Breakin' Bread - A Case Study

David Magness is a young entrepreneur currently living and working in London. He runs a record label called ‘Breakin’ Bread’, and a wholesale record distribution service called ‘Boombox Distribution Network’. He began what is now known as ‘Breakin’ Bread’ when he was studying as the University of Sheffield. He was very interested in his music and record-collecting and began arranging and DJ-ing at events in nightclubs in and around the university, under the DJ name ‘Skeg’. These events were very well received and they fuelled his passion for music.

David graduated with a degree in Accounting and went on to move back to the south of England where he began working for the music store HMV as an accountant. He worked there for several years earning a very healthy wage. He continued DJ-ing at weekends and carried a good reputation for his knowledge and unique mix of musical styles. Many people told him how there were very few other DJs they would see who played such a complete set of music, flawlessly combining hip-hop, jazz and funk in one set. During this time he met other like-minded people, other avid record collectors who shared the same frustrations at one-dimensional nightclubs and record labels within the UK hip-hop and funk scene. With some of these, mainly Rob Life, he began running nights at a pub in Brixton, that fused all elements of funk and hip-hop under one roof.

However, all was not well. He started to become disillusioned with his job. Music was his passion and the monotony of working for such a large company was leaving him unhappy. He knew it was not what he wanted to be doing and eventually decided he wanted to get into music on a full time basis. He knew from his club nights that people were interested in what they were doing, so with the money he had saved from his job at HMV, he set the wheels rolling to set up a record label alongside Rob, and this was the beginning of Breakin’ Bread as a genuine UK record label.

Skeg and Rob began the company in 2000 and had their first record release. The record label now consists of 20 artists, producers and musicians and has had multiple successful releases and is very well respected. The DJs are regularly booked for important festivals and gigs across the UK and the rest of Europe. They also now have a regular spot at the world famous Jazz Cafe in London.

The nightclub events have gone from strength to strength. From their humble beginnings in a pub in Brixton, they have had to change venue a couple of times to accommodate their growth. Until recently they have resided in the Rhythm Factory in Whitechapel, a club capable of holding 600 people, but they had to move on, as even this venue was too small. It is the only event of its type in London featuring break-dancing, live MCs and live bands, multiple DJs on rotation, and cutting edge visuals and artwork.

Boombox Distribution was also an idea born from frustration. It was difficult for UK independent artists and labels to get their music distributed to shops. It was also an expensive process as most shops would only purchase a few at a time. For this reason Skeg and another young entrepreneur, Disorda decided to start a distribution company. Disorda was the founder of a very successful internet record store for UK hip-hop and funk, and was experiencing the same frustrations, so they started to buy the records in bulk from the record labels, and then sell them on to shops in smaller quantities. This soon started to become popular, selling to independent record stores throughout the UK. They even began selling to stores as far as Spain and Germany. They also managed to negotiate a deal to supply a large number of HMV and Virgin Megastores, this was not only a very good step for Boombox Distribution, but also for the UK music scene. They are run simultaneously from the same office in London and are very much intertwined.

It is clear that David Magness had a good eye for opportunity. He has always been involved in the music business, so he had a very good knowledge of the market. He has a clear passion for what he does, his true love is music and this fuels his efforts to improve the quality of the music market in the UK. He is well educated and from his time at HMV he is excellent at monetary control of Breakin’ Bread and Boombox.

(For further case information, please visit: www.breakinbread.org)

Discussion Questions

• Do you think David is so successful because he has created a business from a hobby?
  Consider: How David researched his market, the contacts he needs and the niche in each relevant market.
• Do you think it is feasible to manage two entrepreneurial ventures simultaneously?
  Consider: The amount of revenue generated from each company and how they may compliment/distract from one another.
• Imagine you are a business development consultant working for Breakin’ Bread/Boombox Distribution. What recommendations would you make for the development of their businesses?
  Consider: Differentiation, web-based and physical marketing strategies, and the viability of employing more staff, the branding of the company and the long-term planning and aspirations of the company.