How to succeed in business - by making lots of mistakes!

> Does anyone have any examples they know
> about of how some people have "reduced
> their risk" in business?

Guy A: Would buy a sample product from overseas. He would then go around and generate sales - based on the sample. When he had sold enough for a container load, he would buy the container load. He only bought contain loads of goods he had already pre-sold.

Joe Karbo: Found a buyer for surplus items BEFORE buying the surplus items.

Firm B: Instead of buying land and building a new building, they contact a developer. The agreement was, the developer would buy the land and build the building and Firm B would lease it back. Firm B didn't have to outlay huge sums of money, or borrow money, to build a building. And the developer had an instant and assured tenant for their commercial building BEFORE they spent a single penny.

Cossman (correct me if I am wrong) sold railway parts without buying in stock. They took the orders and then had others supply what they needed. In effect, he was a commission salesman.

Any Business that uses commission salemen and saleswomen. They do not have to pay unless a sale is made. Thus, the money they pay to the saleman comes out of the profits of the product.

The commission salesman does not have to buy stock or hold stock. They sell stock they don't own.

Michael Ross