Behind The Startup

Behind The Startup

Alpha Loft Launch Series

Doug Henderson

FrostHub

www.frosthub.com

@dougehenderson

[email protected]

April 28th, 2015

“It is a long way to the top if you want to rock and roll”

AC / DC

“I happened to come along in the music business

when there was no trend”Elvis Presley

“It’s a small percentile of people who see one dime

out of the music business”

14 PHASES OF A BUSINESS

1. FERTILIZATION

2. TRIGGER EVENT

3. DECISION TO START

4. FINDING A MENTOR

5. FINDING A CUSTOMER

6. FINDING MONEY TO DEVELOP PRODUCT

7. DELIVERING FIRST PRODUCT

8. HIRE STAFF

9. FAST GROWTH PHASE

10. FINANCIAL CRISIS

11. MANAGEMENT CRISIS

12. PARTNERING FAILURE

13. CONSOLIDATION

14. STARTING TO LOOK AROUND

FERTILZATION

STARTS WITH A THOUGHT

SOME SORT OF MOTIVATION

IDEA GENERATED BY YOUR EXPERIENCES

TRIGGER EVENT

MOVE TO ACTION

!

FAME AND FORTUNE

PASSION TO DO SOMETHING GREAT

PROVE SOMETHING TO YOURSELF

DECISION TO START

BEGIN SEARCH FOR YOUR BANDMATES

!

MUSICIANS WITH PASSION

STARTING TO JAM AND GEL

CREATING THE VISION

OPTIMISM HIGH AND SUCCESS IS UNKNOWN

FINDING A MENTOR

CRITICAL ROLE

"

MAY NOT HAVE MUSIC EXPERIENCE

GUIDE WHEN THINGS ARE FUZZY

#

FINDING A CUSTOMER

$

PLAY ANYWHERE AND EVERYWHERE

WHO IS OUR AUDIENCE?

WHERE DO WE START PLAYING?

HOW DO WE WANT PEOPLE TO PERCEIVE US?

WHAT IS OUR VALUE PROPOSITION?

FINDING MONEY TO DEVELOP A PRODUCT

CUT A DEMO

%

LOW COST & FIDELITY

GET VITAL FEEDBACK

SHOWCASE CAPABILITIES

FRIENDS AND FAMILY

FUNDING

TURNED DOWN RECORD COMPANIES

&

GIVE UP OWNERSHIP RIGHTS

COMPROMISE YOUR VALUES?

THINKING SUCCESS IS LIKELY

RECORDING CONTRACT

DELIVERING FIRST PRODUCT

CUTTING A RECORD

%

INVEST THE MONEY INTO EP OR FULL ALBUM

EXPECTATION OF YOUR HIT SINGLE

TESTING THE PRODUCT MARKET FIT

LOW COST MARKETING

'

TOUR IN A VAN

BUILD A FOLLOWING

NOT GLAMOUROUS

GRINDING IT OUT

HIRE STAFF

GET MORE EXPERIENCED MANAGEMENT

MANAGEMENT COMPANY

NEGOTIATE NEW CONTRACTS

SUPPORTING YOUR CUSTOMERS BETTER

FAST GROWTH

SELLING LOTS OF PRODUCT

BURN OUT CONERNS

WHAT’S THE NEXT HIT SINGLE?

MO MONEY, MO PROBLEMS

FINANCIAL AND MANAGEMENT CRISIS

BROKE

(

NEED ADDITIONAL RESOURCES TO CONTINUE

EVERYONE ELSE GETS PAID FIRST

PARTNERING FAILURE

CHANGE IN PRIORITIES

BAND MEMBER LEAVES

BREAK UP OR REPLACE AND MOVE ON

CONSOLIDATION AND STARTING TO LOOK AROUND

REFLECTION

NEXT BAND

NEXT CAREER OPTION

DISRUPTION

GREAT BAND CHANGES THE MUSIC SCENE

)

OTHER BANDS BECOME OBSOLETE

We are at a crossroads in the music business with the rise of the internet, the

world we live in has changed and the past is not coming back. But I see the

glass as half-full: the internet and social networking are avenues for the next

Bob Dylan to be born” Jon Bon Jovi