Over the last few months I have developed a bit of a fascination around American rapper Shawn Corey Carter – better known as Jay-Z – specifically around the development of his business ventures.

Too often I think those who operate small businesses are referred to success stories such as General Motors, IBM, Microsoft etc. and we battle to relate to their success. In contrast we don’t always see the entrepreneurial savvy that goes into a lot of mainstream ventures including successful music artists.

I decided to do a bit of research into his career and found an intriguing entrepreneurs story which has seen him rise to the top of a highly competitive industry.

His net worth is valued at around $150m US dollars and he is current holder for the record of most number one albums by a solo artist on the Billboard 200. On top of that he married one of the worlds most desirable and successful women in Beyonce Knowles, so one could say he is doing something right.

Before I dive into this story I need to make one major disclaimer – I know next to nothing about rap music. In my life I have bought exactly two CD’s which could be described as “rap” and that is the Jay-Z collaboration with Linkin Park (Numb Encore) and I shamefully admit to having bought a Vanilla Ice CD (or was it a tape?) when I was 13.

What I do know is that to be even moderately successful in the global rap industry is tough. Go and have a look at how many fall away each year as they try and make a name for themselves.

And this is where I think that the success story that is Jay-Z actually begins. He is a businessman first and a rapper second and I suspect that differentiates him from a lot of his counterparts who want the rapper image first and the long-term business success second.

Add value
From the reading I have done, Jay-Z did not want to get caught up in the mugs game that is rapping. He wanted to grow a meaningful business, control the various channels involved in producing music and be able to draw profit from these multiple channels.

This is absolutely critical for entrepreneurs – identify how you are going to add value and put more parts of your supply chain under your control.

In an interview he did in 2009 Jay-Z said: “my brands are an extension of me. They’re close to me. It’s not like running GM, where there’s no emotional attachment.”

There is a lesson in that for entrepreneurs who are starting out: Take pride, add value and create.

Product re-selling and competing on price are not the ways to build sustainable businesses and if this is what your small business is focusing on then rather rethink the strategy.

In terms of adding value -do yourself a favour, go to Wikipedia and take a look at his activities over the last three years. You will see how often he partnered with some of the biggest names in the industry to make a success. Instead of trying to do it all on his own and trying to claim all the headlines, he has added value by collaborating with other artists to make a real success.

Success takes time
Before I wrap up this article, I’d like to make one closing comment on success.

One of those things that really hit home for me in doing my reading is that for all the glamour and “instant” success attached to the music industry, Jay-Z’s career has taken the better part of 25 years to evolve.

For those starting 2010 a little downbeat about the prospects for their ventures or their failure to “hit the big-time”, remember that some of the most glamorous entrepreneurs around spent a lot of time laying the groundwork before they had real success.