I have ran businesses that have picked up "hype" and I have also seen many businesses running into a stage of hype and then taking a drastic fall into the red. It is always great to have some buzz around what you are doing, but you should realize that it will never last forever and you should plan for those times so you don't end up pulling the plug on your venture.
-Some hypes are natural and some are artificial, but what is the difference?
Natural hypes are when the public or users create a craze for a certain product and an artificial hype is when companies create their own "fame." I have personally owned businesses that have dealt with both situations and I can say that, natural hype lasts longer than artificial, but both eventually die out. A natural hype would be something like Facebook. Facebook didn't create it's own fame, but instead capitalized upon it occurring, taking advantage of all who wanted to invest. On the other hand, companies that create their own fame, usually end up tripping on their own shoe laces.
-How can you take full advantage of a hype and still keep some "buzz" around yourself after it dies down?
Taking advantage of hype means being prepared. I don't just mean that you should have a plan, but you should have a plan, execute the plan, and keep up with innovation. There was a MySpace craze once upon a time, but MySpace didn't really "innovate" so they weren't able to hold on to most of their users, who ended up heading to Facebook. Another good example of how a company didn't take advantage of their product hype was Krispy Kreme. Krispy Kreme doughnuts were some what of a "delicacy" when they went nation wide, but then people soon realized that Dunkin' Donuts had bigger doughnuts, so eventually the customers went back to Dunkin' or became Dunkin' customers if they weren't previously. I think that Krispy Kreme should have came out with a cheaper product or something that could be compared to big names like Dunkin' which would have saved many stores from being in financial trouble. Recently, the word on the street seems to be that Krispy Kreme might end up closing all of its doors for good.
To sum up taking advantage of a hype, I would say that you have to present new products or services while people are naturally (or artificially) obsessed with your business. When you truly appeal to them while they are coming your way, there is a higher chance that you will be able to sustain the "hype" and potentially keep some sparks around after it dies out.
-Does hype always mean that you will be in the green or can you lose money during hype?
It is important to note that you don't always have to be profitable during a hype and you can be going in the red big time if you don't see it coming or ending. Many businesses don't judge properly when they are in the middle of a hype. This causes them to over expand, over staff, or even overspend projected budgets during the hype. The worse thing is that companies don't see the hype fading away and still keep the same amount of spending and budgets around. While it is necessary to have staff for the hype, you shouldn't end up like some Web 2.0 companies which hire a bunch of people and then the service loses its luster and it is facing laying off 70% of its staff. If you are able to visualize the future and current standing of your business, there is a greater chance that you will be getting a clear projection when you sit down for future planning.
Always remember, anything that grows fast is likely to collapse twice as fast. You should never assume that you are set for life when you start tripling or quadrupling your expected earnings, but on the other hand you have to take maximum advantage of the "hype," when or if it occurs. And don't over expand on "hyped statistics."
.jpg)
