those the only two ways of making money from creating concerts? Do some research!
- 26. Growth Hacking - Merchandise Take 1 item, say, a backpack, for your experiment. Determine who will buy this backpack. Find out where to advertise to those who will buy this backpack. Use the same content for the ad. Experiment on every marketing channel - don’t spend too much money - and measure the results. Refocus on the most effective marketing channels, then experiment with the content. And so on.
- 27. It’s All About Methodology