Prost Productions

Archive for May, 2010

Dear Goliath: You’re the best. Love, David

Wednesday, May 26th, 2010

Google on Tuesday mounted a national dog-and-pony show to remind Americans that big can be beautiful. The search giant estimates its economic impact at $54 billion a year, and I’m proud to say that I might account for .00000000001% of that. (Just an estimate — I didn’t do the math.)

Without Google, thousands of lifestyle businesses wouldn’t exist. Before Google came along, many entrepreneurs simply couldn’t afford to launch a business. Advertising was expensive and inefficient, and media companies did everything in their power to keep it that way. Local businesses and niche businesses might need to reach just 1 person out of 1,000, but advertising rate cards were inevitably based on 1,000 pairs of eyeballs.

Then along comes Google with its search advertising model, and suddenly I can reach my best prospects for just pennies apiece. If I put enough time and effort into my site, I can even reach those people for free by improving my ranking in Google’s “natural” search results.

With the billions it earns on search, Google develops or improves on other technologies that make my business life easier: email, word processing, presentations, navigation, research, chat. Sure, those things existed before, but Google made them cheap — or free — thus making them accessible to bootstrapping startups.

I find it outrageous that Google had to defend its importance to the U.S. economy. This isn’t a case of spewing oil or uncontrolled acceleration. It’s a matter of envy, pure and simple. Google’s competitors want to say that the giant must be cut down to size. But those competitors are giants themselves — in many cases the very giants who made it so expensive to do business in the pre-Google world.

So please spare me the David-vs-Goliath storyline. I am David, and I’m proud to say I’m hooking up with Goliath.

Are lifestyle businesses the new Social Security?

Tuesday, May 25th, 2010

More than 900,000 Americans aged 65 and older were self-employed in December 2009 — a 29% jump from year-earlier figures. Entrepreneurship among 55-to-64-year-olds grew by “just” 5% during the same period, hitting almost 2 million.

Some bloggers have worried that this rapid growth in self-employment is a sign of economic duress among those who should be enjoying their golden years. “[I]t’s likely that, these days, many of them are choosing this path because they have to,” Anne Field writes. “They’re out of work and no one wants to hire them.”

There are some big assumptions in those two sentences, and Scott Shane of Case Western Reserve University offers some statistics to show that entrepreneurship among older Americans has always been a popular option, no matter what the economic environment.

Statistics are great, but leave it to McPaper to illuminate the issue through anecdotes. Sure, there are reluctant entrepreneurs like Bryan Goodman, who became a full-time eBay merchant after losing his job at age 53. But I’d bet for every Bryan Goodman, there are four or five Patrick Althizers, who loves the lifestyle afforded by his company, Photo Safari Yosemite.

Althizer toiled in finance for three decades before retirement finally gave him the time to pursue photography, a passion he abandoned when he got “diverted” by his career. Now he has a family business, work he actually enjoys doing, and a company that could become “a legacy for my family.”

That sounds a lot healthier than watching soap operas and waiting for the Social Security check — in the case of GenXers like me, a check that will probably never arrive.

What would life be like without lifestyle businesses?

Thursday, May 20th, 2010

The conventional wisdom on lifestyle companies is that they enhance the lifestyle of their owners. That is, we forgo big bucks and big growth to do what we love.

That’s certainly true, but I think it misses a larger point: Lifestyle businesses make life better/more enjoyable/more fun for customers too.  Take Maia Josebachvili, for instance.  While studying engineering at Dartmouth, she recruited all her friends and acquaintances to go skydiving — because it was something she really wanted to try, and she couldn’t afford it. Based on that experience, she went on to found Urban Escapes, a weekend adventure company for young urban professionals in four cities.

All week long Josebachvili’s clients slave away in banks, law firms and the like. Then, on the weekend they get out and really enjoy life, thanks to a little lifestyle company and an entrepreneur who pursued her passion.

In the busy summer months, Josebachvili says she serves about 500 clients — not a huge number, and certainly not the kind of business model that would impress venture capitalists or proponents of “high potential” firms. But she’s earning a living, providing jobs and bringing a little bit of joy to her customers.

The point is, it takes someone with passion to provide the sort of product or service that may never “scale.” For a big, soulless corporation or venture-backed company, it’s simply not worth the time.

Life. Style. Business.

Thursday, May 13th, 2010

High-growth, high-potential, “disruptive” businesses are all the rage. The whole venture capital industry is premised upon a short company life span: Start it, scale it, cash out. Anything else — any ongoing, stable, sustainable company that makes money year in and year out — is dismissed as a “lifestyle business.”

Well, from here on out, this blog is all about reclaiming the term “lifestyle business.” How did it get to be a pejorative? A business that let’s you live your life in the style that suits you — what could possibly be bad about that?

Prost! Productions is a lifestyle business, I’m proud to say. It lets me be creative and productive and fulfilled without disappearing into some soulless corporate bureaucracy. No venture capitalist will ever invest in us; we’re not “disruptive” enough. But I’m perfectly happy with that, because I wouldn’t give up control, anyway.

I’m not birthing this baby just so I can sell it. I plan to nurture it and care for it and watch it grow.

I know there are millions of other business owners just like me, and from here on out, this blog’s for you: Thoughts and questions and ramblings on life and style and business. I hope you’ll join the conversation.

But the conversation will have to wait. Right now life is calling. Her name is Sydney, and she needs to go to the park.