Indeed, it may end up as a negative-margin business: If history is any guide, some companies will be willing to sell at a loss to gain market share, and there will be investors willing to finance them, at least for a while.
Be the general and make sure there is a clear authority in the beachhead phase with full rights and responsibility to exploit opportunities as they arise and to guide the business through to the break-even point.
First, Loveman seems to run his business in a highly empirical fashion, using small, controlled experiments whenever he can to guide decision-making and boost revenue.