Entrepreneurs and top-level executives have something in common: both groups have the power of kings (or queens, depending on your gender) to choose the direction in which they want to go and then execute the plan. No matter how large or small the business under your direction, you are constrained only by the regulatory environment, economic realities, and your own vision or lack thereof. This is the reason why capitalism attracts so many of the brightest and the best, because it sets you free to conquer new lands (markets), build great kingdoms (companies), and enjoy the spoils of your victories.
Think of someone like Bill Gates, who dropped out of school in 1975 to form a little company supplying a BASIC interpreter for the Altair 8800 computer. There were times in the early years when Gates would work 36 hours in a row to prepare for a sales presentation (they were busy writing the code to make the demo work), and he used to joke that as an entrepreneur he got to work just half-days … and it was up to him just which 12 hours of the day he would work! How amazing it is to think that his little company went on to employ over 60,000 people today, while also supporting countless more who make their livings building, selling, and maintaining the machines and programs that work with Microsoft programs. At one point, when Microsoft was comprised of a mere 30,000 workers, they used to produce over $1 million/year in revenue per employee, and their gross margin was 85%. Do you think the leaders of that company were having a good time of it? Maybe you should ask Paul Allen yourself, next time he pulls into Vancouver’s English Bay with his 416′ yacht — you know, the one with the 80′ sailboat stored on the deck, ready to be winched into the water in case he feels like sailing that day. Even now, Microsoft still spins off over $1 Billion in free cash every month, after all expenses and taxes. Not that earning money is the ultimate sign of success, but it is one way of keeping score in business.
One of my business associates likes to tell the story of his first year as a startup, when he cashed in all of his retirement savings and slept on the floor of a borrowed apartment, only to earn $14,000 that year (1983). How nice it was for him then, just a few years later, when he could pay cash for a brand-new 42 foot sailboat. His first client signed on after a software demo during which the 5-and-a-quarter inch floppies in his two drives overwrote each other, effectively wiping out his demo. Their comment before handing him the contract? “You mean to tell us you flew all the way out here with a demo and didn’t bring back-up disks? That’s the dumbest thing we ever heard!” But apparently they liked him personally, so they gave him the account.
From such humble beginnings, great things do grow. That entrepreneur eventually opened offices in places like Bermuda and Curacao, and did business all over the world. Was it worth it? Risking one’s retirement? Quitting a secure job with a great pension plan and lots of holidays and perks? For people who strive for independence and the opportunity to forge their own destinies and write their own histories, there is nothing quite like it.
Running a business brings you face to face with your most deeply held fears, your greatest insecurities, and all of your personal limitations and weaknesses. And these are just the internal challenges you must face. Then there are the external challenges such as market collapses, absconding partners, capital shortages, and lawsuits. As one colleague of mine always used to say with a smile, regardless of what we faced that day: “Just another day at the office!”
Donald Trump is widely respected as an unmitigated success story, but to get to where he is, he had to overcome decade after decade of financial and other problems. Once, he couldn’t meet payroll for one of his casinos, so his father-in-law at the time drove over to the casino, bought $3 million worth of chips, and walked out again, effectively staving off the collapse of the business. Was it worth the risk and the stress? Heck, I can’t help but believe he would see those times as the glory years.
Are you having fun in your business? Are you building something great? Will you be able to look back in a few years and tell great stories of battles fought, foes vanquished, and new lands conquered? I personally can’t think of another field of endeavour where any individual with a vision, a solid work ethic, and the willingness to learn has as much opportunity to succeed beyond their dreams. I wish you the best in following yours!
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