How to Profit from the Boom Without Joining the Stampede

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While others build AI, Pickaxe Studio builds what they build with. Curious?

Lead-In: 

In every gold rush, the real winners aren’t always the ones digging for gold, they’re often the ones selling the shovels. 

Let’s unpack the idea, and see how you can apply it to your own ventures. 

The Pickaxe Strategy, Explained

This timeless strategy, known as the pick-and-shovel model, is about supplying the essential tools, infrastructure, or services that others need to chase the next big thing.

Back in 1848, when gold fever hit California, thousands rushed west with dreams of striking it rich. But while most miners ended up broke or broken, a man named Samuel Brannan saw a different kind of opportunity.

Instead of mining gold, he bought every pick, shovel, and pan he could get his hands on and sold them to eager prospectors at massive markups. It’s said he paid 20 cents per pan and sold them for $15 a pop.

Brannan became California’s first millionaire—and he never had to dig a single inch of dirt. 

What It Means Today

It’s a proven business model that shows up in every boom cycle. It’s about being the quiet force behind other people’s ambition. While others swing for the fences, you sell them the bats.

This strategy involves investing in companies that supply essential tools, services, or infrastructure to various industries, allowing investors to benefit from industry growth without the risks associated with producing the end product.

But selling the pickaxe doesn’t mean sitting on your hands. You still have to understand the rush, build for your users, and adapt fast. Tools that break or don’t solve real pain won’t get far. But if you nail the execution?

You build the business others build on top of.

Modern-Day Pickaxe Examples

You don’t have to dig far to find this model in play today:

• Amazon Web Services (AWS) – Every startup needs cloud infrastructure. AWS makes money whether you’re the next Uber or a weekend hobbyist.

• Stripe – The plumbing behind e-commerce. Every transaction, they take a cut.

• Shopify – While brands compete for attention, Shopify sells the storefronts.

• Canva – Used by content creators, marketers, and founders to design without needing a designer.

• Notion & Airtable – Productivity software that powers thousands of workflows, from solopreneurs to teams.

How to Sell Pickaxes in Your Industry

1. Spot the Rush: What’s the current gold rush in your world—AI, climate tech, content creation, remote work?

2. Map the Needs: What does this wave require to thrive? Infrastructure? Tools? Knowledge? Support?

3. Build the Toolset: Create what they need—software, platforms, templates, courses, services.

4. Scale + Stay Agile: As the market evolves, so should you. Adapt to emerging problems and unmet needs.

In business, it’s easy to get caught chasing shiny objects. But sometimes, the smartest move is behind the curtain.

If you want to build something enduring, profitable, and deeply valuable, don’t just look for gold.

Sell the pickaxe.

Sources

California Gold Rush – Samuel Brannan’s Story

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