The Unshakeables: "Business of Art: The Entrepreneurial Mindset & Music" – Episode Summary

Release Date: April 3, 2025
Host/Author: iHeartPodcasts
Featuring: Ben Walter (CEO of Chase for Business) and Justin Richmond (Host of Broken Record)

Introduction

In the April 3, 2025 episode of The Unshakeables, Ben Walter engages in a compelling conversation with Justin Richmond of the Broken Record podcast. This episode delves into the intricate balance between artistry and business within the music industry, exploring how independent artists and labels navigate success outside the traditional frameworks dominated by major record sales and large-scale tours.

The Business of Art: Balancing Creativity and Sustainability

The discussion opens with Justin Richmond highlighting the often-overlooked aspect of the music industry: the business side of art. He emphasizes that while major artists are frequently associated with big labels like Universal Music or Sony, there exists a plethora of independent artists and labels forging their unique paths to success.

Justin Richmond [01:36]: "People always think about the art of business, right? But we don't spend as much time, I think, thinking about the business of art."

Ben Walter concurs, stressing the inseparability of art and business for sustainable success.

Ben Walter [02:20]: "You cannot sustainably have one without the other."

Case Study: Excel Recordings' Strategy

The conversation transitions into a case study of Excel Recordings, an independent label based in England. Justin recounts how founder Richard Russell addressed the inherent tension between independent labels' passion for artists and major labels' dominance in distribution and marketing.

Russell's solution was to sign fewer artists, thereby allowing a larger allocation of resources to each and fostering sustainable growth. This strategic focus on quality over quantity set Excel Recordings apart in the competitive music landscape.

Justin Richmond [03:20]: "He thought, well, those things are, you know, I guess there's a natural tension between those two things, but maybe there's a way to solve this."

Ben praises this approach, highlighting its foundation in risk management and resource allocation.

Ben Walter [03:20]: "...they realized they had great product but limited leverage on the distribution side. And so by limiting the product, I will maximize the number of resources I can throw at my real challenge, which is distribution."

Managing Risk in Business

Ben delves deeper into the importance of risk management in business operations. Using Excel Recordings as an example, he explains how focusing on a select number of high-potential artists is a calculated risk that, if successful, can substantially elevate a label's standing.

Ben Walter [04:26]: "Managing a business is primarily about managing risk. Even when you're in the growth phase."

He introduces the concept of the three-legged stool — balancing financial, brand and reputational, and operational risks. This framework assists business owners in making informed decisions about where to invest time and resources.

Ben Walter [06:30]: "You're trying to balance a three-legged stool... financial risk, brand and reputational risk, and operational risk."

Beats by Dre: Leveraging Unique Advantages

Transitioning to another case study, the hosts discuss Beats by Dre, founded by Jimmy Iovine and Dr. Dre. The unique advantage here lies in the founders' extensive knowledge and expertise in music and sound quality, setting Beats apart in a market disrupted by digital piracy and declining record sales.

Justin Richmond [08:27]: "These are two guys that know music, they know quality sound, you know..."

Ben expands on the entrepreneurial spirit behind Beats, relating it to broader economic trends where new business formation often increases during downturns as individuals seek alternative avenues for success.

Ben Walter [09:01]: "In economic downturns, new business formation goes up, not down. It's countercyclical."

Navigating Multiple Roles as Artists

A common challenge for artists is the necessity to juggle multiple roles or gigs to sustain their livelihoods. Justin raises the question of how artists can effectively manage their time and priorities without compromising their creative output.

Justin Richmond [10:19]: "...how do you know where to really reinvest your time?"

Ben offers strategic advice, advocating for a "do no harm" approach. He suggests that artists must prioritize their core creative activities and carefully assess which additional ventures might either protect or enhance their primary interests.

Ben Walter [10:52]: "If it's going to take away from that, then you're eroding your core activity for something else."

He further emphasizes the importance of judgment in making these decisions, acknowledging the lack of a one-size-fits-all formula.

Ben Walter [12:22]: "There's not a mathematical formula for it. Judgment wins the day."

Practical Advice for Artists and Small Business Owners

Throughout the episode, Ben provides actionable insights for artists and small business owners alike:

1. Prioritize Core Activities: Ensure that supplementary roles or projects do not detract from your main creative or business endeavors.

2. Balance Risk: Utilize the three-legged stool framework to weigh financial, brand, and operational risks in decision-making.

3. Leverage Unfair Advantages: Identify and capitalize on unique strengths or expertise that set you apart in your industry.

4. Adaptability: Be prepared to pivot and innovate in response to industry changes or economic shifts.

Ben Walter [13:08]: "We need sustainable business models to help great artists make great music."

Conclusion and Final Thoughts

The episode wraps up with a mutual appreciation for the intersection of music and business. Ben underscores the necessity of sustainable business models to ensure the longevity and quality of artistic endeavors, enriching the cultural landscape for all.

Ben Walter [13:08]: "Music makes our lives richer. Music can't thrive without a successful business model underlying it."

Justin echoes this sentiment, expressing gratitude for the insightful dialogue that bridges creative passion with practical business strategies.

Justin Richmond [13:36]: "I really appreciate you, Justin."

Key Takeaways

• Integration of Art and Business: Sustainable success in the music industry requires a harmonious balance between creative passion and sound business practices.

• Strategic Focus: Independent labels like Excel Recordings demonstrate the efficacy of focusing resources on a select number of high-potential artists.

• Risk Management: Effective business management revolves around assessing and balancing various types of risks.

• Unique Positioning: Leveraging unique expertise and advantages, as seen with Beats by Dre, can distinguish a brand in a competitive market.

• Time Management for Artists: Artists must judiciously allocate their time to protect and enhance their core creative activities while exploring additional ventures.

This episode offers a profound exploration of how the entrepreneurial mindset intersects with the creative processes in the music industry, providing valuable lessons for both artists and business owners aiming to navigate and succeed in their respective fields.