Capítulo 4
The Art of the Business Plan
Business plans may seem impossible-like pinning down a live butterfly in a constantly changing world-yet they're absolutely essential. Though many entrepreneurs scorn them as attempts to predict an unpredictable future, writing a business plan clarifies your thoughts and creates a roadmap for your venture.
A good business plan tells a compelling story, presenting a problem you're going to fix. It should be fun, chatty, and avoid business jargon. Focus on the next twelve to eighteen months rather than looking too far ahead. While everyone understands business plans contain some fantasy, dreams can come true-Hodgkinson has seen his visions of magazines, books, and a bookstore all come into being.
Start by taking a long walk, then write down what your business does. Tell the story so far and describe your products and services in a stream-of-consciousness approach. Then distill this into an "elevator pitch"-a few simple words that capture your essence.
Business convention suggests identifying a problem in society that your product or service will solve. For the Idler, Hodgkinson recognized people were stressed out and under-educated, so he aimed to bring fun and fulfillment through classes and events while filling knowledge gaps with books, talks, and online courses.
Describe your target audience in detail. Who are they? How will you improve their lives? How will you meet them? What are they lacking that you'll provide? Include evidence from any market research and figures showing how this demographic is growing.
Even if you're a sole operator, you need to think about your team. Who will handle your finances? Who will be your advisors? Who will help during busy periods? Who will be your sounding board? Include short, accurate biographies of each team member, focusing on their actual achievements rather than aspirations.
Assemble an advisory board of successful people in similar fields to provide guidance. Study them, talk to them, find out how they work and think, and ask their advice. Find people who will tell you when you're being an idiot-not flatterers.
Become obsessed with your competition. You may think you have none, but you do. Research thoroughly beyond their social media presence and website to understand what's really happening in their business.
Consider how you'll sell your product or service-through retail outlets, online, to other businesses, via wholesalers and distributors. Could you use existing sales channels like Amazon or Etsy? Set up booths at festivals? Advertise on LinkedIn?
Include something about your brand personality. Most businesses need a distinctive identity like The Beatles or Coca-Cola. Creating it should be enjoyable. Once established, your brand can expand in many directions-Red Bull started as an energy drink but now runs magazines, publishing companies, and TV stations.
Finally, include spreadsheets in your business plan, primarily a P&L forecast predicting revenue, expenses, and resulting profit or loss. Creating these forces you to think through all costs-insurance, computers, phone, utilities, government fees-which form your fixed costs, the amount going out even if nothing comes in.
Capítulo 5
Embracing the Spreadsheet: A Bohemian's Guide to Numbers
Bohemians tend to avoid record-keeping, seeing it as square and bureaucratic. But neglecting financial management leads to chaos and poverty. You need to understand your finances before delegating them to avoid being exploited. Even Socrates, the original bohemian, believed in ordered household management.
Spreadsheets, like a well-organized ship, save time and create efficiency-the brother of leisure. Treat them as an artist treats their work, drawing creative satisfaction from making them both beautiful and useful. For years Hodgkinson feared spreadsheets, scribbling figures on envelopes he then lost. But his accountant called them "a thing of great beauty" for their order and how one small change ripples through all calculations.
Make time to learn spreadsheets-spend an evening with a spreadsheet program and some wine. A spreadsheet is a grid where each cell contains numbers, letters, words, or formulas, and unlike manual bookkeeping, all related entries automatically update when changes are made.
Try Google Drive's spreadsheet feature. With this cloud-based system, you can create documents and collaborate with your team. Invite an experienced friend to help you learn-screen-learning is one thing, but learning from a human is better.
Remember: you must take responsibility for your own accounting. Your spouse, bookkeeper, accountant, or business partner won't do it for you, at least not at the beginning. Open a Google Sheet and start by creating simple structures-add titles, headings for months, and categories for revenue sources. Learn basic formulas like SUM to automatically calculate totals.
Create an overheads spreadsheet to track fixed monthly costs that you'll need to pay regardless of sales. Understanding P&L (profit and loss) statements is crucial-these summarize revenues, costs and expenses during specific periods, showing your ability to generate profit.
Capítulo 6
Financial Management: The Creative's Survival Guide
Approach accounting as an art form-do it well, carefully, and beautifully. Though it takes years to become a licensed CPA, understanding basic principles is essential for any bohemian entrepreneur. As the founder, you must take responsibility for your financials, even if you eventually delegate some tasks.
Successful entrepreneurs are often accountants first-the founders of Jamba Juice, James Daunt of Daunt Books, and Tim Waterstone were all accountants before becoming business owners. Accounting isn't just an annual tax return exercise; financial reports are the lifeblood of your business and essential for good decision-making.
Understand that bookkeeping, cost accounting, and management accounting are different things. Bookkeeping involves keeping good records of money flowing in and out. Most businesses hire a bookkeeper to prepare books for the accountant who handles tax returns. Don't assume everything's fine without checking-employ a bookkeeper to come in regularly and sit with them during their visits.
Financial reports typically cover twelve months, with your fiscal year beginning whenever you choose. A profit and loss account shows total revenue, cost of sales, gross profit, administrative expenses, and operating profit or loss. The balance sheet lists fixed assets (property, equipment), current assets (inventory, accounts receivable, cash), and creditors (liabilities).
Despite any punk-inspired desire to "smash the system," when it comes to accounting, you absolutely must have a system. Otherwise, you'll make decisions based on vague impressions rather than actual figures. Create your own system, but ensure everyone you work with is trained in it.
Create an invoice template with your address, bank details, and payment terms. Write "immediate payment" rather than "thirty days"-otherwise, they won't pay for at least a month. Track when invoices are sent and paid. For received invoices, organize them in binders-"Unpaid" and "Paid"-noting categories and payment dates.
Management accounts are detailed monthly financial reports that show how your business is performing. These reports compare actual performance against budget predictions, showing the variance between them. They display sales, cost of goods, overheads, gross profit, and net profit. You must produce these during the first week of every month, especially if your business handles more than a handful of transactions.
The IRS doesn't react kindly to late tax payments. If you can't pay in one lump sum, call them to arrange a repayment scheme. Even paying small amounts is better than nothing at all. As a business owner, you must know what's happening financially-this relieves stress rather than creating it.
Capítulo 7
The Psychology of Pricing for Creatives
Pricing is tricky for bohemians who instinctively want to be nice and fair, often setting prices too low. Hodgkinson learned this mistake with his events, charging $10 per ticket and paying speakers $200. With thirty attendees, that's $300 in revenue, leaving just $50 after taxes and speaker fees-hopeless.
Small companies need to charge high prices, while low prices are for giant companies. When creative types get money, they often have a terrible urge to immediately give it away or spend it-an excess of generosity that's ultimately foolhardy.
Start with the highest price you can bear to charge. Serena Rees, who created Agent Provocateur, advised: "Think of a price. Double it. Add tax." Independent businesses like Rough Trade Records maintain high prices because they can't compete with Amazon's tiny margins. As Nigel House from Rough Trade explained, he works on a profit margin of a third-selling a $15 CD means keeping $5 before calculating overheads.
When setting prices, examine what competitors charge. For the Idler Academy, Hodgkinson positioned himself between community college rates and what major organizations like the Guardian charged for similar workshops. He noticed the Guardian charged about twice his rates-he should have followed suit but lacked the nerve.
For consultants, set day rates by researching what others with similar experience charge, and avoid underselling yourself. Corporate employees often complain about paying consultants $1,000 daily, but these freelancers spend much of their time pitching, researching, and marketing without pay. Set your rate as high as you can bear-it's easier to come down than go up.
For online courses, create educational experiences that can be accessed worldwide. Price them like expensive hardbacks ($15-40) to ensure consumers value them properly. For events, aim for a price that sells all tickets on the last day. Use a tiered pricing system with "early bird" tickets that gradually increase, satisfying both price-sensitive customers and those willing to pay more.
Small businesses can easily set up with PayPal, but it's expensive-taking 2.9% plus thirty cents per transaction (nearly 5% on a $20 sale, compared to 1.9% charged by card companies). After establishing yourself, consider a more professional payment system through a specialist card-payment broker.
Capítulo 8
The Reluctant Salesperson: How Bohemians Can Sell Without Selling Out
As a bohemian in business, you must embrace being a salesperson. Things don't sell themselves, whether you're a writer, artist, or craftsperson. The petite bourgeoisie-small business owners, artisans, independent professionals-represent true revolutionaries and anarchists who take risks and responsibility rather than blaming bosses or government.
Selling can be deeply satisfying when you're passionate about your product. It's similar to journalism-getting enthusiastic about something and communicating that enthusiasm to others. But it can also be dispiriting when people visit without buying anything, or when wealthy charity collectors ask for donations.
Selling is an art form that must be studied. First lesson: don't be too subtle. Make everything blindingly obvious, especially pricing. You can't blame customers for low sales-it's your responsibility. Sales are difficult to secure; people don't part with cash readily. You must offer something they want at the right price while making them feel clever rather than sold to.
Create something people actually want while staying true to yourself. The ideal is to be both good and commercial, like The Beatles. Be bold and try many things, accepting that some will fail. Ask yourself: would you buy this? Sell only things you believe in-beautiful, useful, or both. Don't cynically sell "shoddy" products.
Consider creating a club that people want to join. The Idler's most successful products are memberships and magazine subscriptions because people enjoy being part of a movement. Create a following where customers buy into your entire business model rather than just individual products.
The art of persuasion requires subtlety-making people want to buy without feeling sold to. Occasional sales can be effective for clearing stock or raising quick cash. While some warn that discounting devalues your brand, strategic limited-time offers work well.
Start with small product runs to test the market. Silicon Valley calls this the "Minimum Viable Product" approach-"Ship something!" and iterate based on response. Get people to try your product through samples, video previews, book excerpts, or physical samples.
Capítulo 9
Digital Presence: Websites and Social Media for the Reluctant Technologist
Your website is your storefront and often the first point of contact for prospective customers. Many bohemian entrepreneurs feel overwhelmed by technology and website maintenance, making them vulnerable to overpriced technical services. But understanding the basics is essential-as Cobbett wrote, "Competence is at the root of happiness."
For beginners with no budget, platforms like Etsy offer a free starting point, while services like Squarespace or Shopify provide more features for a monthly fee. When ready to upgrade, find affordable designers among your acquaintances rather than expensive agencies. Study successful sites like Uber and Airbnb, which use simple designs with minimal text and maximum clarity. Invest in quality photography-even a few hundred dollars spent on professional photos can provide years of value for both your website and press materials.
Don't chase every digital trend. While Facebook executives might push video content, quality matters more than format. For a small business, podcasts might prove more practical and cost-effective than video production. As John Brown once advised about printing gold on magazine covers: "You can't afford gold." Live within your means.
Set up Google Analytics to track website traffic in real time. This tool shows visitor numbers, geographic location, time spent on site, checkout activity, and how people found the site. The challenge with websites is their constant hunger for fresh content-they need regular feeding.
Small business owners face relentless pressure to use social media platforms that profit from selling ad space and promoting brands. Rather than increasing sales, social media might actually harm them. When people "like" or retweet content instead of purchasing products, they get the social benefit of appearing to support a brand without actually spending money.
While ideally you might reject platforms like Twitter and Facebook, they do offer benefits. Social media can build awareness at no financial cost, serve as a communication channel, and foster community. Though it might not drive direct sales, it has practical applications-customers use it to praise or complain, expecting prompt responses.
The bohemian must resist Facebook's attempts to extract money through "boosting" posts. Instead of paying for likes and retweets, create engaging content and recycle it across platforms, always including links back to your website. Traditional communication methods remain effective-organizing events, parties, and DJ nights spreads word-of-mouth publicity without giving "ad-sales guys at Facebook or Twitter a penny."
While tweeting all day might generate one or two extra sales, it's more efficient to schedule social media posts using tools like HooteSuite. Planning ten tweets a day takes minimal time, and scheduling allows for weekend breaks while maintaining online presence. Good business management isn't about hard work but careful thought, planning, and creating systems that allow for free time and adequate sleep.
Capítulo 10
The Power of Direct Communication: Email Marketing for Creatives
Email marketing proves far more effective than social media for generating actual sales. While digital marketing efforts like SEO and Google AdWords often waste money that could be better spent on content, a good mailing list consistently delivers results. Continually expand your subscriber list through competitions and partnerships with like-minded companies.
The author built a mailing list of four thousand subscribers before opening the Idler Academy in 2011, selling thousands of dollars worth of event tickets and courses before the doors even opened. Using MailChimp, he enjoys writing newsletters that are deliberately opinionated, amusing and sometimes provocative. These communications help customers feel involved and generate positive feedback, though you need "a thick skin" when putting provocations into the digital world.
For sensitive creative types, low open rates and unsubscribes can be demoralizing. The best-performing subject lines often focus on philosophical ideas rather than sales pitches. The lesson: lead with compelling ideas first, as customers buy into a philosophy before making purchases. Timing matters too-find what works for your audience through testing.
"Audience segmentation archetypes" involve breaking customer lists into different groups like event-lovers, high-spenders, or age demographics. This prevents wasting energy emailing people about products they'll never be interested in. Use online questionnaires with prize incentives to gather demographic information.
Growing a mailing list requires "constant effort and tedious toil"-there's no magical "tipping point." Use multiple approaches: signing people up at live events, asking existing subscribers to refer friends, distributing flyers at festivals, offering discount codes to partner businesses, and running social media competitions requiring mailing list signup.
The newsletter creates direct communication with customers who contribute content like witty letters and photos. Readers provide feedback, interesting links, and often give more than they receive. Respond quickly to customer emails to maintain relationships-nurturing connections with customers and suppliers requires constant attention while still ensuring deals work for the business.
Capítulo 11
Working with Others: The Human Side of Business
Bohemians often struggle with negotiation because they're "sensitive souls" who may be "too nice to be in business." The author quotes Charlie Gladstone who admits being "ripped off by endless people" due to this trait. However, successful bohemians like Joe Strummer, The Beatles, and Noel Gallagher often conceal ruthless business instincts behind their artistic personas.
One clever negotiation tactic is creating a fictional "money man" to be the bad guy when discussing fees. The author references Evelyn Waugh's "Vile Bodies" where a publisher blames "old Rampole" for tough deals. Hilary Gallo offers "the power of soft" approach to negotiation that suits the bohemian mindset-getting what you want without being "a complete bastard." His approach focuses on creating win-win situations by understanding what both parties truly want from the deal.
The fundamental challenge for bohemian entrepreneurs is balancing a laid-back attitude with necessary structure and discipline when working with others. Hodgkinson details his staffing nightmares with brutal honesty. After hiring an unemployed friend's son as manager without checking references, they promoted inexperienced volunteers who turned their bookstore into "their own private playground." This period caused tremendous personal strain, leading to a "mini-breakdown."
James Reed offers simple but profound advice: "Find the right people. Let them get on with it." The goal should be creating a team that functions so well that the owner can "do nothing." Charlie Gladstone, who manages 120 staff, emphasizes genuine interest and affection: "If you meet your staff with genuine interest and affection, they will respond accordingly."
Always call references regardless of how impressive candidates seem in interviews. Ask specifically about timekeeping, honesty, and ability to take orders. Even when hiring people more skilled than yourself, you must clearly communicate your specific expectations. Document all processes in writing so operations don't depend on any single person.
Accept that you are the boss: "I must take responsibility for everything that goes wrong and give credit to other people for everything that goes right." Leadership means growing up and not being everyone's pal. For effective leadership, communicate a shared purpose that makes everyone feel they're doing something worthwhile. This "mission statement" should be repeated consistently.
Create a clear management structure diagram with each person assigned a box, title, and list of responsibilities. The point is that all businesses need similar systems regardless of what they're selling. Emphasize the importance of clear responsibilities and true delegation, which Charles Handy defines as "handing the responsibility for a whole chunk of the work to someone else and letting them get on with it."
Humor is essential in workplace relationships: "laugh at them, laugh with them, and let them laugh at you." Maintain perspective with the mindset that "nothing really matters." Contrary to popular criticism of meetings as time-wasters, hold weekly structured meetings to review figures, plan upcoming weeks, and address problems.
Capítulo 12
The Virtues of Idleness and Stoicism
Hodgkinson champions laziness as a business virtue, countering the Western notion that problems require more hard work. He argues that laziness leads to efficiency as lazy people find clever shortcuts and maintain clearer heads by not overworking. Drawing on historical examples from a Prussian Army general to efficiency expert Frank Gilbreth, he demonstrates how lazy people often discover the most efficient methods.
No one appreciates a plodder-they create negativity and make others feel bad with their performative diligence. Rather than impressing management, such behavior only makes one appear miserable. The author advises either loving your work or quitting it rather than sitting in resentful misery.
Idling serves three vital purposes: it's inherently enjoyable, beneficial for health, and creatively fertile. To make time for idling requires efficiency and boundaries. Hodgkinson recommends reserving one hour daily for quiet time-reading, resting, or meditating without interruption. He also advocates turning off electronic devices, noting how accidentally dropping his phone in the toilet taught him that focused laptop work is more efficient than constant phone checking.
Reading physical books rather than ebooks provides escape from screens while nourishing the mind. Having a good book makes bedtime appealing, which helps limit drinking and encourages earlier sleep. The desire to work less has been rebranded as "working smart"-being efficient rather than working sixteen-hour days. Good business management isn't about hard work but careful thought, planning, and creating systems that allow for free time and adequate sleep.
For bohemians in business who face "enormous hurdles and problems, daily," Stoicism offers emotional and spiritual tools to cope with inevitable setbacks and disasters. The Stoics were ancient Western philosophers comparable to Eastern Taoists, striving to remain unruffled by adversity. Their philosophy involves training yourself to handle small adversities first before tackling larger ones, taking control of emotions rather than being controlled by them.
Since fifty percent of new businesses fail within four years, entrepreneurs should learn to embrace failure as a learning opportunity. To maintain sanity, separate your business from your identity. Develop a system for recording daily problems instead of panicking about them. Each issue teaches you to develop systems and remain humble. By training yourself to handle small failures gracefully, you'll better cope with larger ones.
Despite valuing freedom, many entrepreneurs experience the "bohemian wobble"-questioning whether rejecting conventional employment was wise when working hard with little money to show for it. The System seems designed to make bohemians fail while rewarding conformity. When the wobble strikes, remind yourself that you don't have to continue this forever. You could liquidate the business or try something else-there's no shame in it. But perseverance might create something meaningful that outlives you, improves lives, and provides satisfying work for others.
Always formulate a Plan B that you'd be perfectly happy with. The key is not getting too attached to any particular outcome-that way lies madness. Creative small-business owners often say, "It's a nightmare, but it's my nightmare." This captures the paradox perfectly: being trapped in a nightmare of your own creation is vastly preferable to being trapped in someone else's.
Capítulo 13
The Art of Strategic Abandonment
During one of his "reality check" meetings with John Brown, Hodgkinson received this crucial advice: "Know when to give up." Quitting at the right time or knowing when to abandon certain products or projects is a vital skill. After five years, he decided not to renew the lease on his Notting Hill retail outlet. While it had served brilliantly as a base, office, venue, shop, and marketing tool, the overheads were becoming too high relative to the benefits.
During the first three years running his bookstore-cafe, he abandoned many dearly cherished ideas. Initially, he'd planned to serve breakfast and lunch while running evening events and courses-completely insane given his inexperience. He became obsessed with cafe operations, reading books on successful coffee shops while agonizing over details like whether to offer soy milk. The service was painfully slow, driving away even illustrious customers.
Looking back, it was obvious they'd never make money selling occasional croissants and organic pork pies. Eventually, they simplified to just cakes, a Nespresso machine, and herbal teas. The bookstore side worked well thanks to Julian's expertise. The point is simple: if something makes you miserable or nobody's buying what you're selling, stop and do something else. Make a list of things you enjoy versus hate, then eliminate or delegate the hateful tasks.
The mark of maturity is not getting over-attached to ideas but letting them go with a laugh. Like Google, try many things without getting depressed when some fail. You need a Taoist attitude toward business. When talking to entrepreneurs, they agree the endpoint isn't cash but an enjoyable daily life. Keep multiple projects going simultaneously-some for money, some not. As Bill Drummond and Charles Handy advise: don't put all eggs in one basket. Don't waste energy pushing in the wrong direction or doing what you're unsuited for. Make a list of things you've enjoyed doing and stick with those. Simplify. Abandon. Give up.
The crowdfunding process for the Idler was incredibly difficult but helped clarify the business direction. With 146 investors who feel like family, the Idler became more of a cooperative than a ruthless capitalist organization. The final advice: get a good bookkeeper and financial manager as early as possible.
Upon entering the business world from writing and publishing, Hodgkinson was shocked by the abundance of acronyms, business terms, and corporate jargon. However, he soon realized this was simply a technical language he needed to learn, just as he'd learned skateboarding terminology when working at a skate shop. Gaining basic computer competency and understanding business terminology is essential for entrepreneurs-claiming to be "not tech savvy" is like saying you can't read.
The bohemian entrepreneur's path isn't about amassing wealth like some amoral hedge fund manager. It's about creating something that improves the world while providing satisfying work. As Robert Louis Stevenson put it: "My idea of man's chief end was to enrich the world with things of beauty and have a fairly good time myself while doing so." This remains the perfect motto for any creative soul venturing into the world of business.
