McCulloch was a singer-songwriter with the Crucial Three, one of many local bands that sprung up amongst the regulars who patronised a Liverpool club called Eric's in the late '70s. The other two members were Julian Cope and Pete Wylie who went on to form Wah!. The band existed between May and June 1977, and never got beyond rehearsals. In July 1978, along with future members of the Teardrop Explodes – Cope, Mick Finkler and Paul Simpson – and drummer Dave Pickett, McCulloch formed A Shallow Madness. Again the band did not perform or record, but an acoustic version of the band, under the name 'Uh', played live twice. The band split up in September 1978.