Who is this man?
How wealthy is Bill Gates?
Why does he have so much wealth? Forbes estimates that even after gifting $20 billion to charity, Bill Gates is worth over $50,000,000,000!
Entrepreneur Why are they important?
What is the Definition of an Entrepreneur? Ambitious leaders who assume risks in combining the factors of production to create goods and/services.
What is the risk? Invest you time, money, and human capital in trying to start a firm or business. For every success there are several failures.
Why take a risk?
The rewards are great!
What do these guys have in common?
They are both billionaires!
What is Stock
How can stock make you rich? Bill Gates has $50 billion not directly because of the income of Microsoft but rather because the stock he owns in Microsoft is worth $50 billion! Why is his stock worth $50 billion? This value reflects what the market has established as the value of his interest in the company.
There is Wealth to be made…
How much? The total wealth of the 400 richest Americans this year totals over $1 trillion or $1,000,000,000,000!
Just be Careful to follow the rules!
But you can get rich if you make a mistake or two…
Entrepreneur CorpReports.com Founder: Treasures of Spain. Founder: Phototek Founder: CorpReports.com
Treasures of Spain While providing marketing advise to Spanish companies, Lopez incorporated Treasures of Spain for the purpose of importing Spanish Craft products. Risk: Investment of time and money
Phototek Established business to create 3-D images of tourists sites in Spain and secured marketing agreement with distributor with 2,000 outlets. Risk: Time and money including $35,000 to create initial sample sets.
What happened Unacceptable level of risk resulted from early success as others involved in the manufacturing process increased the costs involved to where the lower potential profit could not justify the additional risk in producing inventory required.
CorpReports.com Business Plan: To provide Annual Corporate Reports for all publicly traded companies via the internet. Early success: Based upon success of other .com companies, venture capital easy to secure. Company went public with $20 million market value.
Yet company primarily consisted of Lopez, his idea, and 20 employees scanning data to create website. No revenue model existed but each of the principles had stock that the market valued at over $1 million.
CorpReports.com was acquired by another company but…
The .com market crashed and the acquiring company did not go forward with the project.
How did Lopez get started? Rabbit Pizza Garage
My First Non-Success
My Rabbit Story Needed cash to buy second rabbit. Everyone knows about rabbits… Sold “futures” to other kids on block at 25 cents each. Used funds to buy second rabbit. Failed due to poor management
Why Unsuccessful? We were trying to mate two male rabbits! (Human Capital Deficiency!)
My Pizza Story Problem: How to purchase pizza without any cash? Answer: Pie has 8 slices, if I sell 7 slices for 1/7th of cost of the pie my slice is free. Result: Tremendous success:
Garage Story Dad tired of watching me tanning in yard so offers me $100 to paint garage. Great opportunity for me but failed to make dad happy Why?
I paid one of my brothers $25 I paid one of my brothers $25.00 to paint two sides of garage and my cousin $25.00 to paint the other two sides.
While I tanned in the yard with $50.00 in my speedo.
The End
Did I tell you about my Lemonade Stand?
What are you waiting for?
Just do not give up…