I am on the board of directors of a wonderful organization called IIEE which helps high school kids in disadvantaged and underserved populations.When I spoke at their annual conference this past Saturday, I met a group from East Newton, MO. What was amazing about this group along with their teacher, Denise Stafford was the effort they put into coming to the conference. Denise told me about how economically challenged the community is. They had to earn the thousands of dollars it required to attend the event. They rented a yellow school bus to make the 14 hour trip from their town to Chicago. The businesses they started ranged from bath salts to fudge.  But let them tell you their story:

I spoke last week at an Indiana Venture Center sponsored conference called Incubicity. What in Incubicity? It is a business plan competition to help Indiana form and grow new companies. What I like about these events are that people right here in the middle of America are starting real companies: Things for flat bed trucks, more efficient buring of fuel substitutes, soy products… It is proven that during difficult times people go out and start more businesses because they have no choice. And yes, I asked these entrepreneurs how do they bounce?

I always joke that entrepreneurs are not risk takers. If we knew the risk that we take, there is no way we would do it. Mostly, it is just too crazy.

This morning, there was a study reported in the Chicago Tribune about how testosterone may fuel people who want to take risk and affect the financial returns associated with them.

“In a study published Monday, British researchers found that higher amounts of testosterone [for traders] in the morning translated into bigger returns at the closing bell, indicating that the same hormone behind chest hair, deeper voices and survival in the wild can work magic on a balance sheet too”

Most interestingly, professors at Stanford and Northwestern ”showed erotic pictures to male college students, who then were asked to choose between two investments. Those who saw the sexualized images were more likely to pick the riskier investment, whereas those who saw photos of rotten food, for example, went with the safer investment.”

Is this why Las Vegas does so well? Sure sounds like a potent mix. Note that the study does not talk in terms of profitabilty. While typically the greater the risk, the greater the return but also the greater potential for the loss. If we take the risk, we need to be able to handle the outcome. Testosterone may get in the way of this when we get all pumped up about an idea or situation.

I talk in Bounce! how we need to look at Process over Outcome. Sometimes we get so focused on what the potential winning outcome can be, we forget about the step by step process we need to get to more successful outcomes. If we focus on the process, the outcomes will take care of themselves.

When my last book came out in 2003, You Need To Be A Little Crazy, I didn’t even know I was doing something wrong. In an effort to get the book in more retail stores, I would put a copy of the book on the bookstore shelf if one wasn’t there.

Now I read an article how people are sneaking items into the store like I did- they call it Shopdropping and I thought I was so orginal!

I was quoted in the Chicago Tribune today, taking about Piggybacking about a product for Uggs boots:

“Piggybacking on an existing hit is a great way to break into retail and gain distribution quickly, which otherwise can be expensive and time consuming, experts said.

“They are adding on to a market that is already there,” said Barry Moltz, an entrepreneur and author of the business book “Bounce!” due out in January.

“A lot of retailers will want [the Boot Bop pins] if they sell Uggs,” because they will likely bring higher sales, he said.”

There is alot of hype around entrepreneurship. I don’t buy into the rags to riches stories since in between, there is always alot of hard work, heart ache and some luck.

Scott Jordan is a true American entrepreneur. I had the good fortune of working with Scott many years ago in Chicago when he first got started. He was a lawyer that was frustrated with trying to carry all of his gadgets, so he decided to do something about it. Investing his own money in an industry he did not know alot about, Scott created the first Scottevest  jacket was born where you could carry all of your devices concealed and comfortably. He was at first concerned that he could not get any of the major retailers to carry the product. This did not hold Scott back- he went directly to the public garnering unprecedent media with his product in every major online and offline publication. Fast forward to today, where Scott now has an entire patented line and his products are available at major catalog companies. There aren’t better clothes to live and travel in!

Scott is featured in the new Bounce! book and I am now honored to join is board of advisors which includes Steve Wozniak, founder of Apple and Kenneth Klopp, founder of North Face.
 

There was a time when my youngest son would put a price tag on everything in his room so he could get money to buy the video games he wanted. He would lure dinner guests up to his room and ask them if they wanted to buy anything from his room. Many an “obligated” guest did.

I remember one time he had asked for something at the store that cost $5.  I purchased it for him but as soon as we got home, he put it in his room on display with a price tag of $3. I told him that I just bought that for him for $5…how could he sell it now for $3? (”we would lose money”) He replied, “It wasn’t my $3!”.

In that instant, I knew he understood the meaning of cost of goods sold. In my own businesses, I wish I learned that a bit sooner.

CNN Money writes last week about where the tax and regulatory climate is best for for small business. They quote Small Business and Entrepreneurship Council’s latest ranking which puts, drum roll please: South Dakota at the very top. It does not tax personal income or capital gains, corporate income or  capital gains. Fuel is cheap. A little far away from those of us that like the city life, but hey, you can’t have everything.

Now number 2, Nevada has all the advantages taxwise of South Dakota but sales and gas taxes are among the highest in the nation. Water can be scarce and whatever else comes with gambling. But heck, the entertainment here is alot better than South Dakota.

Where does your state rank? Illinois is not in the top ten!

I pondered this question in my upcoming book, Bounce!. There are alot of famous success college drop outs like Bill Gates, Michael Dell, Richard Branson and Steve Jobs. Lesser known ones I learned about at a site called, College-Startup.com (I love their tag line- Get Rich in Your Dorm Room). Interesting and suprising to me were Simon Cowell, Barry Diller, Walt Disney, Rachel Ray, Ty Warner and Frank Lloyd Wright. Any surprises for you?

I went to college because my parents told me that if “I wanted to get a good job, I should get a good education“…guess they were right, but no one said anything about skipping college and becoming an entrepreneur. In the late 70’s, starting your own thing was certainly frowned upon.

But going to college, does have its benefits. You can learn social skills (or is that partying skills?), working in a team, and how to prioritize tasks.

What did you learn at college that helped you in business?