Some good discussion in this thread at Hacker News about how to evaluate people with a business skillset if you've got technical skills already.
I reckon "a knack for getting money" is probably the most key thing to look for in a businessperson. Some people have a knack for getting money.
All the business skills in the world without the knack for getting money doesn't fly. Well, maybe for employee #7,632 once a company's made it. But not for starting something up. You need to hustle and get money of some form real fast early on. A business guy who can't get money is probably worse than useless - if he wasn't on board, you'd be worried about solving the money problem yourself. But since he's supposedly the business guy and seems to be doing business guy stuff, you think things are cool. But things aren't cool. Go long enough without money, you die.
So, where do you get a knack for getting money? We're not born with it. It's acquired through action somehow. What's it take?
Well, let's look at Judd Weiss.
If you want to get a feel for what someone with a knack for getting money thinks like, you should probably read Judd's About Page (warning: bad language. worse than me, even). It starts:
Success and failure, they are separated mainly by those who try, those who don’t, and all the subtle levels in between. To try means to move your ass, get out there, and hustle. The whole fucking world is open to you. Everything you love in this world that nature didn’t deliver to you was created by a hustler. By those who try. All the billions of people on this planet, they each need help with almost every detail of their existence. You can certainly be of value somehow. That’s what we’re going to focus on a lot here at Hustle Bear.
Hi there, I’m Judd.
I’m 29. I’m a hustler. The last steady salary job I had was scooping ice cream at Coldstones at 17; since then I’ve been winging it and hustling, fortunate to learn how to thrive without a steady salary. I had 9 odd jobs when I started college (sold knives (cutco), sold phone service, computer consulting , math tutoring, sold Rolexes, etc.); became a millionaire by 24 at which point I bought a large modern house in Bel Air; got ranked among the top 10 Commercial Real Estate agents in California and the top 20 Commercial Real Estate agents in the World at Remax Commercial for 2005 and 2006; started my own Commercial Brokerage before witnessing the complete total death of Brokerage; prompting me to start new companies in fields I knew nothing about and had no network of contacts (like Parking) and rapidly bring these companies to success. Every business endeavor I’ve devoted myself to I’ve made a success. Mostly because I’m a maniac.
Go read the whole thing when you're done with this - there's an education in there.
What's most key to getting a knack for getting money? Me, I don't have it. Well, I do more than a lot of people, I've done alright for myself, but not like Judd.
Where's the knack come from?
I don't think it's particular skills. Anyone smart enough can learn the basics of negotiating, and plenty of people who've learned on negotiation still don't have the knack. Oh, it's good, I totally recommend you learn how to negotiate. Everyone should. But by itself, it doesn't translate to a knack for getting money.
Is it effort, a willingness to fail, and the ready-fire-aim/look-before-leaping approach?
Well, you definitely could use some of that, yes. But think about it - I bet you know someone that does a great job at executing and doing difficult things for a nonprofit, charity, religion, or some such, but can't get money for themselves and their own projects.
(Note: I think that's bad, and think that building and getting resources for yourself is good if you're a virtuous person. If you're a regular here, you probably feel the same way. If you're stopping by, let's skip the hand-wringing about different priorities for now. We're talking about where a knack for getting money comes from here.)
Okay. So, skills alone doesn't get you there. Negotiation, accounting, probability, general social skills, industry-specific skills... these are good and help, but don't directly translate to a knack for getting money.
Action-taking, effort, willingness to fail - these might be necessary, but aren't enough alone to get money.
Heck, I love the word "hustle", but hustling alone isn't enough. There's people that can absolutely hustle and work the phones and shake hands in order to work for a social cause, but would fall apart if they were tasked with getting money in order that their for-profit business doesn't go broke and die.
What is it then?
Well, let's look at another guy who has the knack for getting money.
It's worth reading 50 Cent's Wikipedia page - here's the Non-musical projects section:
Jackson has established himself in a variety of fields. In November 2003, he signed a five year deal with Reebok to distribute a "G-Unit Sneakers" line as part of his G-Unit Clothing Company. He provided the voice-over as the protagonist in the video game, 50 Cent: Bulletproof, which was released for PlayStation 2, Xbox, and the PlayStation Portable. Its sequel, 50 Cent: Blood on the Sand, was released in early 2009. He worked with Glacéau to create a Vitamin Water drink called Formula 50. In 2007, Coca-Cola purchased Glacéau for US$4.1 billion. Forbes estimated Jackson, who owns a stake in the company, earned $100 million from the deal after taxes. He has teamed up with Right Guard to launched a body spray called Pure 50 RGX Body Spray and a condom line called Magic Stick Condoms, in which he planned to donate part of the proceeds to HIV awareness. Jackson has signed a multi-year deal with Steiner Sports to sell his memorabilia.
In 2005, Jackson made a cameo appearance on The Simpsons episode "Pranksta Rap", in which he makes light of his legal troubles. The same year, he starred alongside Terrence Howard in the semi-autobiographical film Get Rich or Die Tryin'. He starred in the 2006 film, Home of the Brave, as a soldier returning home from the Iraq War, traumatized after killing an Iraqi woman. Jackson is working on a role as a fighter in an Angola State Prison in Spectacular Regret alongside Nicolas Cage, and starred opposite Al Pacino and Robert De Niro in 2008's Righteous Kill, a movie regarding a police death. He also started the film production companies G-Unit Films in 2007 and Cheetah Vision in 2008. In August 2007, Jackson announced plans to launch a dietary supplement company in conjunction with his movie Spectacular Regret.
In August, 2005, shortly before appearing in Get Rich or Die Tryin', Jackson published an autobiography entitled From Pieces to Weight: Once upon a Time in Southside Queens. In it Jackson explores the cultural and economic forces that led him to sell cocaine and crack, details his entrepreneurship as a drug-dealer and then as a rapper, and reflects on his own ethos and on society. On January 4, 2007, Jackson launched his G-Unit Books imprint at the Time Warner Building. He also co-wrote The Ski Mask Way, a novel about a small-time drug dealer who attempts to rob his employers, which is to be turned into a film. Jackson said he read Robert Greene's The 33 Strategies of War and worked with the author on a book titled The 50th Law, an urban take on The 48 Laws of Power. In May 2008, Jackson met billionaire Patrice Motsepe to forge a joint venture selling 50 Cent-branded platinum.
In 2008, Jackson started a reality television show on MTV titled 50 Cent: The Money and the Power; the winning contestant, Ryan Mayberry, won a $100,000 investment from Jackson.
In 2010, Jackson's film company Cheetah Vision landed $200 million in funding.
By far, the #1 thing for a knack for getting money is not having hangups about getting money.
Look at Judd -
"The last steady salary job I had was scooping ice cream at Coldstones at 17; since then I’ve been winging it and hustling, fortunate to learn how to thrive without a steady salary. I had 9 odd jobs when I started college (sold knives (cutco), sold phone service, computer consulting , math tutoring, sold Rolexes, etc.); became a millionaire by 24... [the real estate crashed caused the] death of Brokerage; prompting me to start new companies in fields I knew nothing about and had no network of contacts (like Parking) and rapidly bring these companies to success. Every business endeavor I’ve devoted myself to I’ve made a success. Mostly because I’m a maniac."
Judd hustles and gets money. Sold knives, phones, fixed computers, taught math, sold watches... got into real estate as a broker, bought and sold properties... got out of it when it's not viable and now owns a valet parking company and various other things.
He's got skills. He's got drive. He works hard.
But lots of people have skill, drive, and work hard without getting much of anywhere. No, the biggest thing is Judd has absolutely no hangups about getting money. If he sees opportunity to create some value and get some of the value, he gets in.
Look at 50 Cent - he's sold around 40 million records... I don't know what his cut is per album sold, but he probably made more money from the Glaceau Vitamin Water deal than he has from records.
He's got skills, he's got drive, and he works hard. But lots of musicians have skill, drive, and work hard. What sets him apart is that 50's got no hangups about getting money.
How many platinum selling artists are willing to go shovel snow for 100 bucks?
Probably the biggest thing that holds people back from getting money are hangups about it. How do you get over that?
Practice? Philosophy? Desperation?
Probably all of them. But I'd bet on the guy with no hangups about getting money and a little drive getting more money faster than someone with tons of skills but hangups about it. There's silly amounts of opportunity all over the place. The menus at the place I eat breakfast in Saigon are worn out and cheap-looking. I know the top printshop in the city and they've done work for me.
I could offer the owner to give him a full set of new menus for a few bucks when I'm on my way to the printshop anyways, and then drop them off the next morning at breakfast. In fact, I'm going to do that tomorrow.
Hey, he might say no. Takes 5 minutes though, maybe I can pick up $20 or $50 out of it. I'm just going to ask, "How much will you pay for 10 new menus, really nice quality?" Will take one menu with me if the number is high enough. The design documents at the print shop for 10 bucks for good quality.
Yeah, a knack for getting money. Skills, drive, work hard, start without thinking too much... but especially kill off your hangups about getting money. You look at people with the knack for getting money, they killed off any hangups about getting money.
I'll drop a line to Judd and 50, if we're lucky if we can get their takes.
The only moral in this story was luck, and the knack to capitalize on it.
Got a job at 17?
Luck--teenagers today are competing with their parents and grandparents for work.
Made a fortune in real estate in the early '00s?
Oh god, the luckiest of dumb luck/timing. Plus it would have required capital to begin with. What are the odds that a non-Caucasian will obtain significant capital anymore?
Every single one of those endeavors is capitalizing on his existing fame. And how did he get famous?
They both also tried a lot of stuff that failed. And you point at the successes, and you say "luck." And you're right, but not how you think.
When it comes to self employment "All the business skills in the world without the knack for getting money doesn’t fly".
But when you are employed by another, it seems different. We forget it.
Maybe we should. But with this economy, I doubt it.
Another great post -- very nicely done. Let me make one addition: there's a difference between sales and empire building.
Sales is what Judd is doing. He's looking for opportunities to move product, the bigger the better. Over 60% of millionaires come from real estate (as it seems he did) and your performance in that is very dependent on your sales skills (i.e. your ability to connect with people, persistence, etc.).
Empire building is what 50 Cent and his team is doing. He also has the drive but he's utilizing an asset (i.e. his brand) to start partnerships with all sorts of companies. The post is slightly misleading; the fact that Glaceau branded water after 50 and that Glaceau sold to Coke were two different, mostly unrelated occurrences. (What is not noted in the post is that 50 must have one or more very intelligent, business-savvy advisors who help him utilize his brand more effectively. You can see the shortcoming in 50's business acumen in the fact that he's willing to shovel snow for $100 -- surely his price point is too low and he's leaving too much money on the table.)
Hope this helps add to the conversation.
I've always said that the wealthiest people are the ones who have less of a desire to get rich than people with the biggest desire to get rich are the poor-middle class.
This reminds me of Gary Vaynerchuk on "How to monetize my blog"
Gary says "The way to make money online is to GRAB IT"
Interesting and timely topic for me personally. Here's my question to those who already make $10,000, $100,000, or $1,000,000 per month:
What is money? What can you tell me about it and how you feel about it? How have your opinions and feelings on money changed over the years? Going further - have you always felt comfortable exchanging your services for money? For relatively large amounts of money?
Some of these questions are more about self-worth and your own opinion on the value you can provide. I'd love to hear some answers!
Interesting blog, and comments.
I suspect it's different for different people. And that the key is to find out what it is to each individual.
However, if there's a universal truth in there, Judd's comments about being excited comes closest. At least in terms of getting something off the ground. After that, yes, focus and drive play a part...
I've coached a couple hundred clients over the past couple of years. I've found that when a person taps into what they are most excited and passionate about, whether their idea or dream looks like what the rest of the world thinks is exciting or valid, then it becomes a no-brainer for them to find the drive and commitment to do what it takes to make things happen in their lives and work...
And, that trying to do it alone can be very dispiriting, which is why finding a good coach or mentor, as well as like-minded people to tap into for ideas and feedback, can make success come much more quickly and easily.
In the words of the Bigger Game (www.thebiggergame.com), figure out what you're hungry for and what the compelling reason for that thing to exist in the world. Then take a deep breath (or gulp), take some bold actions, get yourself some allies, check in with them to reflect on what's working and what's not, make sure you're taking care of yourself along the way so your dream (as well as yourself) can survive, and pay attention to the bad habits that can become road blocks to your success (like some of the things Joseph and others mention above...).
Here's to making your dreams reality!
While I would agree on general on most of the points here, I would argue that at some point the road to glory requires turning a lot of opportunities to make money down - especially when it comes to working for other people, whether as an employee or under contract.
You're never going to have the opportunity to really focus n "the big one" if you're always dealing with the baggage of a dozen small ones. I would also add to that this...being the best at something, and really going to the top, requires both an intuitive and thorough understanding...Howard Hughes built his own airplanes. Henry Ford built his own cars. Sergey Brin and Larry Page built their own software. I can go on for a long time with such examples. In the grand scheme of things, "a couple million bucks" is pocket change - and there are millions of people worldwide who have achieved that level of success. When the object of desire ceases to be money, and instead becomes the pure act of accomplishment - that's when you're ready to do something notable.
"Focus on the significant few, not the insignificant many."
Just my 10 cents.
"The Knack for Getting Money" was a very popular post yesterday. In it, we looked at the success of two people with a real knack for making money - Judd Weiss and 50 Cent. I invited both of them to comment, and Judd kindly wrote this up. Here's Judd:
The Knack for Getting Money is a broad matter that cannot be fully understood from a sound bite, but I can say a few things.
I don’t know what a hangup for making money is. I try to offer something people will willingly pay for, and then they pay for it. What’s to be hungup about?
After years of pushing people (and my employees) to get out there and do more and become greater; perhaps the most significant trait that I’ve noticed, more than intelligence and skills, is that they’re genuinely excited.
It’s helpful to look at abnormal achievers in other fields. Sports always serves as a quick visual example. Why did that basketball player bother to get so good playing a game? Why did a body builder put so much muscle on his body? Why do some men consciously work to sleep with a ridiculous number of women? Why do some guys knock it out of the park with their income?
2013 was an amazing year for me. I made money, Bitcoins went ballistic, I found something I really like and want to excel at, I traveled, had interesting conversations with interesting people and overall got more focus and control over my finances and goals. I stopped playing video games and traveled to some great new places like Yosemite, Vermont and Portland.
2014 will the year of the real hustle for me. I fully expect to be working 60-80 hrs a week on markets doing research, learning, and actually trading. At the same time there are other ventures I am looking into and thinking about on a daily basis. The majority of my relaxing time involves biking to coffee shops or otherwise and taking that time to relax, get some exercise and think up of others ideas (its amazing how many ideas can come to you once you leave your computer and go for a walk or coffee).
I expect to be working hard, while going to college, Which I don't even know why I go to other than the fact its inexpensive and makes my parents happy. Regardless there is still a bunch to learn before I can make a full time living out of all of this.
Other than work, I want to travel internationally this year. I'm really eyeing Cuba for spring and possibly Spain or Southeast Asia for summer. I also want to read a lot more this year. I read a lot last year, but not anywhere near as much as I wanted and could have.
On top of all this I am thinking about getting back into language learning.