Are YOU an Entrepreneur? ..and is this The Best Answer Ever?

Hi Dien,

Thanks. I found the definition short and sweet. Glad you commented on the rest of the article as I found that fascinating as well.

Risk:
THANKS for the real world examples of Branson and Kerkorkian. It's interesting to see how they mitigate risk, by having plans B-Z, and or escape clauses etc.

It fascinating because a LOT of the "Self-helpy" type material make it seem like these entrepreneurs burn all bridges and ONLY have a plan A. Which a lot of the times as you've demonstrated is just not so. Plan A usually has -A1-A9.

As for Deal making it is as Robert Ringer says MORE important than marketing. If no Deal...then nothing to market. A very important skill and YES very real world.

"Deal making" can potentially be very simple...aka just A.S.K

I like the view of "no limits" on resources...

Interesting story about the warehouse. I like to read more "down to earth example from regular folks.

Ha Billionaire Felix Dennis quote from the book "How to Be Rich" is ringing in my head.

"The World is Full of Money. Some of it Has Your Name On it. All you have to do is collect it"

Money is just ONE resource.

Thanks for sharing Dien

Originally Posted by Dien Rice

Hi Duane,

Thanks - interesting definition and article!

First... The article mentions the topic of "risk." If you look at a lot of books, they talk about "entrepreneurs" as people taking on a "risk"...

However...

Most successful entrepreneurs figure out how to reduce their risk to as low as possible.

To give some examples...

When Richard Branson started Virgin Airlines, people said he was taking on a huge risk.

While he was taking on a risk - people didn't know he had a deal in place to reduce his risk.

I think his biggest expense was the actual Boeing airplane. In fact, he had a deal with Boeing that, if the venture didn't work, Boeing would buy back their airplane at the same price Richard Branson paid for it.

So - the biggest expense he had - he had reduced the risk by doing this deal with Boeing (as one of the conditions of the sale). He still would have had the cost of marketing, paying employees, etc. However, he had virtually eliminated the risk of the cost of buying the airplane itself.

Others reduce their risk with a "Plan B" (and even a "Plan C" and "Plan D").

Kirk Kerkorian bought surplus military airplanes (after WWII) from Hawaii, flew them himself to the US mainland (he was a pilot), and sold them for a profit.

However, he also had a "Plan B" - which was, while he was waiting for a buyer for any of his planes, he also hired the planes out for charter flights. So, he had at least a couple of different ways to profit from his airplanes.

Another part which is good in the article is that, it is true that you are not limited to your own resources.

In fact, the resources at your disposal are (potentially) unlimited!

It's called doing a deal. If someone else has a resource you want - you can try to do a deal to use that resource.

Let's say you need a warehouse - but you can't afford to buy one.

So you may be able to do a deal to get a warehouse.

You might find a business which owns a warehouse - but is only using part of the warehouse, with the other part of it empty - who may be willing to do a "creative" deal. (After all, if part of it is empty, they having nothing to "lose" as they are making no profit from the empty part of their warehouse, anyway.) Such a business may be more willing to do a deal with you.

For example, if you have the money, you could rent the empty space. Another alternative is, go into partnership in your business with them, and have their contribution of the use of their warehouse be part of the partnership deal. Or, instead of a partnership, have them be an "investor" in your company - and their investment, rather it being in cash, is through the use of their warehouse. Or, you could barter for the unused part of the warehouse - that is, give them free services or products, in return for the free use of the empty part of the warehouse. There are many different ways to structure such deals - depending on what you want, and also what they want.

I know a guy who got free use of a small warehouse. It's a kind of complex story, but the warehouse was sitting there empty and run down. The owner owns so many properties, he doesn't really care about some of his empty properties. The guy I know keeps the warehouse clean and maintains it - and in return, he has the owner's approval to use it - for free. (The owner will still make money from the increasing value of the warehouse, and the real estate it sits on, over time. That this guy keeps it maintained and clean actually helps the warehouse to maintain its value - so it's win/win for both of them.)

The fundamental idea is, you actually have potentially no limit on the resources that are available to you (as long as those resources exist on planet Earth). However, you have to have the creativity to propose a "win/win" deal with one of those people who controls the resource you want or need.

Anyway, this is "real" stuff - not just theory!

Best wishes!

Dien

[Dien Rice]

Originally Posted by Duane Adolph

I like the view of "no limits" on resources...

Interesting story about the warehouse. I like to read more "down to earth example from regular folks.

Ha Billionaire Felix Dennis quote from the book "How to Be Rich" is ringing in my head.

"The World is Full of Money. Some of it Has Your Name On it. All you have to do is collect it"

Money is just ONE resource.

Hi Duane,

Your mention of Felix Dennis reminded me of a post that Ankesh once posted, about how Felix Dennis started his first magazine...

When you read it, you'll see how he started with almost zero resources, too...

However, you don't need to "own" or "control" those resources, when you can possibly do deals to get what you need. That is why you have "potentially" unlimited resources...

Here's Ankesh's post:

Felix Dennis: How to obtain capital to start a business to get rich

Also, my reply on the examples of Bob Reiss and Sam Raimi are a couple more examples...

How Bob Reiss put together his TV-Guide-based trivia game, and how Sam Raimi got his start

The only "rule" in deal-making is that it should be "win/win" for each party. However, each deal will be different, as it will depend on your circumstances and what you want/need, and the other party's circumstances and what they want/need too.

Best wishes,

Dien