There always seems to be some guru coming up with an idea they invented in a new way – a new way of thinking, a new way of running a business, a new diet, or maybe even a new hair tonic that will keep your hair from falling out. 

But what worked yesterday in business, still works today in business. 

Let’s look at a few examples.

Back in the dot-com boom the professional financial planners kept talking about how it was a new economy.  Even though there was absolutely no reason for the stock prices of these dot-com companies to continue to rise, they reached astronomical prices.  Everybody was sold a bill of goods and told this was going to last forever. 

Well, not every one… During this time, Warren Buffett refused to buy these tech stocks because he didn’t see any fundamental reason why the prices were so high except for a feeding frenzy of emotions that was fueled by nothing but greed.  So for several years Warren took it on the chin from the analysts and even his stockholders in Berkshire Hathaway. 

Then one day it all came crashing down.  People who had made investments built on a house of cards lost everything and Warren looked like a hero to his investors because he only invested in stocks from the old economy that were solid companies, sold something of value and had strong financials. 

What worked yesterday in business, still works today in business. 

Warren didn’t buy the story.  He invested with reason, looking for the bargain and a strong balance sheet.  He didn’t invest using a reckless philosophy.  For Warren to put up investor’s money the companies had to have value. 

I will say that I miss the dot-com companies.  Since the CEOs had lots of cash infused into their companies from investors, the money seemed to flow like water, and they made the best Super Bowl commercials.  Since they have gone broke and money isn’t flowing out of the faucet, the Super Bowl commercials just don’t seem the same. 

Now move ahead a few years.  The housing industry starts building an incredible inventory of houses.  Money is cheap; plus some politicians have convinced the banks and the mortgage companies to give mortgages to people who couldn’t afford them.  The politicians didn’t believe that what was good yesterday is good today.  So they helped create policies and something called the sub-prime mortgage which ultimately put this country in the terrible economic situation that it is in today.

I wonder if we ever learn?  The crash of the  dot-com era and the housing/mortgage crisis are two examples of how not understanding the fundamentals of running a good business and being reckless with basic sound financial principles just creates bad business decisions based on pure greed. 

So as you continue to run your business each day and the gurus continue telling you about all the new ways to market your business, for example: social marketing – is the latest, greatest marketing tool.  Explore it.  Find out what it is.  Test it out.  Determine if it is right for your business.

But remember: what worked yesterday in business, still works today in business. 

Make sure your sales people are out in the field every day.  Have them making cold calls.  Give the customer value.  Treat your employees well.  Run a sound business. 

Don’t buy the story that the tried and true business methods don’t work any more.  Because they do work and probably always will.