The Profit Prophet

I will begin and end this article with two quotations. The first is from Edward Rogers: "You don't deserve to be called an entrepreneur unless you've mortgaged your house to the business." --Edward S. (Ted) Rogers  This one sentence pretty much says it all. Entrepreneurs are not necessary gamblers, but they are willing to put everything they own, or go all in, in order to make it happen. In the classical sense an entrepreneur is define as anyone who has possession of a new enterprise, endeavor, venture or idea, and assumes significant accountability for the inherent risks associated with the development, growth, and outcome. He or she is an organizer who combines land, labor, material resources, and/or capital to create and market new goods, products, or services. The term "entrepreneur" is loaned from the French and was first defined by the Irish economist Richard Cantillon, where the term was applied to the type of persona who was willing to take upon th...

This is a question I have been asked dozens of times. I have been pretty fortunate and had a great deal of success as an entrepreneur in raising money, and many of my friends, colleagues, and entrepreneurs in waiting have asked me, what does it takes to get investment? Other that knowing someone or doing it once before (that is the easiest way), how can a “nobody” get somebody to invest in your bright idea? There are not a lot of things you can control when it comes to funding, but here are some tips YOU can do that seem to work for me, and hopefully for all those budding entrepreneurs out there as well! It’s all about the sizzle…you are selling smoke and smell, not steak! OK, being in Texas for most of my life (but not a native), I have learned a lot about cattle, steak and sizzle. You want to make their mouths water. When you are “selling” your idea, you have to think more like a televangelists and an engineer, CEO, or businessman. Essentially, you are selling somethin...

In my entrepreneurial journey, I have been fortunate enough to have met both good and bad mentors and entrepreneurs.  The one thing that make a good entrepreneur it the fact that KNOW the the journey is going to be hard and arduous, but they decide to do it anyway.  What makes a poor entrepreneur is a person who thinks there is a shortcut, or an magic wand that will make the "successful."  Yes, some successful entrepreneurs "look" like they just magically made their fortune, but that is such an illusion.  Everyone of them had to fight, and scratch, and claw and yes, a few got a little bit luckier than most, but it was NEVER easy.  And if you think creating something new is easy, stop right now.  You will never make it. Actually, most of the successful entrepreneurs had to pivot when they ran into an unforeseen obstacle in their path. Yes, even the mighty Google did not know how it was going to make money until someone came up with the idea for AdWord...

Recently, I have had to make some presentations about what it takes to be an entrepreneur or start up a company, and what type of people I would hire or be associated with.  When asked, I usually come back with this question:  If you had a choice to sail the seven seas either with the Royal Navy or as a Pirate/Privateer, what would you choose? Incredibly, the answer to this simple question is really at the crux if you can be an entrepreneur or not.  One choice offers the prestige and power of a great power, and known and respected entity, at the price of having to conform to a certain system of rules and regulations based mostly on seniority and position not necessarily performance and merit.  The other offers a high risk lifestyle, but with some freedoms and the ability to join a group of liked minded individuals.  To sail to unchartered, risky lands; to fight for what you believe in, and to seize opportunities wherever you go. How you answer this questi...

Since I have been emailing friends for over 15 years with quotations, and keep a post of quotations ( wordecho.blogspot.com ), I have been asked by quite a friends to compile a list of quotations that would best describe the characteristics of an entrepreneur since it seems like most "Best" lists just seem to be a Hodge-podge of quotations without any real focus. In a previous post ( Traits of an Entrepreneur ), I listed the 18 traits of an entrepreneur which are: Creative, Perseverance, Self-Confident, Intuitive, Independent, Self-Motivated, Optimistic, Focused, Forward-Looking, Decisive, Enterprising, Disciplined, Cooperative, Results Oriented, Energetic, Persuasive and Organized.  This list of quotations highlight these 18 characteristics. 1. “Creative people are at their most productive when they appear to be doing nothing.”             --Tim Askew 2. “Happiness is not in the mere possession of money; it lies i...

Some people do not understand why they become entrepreneurs and go blindly into an endeavor thinking that becoming rich is the only thing that is important. Here is a tale of perspective that all should read: ________________________________________________- An American investment banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellow fin tuna. The American complimented the Mexican on the quality of his fish and asked how long it took to catch them. The Mexican replied, "Only a little while." The American then asked, "Why didn't you stay out longer and catch more fish?" The Mexican said, "With this I have more than enough to support my family's needs." The American then asked, "But what do you do with the rest of your time?" The Mexican fisherman said, "I sleep late, fish a little, play with my children, take siesta with my wi...

I just read in Inc. Magazine about a 13-year-old entrepreneur who started a company called Hiccup that is a lollipop that cures hiccups.  While I laud her “going it out on her own” here is the one problem with this.  There is a cure and it is free and here it is: When you get the hiccups do the following: 1) Find a quite place or stand still for about 1 minute 2) Take a Deep Breathe, as deep as you can 3) Focus on calming yourself down and let out the breath as slowly as you can 4) The trick is trying to get your heart beat to slow down 5) Repeat as necessary but you will not have to do it more that 3 times The has worked on 100% of the people I have met who have hiccups...so, here is a shareware version of better solution to her product. Sorry kid, and welcome to the real world of business. Just because you get a lot of press and notoriety, does not mean your product is good or you will be a success.

OK, I was speaking to a group of college MBA / Graduate students about starting a company, and a term I have used many times was brought up, and no one had heard of it...so as a public service, here is the definition of wantrepreneur.  (see also intrapreneur, which I did not coin) – noun 1. a person who thinks about being an entrepreneur or starting a business but never gets started. 2. a person who fails to organize or manage any enterprise, especially a business, involving any considerable initiative and risk. – verb (used with object) 3. failure to deal with or initiate as an entrepreneur. – verb (used without object) 4. to act in a manner contrary to an entrepreneur. 5. to accept the status quo in any business situation

Having to do a job search under any circumstance is absolutely no fun. Sending out your resume again and again over the internet onto job sites populated by thousands of people just like you is draining at best and a total waste of time at worst. How many times have you rewritten your resume in the hopes of landing one or two interviews for the hundreds of job openings you find? Every day your self esteem is being destroyed by a process you have absolutely no control over. Would it not be better to try and create something of value and where you are directly benefiting from the effort, skills and talents you put into it? Seize the Day As a talented or skilled professional, searching for a job is actually a very shortsighted endeavor. We are all aware that gone are the days when people worked at the same company for twenty to thirty years and retired with a pension large enough to sustain a comfortable retirement lifestyle. Since the mid-1980s, most professionals have cha...

As I go from network meeting to network meeting during these very uncertain times, I notice two types of people. One type is hoping, praying, and desperately searching for a job. The other type is looking to start a new endeavor or more precisely create their “own” job. As I have been fortunate to be associated with a number of successful entrepreneurs and some successful start up endeavors, one theme keeps recurring: Entrepreneurs are the closest thing to God on Earth! Why? Well, as the story goes, God said “Let there be Light!” In small words, God had a thought, and that thought manifested itself into reality. Essentially, God created something that was not there earlier. So too, an Entrepreneur has an idea and then goes about creating a product, service, company, system or whatever. Essentially, there was nothing and then “poof” there is something! I believe that my background as an engineer, entrepreneur and American it is my duty to create new ideas, companies, jobs, p...