December 8, 2010
On a Milestone Day, Business
Lessons From the Beatles
By HEIDI N. MOORE
Fans of the Beatles gathered at global vigils on Wednesday to commemorate the 30th anniversary of the death of John Lennon.
What many fans may not know is that Lennon and his bandmates were not just talented musicians. They were also canny businessmen. The Beatles’ moneymaking power continues even now, well over three decades after they broke up, with four full albums still ranked among iTunes’ top 100 bestsellers nearly a month after they became available in a deal with Apple’.
As Lennon once said, the Beatles at their height may have been more popular than Jesus, but many businesspeople would be happy to just be as popular as the rock ‘n’ roll band on its worst day.
So, in honor of Lennon and his band mates, DealBook took a look at a new book, “Come Together: the Business Wisdom of the Beatles,” by the Nashville-based musicians and writers Richard Courtney and George Cassidy. The book will be released next March. “If you wish to achieve Beatle-level success in your field, you must first learn to think like a Beatle. Because the Beatles were no accident. They wanted to be big. Bigger than Elvis. Bigger than anyone before or after.” Honorary Beatles, the authors suggest, include icons like Steve Jobs, the chief executive of Apple, and the cyclist Lance Armstrong.
Herewith, some selections and advice from the book on how to find your inner deal-making Beatle.
Look different: In a piece of advice that Justin Bieber would surely appreciate, the authors note that the Beatles advanced in part because they looked unique, with their mop-top haircuts. Businesses and entrepreneurs, similarly, should have a noticeable logo or color scheme, or haircut, that makes them immediately visually identifiable.
Going corporate isn’t always bad, but beware that perks corrupt: the Beatles had a reputation as long-haired rock ‘n’ roll rebels, but they had a big corporate organization behind them in the form of EMI and their manager, Brian Epstein.
But the Beatles used to keep friends on the payroll to chauffeur them and wait on them. “The performance of all organizations depends on some extent on the daily state of mind of the principals,” Mr. Courtney and Mr. Cassidy write. “Those who are waited on hand and foot, however, soon become petty despots.”
Work like a dog (a
hard day’s night, eight days a week): Mr. Courtney and Mr.
Cassidy suggest that you should court challenges (but not necessarily
trouble). They use anecdotes of the Beatles’s early days in Hamburg:
“Playing in a sleazy club located in the red-light district of a town
filled with prostitutes, strippers and drunken sailors, the Beatles
learned how to Beatle … They were in a constant state of physical
exhaustion, beaten to a psychological pulp. And — gradually — they
became good … The world doesn’t know if it needs you — yet. Seek out the
proving ground, the crucible, the ordeal. It will raise your game.”
However, the authors warn, you should also take your vacations and breaks when you do become successful. The Beatles pushed themselves too hard and nearly burned out, stopping any recording at all between the summer of 1966 and the spring of 1967. “There will come a time when you feel that you and your business have grown stale,” Mr. Courtney and Mr. Cassidy write. “The perception is no more than your tired body, mind and soul urging you to take a break.”
The authors credit an unprecedented six-week touring vacation with providing Lennon with the inspiration to write songs like “A Day in the Life.” Similarly, the remaining former members of the Beatles slowed down after Lennon’s murder reminded them of how dangerous their positions were. During the next 25 years, they put together their most profitable piece of work, “The Beatles Anthology.”
Just say no: The Beatles swore that a dentist turned them on to LSD, an interest that led to drug busts later. While the authors say that the acid trips may have bolstered some of the Beatles’ creativity, there was a limit: stoned takes on songs led to a lot of re-recording, and “if the Beatles were using all the time, these songs would not have been written,” the authors write.
Thin the ranks: The authors maintain that a big step for the Beatles was in getting rid of Stuart Sutcliffe, their halfhearted bass player, and replacing him with Paul McCartney. Likewise, Mr. Courtney and Mr. Cassidy suggest that the three other Beatles should have stood up to Lennon in his “bed-in” period with Yoko Ono, which came off as self-indulgent and distracted the band from making more music.
Don’t rely on debt: The Beatles’ manager, Brian Epstein, helped the group pay off debts they accrued at the local Liverpool music store. The Beatles had very little overhead — staying in squats in Hamburg and driving across Europe in the winter a van without a windshield — but their ability to stay out of debt was the bigger factor in their commercial success, the authors suggest. “Avoid relying too heavily on debt to finance your daily operations or growth,” they write. “To build lasting success with a measure of independence from business cycles, create your own capital reserves as early as you can.”
Be resilient: The Beatles failed their first audition for Decca records. They went back to the drawing board and improved their work, and six months later had a record contract.
Read the room: If the Beatles had paid more attention to signs of internal tensions — including George Harrison and Ringo Starr refusing to help design an album cover — they might have saved their partnership, Mr. Courtney and Mr. Cassidy suggest. Likewise, Lennon indulged his odd phase of putting himself and Yoko Ono naked on an album cover, which was “unpalatable to the marketplace.” Paul McCartney could have concluded by July 1969 that a rebellion was in the works, considering how many of his band members had quit or threatened to quit. Self-evaluation — and self-control — among leaders can do a lot to diffuse those incipient problems among team members.
When the breakup becomes inevitable, however, discretion counts: Because the outspoken Lennon did not inform anyone but Mr. McCartney that the band was over, their managers were able to negotiate higher royalties for their work — which kept them rich for decades. Here the authors quote “The Godfather”: “Never tell anyone outside the family what you’re thinking.”
Be a mentor: Elvis Presley met the Beatles once — a meeting infused with awkwardness — but rejected the Beatles’ invitation to join them for a night. Yet, Bob Dylan and a Texas band called the Crickets were inspirations for the Beatles and willingly met and shared ideas. Of young hero-worshippers, “Treat these seekers the way you would want to be treated at that stage,” the authors write.
Be careful what you say: John Lennon’s offhand comment that the Beatles were bigger than Jesus caused a heavy backlash that lost the band some fans and, the authors suggest, eventually led Lennon to distance himself from the band. “Once you are public property, be careful where and how you express your opinions,” they write. “Remember that you asked to be in the game.” Lennon also did some damage to his public image by comparing Paul McCartney’s songs to Muzak. The authors suggest that businesspeople talk only through public relations professionals. (DealBook, of course, respectfully disagrees.)
Have a plan: The Beatles often failed to plan for contingencies, the authors write. “Make sure that all the partners in your business know how it will end,” including firm agreements on selling shares or exiting their interests. That also includes insurance policies and succession planning. “The End,” the authors note, “will come soon enough.
