Fb2 Never Bet the Farm: How Entrepreneurs Take Risks, Make Decisions - and How You Can, Too ePub

Great book! I just loved Professor Iaquinto. Definitely one of my favorite professors! Lots of great advice and hints.

This was the first book I read when starting my business. I enjoyed the real world examples they gave about the trials and tribulations of other entrepreneuers like Sam Walton, etc. It was an easy read, and was very inspirational. The resources listed at the end of the book was a great launching point for other books, websites, and organizations that can help you with your business venture.

I could summarize this book as saying it has some really solid points on taking risks & making decisions for start-up businesses, but it is a pretty boring book. It's a quick read as is, but it could honestly be summarized into an even quicker 10 page book while still making all of the same points.

This book is made up of 15 principles in 2 parts as follows:-

Developing the Correct Frame of Mind:-
1. Entrepreneurship is a career
2. Successful entrepreneurs are just like you
3. There are no secrets to success
4. Luck is part of the equation
5. Never reach for a gallon when you only need a quart
6. It shouldn't only be about money
7. Embrace fear
Maximizing long term potential by minimizing short term risks.
8. Never bet the farm
9. Don't spend a dollar when a dime will do
10. Always tap a bridge before crossing
11. Only fools fly without a net
12. Connect but protect
13. Buddy up
14. Learn to play the gray
15. Plan a timely exit

On page v, the authors stated their objectives is to help one prepare for setbacks by providing a framework that can help one reduce risks and simplify decision making. IMHO, they had achieved so with an easy reading, interesting yet very helpful book. If the authors had elaborated more on the above principles rather than provided a long list of "University Centres" in pg125-184 and "Selected websites / books / reference / index" in pg185-211, even better.

p.s. Below please find some of my favorite passages for your reference.
Even Sam Walton, founder of Wal-Mart, suffered a setback or two. He had turned his very first store - a Ben Franklin franchise in Newport, Mississippi - into one of the most profitable stores in the region. However, when he signed the lease for the building that housed his store, he neglected to include a clause that would have given him the option to renew after the first five years. Seeing what a success Sam had made (who wanted to take over the thriving retail business), when the five years was up, the landlord kicked him out. Pg5
When does "perseverance" change to "stubbornly hanging on"? pg9
If all of us lined up, blindfolded, at rush hour, on the curb of the Massachusetts Turnpike with an offer of a million dollars if we made it across the roadway alive, some of us would take the risk. Most would be killed or injured in the attempt. The few who made it would swear it was talent. Pg17
Fear is the greatest of motivators.....In the movie Cinderella Man, it was the fear of losing his family that drove a "washed-up" boxer named James Braddock to win the world heavyweight championship. Pg31
Don't take risks. Manage your risks. Pg43
The execution of an idea is often more important than the idea itself. Pg43
One of Sam Walton's golden rules was, "Control your expense better than your competition." His experiences taught him that if you run an efficient operation, you can make a lot of mistakes and still be successful. Walton also believed that Wal-Mart exists to brign value to its customers, which means, among other things, saving them money: "Every time Wal-Mart spends on dollar foolishly, it comes right out of our customers' pockets. Every time we save them a dollar, that puts us one more step ahead of the competition." Pg47
Being prudent isn't just an attitude. Some of the ways you can force yourself and your company to act more prudently are these: Question everything. Do your homework. Write things down. Pg73

If you are thinking about starting a business but haven't done so before, you should read this book. Never Bet the Farm will increase your chances of success, reduce your chances of experiencing a calamity, and focus your attention in helpful ways so you'll make faster progress. The book is a quick read, easy to understand, and unforgettable in its examples and observations.

If you have been an entrepreneur . . . or worked for an entrepreneur, you have a degree in the school of hard knocks about what can come your way. With those bumps and bruises, you'll develop a future business in a more successful way. For example, you probably experienced trying to do too much too soon . . . with not enough resources. That's a natural booby trap for most entrepreneurs who have a strong sense of urgency . . . that often overwhelms their sense of caution.

While the bookstores and libraries bulge with volumes that help you think about who your customer is, how to add great value for that customer, and what you can do to provide superior products and services, there's little to help you realize where it might help you to rein in your enthusiasm. Never Bet the Farm plugs that gap in your inexperience if you are first-time entrepreneur or would-be entrepreneur.

As I read the book, I was struck at how many of the points and examples perfectly match what I teach my entrepreneurial students. Why? Both coauthors are successful entrepreneurs as well as professors of entrepreneurship, and they bring those twin perspectives to bear in practical ways.

The book's structure is a little unusual. The book is short (about 120 pages) with a lot of references (university centers for entrepreneurship, books, web sites, and citation sources used in the book). That may seem like a strange balance. I rather liked the approach. Most entrepreneurs I meet don't like to read and aren't aware of how to connect to their local universities for various types of assistance.

Within the text, you'll find 15 brief essays that develop 15 principles that the authors want you to understand. Here's a paraphrased list of those principles: See entrepreneurship as a career; successful entrepreneurs are no different from you; success secrets are no guarantee; luck will affect you; take on the minimum challenge to move forward; be inspired by more than potential profit and gain; use your worries to help you focus on what you should be doing; hold back enough financial, relationship and emotional resources to be able to make a fresh start if all else fails; spend as little as possible to make progress; check out a choice before embarking on it; don't take risks you can hedge inexpensively; get involved with others, but keep your eyes open; add a teammate/partner to make your enterprise more effective; probe unexplored territory of what others will tolerate; and decide how and when you want to leave the playing field before you start.

Of the essays on these principles, I felt uncomfortable only with the section about probing unexplored territory. Some readers may choose to see this section as encouraging you to disobey the law and to not honor your agreements where you can get away with it. I don't think that's the authors' advice, nor do I think those paths are a good idea. Instead, they are trying to help you keep an open mind.

Many people will argue that there are success principles that apply to becoming an entrepreneur. Certainly, there are things you can do that will improve your odds (which this book describes) . . . but there are no guarantees of success. I particularly liked the way this book balances the requisite faith in your own abilities and vision with the need to be practical that a lot of things can go wrong . . . and probably will.

I thought that the examples drawn from Sir Richard Branson's early experiences as an entrepreneur were unusually apt. Most people don't like how he got started. If you like those examples, I suggest that you also read Losing My Virginity by the boundless billionaire which tells more about his early days.

I also encourage you to connect to your local university. Chances are you'll find resources there that will speed your success.