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-   -   Entrepreneur's Goal #1 -- Finally SOLVE "The Money Thing"... (http://www.sowpub.com/forum/showthread.php?t=5458)

-TW August 5, 2008 12:55 PM

Entrepreneur's Goal #1 -- Finally SOLVE "The Money Thing"...
 
This is an offshoot of the "800-pound gorilla" post...

Keeping in mind Michael Gerber's mantra (The E-Myth, etc.) that there's a GIANT difference between the 'self-employed' and REAL *entrepreneurs* (they are SO different, they are mutually exclusive!), I believe (as mercenary as it sounds) the PRIMARY (only?) goal of an entrepreneur is to get to the point of 'critical mass,' financially.

WITH OR WITHOUT the 'do what you love' philosophy!!!

The profit motive is the ONLY motive (keeping one's morals too, of course -- no cheating, lying, stealing, etc.).

The overall goal is SOLVE "THE MONEY THING" ONCE AND FOR ALL!

I believe that to be a perfectly LEGITIMATE goal.

The things ("machines") an entrepreneur sets up should work for the entrepreneur, like any other real machine does. It should be set up so the machine works for the entrepreneur and not the other way 'round!!!

The goal is to get to the point where the entrepreneur himself is completely factored OUT of the equation -- the $$$$ flows in AUTOMATICALLY.

That's the biggest difference (as I (+ Mr. Gerber) see it) between a REAL entrepreneur and a self-employed person. The latter is constantly trying to FILL his 'dance card,' whilst the former is constantly trying to figure out ways to EMPTY his dance card!

So, what I'm saying is, take a long hard look at the 'entrepreneurial' things you're involving yourself in. Are they getting you closer to being a REAL entrepreneur? Will they ultimately allow you to completely ***COAST*** financially?????

What I'm now finding is, the answer is usually NO!

Here are the main flaws in the so-called entrepreneurial 'opportunities' I see around me...

1) Too low-level, and will never LEAD to high-level (there's no link or portal between the two worlds).

2) NOT truly entrepreneurial. The opportunity cannot be made to be self-sustaining, self-running -- does nothing more than give the so-called entrepreneur a(nother) JOB. That is, self-employed, NOT a REAL entrepreneur.

3) Too small scale. Does pass test #2 (above), but will not yield enough $$. Not quite the same problem as #1 (above). One is LEAGUE (small-time vs. big-time), the other is scale -- too little $$ vs. lots of $)

What I'm saying is, DON'T "STEP IN IT!" Before you climb the ladder, take a very hard look at where the TOP of the ladder leads! Don't attempt to climb short ladders!

Open your eyes (as I have).

Don't get DELUSIONAL about how tall the ladder is!!!

It's all too easy to get caught up in a sub-sub-sub-sub culture like the one this forum encourages, and start GLORIFYING SHORT LADDERS.

It's a trap -- And there;s nothing wrong with getting trapped in it, as long as you KNOW you're doing it -- as long as you're AWARE!

I'm 48, and I am NO CLOSER TO BEING ABLE TO COAST (financially) than I was when I was 18 -- If anything, I am MUCH FURTHER AWAY from being able to coast, financially.

I remember hearing a story about Dan Kennedy. Yes, the great + powerful Dan Kennedy, the very same. He was giving a seminar at a hotel meeting room -- telling business people how to make much more money using his marketing techniques. While giving his talk, he was able to look out over the heads of the eager attendees, through the window, into the parking lot. He found himself in the amazing position of having to give the seminar WHILE WATCHING HIS CAR BE REPOSSESED (TOWED AWAY) IN THE PARKING LOT.

All I'm saying is, be very discriminating about which ladders you climb.

1) Are you striving for REAL *entrepreneurial* goals (NOT *self-employed* type goals)?

2) Will the ladder you're climbing REALLY bring you there?

From what I've seen, most people would have to answer NO to BOTH questions -- and the answers matter more and more as you get older!

Cheers(?)

-- TW

Dien Rice August 5, 2008 01:14 PM

Is the answer... toll positions?
 
Quote:

Originally Posted by -TW (Post 22032)
The goal is to get to the point where the entrepreneur himself is completely factored OUT of the equation -- the $$$$ flows in AUTOMATICALLY.

That's the biggest difference (as I (+ Mr. Gerber) see it) between a REAL entrepreneur and a self-employed person. The latter is constantly trying to FILL his 'dance card,' whilst the former is constantly trying to figure out ways to EMPTY his dance card!

Hi TW,

It's been an interesting discussion so far!

I just wanted to comment on something from my earlier post...

There, I quoted from an article...

Quote:

Much the most entertaining [millionaire] was 18-year-old Dominic McVey. He was the essence of Kevin. He responded to conversational gambits with grunts. He flopped in a corner looking filleted. One long, bleached strand of hair suggested the stuffing was coming out of his head. His mouth hung open. He has been a multimillionaire since he was 15, when America gave him the European distribution rights to that scooter that used to get under your feet everywhere. His headmaster noticed he was playing truant again when he saw him on TV in Tokyo, exploring the possibility of importing Japanese lavatories. "I don't think Dominic feels he needs a safety net," said this much-tried man. "He believed in himself to a degree that most people find quite irritating." Dominic agreed. "You have to be so confident in yourself it can make you cringe. But if you're not, you ain't gonna do it."
Apart from his attitude, another interesting thing is how Dominic McVey made his money...

Those who have been following Gordon's posts on this subject (following the wisdom of Harvey Brody) will recognize that McVey created a toll position!

That may be part of the answer to your question, TW... A "toll position" can enable the money to "flow"... even if you don't "work" it.

In Dominic McVey's case, if I understand correctly, he acquired the exclusive rights to distribute a particular type of scooter in the UK. Anyone in the UK who wants to buy that scooter, has to pay the "toll" - that is, the only legal way for them to get it is to get it through him.

Anyway, just thought I'd point that out. Gordon's various posts (based on Harvey Brody's teachings) on "toll positions" could help...

Best wishes,

Dien

P.S. Get Harvey Brody's document on toll positions here (free) http://www.incomeandhappiness.com/ or here (PDF) http://www.sowpub.net/files/harveybrody.pdf

And more info on toll positions here.... http://www.google.com/search?hl=en&q...=Google+Search and here http://www.altavista.com/web/results...om&kgs=1&kls=0

-TW August 5, 2008 01:20 PM

Re: Entrepreneur's Goal #1 -- Finally SOLVE "The Money Thing"...
 
Yes, I guess toll positions are an answer.

I heard about a similar story to your scooter tale.

As legend has it, an American living in Japan called the Duncan Yo Yo Company and asked then to sell him the rights for the entire country of Japan. They said sure, what the heck, we're not selling any yo yos over there any way, so sure.

He set up yo yo clubs + competitions throughout Japan, and...

Several million dollars later...

-- TW

MichaelRoss August 5, 2008 03:42 PM

The Solution is the Easy part...
 
TW,

Thanks for thinking some more.

Remember how I said Aiming for the big time is Limited thinking?

Let me babble on for a bit and see if you can deduce it yourself...

Ok. First. You think there's no link between low-level and big time. Besides being limiting right off the bat - look at my tag line for the answer. It shuts your brain down. Might as well give up because I've resigned myself to there being no link.

Now. Granted, I could be Interpreting your words wrongly. Still not Getting It. But only you can know if that's the case as you read further...

Trumps father built low-income property. Trump build's high income property, right?

No. He doesn't. He doesn't build a thing. He Leverages - or outsources if your prefer. He Hires someone else to build it for him. No Different than some bloke who buys a Reno property, outsources to have it pulled down (or taken away on a truck and and sold) and then hires another builder (who himself hires all kinds of Sub Contractors) to build a Duplex or Fourplex on the land. The PRINCIPLES are the Same. It's only the degree which varies.

Lindsey Fox is a wealthy Australian trucking magnate. He started with... one truck and four 5 years that's all he had - until - he landed a contract where the client was Concerned about reliability of delivery. The deal was... get yourself a Backup truck or you don't get the deal. So he did. Now he had two trucks. Seeing as that kind of investment will drain your finances real quick, he needed to find additional work, which he did. And hired a driver to drive his second truck.

For the next five years he plugged away and bought a truck a year roughly. Taking his fleet to 6 trucks and ten years in the business solo (his father had been a truckie).

Understand. There are Plenty of truck companies with 5, 6 10 or even 20 in their fleet. And with a fleet like that they are doing Bloody Good. They have made the Big Time compared to... a guy with just one truck, right?

And it is quite apparant Fox would have continued Building his fleet. But something happened. A Change in Social Thinking. Where companies now decided it was better to Outsource their deliveries instead of owning their own fleets. And so one of Australia's largest supermarkets Offered their 50 strong fleet to Fox. Who, of course, accepted.

So now he had a fleet of 56 trucks, with drivers - and more importantly - with work.

He won the Big Time lottery. But in so doing, did what he had previously been doing. Only the scale was bigger. He was still following the same PRINCIPLES.

There is a drink down here called Nudie. That was started Small. And each outlet which now sells it was approached one at a time, in person, face to face. Sure, they don't have the success of Coke. But they are doing quite alright thank you very much.

Tempo is a cleaning company. The owner Bought a Small cleaning business that had several contracts of a small nature plus the contract to Polish Floors of one single outlet of a Supermarket Chain.

After a while the owner examined the business and decided... the Big Clients is where his money was really coming from. And so set about to acquire more such Polishing jobs while getting rid of the smaller stuff.

Armed with an existing well known client it wasn't hard to get further work one outlet at a time. And now the company is Huge. Does multi-story office blocks, shopping centers, etc.

It's still cleaning. The principles are the same. The degree varies.

Check out CleanEvent. Started by one guy landing the contract to clean one sports field.

In all cases of Big Time, you see the person entering lands big clients at some stage. But it doesn't need to be that way, always.

Guy works for a crane company. In dispatch. On a salary. And he gets the annoyances and leaves. Buys 1 crane and starts his own one man crane business. Is doing well then buys another crane - once you have proven yourself for one, banks Throw money at you for other acquisitions. And then another. And another. And another. He's now one of the five biggest crane companies in the city. And with crane hire rates anywhere from $170 with min 2 hours to $1,000 an hour with min 8 hours, he can be pulling in around $40k a day.

In 1985 a fellow buys one concrete pump truck. Now, just some 20 years later his is the biggest concrete pumping business in the state. Even buying out his competition along the way, as he deemed it viable and a quicker way to acquire more machines. At $350 an hour + $ per volume pumped, he's doing pretty darn well.

How many Millions do you want to make a year?

These Examples started Low Level and are now, Big Time by most people's understanding. All they did was follow the same principles... but on a larger scale.

I don't know what you true goal is. Is it just money? Is it to leave a legacy that will continue to make money after you're gone. It is to just be famous - Paul Hogan, the Croc Dundee guy, said about his Fame when he first had his TV show... that it sucked to be so famous and not really have much money.

The simple answer to the more money thing is...

Follow a sound money making principle and increase its scale.

And understand... what you cannot do yourself you can hire others to do.

And... machinery and premises can be leased or hired. Short or long term.

For example... the crane guy I spoke of. All cranes are bought via some form of lease. The Yard he operates from is leased. The buildings in it are Portable and leased.

All money comes from other people.

Michael Ross

Conrad July 30, 2010 08:37 AM

Re: Entrepreneur's Goal #1 -- Finally SOLVE "The Money Thing"...
 
Well said.

With this realization, I am sure you are on your way to independence.

Conrad

Quote:

Originally Posted by -TW (Post 22032)
This is an offshoot of the "800-pound gorilla" post...

Keeping in mind Michael Gerber's mantra (The E-Myth, etc.) that there's a GIANT difference between the 'self-employed' and REAL *entrepreneurs* (they are SO different, they are mutually exclusive!), I believe (as mercenary as it sounds) the PRIMARY (only?) goal of an entrepreneur is to get to the point of 'critical mass,' financially.

WITH OR WITHOUT the 'do what you love' philosophy!!!

The profit motive is the ONLY motive (keeping one's morals too, of course -- no cheating, lying, stealing, etc.).

The overall goal is SOLVE "THE MONEY THING" ONCE AND FOR ALL!

I believe that to be a perfectly LEGITIMATE goal.

The things ("machines") an entrepreneur sets up should work for the entrepreneur, like any other real machine does. It should be set up so the machine works for the entrepreneur and not the other way 'round!!!

The goal is to get to the point where the entrepreneur himself is completely factored OUT of the equation -- the $$$$ flows in AUTOMATICALLY.

That's the biggest difference (as I (+ Mr. Gerber) see it) between a REAL entrepreneur and a self-employed person. The latter is constantly trying to FILL his 'dance card,' whilst the former is constantly trying to figure out ways to EMPTY his dance card!

So, what I'm saying is, take a long hard look at the 'entrepreneurial' things you're involving yourself in. Are they getting you closer to being a REAL entrepreneur? Will they ultimately allow you to completely ***COAST*** financially?????

What I'm now finding is, the answer is usually NO!

Here are the main flaws in the so-called entrepreneurial 'opportunities' I see around me...

1) Too low-level, and will never LEAD to high-level (there's no link or portal between the two worlds).

2) NOT truly entrepreneurial. The opportunity cannot be made to be self-sustaining, self-running -- does nothing more than give the so-called entrepreneur a(nother) JOB. That is, self-employed, NOT a REAL entrepreneur.

3) Too small scale. Does pass test #2 (above), but will not yield enough $$. Not quite the same problem as #1 (above). One is LEAGUE (small-time vs. big-time), the other is scale -- too little $$ vs. lots of $)

What I'm saying is, DON'T "STEP IN IT!" Before you climb the ladder, take a very hard look at where the TOP of the ladder leads! Don't attempt to climb short ladders!

Open your eyes (as I have).

Don't get DELUSIONAL about how tall the ladder is!!!

It's all too easy to get caught up in a sub-sub-sub-sub culture like the one this forum encourages, and start GLORIFYING SHORT LADDERS.

It's a trap -- And there;s nothing wrong with getting trapped in it, as long as you KNOW you're doing it -- as long as you're AWARE!

I'm 48, and I am NO CLOSER TO BEING ABLE TO COAST (financially) than I was when I was 18 -- If anything, I am MUCH FURTHER AWAY from being able to coast, financially.

I remember hearing a story about Dan Kennedy. Yes, the great + powerful Dan Kennedy, the very same. He was giving a seminar at a hotel meeting room -- telling business people how to make much more money using his marketing techniques. While giving his talk, he was able to look out over the heads of the eager attendees, through the window, into the parking lot. He found himself in the amazing position of having to give the seminar WHILE WATCHING HIS CAR BE REPOSSESED (TOWED AWAY) IN THE PARKING LOT.

All I'm saying is, be very discriminating about which ladders you climb.

1) Are you striving for REAL *entrepreneurial* goals (NOT *self-employed* type goals)?

2) Will the ladder you're climbing REALLY bring you there?

From what I've seen, most people would have to answer NO to BOTH questions -- and the answers matter more and more as you get older!

Cheers(?)

-- TW



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