I am reading the 10 rules for building wealth of CNN Money and was caught up by number 5 which read:
Don’t chase trends
You want to grow your money for the long haul, so you can’t switch your strategy every time you read the headlines. If you see an asset class that’s catching fire – like real estate investment trusts (REITs) in the late ’90s or commodities this year – ask yourself some basic questions: Can I describe how it works in plain English? If not, start your research at Investopedia.com. Why is it so popular right now? If the answer is “Paris Hilton bought some,” best to stay away.
I have written about Holy Kettle Corn’s quick success using a simple product with marketing ahead of everyone else; as it turned out, a number of competitors are sprouting to join the bandwagon and hope to grow their popcorn business similar to that of Holy Kettle Corn. Not because a business suddenly skyrocketed to the top mean variations of that business would yield success. Go after businesses that would last the long haul and could be embedded in the culture of the people to merit longevity status.
Case in point
A few years ago, shakes (milk, tea, etc.) known as Zagu quickly became successful and instantly so many competitors started putting their own version in every corner I could remember. Today they are all gone and those that were left seldom have long lines they used to have.
Unless you have a genius mindset like Bill Gates and can turn a product into a way of life, stop going after trends and focus on what people wants in the long-term.
[tags]Business, Holy Kettle Corn, Trends[/tags]
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