Business for Bohemians - Book Summary

Embracing the bohemian while mastering the business world

Think about this for a moment: 'Business for bohemians'. Seems like an odd juxtaposition, doesn't it? Almost as if we're saying 'religion for the non-believers', or 'cats for dog enthusiasts'. At a glance, these worlds appear to exist at opposite ends of the spectrum.

If we delve into the bohemian ethos, we discover a realm inhabited by individuals governed by creativity, liberated spirits who seek artistic expression and leisurely living. On the other hand, the business world, at its core, is driven by revenue generation and laborious commitments — elements seemingly at odds with the bohemian way of life.

However, as we journey through this analysis, you'll discover that these realms aren't as mutually exclusive as they initially appear. There may be a palpable tension between them, but they can also complement and reinforce each other. They might, in fact, present a viable blueprint for sustaining a bohemian lifestyle while also earning a livelihood.

Ready to embark on this fascinating exploration?

Over the course of our journey, you will uncover:

- Why entrepreneurship trumps traditional employment;

- Why starting your own business is no walk in the park; and

- Despite the challenges, why it's a journey worth embarking upon.

Choosing entrepreneurship: A leap towards freedom for bohemians

Imagine an ideal existence where a bohemian, free-spirited artist can thrive. What would it look like? For most of us, that image wouldn't involve sitting around in a rigidly structured office, tinkering with Excel sheets or scrutinizing profit margins. Instead, it's a world abundant with creativity — where music, wine, philosophical discussions, and countryside wanderings replace quarterly reports and team meetings. The pursuit of freedom — the freedom to indulge in 'the good life' — is, after all, the bohemian's ultimate goal.

But here's the catch: freedom isn't free. We need to pay bills, buy supplies, and maintain our lifestyles, which means we need money. Barring a fortune inherited at birth, we're left with two basic choices: either opt for regular employment or venture into business.

The crux of this discussion is that, in comparison to a job, entrepreneurship offers a path to preserve the bohemian's desired freedom within the confines of work life.

Let's first consider the employment scenario. Accepting a job equates to surrendering your autonomy to another authority — often a sizable corporation. The term 'wage slavery' didn't appear out of nowhere — it's a reflection of the reality that despite your salary level, your labor is ultimately owned by your employer. This is why you see discontentment lurking in the hearts of many high-earning professionals, like bankers and lawyers. They earn a substantial income, but they trade the majority of their waking hours for it, essentially enslaving themselves in a luxurious yet oppressive system.

The alternative is to work for oneself. To take the plunge into entrepreneurship — be it freelancing, a sole proprietorship, or launching a small business. With this path, you retain control — over your work schedule, your environment, your product or service, and your team. You have the freedom to chart your own course in tune with your inner rhythm.

Embarking on an entrepreneurial journey might be seen as a somewhat bourgeois move. But on a deeper level, it's a strikingly anarchic, possibly even revolutionary act. You aren't just another cog in someone else's wheel; you're crafting your own wheel. You aren't handing over control of your life to a corporate entity; you're choosing to pilot your own ship. And instead of treading a pre-defined career path, you're carving a new one.

In essence, with entrepreneurship, you're not just dreaming about the freedom that resonates with your bohemian spirit — you're reaching out and grabbing it.

Aligning business operations with bohemian principles

Picture this: A garage startup, a tiny player in the massive economic playground, gradually climbs the success ladder. Eventually, it transforms into a corporate giant, dominating a whole industry.

That narrative might seem thrilling to most entrepreneurs, a textbook success story to emulate. But for the bohemian at heart, it's less an aspiration and more a warning sign. It signals the transformation into that which they sought to escape — an overbearing corporate monolith. The good news is that the world of business doesn't have a one-size-fits-all model. There are alternatives that may align better with your bohemian values.

Here's a fundamental takeaway: You can structure your business to be in harmony with your bohemian ethos.

One viable path is to venture into a lifestyle business. These are typically small-scale, low-key operations that you can manage single-handedly or with a partner. You could consider running a boutique store, owning a quaint cafe, offering consultancy services, or trying your hand at tailoring, plumbing, or being a life coach. Many bohemians find these trades gratifying, offering just the right balance of income and leisure time to lead their ideal lifestyle.

If this fits your vision, don't hesitate to take the plunge. Staying small-scale could be the perfect strategy for your entrepreneurial journey and your bohemian aspirations. But if you harbor larger ambitions or have a broader mission to accomplish, it's perfectly okay. To achieve your greater goals, you'll need to expand your business beyond a small-scale setup.

But expansion doesn't have to equate to morphing into an unstoppable corporate force. It could merely involve hiring a handful of dedicated staff, engaging a larger network of freelancers, and potentially bringing onboard a few investors to bring your vision to life.

Take the example of the author's own venture, the Idler. It began as a simple magazine but evolved into something far more substantial. It blossomed into a prominent publishing and events brand, even venturing into serious-sounding fields such as the Idler Academy of Philosophy, Husbandry and Merriment. It organizes live events, workshops, festivals and offers online courses on a fascinating array of subjects — from ancient Greek philosophy to calligraphy, creative writing, gardening, and even ukulele playing.

While these ventures might sound more ambitious than, say, managing a vintage clothing store, they don't represent an overpowering corporate entity. The goal isn't global domination or amassing a fortune. Instead, it aims to positively influence people's lives while providing a fulfilling working environment and sufficient income to support the author and his team. Essentially, it's about achieving a harmonious balance between one's work and one's aspirations as a bohemian.

The unseen challenges of operating a business

Travel back a few years, and the Idler Academy of Philosophy, Husbandry and Merriment wasn’t merely a virtual learning platform. It used to be a tangible establishment nestled in the heart of the tranquil Notting Hill in London. In 2011, this unique entity sprung to life as a charming blend of a coffeehouse, bookstore, events venue, and adult learning center, all bundled together.

Our protagonist, the author, along with his partner and a small but spirited team, managed the operations. They served coffee, retailed books, hosted enlightening lectures, and conducted a range of workshops. If it sounds like a dream, you’re not mistaken. Except, often, it leaned more towards a nightmare than a dream.

Here's an important insight: Never trivialize the challenges involved in running a business.

Owning a business offers immense freedom, but this freedom comes interlaced with a multitude of obligations. You have customers to appease, employees to supervise, freelancers to compensate, taxes to handle, records to maintain, orders to fulfill — the list is endless. Then there are daily tasks to manage — mail, maintenance, cleaning duties — that keep the business functioning smoothly.

Juggling all these responsibilities while ensuring profitability is a herculean task. Even seemingly straightforward tasks like serving coffee turned out to be complex challenges. What the author initially deemed enjoyable soon became the source of multiple complaints — cold coffee, slow service.

Despite the inconvenience, the complaints weren't baseless — the service was indeed slow and the sales slower. Sometimes, the only patrons would be a group of mothers with their toddlers occupying all the space, ordering just two coffees over an hour, and leaving a mere £5 note as payment.

Then there were customers requesting soy milk, which wasn’t available. The author would sneak out, purchase soy milk from a nearby store, only to realize that he ended up losing money on the sale. While it seems trivial, it raises a pertinent business dilemma: To serve soy milk or not?

Though it appears to be a minor detail, it's these daily operational decisions that can significantly influence a business's profitability. Each decision, no matter how small, carries financial consequences, reinforcing the reality that running a business is a marathon fraught with unseen challenges.

Embracing traditional business methods to uphold your bohemian spirit

Running a business is no cakewalk, especially if you disregard conventional business practices. Now, you might wonder, "Should I adhere to traditional business norms? I am a bohemian after all. Isn't the very essence of starting a business about maintaining my individuality and freedom?"

While that's true, improvising through the business world without any guidance might end up in a chaotic mess that snuffs out your freedom. There's a reason traditional business practices are lauded. These tried-and-tested methods are invaluable in problem-solving, circumventing obstacles, and getting things done.

The key takeaway here is: Upholding traditional business principles can safeguard your freedom to be a bohemian.

Take the author's initial foray into the Idler Academy for proof. Like many bohemians, he believed the rules didn't apply to him and decided to go with the flow. The consequence? A constant influx of problems, exhausting 14-hour workdays to mitigate these issues, leaving no time or energy for himself.

Consider his initial approach to staff recruitment — hiring individuals who hung around the shop if they appeared affable. With a management style that leaned toward leniency, he assumed that being kind to pleasant employees would smooth out all operations.

But it became apparent that calling your establishment the "Idler" Academy seemed to draw in, unsurprisingly, idlers. Employees would arrive late, spend their time indulging in leisure activities and ignore essential tasks such as cleaning the restroom, leaving the author to pick up the slack.

The turning point came when the author started implementing conventional hiring and management procedures. These included scrutinizing resumes, cross-checking references, defining job roles, and conducting thorough performance evaluations.

While these steps might seem more like Business 101 than rocket science, they are still essential. Even if they don't resonate with your bohemian principles, they help maintain order and efficiency. Else, you might find yourself cleaning toilets all day instead of channeling your energy into your art, and that’s certainly not bohemian.

Clarity in your business goals and finances is a stepping-stone to success

Now that you're somewhat acquainted with traditional business practices, let's dive deeper into two more crucial aspects — business plans and accounting systems. Hold on, don't run away yet! These topics might seem daunting, but they're vital for your business journey.

The essential insight here is: Business plans and accounting systems offer much-needed clarity about your business.

Let's begin with the business plan. Don't have one? Reluctant to create one? The author of the Idler shared the same sentiments. His initial approach was to go with the flow and adapt along the way. However, over time, he realized the undeniable value of a robust business plan — a tool to crystallize your business ideas.

Creating a business plan is akin to sketching an outline before penning a novel. It involves answering critical questions, which fine-tune your understanding of what you aim to achieve and how you plan to achieve it. What is your product or service? What problem does it solve? Who are your target customers, how many of them exist, and how do you intend to reach them? Answering these questions upfront — before you have any capital at risk — forces you to deliberate on your business ideas thoroughly.

And when it comes to capital, what are your expected expenses? What revenue do you anticipate in the first business year? Answering these queries will help you estimate how much you need to earn to stay profitable.

Once the business wheel starts turning, maintaining a record of the actual money inflow and outflow becomes vital. This is where an accounting system comes into play. Consider it as a thermometer to your business's financial health.

Crunching numbers might not be your forte, but look at it this way: without a grip on your financial status, you're left with a foggy impression of your business performance. This vague sense is a breeding ground for anxiety, making you constantly wonder about your business's true standing. It can also lead to financial ruin, as you might not realize the financial difficulties until it's too late.

While accounting might not rank high on a bohemian's list of favorite activities, it's a surefire way to avoid going bankrupt.

Never undervalue your offerings: Price them appropriately

Now that you're familiar with the idea of accounting, and you either have your spreadsheet ready or have hired an accountant, you need actual figures to crunch. This brings us to our next crucial topic: money.

Like it or not, money is the lifeline of any business. No matter how remarkable or noble your idea may be, to keep pursuing it, you must either break even or make a profit.

But how exactly do you make money? That's the golden question! While we can't crack this enigma in a single sitting, we'll focus on an invaluable lesson the author learned through tough experiences.

The vital insight here is: Never set your prices too low.

As a fair-minded bohemian, you might be tempted to set the lowest possible prices. After all, you don't want to overcharge your customers, and you might even feel guilty profiting off them. Moreover, you want your product to be accessible to as many people as possible. Lower prices equate to higher sales, right?

True, but rock-bottom prices are a luxury only giant corporations can afford. Want to surge your sales by narrowing down your profit margins? That works wonders — if you're Amazon. But remember, you're not Amazon. You're a small business whose survival — and that of your employees — is contingent on your ability to make a decent income.

Sustenance can be challenging if you're selling your product or service short. For instance, the author initially charged £10 per lecture ticket at the Idler Academy, deeming it a reasonable price. However, with each event accommodating only 30 attendees and £250 covering the speaker fee and other expenses, he was left with a scanty £50 profit. This model was far from sustainable.

Currently, he charges between £20 and £30 per ticket. That's twice or even thrice the original price, and yes, there have been complaints. This leads us to two pricing rules of thumb. Rule one: consider your initial price and double it. That's probably a better price. Rule two: if there are murmurs of discontent, you're probably pricing right. Or, inversely, if no one's complaining, your prices might be too low!

Mindfully select the source of your business capital

Pricing your products correctly is paramount for your business's survival, but it presumes one tricky detail: having actual products to sell. Usually, that means you'll need money to produce the products in the first place.

As the old saying goes, you need money to make money. Unless you plan on consulting or entering a field with minimal overhead expenses, you'll require capital to kickstart your business or propel it to the next tier.

The key takeaway here is: Mindfully select the source of your business capital.

If you're in need of funds, there are plenty of potential sources: taking out a loan, remortgaging your home, crowdfunding, securing investors, or borrowing money from friends and family. Each option has its advantages and disadvantages, some of which are particularly significant for the independence-valuing bohemian.

For instance, winning a bank's trust for a loan can be challenging if you're self-employed. However, once you manage to convince them, they will happily earn interest and stay out of your way. Friends and family might be more willing to help — but once they invest in your business, they might feel authorized to offer unsolicited advice on how to manage it.

This sense of entitlement to interfere is even more pronounced among conventional investors — and unlike your friends and family, they may have the power to impose their advice. Remember, investors aren't lending you money for charity. They're investing to turn a profit, which means they'll constantly scrutinize your decisions and might even intrude in your business affairs if they believe you're veering off course. For instance, they could oust your business partners and replace them with new ones.

On the bright side, investors can grant you access to large sums of capital, which you wouldn't have otherwise. This can be beneficial if you have grand visions for your business and desire to grow it beyond a small lifestyle business. But be warned, it comes with a caveat: you must surrender some of your autonomy in exchange for all that money.

It's not to suggest that you should avoid seeking investors. The point is to understand the compromises you're making and choose the path that suits you best. Do you want to maintain small-scale and safeguard your autonomy? Or are you willing to relinquish some control for the sake of growth?

Stay persistent, but know when it's time to call it quits

Whether you decide to maintain your business small or expand its scope, the road ahead isn't going to be smooth. Running a successful business is no walk in the park, and you're likely to face numerous hurdles and setbacks along the way. Products might not meet expectations. Customers might express dissatisfaction. Employees might indulge in undesired behavior within your business premises.

Well, perhaps that last one is unique to the author's experience — but the message is clear. You might assume that the final advice here would be something akin to "Never quit. Keep moving, irrespective of the obstacles." However, that's not exactly accurate.

The key takeaway here is: Stay persistent and don't give up — unless it's logical to quit.

There may come a time in your entrepreneurial journey when you experience what the author dubs the "Bohemian Wobble." This is when you begin to doubt the whole idea of running a business. "Why didn't I just opt for a conventional job?" you might wonder. You might find yourself envying those who simply clock in at the office, do their work, and collect a regular paycheck.

Before you give up and start job-hunting, remember why you entered the business arena in the first place: the desire for freedom. Your business might be going through a turbulent phase right now, but at least it's your storm to weather. It's far better to grapple with a mess of your own making than to suffer under a system imposed by others! Moreover, if you remain steadfast and ride out the rough waters, you'll also enjoy the many pleasures of managing a business — such as being your own boss, introducing something novel to the world, and positively impacting other people's lives.

However, if your business is floundering or causing you unhappiness with no light at the end of the tunnel, you might want to reassess your situation. That's another facet of your bohemian freedom: no one is forcing you to stay in business, and you're always free to exit any or all aspects of your venture.

While operating the original, physical incarnation of the Idler Academy, the author abandoned more than a dozen concepts: selling second-hand books, providing local deliveries via bicycle, and running a café, among others. All these ideas seemed promising initially but turned out to be impractical for one reason or another. After a challenging five years, he finally chose to shut the physical store. It wasn't generating sufficient income, and more importantly, it wasn't bringing him joy.

But as you're aware, the Idler Academy is alive and thriving as an online platform, now being a joyful and sustainable business. By letting go of certain aspects, you open the door to new possibilities.

Conclusion

Contrasting a regular job, diving into the business sphere can provide bohemians with the liberty to curate the life they aspire to lead. However, to safeguard this freedom, it's imperative that your business is both sustainable and manageable. This entails adopting conventional business methods, determining the appropriate pricing strategy, and identifying the ideal funding sources. Navigating the complexities of your business also involves understanding when to continue pushing forward — and when it's apt to withdraw.