Read/WriteWeb has a very good article on startups. I find this particularly relevant to music business related startups, as I’ve been long championing the idea of focused niches over overly-broad ventures.
Today, more than ever, it is about identifying a customer/fan who shares your values, and making a direct and emphatic emotional connection with this person. as Read/WriteWeb correctly states, “There may never be a site as big as MySpace again.” I believe this fervently, everything (The Long Tail, echospin, etc.) is pointing to creators connecting efficiently and emphatically with their constituents.
Just from looking at the section headings of this article…
1. Divide and Conquer, Differentiate or Die
2. Generally Speaking, the Smaller the Niche, the More Loyal the Users Become
4. No Small Market is Small Enough
5. Mind Numbingly Simple
…you see the mantra forming. It’s a good mantra, and it’s one for artists to know and understand.
Consider this passage apropos of the music biz:
No brand, no corporation, no startup can achieve 100 percent of a market in the face of competition. Once you accept this reality, finding a niche is greatly simplified. You don’t have to face those demons that keep telling you, “Let’s not give up any part of the market”. The truth is that all businesses are a niche business. The only difference is that the leader’s niche is bigger than the niches owned by others, but it is still a niche. Nurturing the specific needs of the niche users has become the prevalent theme for most successful startups.