Eamon Burke
Banned
- Joined
- Mar 5, 2011
- Messages
- 4,931
- Reaction score
- 13
This is an idea I have been thinking about, and it ripened into a talking point in my mind due to another thread. Don't read this if you are going to get offended by it. I just think there's a lot of folks here who can relate to this, perhaps chime in an idea or two. There are lots of business owners here--restaurants, retail stores, white-collar firms, various self-employment trades, etc.
I used to have a small business advisor from the SBA who was an accountant, and I've talked with a bajillion people over my life, having my own business, my wife has a business, I used to run a lawn care service for myself, etc.
I have never heard the story of a business becoming a booming success because of a business model. That is how millionaires become billionaires, perhaps, but it's not how businesses ever grow from nothing into something. I keep hearing every person's and business' success attributed to random chance(right place, right time) or Marketing. It's got a vibe people like. The lady selling it is sexy. There was a TV show about it.
Local Fish shops in both places I've lived boomed after Finding Nemo, as long as they sold Amphiprion Percula, bringing many back from the brink of closing up, and creating budding Fishkeepers.
The bread company at my Farmer's Market is one of the most in-demand booths, despite their bread not being made by the people at the booth, or even very locally. But who works the booth? A slender 35 year old brunette with an Italian accent.
Facebook is worth BILLIONS of dollars, despite being essentially a free service that provides no tangible benefit. Banner ads!
YET...
When you talk to people advising you about business, Marketing is "the fun part" and focusing on branding and image is considered "daydreaming". You should spend your time with a calculator and a government website doing market research, analyzing competition, putting a premium on your time, ensuring there is an Excel spreadsheet for every possible question, planning life 5 years out, managing retirement before you start working, and squeezing every penny for all it's got.
I have worked for people who don't know JACK about their trade, their industry, or running a business, but can get investors, loans, and employees, and always manage to pay themselves, just because of an image. Part of the reason I can't deal with being an employee is because of things likes this. I worked at a Catering company that ran a cafeteria. Boss was the stingiest man alive, buttoned-down business, and extremely effective corporate style management(no hands on for the boss, minimum wage for the workers). Oh yeah, and piss-poor image, zero marketing. There were 12,000 people on campus every day, and the most we ever made in a day was $2400(total sales!). I was polled one day what I wanted the company to buy to make my day easier and more efficient, and I said "Advertisments." They laughed, and ignored the whole idea, and now they lost their contract to a Subway($5 for a bottom-of-the-barrel ham sandwich? Hello, marketing!).
The Marketing is what gets the money out of people's hands, and that is all that matters! Making a profit. Best business model in the world that's not turning a profit is useless, and a business run by a complete nitwit that's making some green will get all the help it needs. I keep getting told my business(any business) needs to be this shining example of expertise and discipline, but the truth is, people stumble onto giant piles of cash all the time, and good ideas often die for environmental reasons.
About a year ago, I read Tim Ferriss' book on the 4 hour workweek, and while some of his lifestyle is not what I would want(good for a single guy), a lot of what he says about making money is very true. It's not the money people want, it's the life that the money gives you. And if making that money destroys your life, what's the point? Then he goes on to show that most of what ends up ruining people's lives running a business is crap that doesn't matter.
Look at pretty much any Kickstarter or Indiegogo project--no business explanation, no value-priced goods, no ROI. $40,000 in a month to make sunglasses based on pictures and a logo. $1,000,000 in a week to build a Tesla Museum because the guy from The Oatmeal said it was a good idea. $100,000 in 3 weeks to make a documentary because it's about Big Bird.
I'm starting to think that a lot of business is intellectual masturbation and navel gazing. Produce something people like, that you like producing. Sell it for more than it cost you. Done.
I used to have a small business advisor from the SBA who was an accountant, and I've talked with a bajillion people over my life, having my own business, my wife has a business, I used to run a lawn care service for myself, etc.
I have never heard the story of a business becoming a booming success because of a business model. That is how millionaires become billionaires, perhaps, but it's not how businesses ever grow from nothing into something. I keep hearing every person's and business' success attributed to random chance(right place, right time) or Marketing. It's got a vibe people like. The lady selling it is sexy. There was a TV show about it.
Local Fish shops in both places I've lived boomed after Finding Nemo, as long as they sold Amphiprion Percula, bringing many back from the brink of closing up, and creating budding Fishkeepers.
The bread company at my Farmer's Market is one of the most in-demand booths, despite their bread not being made by the people at the booth, or even very locally. But who works the booth? A slender 35 year old brunette with an Italian accent.
Facebook is worth BILLIONS of dollars, despite being essentially a free service that provides no tangible benefit. Banner ads!
YET...
When you talk to people advising you about business, Marketing is "the fun part" and focusing on branding and image is considered "daydreaming". You should spend your time with a calculator and a government website doing market research, analyzing competition, putting a premium on your time, ensuring there is an Excel spreadsheet for every possible question, planning life 5 years out, managing retirement before you start working, and squeezing every penny for all it's got.
I have worked for people who don't know JACK about their trade, their industry, or running a business, but can get investors, loans, and employees, and always manage to pay themselves, just because of an image. Part of the reason I can't deal with being an employee is because of things likes this. I worked at a Catering company that ran a cafeteria. Boss was the stingiest man alive, buttoned-down business, and extremely effective corporate style management(no hands on for the boss, minimum wage for the workers). Oh yeah, and piss-poor image, zero marketing. There were 12,000 people on campus every day, and the most we ever made in a day was $2400(total sales!). I was polled one day what I wanted the company to buy to make my day easier and more efficient, and I said "Advertisments." They laughed, and ignored the whole idea, and now they lost their contract to a Subway($5 for a bottom-of-the-barrel ham sandwich? Hello, marketing!).
The Marketing is what gets the money out of people's hands, and that is all that matters! Making a profit. Best business model in the world that's not turning a profit is useless, and a business run by a complete nitwit that's making some green will get all the help it needs. I keep getting told my business(any business) needs to be this shining example of expertise and discipline, but the truth is, people stumble onto giant piles of cash all the time, and good ideas often die for environmental reasons.
About a year ago, I read Tim Ferriss' book on the 4 hour workweek, and while some of his lifestyle is not what I would want(good for a single guy), a lot of what he says about making money is very true. It's not the money people want, it's the life that the money gives you. And if making that money destroys your life, what's the point? Then he goes on to show that most of what ends up ruining people's lives running a business is crap that doesn't matter.
Look at pretty much any Kickstarter or Indiegogo project--no business explanation, no value-priced goods, no ROI. $40,000 in a month to make sunglasses based on pictures and a logo. $1,000,000 in a week to build a Tesla Museum because the guy from The Oatmeal said it was a good idea. $100,000 in 3 weeks to make a documentary because it's about Big Bird.
I'm starting to think that a lot of business is intellectual masturbation and navel gazing. Produce something people like, that you like producing. Sell it for more than it cost you. Done.