Ever since Covid-19 landed us all a body-blow back in early March, I’ve talked a lot about the importance of business owners and entrepreneurs to be able to quickly pivot. To adapt – and fast - how their businesses are run.
And to be able to see that obstacles can actually be moments of opportunity, taking you and your organization in another direction, or down an unforeseen path.
This week on “I’m a Millionaire. So Now What?” I spoke to someone who has spent practically his entire career pivoting!
I connected with Ian Boyd on Linked-In (which I’m kind of loving if I’m being honest – connect with me if we aren’t already!) He and his brother own Ottawa-based Compact Music, one of only a handful of indie music stores left!
From Record Albums to Streaming Services
Imagine it. From record albums to 8-tracks to cassette tapes to CDs to iPods to streaming services. Imagine being in the music business, as an independent retailer, for 42 years – and managing to survive though this many changes to your product. Not only survive but thrive.
That’s just what Ian Boyd and his brother James did, as owner operators of Compact Music.
They managed to pivot and twist and shift gears over the years by listening to their customers, keeping a close eye on competitors and the overall music marketplace, and staying on top of trends in their industry.
And when vinyl came surging back – as everything “old” is wont to do – they knew it was coming and were ready to shift yet again. Other “Big Box” music retailers like H&M, too stuck on “the latest shiny new object” (quite literally, when it comes to CDs) – floundered, and eventually failed.
The Beautiful Flexibility of Being an Independent
That, right there, is the beauty of running your own company. Between 2000 and 2010, record store sales plummeted by more than 75%. CD sales (which many a store hung their hat on) sank by 50%, and major names in the industry shut their doors: the aforementioned H&M, Tower Records, Virgin. But having the flexibility to call their own shots, and make their own business decisions – true “independence” – is likely what saved the Boyd Brothers.
As for Ian Boyd, his climb will probably feel familiar to some of you - from a seven year old clamouring for the latest Petula Clark track, to a young record store employee who quickly realized – as all good entrepreneurs do – that working for someone else wasn’t really his bag, to co-proprietor of one of the longest-running independent records stores in Ottawa’s history – Ian has stories to tell that span the decades.
Here’s a bit of what we talked about.
What Drives Change in the Retail Music Space
“It’s actually market-driven, to be honest with you. You have to have a certain amount of foresight, there’s no question, but it’s really market driven. We really saw the falloff on compact disc sales around 2011 and 2012, and it really shocked us. Conversely, on the record side, we were starting to seemingly sell more and more records. I mean, we started in 2008 with records here in The Glebe when Radiohead released In Rainbows, and I remember the downtown store had sold 28 copies of the record in 20 days in January, which is a hit record. Like, you know, that’s a hit record. That’s very strong sales for the month of January! And that made me realise that there were a lot more turntables out there than I suspected. We started, in 2008, with a four-foot section. I had a supplier in Montreal. He worked for me between 1980 and 1983, and I phoned him up and he said, of course! He told me he’d been trying to get me to sell records for the last ten years prior, you know. And I said, well, I’m in. So, we started with a four-foot section and now I would say 75% of the store is vinyl. And it’s been a good decision. But all the way along, we always had to morph our stores, from records to CDs, to tapes and CDs, to CDs, back to records. So, we had some experience in morphing the store, and it was the right decision, I guess.”
What’s the Client Experience at Compact Music in The Glebe?
“Well, store’s a mess. It’s organised chaos, that’s what we like to call it. It’s not a mess, it’s organised chaos. I mean, we, you know, are behind in our work constantly. We’ve got piles of stuff that has to go out. Records, used collections, come in almost daily. But it’s well merchandised, well organised. We know where everything is, so it’s a good idea if you can't find something, to ask. We feel we have a very loyal clientele and I think their expectations are the priority - it never really gets cleaned up. Walmart does the job overnight, and we may take two and half weeks, but they’ve got the resources to do that and, you know, we’re busy just selling. While we sometimes can't get our work done, we think that’s kind of authentic and charming. And we certainly do our best to put on a good show, for lack of a better term.”
The Beauty of Being Independent
“In the Glebe we get into all kinds of conversations with all kinds of people, and certainly we try to stay well-informed so we can keep up with them. Shopping from an independent store is different than shopping from a chain store, and I don’t think it makes a difference whether it’s kitchenware or whether it’s shoes, ladies’ apparel. It’s just different. Typically, the owner’s in the store, the owner’s passionate about what he’s selling, and he’s got knowledge about what he’s selling. And I think people like that. Big brands tend to hire university students, nothing wrong with that, who stay six to eight months. There’s really no client development and they don't really have any decision-making process in the store. Consequently, the larger brands are looking to their banner for draw, whereas we look for character. We think people that shop in small family businesses look for character in their store, and certainly we feel we have a lot of character.”
That’s a perfect ending, because I wanted to shout out loud to the Self Made Nation that now more than ever, it’s so important to support your local shops. Businesspeople and entrepreneurs putting their hearts and souls into what they do, every single day – spaces where yes, even that one extra sale really matters.
Saturday, August 29th is Record Store Day. If you’re in Ottawa, drop in and say hi to Ian and his brother at Compact Music, Bank St in the Glebe. If you’re elsewhere in Canada, go and check out your local record store. Drop a dime or two. And support your peers!
Of course, there’s LOTS more from Ian on the podcast. If you can, have a listen. I think you’ll enjoy it.
Also, I hope to see you at Double to Sell, this November, featuring the great Cameron Herold!
If you’re an entrepreneur looking to exit, or you’re at the helm of a thriving business or startup, I would love to talk with you about your stories! You can drop me a line here.
Plus, if you are craving like-minded conversation with growth-oriented business owners, consider joining me and eight other business owners, investors and entrepreneurs for our next two editions of Elevated Conversations are coming up in September – watch this space for more details!
“I’m a Millionaire. So Now What?” is brought to you by Double to Sell - Canada's Premier Invitation-ONLY workshop for business owners wanting a cash-rich exit in 10 years or less. For more information, or to register, please visit the “Double to Sell” website.