When two old schoolfriends came up with the idea of selling live recordings at gigs, they knew they had to set up in business. Sarah Hanson hears how Concert Live took off

James Perkins Adam and I used to be fanatical live gig-goers. One night we went to Brixton Academy to see Massive Attack and in a bit of a drunken haze we were trying to remember which was the last track to be played. Adam was certain it was "Unfinished Sympathy", I thought it was "Blue Lines". We'd only just left the concert hall and already the memory was fading. We thought: "Wouldn't it be great to be able to take home a recording of the gig you'd just been to?"

Adam Goodyer Concert Live was a clear opportunity that was too good to miss. You have such a captive audience-it made so much sense. We did nine months' market research-standing outside Brixton Academy and asking gig-goers if it would excite them to buy a recording and how much they would pay.

JP We got £30,000 seed capital from Alistair Baker, the ex-managing director of Microsoft UK, whom we met at a wedding. Adam and I also invested £15,000 between us that we'd made when we ran a recording studio.

AG One of the major issues was how we could quickly duplicate so many CDs at the end of the concert. We did a lot of research into what technology would give us the best recording at the right price. If we didn't have the highest quality product, we'd have no business.

JP The biggest challenge was attracting major record labels and artists—we needed to give them something back. Ours is the only system that enables artists to clock sales from gigs that are eligible for the charts. It helped get James Blunt and Wet Wet Wet into the top 10 and has helped prise open doors.

AG The number of CDs sold can range from eight per cent to 30 per cent of attendance depending on the quality of the artist and the fan base. We have just been working with Kiss on their pan-European tour, which included 15 dates. So far we have sold 40,000 units. Including online sales this accounts for 18 per cent of attendance.

JP Last year we recorded 300 concerts. This year we are on target to double that and next year to quadruple it. We are moving into France, Germany and Scandinavia. The markets in these territories are just as strong as in the UK and there are no competitors, so we'll fly in there and take advantage.

AG Running my own business, I enjoy the investment in other people. I love seeing the ownership they get over what was originally mine and James's thing. We now have 10 full-time staff plus another 50 staff a day when we're on the road. It's great to see their understanding of what a great product it is and the desire in their eyes.

JP At school I was always selling something, promoting nightclubs, or DJs. I always wanted to set up my own business. I never liked authority. I enjoy being able to leave at 2pm to play tennis if I've been putting in lots of hard work. I like driving the business forward and managing people. It fulfils me way more than any other job could.

AG James and I have been best friends since we were 11. We have a lot in common—obviously our love for music—although his taste is questionable. There is very little that crosses over in terms of skills. I take control of finance with an overview of operations. James heads up acquisition of new business and sales. We try not to wind each other up. We agreed that we are friends first and business partners second.

JP If we have a problem we don't stew on it. We're a small team and people pick up when there is a bad atmosphere so we deal with it in a professional way. I'll pitch to Adam and vice versa. It's all give and take. He gives me leeway but when he wants to pull the purse strings, I know he's doing it because it's sensible.

AG I admire James's tenacity and his talents in being able to take an idea and form it into something others can latch onto. This is something that he does on a day-to-day basis in bringing in big record labels and artists.

JP I admire Adam's ability to look at things outside the box and his strength of character. He won't just go along with something but will thoroughly evaluate the situation. I'm much quicker with decisions. He can be tight with money—he likes to keep the pennies in the bank—and as such we have a very profitable business.

AG Our favourite band of old is the Cure. We both used to mope around in long jumpers with back-combed hair. If we could work with the Cure that would be a real "sit back and shake hands" moment for us.