Authors Aron Schoenfeld and Sam Krichevsky are co-founders of TanZ Entertainment Group, which creates novel experiences to connect audiences with creators.
Uber started as a test with three cars in New York City in 2010. Today, there are tens of thousands of Uber cars in more than 200 cities around the world. Conventional wisdom would have said the Uber business model could never be that successful in an industry as well-established and entrenched as the taxi system. That business model seemed to be working; why mess with it?
But Uber, along with Netflix, Spotify and others did mess with it, and in doing so flipped deep-rooted business models on their heads. While there are multiple reasons why these businesses are successful, there's a valuable lesson at the core of what they've done: don't be afraid to shake up the status quo. Just because an industry appears to be successful doesn't mean there isn't room for improvement. Disrupting a business model is not easy, but it can be very rewarding if you have the right idea, tools and of course, the passion.
- Understand that just because a business model is working, this doesn't mean it can't be enhanced. Don't shy away from an established business category just because it seems to be working fine. Streaming services like Spotify and Netflix have completely changed how we consume and purchase our music and movies. Think you have a good idea? Do your due diligence, and you'll find there are many ways to structure your business and successfully launch a new initiative. There are many existing music festivals, but few have the authenticity we believe truly showcase the thriving world of underground music. By intertwining this music with cutting-edge art and technology and focusing on the music and not the size of the stage or a massive production, we will aim fill a void in the marketplace through our festival, called TRANSMIT, that is launching this summer.
- Get early buy-in from your target audience to support the new model. Test the waters to make sure your approach has appeal -- and think beyond friends and family. Today, there are multiple avenues to test an idea for a product or system: for instance, we turned to Kickstarter for our Electronic Opus music project and discovered our audience was not only receptive, but more importantly, willing to pay.
- Don't be afraid to create a model that benefits the industry more than your company. If the industry is thriving, then your business can as well. We recently launched SpringBoard Tracks, a new music-licensing platform that focuses on putting more money back in the pockets of musicians. By creating a platform that allows musicians to own their work and provide them opportunities to monetize our platform beyond their music, we can change the perception that the industry is always out to exploit the musicians.
- Use your new model to position yourself as leading the charge for change. If everything was truly working perfectly, then there would never be a need to change the process. There is always room for improvement, but you need to demonstrate specifically what needs improvement and how your business model is the solution. We created multiple platforms across different areas of the music industry that are focused on taking existing elements and making them better for fans and creators alike. Through vertical integration, we are able to sell our message and improve the industry much faster than a stand-alone entity. Rally your audience behind that cause, and you become the industry disruptor.