NEVER BET THE FARM
Description
Two leading entrepreneurs turn much of the so-called expert advice for
entrepreneurs on its head. They show that by preparing for setbacks and
using a framework that can help reduce risks and simplify decision making,
entrepreneurs can increase their probability for success. They refute the
idea that there is an ideal entrepreneurial "type," and show that luck can
be as important as a business plan in many enterprises. Never Bet the Farm
is an easy-to-understand and attractive tool for anyone who has a business
idea, but who might be wary of the risks implied in starting their own
business.
Never Bet The Farm begins with an acknowledgement that the vast
majority of new businesses will not meet their founders' expectations-even
when the financing becomes deeper, the attitudes more positive, and the
planning more sophisticated. That experiencing a bankruptcy does not mean
you have failed, but winners are those who can keep themselves in the game
for another shot at success.
In Never Bet The Farm, you'll discover:
- Entrepreneurship is not a one-time event, it's a career
- Successful entrepreneurs are just like you
- Luck is part of the equation
- Never reach for a gallon when you only need a quart
- Embrace fear
- Don't spend a dollar when a dime will do
- Always tap a bridge before crossing
- Only fools fly without a net
- The need to play the gray
While managing risks is an ongoing challenge for entrepreneurs, it is
perhaps most critical when they decide what business model to pursue.
Entrepreneurs can reduce the inherent risks by understanding that:
- Incremental advances are less risky than revolutionary ones,
- Even a well-traveled road has surprises,
- Great ideas are often low tech, and
- The execution of an idea is often more important than the idea
Though we live in a world that cherishes the misguided notion that
"Bigger is Better," Never Bet The Farm shows entrepreneurs that starting
small is a surer path to success by:
- Limiting the size of their mistakes.
- Teaching them fiscal responsibility.
- Giving their company a competitive advantage.
- Redirecting their venture in a positive direction.
- Allowing them to keep a higher percentage of ownership.
- Preventing them from entering into an unwise venture.
- Keeping shut-down costs low.
Another common fallacy is the notion that speed is the key to business
success because those who move slowly are doomed to failure. But Never Bet
The Farm contends that being prudent is a more logical strategy because it
can:
- Increase customer retention.
- Increase employee morale.
- Disarm the competition.
- Minimize financial risk.
Other useful lessons that entrepreneurs will learn are:
- 4 areas where bending the rules are beneficial
- 6 ways to keep your initial investment small
- 7 reasons why you should avoid business incubators
- 12 goals that a new venture can fulfill
- 5 meanings of being prudent
Finally, and perhaps most importantly, you will learn that the ability
and willingness of an entrepreneur to execute a timely exit is crucial to
getting a second chance at success.
TABLE OF CONTENTS
Preface
Introduction
Section I
Developing the Correct Frame of Mind
Developing the Correct Frame of MindPrinciple #1 Entrepreneurship is a careerPrinciple #2 Successful entrepreneurs are just like youPrinciple #3 There are no secrets to successPrinciple #4 Luck is part of the equationPrinciple #5 Never reach for a gallon when you only need a quartPrinciple #6 It shouldn’t only be about moneyPrinciple #7 Embrace fearSection IIMaking the Right Decisions
Making the Right DecisionsPrinciple #8 Never bet the farmPrinciple #9 Don’t spend a dollar when a dime will doPrinciple #10Always tap a bridge before crossing Principle #11Only fools fly without a netPrinciple #12Connect but protectPrinciple #13Buddy upPrinciple #14Learn to play the grayPrinciple #15Plan a timely exitFINAL WORDS
It has been said that the best time to respond to a disaster is before it occurs. In Never Bet the Farm, we have presented a proactive approach to business failure, contending that what separates winners from losers is not bankruptcy—the vast majority of entrepreneurs will experience such a catastrophe—but that winners keep themselves in the game by maintaining enough will and resources to try again. Following the principles in this book can help you reduce the risks inherent in starting a business. You will be prepared for the worst so you can limit any damage and preserve assets to try again. Finally, by being ready for a catastrophe, you could prevent the very thing you fear most—business failure.We hope Never Bet the Farm has been both enlightening and useful. We wish you the very best of luck as you pursue your career in entrepreneurship. If you would like share a comment or anecdote, please write us
AN ENTREPRENEUR’S GUIDEBOOK
Whether a neophyte, or an experienced entrepreneur, you must find the right opportunity, build a strong network, and do your homework in order to be successful (See Chapters #10 & #12). To assist you, we will present in Never Bet the Farm three useful references.The first is a list of nearly 600 universities and colleges from around the world that maintain a center or program devoted to entrepreneurship. While the vast majority of these centers are affiliated with a business school, some are attached to a law or engineering school, such as University of Pennsylvania’s Law School’s Small Business Clinic. More than half of those listed offer entrepreneurs free, or low-cost, consulting. Other services provided vary from a ‘Tip of the Month,’ which you can view on the website of the Jim Moran Institute for Global Entrepreneurship at Florida State University; to breakfast seminars offered by Black Hills State University’s Center for Business and Entrepreneurship; to a faith-based entrepreneurship program at Huntington College. Other offerings include: Workshops, business plan contests, incubators, newsletters, on-line magazines, on-line libraries, books, articles, periodicals and a variety of social events. Finally, nearly all of these centers maintain links to other organizations, such as the U.S. Small Business Administration, the Kauffman Foundation, and local Chambers of Commerce. The second section consists of a list of websites, focusing on national business organizations and agencies of the U.S. Government. We also provide examples of websites sponsored by local organizations, and would encourage you to search for similar organizations in your home town. At the end of this section we present a list of online business publications. In the third section you will find a list of entrepreneurship-related books, categorized into sections such as: Textbooks and How-to Books, Finance, and e-business. Most of these books are available online or at your local bookstore, although for some you’ll have to make a trip to your local library.
