How To Create Your Own LuckRecently by James Altucher: How To Have More Common Sense
This was a guest post I did for TechCrunch this weekend I’m in even worse trouble now. A few weeks ago I had to speak at Barry Ritholz’s conference but that turned out to be “only” a panel. It was a great panel but I knew I would only have ten minutes of time so not need to prepare much although even then I was worried. [Click above link for video, including my panel]. Now I’m speaking for ONE HOUR at Defrag in Boulder, Colorado next week on November 9 and I’m terrified. For one thing, all of the other speakers are smarter than me. Right before me is Roger Ehrenberg speaking about “big data”. I’m not even sure what “big data” is so right off he’s smarter than me. Then Paul Kedrosky is speaking later in the afternoon about god knows what. Paul has an excellent blog obsessed with everyone from economics to weather data. So despite my expertise in speaking I’m finding I’m a bit nervous. I could open up with the same line I used on Barry’s panel, “When I was walking over here I had an erection. Not so easy for a 43 year old without any stimulation whatsoever.” This might not be the exact crowd for it.
Technically, the title of my talk is “Success is a Sexually Contagious Disease” but I only gave them that title because it sounded neat and it was the title of a blog post I then published. But I have no idea if that’s what I’m going to talk about or if that’s something people will be interested in. The conference itself is about entrepreneurship. But I always am plagued that I’ve gotten somewhat lucky on this issue. My first company happened during the internet boom and I happened to be one of the few people around (at the time) who knew how to make a website. The second company I had, where Yasser Arafat was an investor, went down in flames in the Bust. The third company I sold was a venture firm. We were only sold because our top investor was so disgusted with us he wanted to buy out our ten year contract. And the third company I sold was Stockpickr.com, which I sold to thestreet.com that I already had a great relationship with. Another company that I made a decent living off was trading for hedge funds and then starting a fund of hedge funds. Everything else I did (about 16 other attempts at businesses) failed. So I guess right now I can see if it was luck or if I learned some lessons.
1) Luck is similar to “being at the right place at the right time”. So you can easily position yourself there. We know that the right place for right now is somewhere in social media. There are still many niches (plumbers, diamond wholesalers, etc) that aren’t properly using social media correctly. The big agencies are ignoring them and they are too small and focused to understand how to use direct marketing via social media. If I were starting a business right now I’d either do lead generation via social media for a small but focused niche (diamond wholesalers, small restaurants, etc) or I’d provide financing/lending for companies that are doing this and have established records of turning profits on money spent. I know several companies doing the above but it’s an incredibly wide open, gaping hole in the industry. If I were a banker I’d look to buying companies all over the country in this space and then bringing the combined entity public in the IPO boom that’s about to start happening. 2) My venture firm being sold I learned one thing: have at least one partner who is a great negotiatior. “Be bad” and someone will be willing to buy you usually doesn’t work. I was lucky there. Although, I will say, I had good, professional partners that knew how to negotiate very well. The one guy’s main technique was to act like we always had alternatives when we never did. And he would ignore the other party for a day or so while they got desperate. It’s a gutsy way to negotiate but it worked. Here’s part of the reason it didn’t work out for me as a big VC. 3) The mental health facility I sold I learned some very important things. Quantity, persistence, and story-telling. You need to hit everyone and then call everyone back twice. We must’ve made 30 calls and then 30 follow-ups to make sure we spoke with the right person. And then with each person we pushed to have a phone call with the company. Then once we had a potential buyer on the phone we had to make sure we told at least three different stories: how the company doing (and was going to do ), the reasons why growth was a LOCK, and the reasons why management was incredible. Then we got the deal done.Which was a story unto itself. (Here’s my prior post on TechCrunch on how to best sell a company). 4) Stockpickr, as I mentioned before was a matter of being both proactive, and having friends in the right places. But it also was a matter of vigilance. I had a particular passion about how a financial community could develop with NO NEWS. I hate the news. It also was a matter of nourishing relationships built up over a five year period of non-stop work in the financial media space. November 12, 2011 Copyright © 2011 The Altucher Confidential
|
