Attempting to use methodologies often used in building tech startups into building a business based on music. Suitable for music business students, music industry practitioners, early-stage businesses as an introduction presentation. Created for SAE Jakarta Open House, Nov 12th, 2017

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

28. Contact
Ario Tamat
ario.tamat@gmail.com