Fate and Fortune (part 1)

Monday, October 23, 2006 at 06:00am by Evan Prieskop in Start-Ups

Breaking from the normal schedule here at Start-Ups, Monday and Tuesday’s columns shall be dedicated to an essay on real world business models and real world goals.

Traditionally, enterprise has been dominated by a handful of well-defined business models. At the center stands the manufacturer/wholesaler/retailer axis, supplemented by transportation companies (land, sea, and air) and specialist consultants (lawyers, marketing firms, and the like). Near-yet-separate from this powerful pylon stands a handful of niche business models (TV/radio, personal services, and the sweep of non-profits) and that oft-overlooked economic powerhouse: government.

Listening to the buzz today, it is easy to believe that the above-described picture of economics is out-dated. It is easy to be misled into thinking that the new and exciting business models of del.i.cios, Amazon, and Google dominate the economic landscape, crushing those rickety old business models into obscurity.

Naturally, that is far from true. Less than 2% of Americans owe their careers to the internet. Less than that can say they owe their fortunes to it. None of this is to say that there is not money to be made on the information super-highway, but it might be good to remind people that the number of cybernauts out there is but a tiny fraction of the number of agricultural workers, food-prepares, or teachers.

You will never hear me disparage the skill, dedication, or character of those suddenly terribly rich SOBs over at YouTube. Yet in a very real fashion, these guys won the lottery. These guys are defined by a mastery of the fundamentals (acuity, industry, foresight) and the essential understanding (or possibly dumb luck) to have economy and culture align in their favor. While I am sure there will be books written about what YouTube did differently than GoFish, Metacafe, Veoh, Youare.tv, most of that is just a case of the history books being written for/by the victor.

As beautiful as the dream is, massive, open-ended return on a finite, creative investment is not the inevitable or even likely fate of most entrepreneurs. The staggering majority of entrepreneurs will either fail (unfortunate, but if we are being honest this has to be included) or work hard, create something that they love, and take home a decent reward for their effort. To those who survive those first few harrowing years, go the spoils: a tidy profit and a happy work life.

Tomorrow in Part Two: Real World Goals

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