PDF Summary:Dice Men, by Ian Livingstone

In Dice Men, Ian Livingstone provides a behind-the-scenes account of founding Games Workshop, the pioneering company that introduced role-playing games like Dungeons & Dragons to the United Kingdom. He and co-founders Steve Jackson and John Peake blended their passion for gaming with diverse skillsets—Livingstone's marketing expertise, Jackson's psychology background, and Peake's craftsmanship—to launch an innovative mail-order business selling handmade game boards.

Livingstone chronicles the company's humble beginnings, from financing struggles to innovative strategies like their newsletter "Owl & Weasel" that cultivated a dedicated fanbase. He shares stories of securing exclusive rights to distribute D&D across Europe and developing original games like Warhammer, until conflicts over vertical integration led the founders to sell their shares and exit the business they'd built.

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• The 1970s were a time of economic challenges, including inflation and unemployment. Starting a business with handcrafted products could be seen as a way to offer something distinct in a competitive market.
• Securing a place in a major retailer like Harrods would have been a strategic move to reach a broader audience, including affluent customers who frequented such high-end stores.
• Sourcing games from the U.S. involved logistical challenges, such as navigating international shipping, customs regulations, and currency exchange, which required strategic planning and resourcefulness.
• Using a mail-order system was innovative for the time, allowing them to reach a wider audience beyond local customers. This approach was crucial before the internet era, enabling them to connect with gaming enthusiasts across the UK.

Business's Struggles, Growth Strategies, Key Product Development

Financing the Fledgling Company With Limited Resources

Relying on Revenue and Reinvesting Profits for Growth

The author emphasizes the constant struggle to secure funding during Games Workshop's initial period. Banks hesitated to extend loans to a company operating in the niche hobby gaming industry, deeming it too risky. This forced them to rely heavily on cash flow, reinvesting nearly all profits back into the business to purchase new stock and expand operations. This bootstrapping approach demanded strict financial discipline and frugal living, with Livingstone himself often subsisting on a meager diet of "sandwiches made with pickled limes" when funds were limited.

Their limited resources necessitated a resourceful and cost-effective approach. They produced their newsletter using vintage typewriters and salvaged Letraset, demonstrating their commitment to connecting with gamers, even with limited capital. Their financial struggles in the beginning highlight the common difficulties faced by most startups, showcasing the importance of perseverance and creative solutions in overcoming financial hurdles.

Context

• Startups like Games Workshop typically lacked substantial assets that could be used as collateral for securing loans, making banks wary of lending to them.
• Reinvesting profits typically focuses on areas like increasing inventory, improving infrastructure, or expanding market reach, which can lead to sustainable long-term growth.
• This method of growth is often more sustainable, as it relies on actual business performance rather than speculative investments, ensuring that expansion is supported by real demand.
• Entrepreneurs often endure personal hardships, such as limited diets or living conditions, to ensure that their business can survive and grow during its early stages.
• The use of these tools exemplifies the resourcefulness required by startups to operate within their means. It reflects a broader trend among small businesses of the time to maximize limited resources creatively to achieve their goals.
• Navigating legal and regulatory requirements can be complex and costly for new businesses, adding to financial pressures.
• Maintaining strict control over expenses is crucial for startups. This involves prioritizing spending, cutting unnecessary costs, and finding cost-effective methods to achieve business goals.

Difficulty Obtaining Early Loans or Investments

Lacking both track record and collateral, securing traditional loans or early investments became a significant obstacle for the budding company. Livingstone narrates their unsuccessful efforts to obtain bank loans, with the loan officer expressing skepticism towards their business proposal. These early rejections underscore the challenges entrepreneurs face when venturing into unconventional markets, especially those perceived as niche or high-risk.

Despite these setbacks, Livingstone and his partners persevered. Their commitment to the project, fueled by their passion for the burgeoning role-playing game market, drove them to overcome these constraints. They relied on a combination of personal savings, strategic purchasing, and profit reinvestment to keep their company going. While it limited their growth potential initially, it also fostered a deep understanding of financial management and a cautious approach that later proved beneficial.

Practical Tips

• Explore partnerships with established businesses to leverage their credibility. By collaborating with a business that has a solid reputation, you can gain access to their customer base, resources, and potentially their endorsement. This strategic alliance can serve as a form of social proof to investors and lenders, making your business a more attractive investment opportunity.
• Create a mock Q&A document where you anticipate tough questions a loan officer might ask and prepare clear, concise answers. Practice these with a friend acting as the loan officer to refine your responses and ensure you can address concerns confidently. For instance, if asked about your marketing strategy, you could explain your targeted social media campaign and partnerships with local businesses.
• You can start a niche market validation journal to track and analyze unconventional market opportunities. Begin by identifying a high-risk market you're interested in and create a daily log of observations, potential customer interviews, and market trends. This journal will help you spot patterns and validate the market potential over time without requiring any specialized skills.
• Implement a "Small Wins Strategy" by breaking down a larger goal into tiny, manageable tasks and celebrating each completion. This approach can maintain motivation and a sense of progress, even when the overall goal seems far away. If your goal is to run a marathon, start by running a mile, then two, and so on, celebrating each milestone as an achievement in its own right.
• You can automate your savings by setting up a direct deposit from your paycheck into a separate account you designate for reinvestment in your ventures. By doing this, you ensure a portion of your income is consistently saved without the need for manual transfers. For example, if you receive a bi-weekly paycheck, you can arrange for a fixed percentage or amount to go directly into a high-yield savings account, which you can later use to fund business growth or cover operational costs during lean periods.
• Engage in a "Swap and Save Challenge" with friends or family members where you exchange goods and services instead of purchasing new items. This practice encourages creative thinking about resource utilization and value assessment, fostering a deeper understanding of financial management by directly experiencing the benefits of a barter system.
• Set up a monthly "Financial Reflection" day on your calendar to review all expenses and identify areas where you could have exercised more caution. During this day, take the time to go through your bank statements and receipts, categorizing them to see where your money is going. This can help you spot trends and make more informed decisions about where to cut back.

Innovative Publishing Platform With Owl & Weasel

Promoting RPGs and Connecting With Customers Via Newsletter

Livingstone and Jackson recognized the need for a platform to promote their business and connect with the emerging group of gamers. They launched "Owl & Weasel," a self-published newsletter initially printed on only four one-sided sheets. Despite its amateur appearance, the newsletter served a crucial purpose: publicizing Games Workshop, promoting RPGs, and building a sense of community.

The author highlights their resourceful approach to production, using aged typewriters, salvaged Letraset pages, and recycled paper to keep costs down. They strategically distributed complimentary issues to gamers, relying on word-of-mouth and targeted advertising in established gaming periodicals to attract subscribers. "Owl & Weasel" began humbly, but became successful. It not only offered a vital marketing tool for the fledgling company but also provided a crucial link to the audience they aimed to reach.

Context

• The gaming industry was still in its infancy, and many entrepreneurs relied on do-it-yourself methods to produce and distribute content, reflecting a broader trend of grassroots movements in various hobbies.
• Letraset was a popular tool for creating professional-looking text and graphics before digital publishing. It involved transferring letters and images from a sheet onto paper, which was a cost-effective way to produce visually appealing content.
• During the 1970s, typewriters were the primary tool for producing written documents. Using older models would have been a cost-effective choice, as they were likely second-hand and cheaper than newer machines.
• These methods were relatively low-cost compared to other forms of advertising, making them ideal for a small, emerging business with limited resources.
• By providing a platform for discussion and promotion, "Owl & Weasel" contributed to shaping the culture and discourse around RPGs during a formative time for the industry.

Transition to the More Professional Publication "White Dwarf"

As the company expanded, Livingstone saw the need for a more professional publication that could cater to their growing customer base and show the company's evolving image. Although "Owl & Weasel" had been successful, it had reached its limits in terms of production quality and content capacity. In June 1977, they released "White Dwarf," their first glossy magazine dedicated to sci-fi and fantasy games.

While this required a significant investment for the still financially strained company, Livingstone recognized the necessity for a higher quality publication to sustain their competitive edge and attract fresh clients. He narrates his personal involvement in producing the early editions of "White Dwarf," working late nights on a makeshift light box in his flat, assembling pages with rubber cement. The transition from "Owl & Weasel" to "White Dwarf" marked a significant step towards professionalism and market prominence for Games Workshop. It provided a platform to showcase their products, cultivate a dedicated readership, and contribute to the growth of the UK's hobby gaming market.

Practical Tips

• Enhance customer engagement by creating a content series that reflects your company's expertise and professionalism. This could be a blog, video tutorials, or a podcast that provides valuable insights related to your industry. Focus on high-quality production and content that offers real solutions to your customers' problems. For example, if you run a bakery, start a video series on baking techniques, showcasing the skill and care that goes into your products.
• Expand the capacity of your content by collaborating with others who have expertise in areas you're less familiar with. Reach out to friends, colleagues, or online communities and propose content collaboration. If you have a podcast about local history but lack knowledge in certain areas, you might invite a local historian to co-host an episode, thereby enriching your content and expanding its capacity to educate and engage your audience.
• Create a social media challenge where participants recreate scenes or characters from classic sci-fi and fantasy games using everyday household items. This encourages creativity and pays homage to the origins of the gaming culture. You could use platforms like Instagram or TikTok to showcase your creations and tag others to join in, creating a chain of nostalgic and innovative content.
• Consider launching a "Transition Crowdfunding Campaign" for your business, where you outline a major change your company is planning and seek financial support from customers, fans, and the community. This not only helps raise funds but also tests the market's interest in your company's new direction.
• You can enhance the perceived quality of your work by using premium materials in your final product. If you're a photographer, for example, offer your clients prints on high-end archival paper. This not only improves the longevity of your work but also gives it a luxurious feel that can set you apart from competitors.
• Embrace DIY publishing by creating a zine using household items. Start by writing short stories, drawing comics, or compiling interesting facts. Then, print these on paper and bind them with staples or thread. Share your zine with friends or at local community centers to spark interest and feedback.
• You can elevate your hobby to a professional level by documenting your progress and sharing it on social media. Start by choosing a hobby you're passionate about and create a dedicated Instagram or YouTube channel for it. Post regular updates, tutorials, and behind-the-scenes looks at your process. This not only builds your brand but also connects you with a community that can lead to professional opportunities.
• Create an unboxing and review channel on a video platform to showcase hobby products. This can be a fun way to engage with others and provide valuable information about the products you love. If you're into board games, film yourself unboxing new games, playing them, and sharing your thoughts on the gameplay, design, and overall experience.

European Exclusive Rights For Dungeons & Dragons

Importance of Dungeons & Dragons License to Early Success

Livingstone outlines the pivotal role the game Dungeons & Dragons played in the early success of Games Workshop. After acquiring the rights to distribute the game in Europe, the company became synonymous with D&D in the UK, riding the wave of the game's growing popularity. The author details the phenomenal sales they experienced, with customers eager to purchase the coveted game manuals and embark on their personal journeys in D&D.

Context

• During the late 1970s and early 1980s, there was a growing interest in fantasy and science fiction, partly due to the success of films like "Star Wars" and "The Lord of the Rings." This cultural backdrop contributed to the appeal of D&D.
• Beyond the core rulebooks, D&D offered a wide range of supplementary materials, including modules, miniatures, and accessories, which provided ongoing revenue streams for distributors like Games Workshop.
• As one of the first role-playing games, D&D manuals became collectible items, with early editions being particularly prized by enthusiasts and collectors.
• Playing D&D often involves a group of friends gathering to play, fostering a sense of community and collaboration as players work together to overcome challenges and achieve goals within the game.

Challenges Of Introducing Game To UK Market

Despite its eventual success, introducing D&D to the British market came with challenges. Livingstone recalls encountering resistance from some retailers who were skeptical of its potential, viewing it as a niche fad. Additionally, the complex rules and reliance on imagination required a more proactive approach to educating potential customers. Livingstone and his partners overcame these hurdles through a combination of enthusiastic promotion, educational articles in "White Dwarf," plus the introduction of Games Day events, where gamers could experience D&D firsthand.

Context

• During the 1970s, there was a trend towards simpler, mass-market entertainment, making a complex, niche game seem risky to stock.
• To address the complexity, Livingstone and his team likely needed to create materials that explained not just the rules, but also the broader concept of role-playing games, which might have included guides, demonstrations, and workshops.
• Writing articles or features in relevant publications can educate and inform a wider audience, helping to break down barriers of misunderstanding or skepticism about the game.
• Hosting such events was a strategic move to generate interest and excitement around D&D, serving as a live demonstration of the game's appeal and potential for fun.

Creating the Inaugural Games Event to Build Community

Connecting Directly With Customers and Demonstrating Role-Playing Activities

Livingstone spearheaded the inaugural Games Day event in the last month of 1975. He recognized the necessity of a dedicated event where gamers could come together, enjoy games, share their passion, and purchase new products. The author recounts his efforts in organizing the event, securing a venue, attracting vendors, and promoting it through "Owl & Weasel." He emphasizes the success of the first Games Day, particularly the enthusiastic response to the Dungeons & Dragons demonstration games, further solidifying the company's connection with gamers.

Context

• During the 1970s, the gaming community was still in its infancy, with limited opportunities for players to connect outside of small, local groups. Events like Games Day provided a rare chance for enthusiasts to meet others who shared their interests.
• Vendors at such events typically include game publishers, retailers, and creators who showcase and sell their products. They play a crucial role in the commercial aspect of gaming conventions, offering attendees access to the latest games and merchandise.
• These gatherings provide opportunities for networking with other industry professionals, which can lead to collaborations and partnerships.

Games Workshop: The Hobby Gaming Center

Games Day became a cornerstone event for Games Workshop, transforming the company into a hub for hobby gaming in the UK. The author details its evolution from a modest meet-up to a large-scale convention, attracting thousands of attendees, featuring tournaments, demo games, and vendor booths. Games Day provided a platform that let Games Workshop connect directly with customers, demonstrate its products, solidify its brand identity, and cultivate a sense of community among gamers.

Context

• The event contributed to the local economy by attracting visitors from various regions, boosting sales for vendors and local businesses.
• The introduction of Warhammer in the early 1980s was pivotal. This tabletop miniature wargame became a flagship product, significantly contributing to Games Workshop's reputation as a leader in hobby gaming.
• The success of Games Day had a positive economic impact on Games Workshop, boosting sales and brand loyalty, and encouraging the development of new products and expansions.
• As the event grew, it adapted to include more diverse activities and attractions, such as cosplay contests and panel discussions, broadening its appeal beyond traditional gaming.
• These competitive events often involved popular tabletop games like Warhammer, where players could showcase their skills. Winning a tournament could bring prestige and sometimes prizes, encouraging a high level of play and strategy.
• Attendees often had access to exclusive content, such as limited edition products or sneak peeks at upcoming releases, which incentivized attendance and created buzz around the brand.
• Attendees could participate in hands-on sessions, allowing them to engage with the games in a practical setting, which helped in understanding the gameplay and rules.
• The events often featured thematic decorations and branding consistent with Games Workshop's visual style, which helped reinforce the brand's distinct aesthetic and thematic elements.
• Regular attendance at Games Day became a tradition for many, creating a sense of ritual and continuity that strengthened community bonds over time.

Games Workshop's Business Model Shift and Resulting Conflicts

Shift To Vertically Integrated Model Under Bryan Ansell

Focus on Internal Production Over Distribution

Livingstone describes a shift in Games Workshop's business model under the influence of Bryan Ansell, Citadel Miniatures' head of management. Ansell advocated for a vertically integrated structure, emphasizing in-house production and control over every aspect of the product chain, from miniature figure design to distribution. This approach aimed to maximize profits by eliminating reliance on external suppliers and controlling every part of the customer experience.

Context

• Vertical integration has been used by many successful companies, such as Ford in the early 20th century, to streamline operations and reduce dependency on external suppliers.
• Controlling production internally helps maintain a consistent brand identity, as the company can ensure that all products align with its vision and values.
• Eliminating external suppliers can reduce costs associated with outsourcing, such as markups, shipping, and tariffs, leading to potentially higher profit margins.
• As production scales up, the cost per unit can decrease, allowing the company to offer competitive pricing or increase profit margins.
• Producing in-house helps protect proprietary designs and processes from being copied or leaked by external partners.
• With control over distribution, Games Workshop could implement more effective customer service strategies, such as faster shipping times and better handling of returns or complaints.

Consolidation to Only Sell Games Workshop's Creations

Ansell's vision involved a bold move: phasing out products from other companies and focusing solely on promoting and selling the creations of Games Workshop. This meant discontinuing distribution agreements with key U.S. publishers like TSR, the creators of Dungeons & Dragons, and shifting resources towards increasing production of Citadel's miniatures and developing original games like Warhammer.

Context

• Citadel was a subsidiary of Games Workshop, known for producing high-quality miniatures that became central to the company's product line and gaming systems.
• TSR (Tactical Studies Rules) was the company behind Dungeons & Dragons, a groundbreaking role-playing game that became a cultural phenomenon in the 1970s and 1980s.
• The focus on original content allowed Games Workshop to implement a vertically integrated business model, controlling everything from design and production to retail and distribution.

Tensions Between the London and Nottingham Operations

Differences in Approach Between the Founders and Ansell

Livingstone recounts the growing tension between Games Workshop's London operations, where the founders primarily focused on publishing and distribution, and Ansell's more insular, manufacturing-driven model at Citadel Miniatures in Nottinghamshire. These contrasting approaches led to conflicts regarding resource allocation, strategic priorities, and the organization's long-term vision. Livingstone emphasizes how Ansell's ambitious plans for Warhammer and his desire for increased investment in Citadel clashed with the founders' cautious financial approach, creating friction within the company.

Practical Tips

• Collaborate with partners who excel in areas where your business doesn't. If you're running a small publishing company but lack distribution channels, partner with a company that specializes in distribution. This way, you can ensure your books reach a wider audience without diluting your focus on creating great content. Think of it as creating a symbiotic relationship where each party plays to their strengths.
• Create a personal resource allocation chart to visualize and prioritize your resources effectively. Start by listing all your resources, such as time, money, and skills. Then, categorize them according to your strategic priorities and long-term vision. For example, if your long-term vision is to start a business, allocate more time and money towards entrepreneurial education and networking.
• Develop a habit of conducting "risk-reward" assessments for decisions in your daily life. Before making a choice that involves time, money, or resources, list the potential benefits and the risks associated with both an ambitious approach and a cautious one. This will train you to weigh options more carefully and make decisions that align with both your goals and your means.
• Develop a cross-training program where employees spend time working in different departments. This could be a day or a week where members from London operations and Citadel Miniatures exchange roles or shadow each other. The goal is to foster understanding and appreciation of each other's work cultures and methodologies, which can reduce tension and promote a more cohesive work environment.

Departure of Employees Unwilling to Relocate to Nottinghamshire

The decision to consolidate Games Workshop's operations in Nottingham, driven by Ansell's increasing influence, led to a period of turmoil and discontent. Livingstone acknowledges that some veteran employees, who were unwilling to relocate and opted for redundancy, felt they were losing something. The move signaled a departure from the diverse and collaborative culture fostered by the founders in London, towards a more centralized and streamlined operation.

Context

• Choosing redundancy meant that employees would receive a severance package, which is a financial compensation given to employees who leave a company due to restructuring or relocation.

Other Perspectives

• Employees might have felt that the company was losing something by centralizing operations, rather than themselves personally losing something.
• The perception of a loss in culture could be subjective and may not reflect the experiences of all employees; some might find the new environment more conducive to their personal and professional growth.

Boardroom Conflicts and Company Sale

Disagreements Over Strategic Priorities and Resource Allocation

Livingstone elaborates on the increasing power struggle within the game publisher's boardroom, driven by contrasting views on strategic direction and resource allocation. Ansell relentlessly pursued a model of vertical integration, prioritizing in-house production and controlling every aspect of the customer experience, which clashed against more traditional approaches favored by other board members.

These disagreements reflected a fundamental shift in the organization's philosophy, with Ansell spearheading a bold vision for a self-reliant Games Workshop focused on developing its own intellectual property and controlling its own destiny. This conflicted with the founders' more cautious approach, leading to increasing tension within the leadership.

Practical Tips

• Volunteer for a committee within a non-profit organization to gain experience in collaborative decision-making. Non-profits often face resource constraints and require strategic planning to achieve their goals. Participating in these discussions will provide insights into managing power dynamics and making tough choices, similar to those in a corporate boardroom.

Other Perspectives

• Vertical integration and self-reliance may limit the company's ability to benefit from external expertise and partnerships, potentially stifling innovation.
• The idea of a philosophical shift might be overstated if the disagreements are actually about tactical decisions rather than underlying principles.
• The founders' approach might not be "cautious" but rather strategic and informed by historical insights or a deeper understanding of the industry's volatility.

Founders' Choice to Sell Shares and Exit Business

As tensions over control mounted, Livingstone and Jackson faced a difficult decision: relinquish control of the company they built to Ansell or fight for their vision, risking the company's success. Ultimately, recognizing their own desire to focus on their burgeoning careers as gamebook authors, coupled with Ansell's unwavering commitment to transforming Games Workshop, they chose to offload their shares and exit the business.

Livingstone narrates the emotional weight of this decision, acknowledging feelings of loss and detachment from the organization they nurtured over ten years. He outlines their subsequent transition into the gaming industry, which brought its own successes and challenges.

Practical Tips

• Explore your passion for storytelling by starting a blog or social media page dedicated to gamebook reviews and discussions. This allows you to immerse yourself in the world of gamebooks, understand what makes a compelling story, and connect with a community of like-minded enthusiasts. For example, you could write weekly reviews of different gamebooks, share tips for aspiring gamebook authors, and engage with your followers by asking for their opinions and experiences.
• Establish a monthly "Emotional Check-In" with a trusted peer or mentor where you discuss your current feelings towards your organization. This conversation can provide an external perspective and help you understand if your emotions are affecting your decision-making or leadership style.