Lucky Fools, a review of "The $100 Startup", by Chris Guillebeau
Many entrepreneurship books are filled with the hype of success stories, when in fact, there are probably 10 business failures for every success, most or none of which receive any meaningful coverage. According to the Small Business Administration, 50% of new businesses fail within the first 5 years, and over 2/3rd fail over 10 years. Economic historian John V.C. Nye wrote in a 1991 article "Lucky Fools and Cautious Businessmen," self-delusion is essential to maintaining an entrepreneurial culture. Countries become economically stagnant when rationale and reason triumph over delusion. The U.S. and Germany surpassed Victorian Britain because British businessmen stopped investing unwisely, despite access to efficient capital markets.
In "Thinking, Fast and Slow" Nobel laureate Daniel Kahneman cites chance as one of the key ingredients in new venture success, whereas most entrepreneurs believe their success is largely due to their effort and ingenuity.
So it was with all of this background bias that I picked up an unpublished copy of "The $100 Startup", not expecting to see anything different than the plethora of other books on the subject. But here's what makes Mr. Guillebeau's book different: "The $100 Startup" is about starting a micro business to gain independence "that is based on something you love to do - in other words, something intrinsically related to the owner's skill or passion." If you're after the kind of money that will get you a Lamborghini Gallardo like Akon, this is not the book for you. Temper your self-indulgence and start a business that will net you $50K-$60K a year. Mr. Guillebeau's blueprint may set you on the path of a reasonable work-life balance, but some luck and delusion is still necessary to get the job done.
Many entrepreneurship books are filled with the hype of success stories, when in fact, there are probably 10 business failures for every success, most or none of which receive any meaningful coverage. According to the Small Business Administration, 50% of new businesses fail within the first 5 years, and over 2/3rd fail over 10 years. Economic historian John V.C. Nye wrote in a 1991 article "Lucky Fools and Cautious Businessmen," self-delusion is essential to maintaining an entrepreneurial culture. Countries become economically stagnant when rationale and reason triumph over delusion. The U.S. and Germany surpassed Victorian Britain because British businessmen stopped investing unwisely, despite access to efficient capital markets.
In "Thinking, Fast and Slow" Nobel laureate Daniel Kahneman cites chance as one of the key ingredients in new venture success, whereas most entrepreneurs believe their success is largely due to their effort and ingenuity.
So it was with all of this background bias that I picked up an unpublished copy of "The $100 Startup", not expecting to see anything different than the plethora of other books on the subject. But here's what makes Mr. Guillebeau's book different: "The $100 Startup" is about starting a micro business to gain independence "that is based on something you love to do - in other words, something intrinsically related to the owner's skill or passion." If you're after the kind of money that will get you a Lamborghini Gallardo like Akon, this is not the book for you. Temper your self-indulgence and start a business that will net you $50K-$60K a year. Mr. Guillebeau's blueprint may set you on the path of a reasonable work-life balance, but some luck and delusion is still necessary to get the job done.
