Gold Rush started in Sutter’s Mill, California after gold was found in that area in early 1848. As soon as the rumors of gold discovery in California had spread, thousands of people came there to mine and make fortunes. It is estimated that the number of people mining for gold in that area reached 3,00,000 people and around $2 Billion worth of precious metals were extracted. But only a few people made it because the work was hard, competitive, primitive and prices were high.
But someone during that period thought of making money the other way. Two names which we are still familiar with today, Jacob Davis and Levi Strauss made fortunes by selling to miners. Yes, you read it right, they invented heavy cotton work pants with riveted pockets, which we know now as Jeans, in 1870. They sold work pants, picks, shovels, and wheelbarrows to the miners present in large numbers in California. They did not attempt to mine for gold because they knew the chances of high returns or even finding one was low. They had seen many workers and miners returning home with nothing after spending everything they had on mining precious metal.
The most successful people were those who planned to fulfil the needs of miners. Traders, grocery stores, and metalsmiths were the ones to make money during the gold rush. It was better to sell shovels than to mine for and compete with thousands of people for a small amount of gold.
In these modern times, there are a lot of people trying to build companies like Amazon, Facebook, and Tesla in the effort to become rich. So, it is in us to realize a gold rush situation and start selling shovels.
In Nepal, we can see the rush to become the next e-commerce and fintech giant. As we all know only a few companies will make it to the top and make fortunes. Rest will return empty-handed after spending everything they had. Some of these copycat companies have already gone bankrupt or been closed. So, Instead of trying to be the next Amazon or the next Alibaba, it is either better to come up with new ideas or sell shovels. We should think about what those companies need to be successful and build a company to support their efforts. It’s the best investment and an easy way to make money for Nepalese Investors.