Buy! Buy! Buy!

I think I’ve hit upon a pretty apt analogy for the ebb and flow of getting one’s business rolling. It is the very indicator used by millions of business the world over. It is the stock market.

200_year_stock_chart.gifFirst of all — and you won’t hear me admitting this again at any point in the near future — a lot of what comprises “success” is stupid luck. I have spent hundreds of hours recruiting our team to this point, and the best people we have all 1) came from different sources 2) did not find out about Bonanzle through any of the numerous postings I’ve made to sites like Jobster and the UW Career Center. People routinely ask me (and I routinely ask other people) how to find the best people for a project, and the generally accepted answer is that nobody’s got a clue. You just keep talking to people and eventually get lucky. The stock market analog is the (fairly common) incident where a lifelong financial analyst is beaten by the S&P 500. Even seasoned analysts can’t generally compete with luck.

Second, no single day is very indicative of the overall trend. I think this is one those principles you hear a lot when talking about entrepreneurialism without really understanding it. It’s often worded as “you should expect a lot of adversity and challenges to overcome,” but when you actually experience these “challenges” (or less nicely: failures) on a daily basis, it is easy to get discouraged and lose track of the overall upward trend. What it feels like is that every time you get traction with a new idea or new recruit or well-executed maneuver, it gets negated by the Looming Unforeseeable Obstacles. But, viewed objectively, a business only needs to have slightly less failures than it has successes to win. In the stock market (and in my stock market, fantasy basketball), the same is true: trend trumps daily blips.

And the correlate to both the first and second principle? That the best you can do for either your business or stock is to put yourself in the best possible position to succeed, cross your fingers, and pray to the law of averages for a break. Oh dearest law of averages always comes to the rescue of the worthy. But eventually.

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