It’s been an incredibly long time since PropertyOfZack has featured Curran Blevins in our Contributor Blog series, and we’re happy to welcome him back. Curran formerly tour managed We Are The In Crowd and You, Me & Everyone We Know and is now working with Killer Cool Entertainment. In his new blog, Curran discusses start up companies and how creating a new business and can more than a little tricky. It’s a great read and a different side of Curran, so make sure to check it out!
Starting anything as a business venture can be tricky. There are always limitations to what one person can do, and I’ve always thought that the sooner you find something that comes easy to you the better off you will be in the game of life. I personally went to college completing three years of classes and found it useless with what I wanted to do. My father always told me that college was not exactly about the information you were learning, but college was more about teaching an individual HOW to learn. At some point everyone has found themselves in a class asking why in the world would I need Spanish when I want to be a dolphin trainer, but in reality it makes sense, by challenging things, your mind adapts and learns new/different ways to obtain information.
The one thing that I have found myself using over and over again in the world of the music business comes from my sophomore Macro Economics class. This single idea comes from the term comparative advantage, which in my opinion is the key to success for any business. I still to this day remember the example my textbook gave.
There are two farmers, a cattle farmer (rancher) and a potato farmer; both farmers herd cattle, and farm potatoes. At the end of one week the rancher brings in 9 cattle, and 5 potatoes. At the end of one week the potato farmer brings in 15 potatoes and 3 cattle. After looking at these numbers one can easily tell that the rancher brings in more cattle weekly, and the potato farmer brings in more potatoes. If each of the men would solely focus their time and efforts on the products that they are more successful with they would both they would greatly improve their quantity and quality at the end of the week. With this in mind the two farmers approach one another to discuss trading products. At the end of the second week with the trade negotiations being completed the rancher brought in 15 cattle and the potato farmer brought in 25 potatoes. Through trade they realize that by focusing solely on what comes naturally to them that they have better final outcomes. By implementing the concept of Comparative Advantage spending less time/effort with a greater final outcome for both parties. To finish the example after week 2 and focusing all of their effort on one product the Rancher walked away with 8 Potatoes and 10 Cattle while the Potato Farmer walked away with 17 potatoes and 5 cattle. Each through trade were more profitable.