You need to get posts in the loop of terms
foreach ($terms as $term) {
$music_args = array(
'post_type' => 'tf_musicians',
'orderby' => 'title',
'order' => 'ASC',
'hierarchical' => false,
'posts_per_page' => -1,
'your taxonony goes here' => $term->name
);
$musicians = get_posts($music_args);
echo '<div class="inner-content">';
echo '<a name="back-point"></a>';
echo '<h2 class="line-spc-sml">' . $term->name . '</h2>';
echo '<ul class="inner">';
foreach ($musicians as $musician) {
echo '<li>';
echo '<a class="strong" href=', get_permalink($musician->ID), '>', $musician->post_title, '</a>';
echo '</li>';
}
echo '</ul>';
echo '</div>';
}
Note provide the taxonomy name in 'your taxonony goes here' => $term->name