Most people enjoy music – especially live music. My spectrum of interest is wide, ranging from classical to jazz, from rock to funk and hip hop. My wife and I usually have something playing in the kitchen as we prepare dinner after our children are tucked in (actually, she prepares dinner and I sit at a barstool and answer email).

Recently, I attended the Phish shows in Atlanta. If you missed them I am truly sorry.

The first time I heard of the band and listened to their music was April, 1994. 10 years later on August 14, 2004, Phish began the first of a two-night run, playing their final two shows. The band stayed “broken up” for 4.5 years. In 2009, they reunited and order in the universe was restored.

Phish has been at it for more than 33 years and regardless if you are a “Phan,” they clearly have proven their longevity. Many music critics allege this is the best the band has sounded and there is not a better live act on tour right now. Clearly a debatable topic, but the point is simple – Phish keeps producing and people keep buying.

It is not uncommon for Phish fans to be the only ones in their close friends who is a devout follower. If you were to poll your inner circle and ask them who their favorite band is, it is unlikely “that jam band” would be in the mix.

Furthermore, consider the April, 2013, Priceonomics article “The Business of Phish”[1] about what makes the band special. It is pretty remarkable when one accepts the following truths:

Only one original album made the Billboard Top 10 Rankings; and

They have 883 songs (300 originals) in their catalog – none of which is a radio hit.

So how does Phish remain among the leaders in the music business? How did they generate $120 million in ticket sales from 2009 – 2014 (which was more than The Black Keys & One Direction during that span)?

The short answer: Phish is an expert in their space. They know their business plan and they execute it to perfection.

Underlying Phish’s success are sound business practices. Below are 7 points that I believe are transferable to any industry.

A True Startup

Rather than taking on money from established players, Anastasio, Fishman, Gordon & McConnell bootstrapped the company. They just kept playing the same local venues in Burlington generating predictable revenue. Eventually, they had a solid base of customers, became profitable, and were autonomous to the point where they were not forced to accept capital or one-sided terms from major record labels. If you are starting a business, do not take on more capital than absolutely necessary. Conduct customer discovery and engage market validation before trying to scale. Phish achieved financial independence before anyone even knew about them which is rare in the music industry.

“We Talkin’ ‘Bout Practice”

Like Malcolm Gladwell’s well-known theory behind honing a craft to achieve world renowned expertise as described in his book Outliers [2], Phish literally outworked their competition. From practice to number of days on tour, the band was always working. Each member is an expert at his instrument and studied music in college (the band boasts degrees from University of Vermont and Goddard College). They are regarded among the most obsessed musicians in the world with practice. Phish puts in the necessary hours of work and they apply themselves rigorously during those times of practice. And you thought it was entirely improvisation…

Business Model

Phish does not make money by selling music in the conventional way – radio play followed by marketing leading to album sales. They sell a live act with emphasis on crowd interaction. People buy the experience that the band offers. Phish’s most valuable asset is their ability to entertain and keep fans clamoring for the live experience. They have played more than 1,500 shows and (unofficial) band archivists claim the band has never played the same set twice.[3] Phish’s value proposition remains unchanged and is still essential to their core business – the live music experience or bust.

Survive, Learn & Adapt

As noted in the Priceoconomics article, “when the ‘music business’ cratered in the 1990s because of file-sharing and radio’s importance declined because of the internet, Phish remained unaffected and profitable as ever.”[4] Why? The live music experience. Today, every Phish concert ticketholder can use a code to download the show they attended minutes after its conclusion. Know your core business model and stick to it, but be willing to adapt. Lean on your core business to survive the downturns but always be learning and adapting. Apply those learnings when charting your company’s next course. If you are not learning along the way, you are dying. Don’t keep making film, Kodak. If you do not like change then you are most definitely not going to like being irrelevant.

Attention to Detail

It’s not only the four musicians who make Phish successful. Lighting designer, Chris Kuroda, is considered among the best at his craft. Chris is the only crew member who has been with the band since their Vermont college days and regarded as the “5th member” of the group. He also has 32,000 followers on Twitter – not bad for the dude who does the lights. (To maintain Chris’ street-cred, I will NOT share that he also helps out Justin Bieber). Every employee in your business should contribute value regardless of how the role is perceived in terms of importance or stature. A great team inevitably pays attention to details. Those details accentuate your business and make a difference.

Support System

Whether or not they admit it, every person needs someone to lean on. Every businessperson can use a mentor. Every business can use advisors. Phish members will tell you that their families were always supportive and influential. In December, 1994, when Phish reached a professional milestone by selling out Madison Square Garden – headlining its marquee – Dr. Len Fishman, who was not quite sure this ‘band thing’ was going to work out, told his son that he was glad Jon ‘stuck to his guns.’ [5] The pathway to success can be daunting at times. Remember who is in your corner and use their support as motivation. Those people are always there for you in good times and bad. They also tend to give brutally honest, sincere feedback while also offering ideas worthy of consideration.

Be Authentic

News flash: not everybody likes Phish. The folks who do, however, are undyingly loyal and devout customers. Unless you are Uber, not every potential customer is going to need/want your company’s services or products. Recognize what makes your business unique and why your customers value it. Phish drummer, Jon Fishman, is an accomplished percussionist and boasts a vacuum in his repertoire. What originally began as a dare at a party has transformed to one of the most treasured (and admittedly bizzare) stage performances at a Phish show. Since March 30, 1992, only 8 times has Mr. Fishman “taken center stage to give the audience what they paid their hard earned money to see: 100% pure, uncut vacuum cleaner music, played by a little hairy beast man in a donut muumuu.”[6] When asked how others could learn to play a 1962 Electrolux canister, Fishman simply replied with a grin “my only advice to anyone wanting to play the vacuum would be to not to – because I’ve done it and you’d only be ripping me off. And if you’re not careful, it can rip apart your gums and teeth.”[7] Be authentic – it’s much more fun.

James Gates is an Associate Partner with Bell Oaks Executive Search. Visit www.belloaks.com to learn more about the firm.

[1] Dhar, Rohin. "The Business of Phish." Priceonomics. N.p., 17 Apr. 2013.

[2] Gladwell, Malcolm. Outliers: The Story of Success. N.p.: Little, Brown, 2008. Print.

[3] "Phish.Net: For Phans, by Phans." Phish.Net: For Phans, by Phans. The Mockingbird Foundation, n.d. Web. 17 Aug. 2015.

[4] Dhar. "The Business of Phish.”

[5] Baker, Chris. "How Phish's Jon Fishman Went from the 'worst Kid in Band' to a SAMMY Lifetime Achievement Winner." Syracuse.com. The Syracuse Media Group, 27 Feb. 2015. Web.

[6] "Vacuum Solo History - Phish.Net." Vacuum Solo History - Phish.Net. The Mockingbird Foundation, n.d. Web. 17 Aug. 2015.

[7] Gehr, Richard. The Phish Book. New York: Villard, 1998. 86. Print.