Friday, January 14, 2011

Making Money Now

I recently watched the movie Exit Through the Gift Shop from well-known artist Banksy. I got a kick out of this film for multiple reasons having liked Banksy's artwork for years now.


What most amused me though is how well it goes about making you question what celebrity is and how much you can achieve by becoming famous. The key point for me is questioning whether you really need to be creative and innovative above and beyond being famous.


Then Mike Butcher over at Techcrunch went and posted something this morning about startup teams trumping celebrity tech entrepreneurs. In summary, he too is making the point that execution far outweighs celebrity.


Basically, what I'm getting at, is all the parallels you're starting to see between the startup world and the movie business. I am definitely not an expert on the movie business and can only imagine what it's truly like from afar. Yet, we've all seen enough of it to realize a bit how things work in Hollywood. You basically have a couple large companies or studios as they're usually called. There you have management at the top who are the power-brokers in the industry. They back films which are used as vehicles to market actors who either succeed or not. If they do succeed, they are cast in further films and a ton of marketing is thrown at these films, regardless of whether these actors have talent or not.


Ultimately, the goal is to make as much money as possible and if you're the one making all this money, keep other people out so you can continue to make as much money as possible. Sure, there are some stand-out actors, managers and studios who go against the grain but basically it's an industry optimized to make money. Simplified by me immensely but I believe you understand what I am saying. 


Now let's switch over to the startup world. It's no longer Hollywood and we're now a bit north in Silicon Valley. You have a couple firms who call all the shots and are known as Tier 1 VC's (with some major players like Google, Apple, and Facebook thrown in for good measure).


These VC's fund firms instead of films run by entrepreneurs instead of actors. Some of these entrepreneurs are successful and some are not. Those who are get funded further by these Tier 1 firms. Lots of companies are started and sold since these power brokers in the Valley sit on each other's boards and pass deals back and forth. The power brokers continue to make money and those entrepreneurs who don't lead to successful exits get weeded out (where's the reality TV version of "out to pasture" for entrepreneurs?)


Ultimately, as in the movie business, you make as much money as possible and keep out the riff-raff who would keep you from making tons of money as long as possible. 


Now don't get me wrong. I am in no way arguing about whether the movie or startup business is right or wrong or skewed in someone's favor or not. I'm also probably simplifying it too much as well. But the point I am making is that we are in a world where it's about making money. Sure, you can get your touchy-feely on and say you're changing the world but ultimately you wouldn't "work" if it wasn't about making some money.


Hence, my advice to any entrepreneur is to take advantage of whatever you have if you ultimately want to be successful. If you are naturally good looking, get your face out there. Be on TV and in the press. If it helps you make money, go for it.


At the same time, if media attention doesn't help you make more money, don't focus on it. Get your pretty head down to business and execute like hell to innovate, optimize and sell your product. Or have the best of both worlds. Be a CEO focussed on getting your brand or product out there and have a number two (great blog post by Ben Horowitz) who takes care of business. What you need to focus on is making money and being the scrappy entrepreneur that you are, you'll optimize wherever you can to achieve your goal. 


In the end it's never about who was most popular that determines success. Just think back to all those football players and cheerleaders in high school. (I've seen some of them from my high school....thank you Facebook.....and had a good laugh!) So often there are people you never hear about making tons of cash since they don't need to focus on media.


On the other hand, if Twitter/Foursquare/Zynga/Groupon hadn't received so much media attention, you think they'd be where they are now? I highly doubt it and I guarantee you that they had a clear strategy in place to use media (and position their founders) from the start. Hence, don't waste time focussed on the wrong things. If you're a celebrity entrepreneur who's counting his millions hats off to you. If you've become a media darling and are broke, well tough luck kid. Try something new. 


By the way, here's what Exit Through the Gift Shop is about cut and pasted from Wikipedia. Think what you will about whether it's a real story or not but reast assured the dollars earned by "Mr Brainwash" were real!!


Exit Through the Gift Shop: A Banksy Film is a Gonzo Documentary which tells the story of Thierry Guetta, a French immigrant in Los Angeles, and his obsession with street art. It is presented as a documentary, but reviewers have questioned its factuality. The film charts Guetta's constant documenting of his every moment on film, to his chance contact with his cousin, the artist Invader, and his documenting of a host of street artists with focus on Shepard Fairey, and also Banksy though the latter's face is never shown, and his voice is distorted to preserve his anonymity


 



The new Republican majority in the House of Representatives has begun the process of repealing the Healthcare law. Some have argued that, because the Senate may not repeal it as well, and the President will likely veto it, the House’s repeal is purely “symbolic.”



Just as the reading of the Constitution on the floor of the House, on Wednesday, was symbolic of a “return to constitutionalism,” as Charles Krauthammer writes, the repeal of the Healthcare law in the House will be symbolic not just of the fact that Republicans have heard the will of the American people, but also that they fully understand that the new law is, only superficially, a jumbled and thoughtless mess of rules about how healthcare should be delivered and paid for in this country. In reality, the Healthcare law is a liberal power grab that is gradually permitting the federal government to control more of our lives, making more people dependent upon the government and continuing the culture of dependency among minority groups who, up until now, have mostly voted liberals into power. The symbolism of the repeal will ring loud and clear.


Liberal Democrats will be launching a big campaign over the next few days, doing what they always accuse Republicans and conservatives of doing- “fear-mongering.”  They will be telling their constituents that, according to the Congressional Budget Office, the repeal of the Healthcare law will increase debt, that Republicans don’t want people with pre-existing conditions to have access to health insurance, and that Republicans want to defund Medicare, new chairman of the House Budget Committee, Congressman Paul Ryan, has set out why these claims are wrong.


However, one of the features of the new Healthcare law, already in effect, is the extension of healthcare coverage to adult children (up until 26 years old), a hallmark of the true intention of this law- to make more people dependent, while it raises premiums on private health insurers who need more money to meet this new requirement.



For those who do not have adult children in the 21 to 26 age range, would it surprise you to know that these adult “children,” who are now covered, are not required to even live with their parents to remain on their plans, and that they may even be married and still be covered under their parents’ health plans?


Through the new Healthcare law, liberal Democrats have gradually introduced the concept that adult children should remain dependent on their parents, and when their parents are not around, perhaps the government can take over in that parental role? Of course, this new rule comes at a time when the economic decline made it difficult for young adults to obtain jobs. This is how the gradual creep of dependency begins: introduce a law which creates dependency on the government at a time of crisis, so that uninformed Americans will see it as a caring and positive intervention to help them in their time of need. This is how every entitlement legislation begins, and why none has ever been totally eradicated thus far, mainly because people have come to expect these benefits.


One of the newly elected members of Congress who understands well the liberals’ drive to make more Americans dependent on the government is Colonel Allen West of Florida. Congressman West will be serving in the Congressional Black Caucus and hopes to represent conservative philosophical ideas such as the importance of individual responsibility, creativity, and entrepreneurship.






In addition, as a result of the left’s encouragement of this culture of dependency, those who are truly in need will no longer have to seek voluntary assistance from neighbors and communities. Conversely, neighbors and communities will not be encouraged to voluntarily reach out to others because the knowledge that the government will provide for their friends’ needs may cause them to think twice. As such, dependency on the government creates more distance, and less connectivity, among members of a community.


At this point in time, any resistance to repealing the Healthcare law, and replacing it with commonsense legislation that reflects free market principles, will be almost entirely about continuing the culture of dependency, a hallmark of liberalism, that has taken over this country. We can be sure that liberals from the previous Congress will try hard to keep this culture in place. Their ability to remain powerful depends on it.




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