Podcast Summary
Combining local insights and global expertise in business landscape navigation: Navigating the business landscape during the pandemic requires a comprehensive approach, incorporating local insights and global expertise, as demonstrated by Principal Asset Management's real estate management.
Navigating the business landscape during and after the pandemic requires a comprehensive perspective, combining local insights and global expertise. Principal Asset Management embodies this approach in their real estate management, delivering value across various equity and debt markets. Meanwhile, the ongoing economic impact of the pandemic raises questions about business investment and resilience. Small businesses, in particular, face unique challenges, as seen in the case of author and bookstore owner Ryan Holiday, who opened The Painted Porch in Austin, Texas, during the pandemic and had to deal with both health and weather-related crises. Insight, awareness, and empathy are essential for understanding the complexities of the current business environment and fostering growth.
Starting a bookstore during a pandemic: A new business model: Embrace multi-purpose spaces and offer additional amenities to attract customers and offset competition from giants like Amazon.
Opening a bookstore during a pandemic required rethinking the traditional business model and embracing multi-purpose spaces. In the fall of 2019, the idea for a bookstore in Bastrop, Texas, sparked from a casual conversation between a couple. They officially secured the space in January 2020 and began the process in mid-February, just before the pandemic hit. The vision included not only a physical bookstore but also a multi-purpose space to offset the author's wife's growing frustration with his overflowing collection of books. The business opportunity came from the author's existing email list and experience recommending books online. However, selling books directly to consumers instead of taking a commission from Amazon was a new concept. Allison Hill, the owner of Romans and Book Soup in Los Angeles, advised the importance of multi-purpose use in bookstores to survive. Today, most bookstores offer additional amenities like coffee shops, stationery, and gifts to attract in-person retail traffic and sell online to offset the impact of giants like Amazon.
Navigating Uncertainty with a Multifaceted Business Model: Flexibility and adaptability are crucial for independent bookstore owners during uncertain times. Pivoting to an online business model can help mitigate financial risks and allow for focus on core competencies.
Having both an online ecommerce business and a physical bookstore can help mitigate financial risks for independent bookstore owners. The owner in question had the idea for a bookstore in late 2019, but due to unforeseen circumstances, the world shut down just as construction began in March 2020. Faced with uncertainty, the owner made the decision to scale back the project, cutting it in half and focusing solely on the bookstore aspect. This pivot proved to be both terrifying and relieving, as it reduced the scope of the project and allowed the owner to focus on what they knew best – selling books. While the pandemic presented challenges, the owner was able to adapt and eventually, things began to ease up, allowing for a gradual return to normalcy. This experience highlights the importance of flexibility and adaptability in business, especially during uncertain times.
Navigating Ethical Dilemmas During the Pandemic: Small business owners faced tough decisions about opening during the pandemic, balancing public safety with economic survival, and lacked clear guidance from governments.
During the early stages of the pandemic, a first-time business owner faced numerous ethical and moral dilemmas regarding the safety and appropriateness of opening their doors, especially in the absence of clear guidance from the state government. The business owner shared their experience of Texas's handling of the pandemic, which lacked clear regulations and seemed to prioritize business interests over public safety. This ambiguity left small business owners like them in a difficult position, as they had to decide whether to open despite the risks, potentially putting their own families and customers at risk. The situation was further complicated by the fact that they didn't have employees depending on them, making their decision a more personal one. The business ultimately decided to wait until 2021 to open, facing a year of expenses without any income. The lack of support and clear regulations from both the state and federal governments added to the challenges they faced during this time.
Navigating Ethical Dilemmas with Government Aid: Business owners face ethical dilemmas when considering government financial aid, requiring careful consideration of their business needs and potential long-term consequences.
The government's financial aid programs during times of crisis can present ethical dilemmas for business owners. The speaker shared their experience of receiving approval for a significant loan through the Paycheck Protection Program (PPP) but choosing not to accept it due to ethical concerns and uncertainty about their business needs. The speaker also discussed the impact of extreme weather on their business, resulting in damaged inventory and frozen pipes during a power outage in Texas. Despite the government's emphasis on keeping businesses open, the lack of preparedness and infrastructure during the crisis caused significant damage. Ultimately, the speaker made a personal decision to refinance their home instead of accepting the loan, allowing them to benefit from government policy without taking a direct amount of money. This discussion highlights the complexities of navigating financial aid programs and the importance of ethical considerations during times of crisis.
Struggling to Keep Books in Stock Amidst Crises: The publishing industry faces challenges in maintaining inventory due to the pandemic, extreme weather, and supply chain disruptions, leading to increased demand and a need for adaptation and cost minimization.
The ongoing pandemic and related crises, such as extreme weather events and supply chain disruptions, have put significant financial strain on businesses, particularly those heavily reliant on inventory management. The speaker in this discussion, a bookseller, shares how these challenges have affected the publishing industry, leading to a perpetual struggle to keep books in stock and meet consumer demand. The situation is further complicated by the fact that people are reading more during the pandemic, increasing the demand for books. The speaker expresses hope that the solution is not a decrease in reading but rather publishers and printing presses adapting to the new demand and finding ways to minimize costs and streamline their supply chains. The importance of learning from the past through reading is also emphasized.
Maintaining a local printing source for business: Local printing sources help businesses avoid long supply lines and ensure stock availability, but come at a higher cost and can cause delays due to limited production capacity.
Having a local printing source, like the one used by the publisher mentioned in Minneapolis, can help businesses avoid long supply lines and ensure they never go out of stock, even during unprecedented situations like the pandemic. However, this comes at a higher cost. In the publishing industry, physical production capacity is limited, and a popular book can quickly deplete the available resources. Publishers must make tough decisions on allocation, and delays can leave customers unable to purchase the desired title when they want it. The pandemic highlighted the importance of domestic production, but even before it, the success of books like Michelle Obama's caused paper shortages in the US. The choice of which books to prioritize for printing is primarily based on demand and need, but the consequences of a delay can be significant, especially if the book gains unexpected attention.
Publishing a premium book: navigating logistics and unforeseen challenges: Publishing a premium book involves complex logistics, including finding the right printing press and dealing with shipping costs, container loading times, and external events. Flexibility and adaptability are crucial for businesses to overcome unexpected challenges.
Publishing a book involves more than just writing and printing. It's a complex process that includes logistics, shipping, and quality control. The speaker shared his experience of publishing a premium leather-bound version of his book, which required finding a specific printing press in Belarus. He faced challenges such as shipping costs, container loading times, and even disruptions caused by external events like the Suez Canal blockage. These issues highlighted the interconnectedness of global supply chains and the impact of unforeseen events on businesses, regardless of their size. The speaker also noted the importance of having a sturdy book for a daily-use title like his, leading him to explore various leather qualities and shipping options. Through this experience, he gained a new appreciation for the challenges faced by publishers and the importance of flexibility and adaptability in business.
Navigating Hiring and Supply Chain Challenges during a Pandemic: Businesses faced unique challenges during the pandemic, including hiring, supply chain disruptions, and government policies. Despite these challenges, our interviewee's business has been successful, with the community's support, and they remain adaptable to changing circumstances.
Running a business during a pandemic comes with unique challenges. Hiring and retaining employees, dealing with supply chain disruptions, and navigating government policies are just a few of the issues business owners faced during this time. Our interviewee shared their experience of hiring a manager during the pandemic and repurposing their role until it was safe to open. They also discussed the unexpected challenges of sourcing supplies and dealing with power outages. Despite these challenges, the business has been more successful than expected, and the community has rallied around it. However, the uncertainty of the pandemic's future course remains a concern, and businesses must remain adaptable to changing circumstances.
Independent bookstores provide personalized recommendations and unique experiences: Independent bookstores thrive by focusing on curated selections, community, and personalized recommendations, complementing Amazon's vast selection and convenience.
Independent booksellers are finding a niche in the market by focusing on personalized recommendations and creating unique in-store experiences, rather than trying to compete with Amazon's vast selection and convenience. The author shares his experience of having most of his sales come from Amazon but recognizing the value of independent bookstores in providing a curated selection of books and fostering a sense of community. He also mentions his admiration for Amazon's role in bringing lesser-known titles to a wider audience. The author's strategy for his own bookstore is to carry a smaller number of books that he personally recommends and can speak knowledgeably about, creating a more intimate and personalized shopping experience for customers. He emphasizes that independent bookstores are not competing with Amazon but rather complementing their offerings by providing a different kind of value. The author also shares that he has written a kid's book about Marcus Aurelius and is working on a book about courage, which will be released in the fall.
Publishing Industry Faces Challenges Amidst Pandemic Demand Surge: The pandemic has led to a surge in demand for physical books, causing challenges for publishers dealing with supply chain disruptions and prioritizing print runs. Consumers opt for tracked shipping for timely delivery, but it's uncertain if this trend will continue post-pandemic.
The pandemic has led to an unexpected surge in demand for physical books, while the publishing industry has had to deal with supply chain disruptions, making it challenging to meet this demand. Ryan Holiday, the owner of a new brick-and-mortar bookstore, discussed these challenges during an interview on the Odd Lots podcast. He mentioned that publishers have prioritized certain print runs and that consumers are increasingly opting for tracked shipping to ensure timely delivery. The question remains whether this situation is temporary or if it represents a permanent shift in behavior. With many people spending more time at home during the pandemic, there has been a renewed appreciation for reading. However, it's too early to tell if this trend will continue once things return to normal. The conversation also touched upon the cost of trying to maintain lean inventory systems in industries where demand can be unpredictable. Overall, the discussion highlighted the complexities of the publishing industry during the pandemic and the challenges of meeting consumer demand in a rapidly changing environment.
