Some people dream about starting businesses involving their passions. Others actually start such a business and fulfill the dream. Lucas Sommer is one of those who took action. He launched a business in 2010 based upon his passion for music.
Sommer incorporated his new business with the name Audimated Corporation. The company provides independent musicians and their fans with online tools. Audimated is a website that helps musicians promote themselves and allows new fans to discover them.
Musicians use Audimated tools for distribution of their music to online sellers such as iTunes and Rhapsody. In addition, artists can create profiles on Audimated that allow fans to find them and spread the word. In fact, fans can set up storefronts on Audimated for promoting their favorite musicians, receiving a commission when the promoted music is purchased.
So, how did Sommer move forward from simply thinking about his new business idea to actually starting his company? His first challenge was finding the right development team for the Audimated website. Sommer attracted the talent he needed by offering experienced website developers equity in the corporation for delivering high quality features and functionality.
However, Sommer still required some cash for the startup company. He targeted potential investors from the entertainment business and especially the music industry. He gave a brief refined pitch of the concept at first and then asked for a formal follow-up meeting with those who expressed interest. Eventually, he found the right angel investor. Only $50,000 of capital was required.
After Sommer created the corporation and had a developed website, he began to market. Although musicians pay to place their information on Audimated, most users of the site are obtaining free service. The company spends its marketing budget on Facebook and Google advertisements. It also deploys search engine optimization measures to attract users to the website. Low costs are maintained by the social marketing strategy. This also has the advantage of permitting the company to control growth with a gradual increase in site traffic.
A successful small business requires both vision and action. Anyone can create and grow a new corporation by methodically following a basic startup process—assemble the team, arrange for the capital required, and deploy cost-effective strategic marketing. Taking action to start a new business is a lot easier when the founder is passionate about the concept.