THINK BIG – Idea Generation: Music Studio Business Model

This project presents a comprehensive business model for a music studio in Australia, addressing the decline of live music and the increasing popularity of online services. The assignment identifies the problem of dwindling live music culture, proposes a solution involving a music studio offering jam...Read More

Running head: THINK BIG – IDEA GENERATION AND BUSINESS MODEL
DEVELOPMENT
THINK BIG – IDEA GENERATION AND BUSINESS MODEL DEVELOPMENT
Name of the Student
Name of the University
Author Note

1THINK BIG – IDEA GENERATION AND BUSINESS MODEL DEVELOPMENT
Executive Summary
The purpose of the paper is to develop a business model by identifying one issue or need in the
regions of Australia. The identified problem was the dying spirit of music bands and recording
provisions with the increasing implication of online services. The proposed business idea is of a
music studio that will offer jamming services, audio and video recording services and renting
equipment for recording. The paper presented extensive details regarding success factors and
business model by demonstrating each element of music studio in Australia, which will have
direct channel provision for the target customers. The target customers are the music lovers,
creative people, and young population with inclination towards art and the college bands.

2THINK BIG – IDEA GENERATION AND BUSINESS MODEL DEVELOPMENT
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Problem Statement.......................................................................................................................3
Solution Idea and benefits generated...........................................................................................4
Proposed Business Model............................................................................................................5
Interrelations................................................................................................................................7
Critical Success Factors...............................................................................................................8
Critical Risk Identification and Assumptions..............................................................................8
Evaluation of Feasibility..............................................................................................................9
Conclusion.....................................................................................................................................10

3THINK BIG – IDEA GENERATION AND BUSINESS MODEL DEVELOPMENT
Introduction
Australia is a place of a great culture and heritage. It is rich with performing arts
institutions and visuals. The Australian calendar is generally packed with a large number of
festivals and events. Music has always been a unique heritage of the country. The musical tastes
vary from classical and folk to rock and heavy metal genres (Clarke, 2017). There has been a lot
of diversification in the musical world post world war II. Some of the notable musicians include
The Wiggles, John Farnham, AC/DC, Bee Gees, Natalie Imbruglia and so on. The tastes and
preferences of music have changed a lot over the years. The country has provided the world with
many eminent singers and musicians. The rise of this singers and musicians has increased
business opportunities over the years. Recording and jamming studio along with music event
management is a very good business idea that helps in earning a huge amount of profitability.
However, the scenario is changing with the ‘online’ acceptance amongst the artists, this problem
requires focussed attention. The main purpose of the paper is to develop a business idea based on
the identified problem. The paper will also demonstrate the critical success factors for the
proposed idea.
Discussion
Problem Statement
The problem identified in regions of Australia is that the live music of the country is
becoming obsolete in the recent era. The current era cultivates an environment where it is truly
difficult for the artists to survive. A poor combination of government policies, disregard for the
value of music and insatiable profiteering of the industry has killed the taste for music. Most of

4THINK BIG – IDEA GENERATION AND BUSINESS MODEL DEVELOPMENT
the bands and musicians are unable to get a proper infrastructure for regular practices (Grant,
2015). Renowned recording studios charge discriminating prices because of their monopoly of
service. Low promotional efforts and poor event management has also led to the downfall of
music culture in the country. Most of the renowned event managers are only promoting the few
famous bands and are not providing any opportunity for the rising talents. This prevents the
people from getting a newer taste of music. Most of the people are unaware of the better local
bands that might be able to make the crowd dance hard with its groove.
Solution Idea and benefits generated
It is very profitable and beneficial under this situation for any person to start with a
jamming and recording studio at places where people are trying hard to continue with music.
This option does not only provide the musicians and bands a proper soundproof space to practice
but also provide them an opportunity to record their own compositions at low costs whenever
they feel like. Moreover if these studios can be located at some central places, it would be
helpful for the musicians to reach those places on time while carrying those heavy instruments
on their back. The musicians and artists who will be practising inside the jam pad can feel the
taste of performing live. Creating small events at local areas and making cool advertisements for
the youth will attract a huge amount of crowd. Thus it will not only promote the local bands but
also help in earning a lot from the crowd and the crowd can also enjoy new musical tastes at the
same time. Another small addition to the business idea that can be made is that various premium
musical instruments can be made available in the business premises. Artists who are consistent
with their performances can be offered to play the instruments live for free once or twice. This
will make most of the musicians end up in buying the product thereafter generating good revenue
for the organisation. In house events will promote the business as well. Competitions can be

5THINK BIG – IDEA GENERATION AND BUSINESS MODEL DEVELOPMENT
setup within the studios and prizes can be provided to the winners. This will promote the
business as well as help in earning increased revenues. It can also record the live performances
and provide it to the artists in return for minimum money. This will help both the parties.
Proposed Business Model
A business model refers to the proposed structure that is required for supporting the
viability of products and services of the company and helps in explaining how the company will
be operating, making money and will be achieving its objectives (Massa, Tucci & Afuah, 2017).
The business model preferred in this case is simply a traditional brick and mortar business model
and a high touch business model. It requires a face-to-face communication with the customers
within offices. The relationship between the business owner and the customer plays an important
role in terms of revenue generation. Trust and credibility has a great role to play in case of
The business set up will require two to three big rooms. All the rooms are required to be
soundproofed. One room will consist of all the jamming setups like – sounds, lights, mixers,
stands, microphones and drum kit. Another room will be set up for the recording purpose
containing the respective equipment. The third room will be displaying the premium musical
instruments along with office like setup for booking purposes.
Key
Partners
Music
Key
Activities
Renting space
Value
Propositions
 Provision of
Custome
r
Relations
Customer
Segments
Demographic

6THINK BIG – IDEA GENERATION AND BUSINESS MODEL DEVELOPMENT
instrument
suppliers
for jamming
Music
recording
Advertising
activities
shooting
indoor
music
video.
 Music
jamming
facilities
 Renting
space for
audio
recording
with rented
equipment
from the
shop
hips
One-to-one/
Direct
Customer
Subscriptions
segment- Age
(Young),
occupation
(students,
artists)
Psychographic:
Lifestyle
(Creative and
love for music)
Key
Resources
Musical
instruments
Recording
studio service
Video
recording
Store staff and
manager
Chann
els
Direct channel
Social media
advertisements
(Joyce &
Paquin, 2016).
Cost Structure
Advertising cost
Revenue Streams
Rent from jamming service offerings

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Equipment cost
Studio maintenance cost
Salary structure for store staff (Ojasalo &
Ojasalo, 2018).
Music recording services
Video recording services
Renting musical instrument
Monthly subscription for jamming services
Interrelations
The business canvas model demonstrated the elements of the proposed business. Each element is
interlinked. The partners will enable the maintenance of the studio with the support in executing
key activities. The key activities will require a cost structure dedicated towards enhancing value
proposition of the music studio. The relationship with the customer segments such as artists and
bands, young population, college goers will be accomplished on one-to-one or personal basis.
The distribution of services will not involve intermediaries, will adopt direct channel. The shop
will be promoted or the music studio will stimulate awareness through social media advertising
along with print ads. The value proposition and advertising content will demonstrate the key
resources of the studio that can facilitate the services. The outcome of the value proposition
using key resources and advertising the service will lead to revenue from the potential revenue
streams of the studio.

8THINK BIG – IDEA GENERATION AND BUSINESS MODEL DEVELOPMENT
Critical Success Factors
This refers to the managerial efforts required from the end of the organization in order to
reach the mission of the company without facing obstacles. The organisation in this case must be
aware of its key success factors like –
i. Quality of the soundproofing.
ii. Quality and space of room being provided for practice and recording.
iii. Placement of amplifiers and sound systems and quality of the same.
iv. Noise reduction facilities.
v. Quality and knowledge of sound arranger in case of recordings.
vi. Promotional opportunities being provided to local musicians and bands in case of
events.
vii. Offers, discounts and prizes types.
Critical Risk Identification and Assumptions
This business setup requires huge investment. More than investment it requires high
degree of maintenance and vigilance. Apart from this it also requires proper knowledge on sound
engineering and editing. Therefore there are a number of risks being associated with this
particular business model. The key risks are –
i. In spite of a proper set up and good sound some of the musicians would not prefer to
visit a place and practice. In such cases demand for the jamming studio gets reduced.
Most of the people might prefer renowned recording studios because of their
preferences in quality-price relationship. Under such circumstances there can be
probable loss of revenues.

9THINK BIG – IDEA GENERATION AND BUSINESS MODEL DEVELOPMENT
ii. The musicians and the bands sometimes press buttons of the mixers and amplifiers
without even knowing about their functions. This results in damage of the equipment,
which is a huge loss for the business.
iii. Technical difficulties can arise at the time of recording, which may result in the loss
of session files of the clients.
iv. The managers can create events for the local musicians but there can be situations
when the crowd might not support those events.
Evaluation of Feasibility
In order to evaluate the feasibility of the business proper market research has been done.
The numbers of people involved into music and have interest in music are assessed through
surveys. The market has been thoroughly analysed. The following key areas are evaluated –
i. Area of operation.
ii. List of services to be offered by the business that are different from the other
businesses providing the same services.
iii. Demographic information.
iv. Customer identification and reaching out the customers to take feedback on such
ideas of business. This will help in customizing the business in a far better way as
well. It will also enable in understanding whether the business can at all cater to the
needs and preferences of the targeted demographics (Arvanitis & Estevez, 2018).
v. A hypothetical due diligence is required in order to assess the strengths and
weaknesses of the business idea and the structure.
vi. Calculating the payback period and the internal rate of return also does financial
feasibility check. All the required costs are considered at maximum values and the

10THINK BIG – IDEA GENERATION AND BUSINESS MODEL DEVELOPMENT
expected revenues are considered at minimum values in order to find out the
minimum expected profits from operations.
vii. Once all the data has been collected the plan is properly set and documents are
prepared that helps in further evaluation by the investors who will be investing in the
business.
Conclusion
It can be concluded from the above paragraphs that the dying musical sense of Australia
can be revived back by setting up this business. This business will not only help in earning
revenues but also act as a social development factor as this will help in reviving most of the local
musicians who does not get enough opportunities to show case their talents. The business model
is a two-way activity. In one hand it promotes the local artists and provide them opportunities
and on the other hand it creates a good opportunity to make out little profits out of the same
without exploitation.

11THINK BIG – IDEA GENERATION AND BUSINESS MODEL DEVELOPMENT
References
Arvanitis, S., & Estevez, L. (2018). Feasibility Analysis and Study. In The Emerald Handbook of
Entrepreneurship in Tourism, Travel and Hospitality: Skills for Successful Ventures (pp.
109-129). Emerald Publishing Limited.
Clarke, A. (2017). Heritage beyond borders: Australian approaches to extra-national built
heritage. Archaeologies, 13(1), 153-174.
Grant, C. (2015). Endangered musical heritage as a wicked problem. International Journal of
Heritage Studies, 21(7), 629-641.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Massa, L., Tucci, C. L., & Afuah, A. (2017). A critical assessment of business model research.
Academy of Management Annals, 11(1), 73-104.
Ojasalo, J., & Ojasalo, K. (2018). Service logic business model canvas. Journal of Research in
Marketing and Entrepreneurship, 20(1), 70-98.