I would also caution Brian about some of this other assumptions. He is assuming that he can get a discount from CD producers without confirming this. Indeed, rarely do such entities sign into favorable agreements with underfunded startups. I would also caution Brian about entering into this business without a long-term business plan. Even if his wild, uninformed assumptions prove to be prescient in the short-term, the technological shift represented by the mp3 is something that could easily destroy his business before it achieves critical mass. It is foolish to enter into a business based around a technology that is approaching obsolescence without considering the impacts of the new technologies on the long-term future of the business model.

3) the first step I would advise Brian undertake is to design and undertake a significant amount of market research. It is unwise to invest thousands of dollars in building a business...
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