Billion Dollar Employee

I've acquired a number of employees from different companies and other companies have "taken" my employees in the past as well. It all revolves around my "billion dollar employee" theory. Some people ask me how some of my staff is so powerful and the truth is because they have worked for leading corporations in their career before they have worked with me. Of course they are getting the same benefits and some more otherwise I highly doubt they would have left their companies, but they are worth every penny, in most cases.

As a business owner or entrepreneur, depending on the amount of money you have decided to spend on payroll and related costs, you might be able to acquire employees that have tons of experience under their belt and who can truly take your business to the next level. If an employee makes me a billion dollars, why wouldn't I pay them well. If an employee makes me five million, again, why wouldn't I pay them well? I mean after all without each member of my staff, I definitely wouldn't make the money I do now.

If you are just starting out, you obviously want to get the most powerful people or most experienced on your side, but sometimes the funds are just too dry. So what can you do? Keep looking for someone that fits the pay scale. From personal experience, when I have hired people from other companies to work for me, they at least bring in some profit if not a huge amount with the project they are working on. The reason I pay these employees really, really, well is for plenty of valid reasons. First, their experience, then their connections, then their PROVEN performance, and the results they give me.

It's not good to commit to an outrageous pay, but if you really think the employee will be able to pull through with a high profit on their work then it might be worth the risk. Even then you should be careful how you play the cards because you don't want to spend all your money before you make any, otherwise you will definitely fail.

If I know I am going to get involved with a future project (3-6 months later), I have even put an employee on payroll once for doing NO WORK for a few months because I knew they were an asset to the project that I would be doing. The results were that they BEAT my expectations and now work with me on various projects. Even though I "wasted" payroll, it wasn't a waste in the long run. If I hadn't acquired that person at the time I did, they would have been employed elsewhere and I wouldn't have that particular "guru" on my team today.

There might be an ethical dilemma when you are hiring someone who works for another company. I NEVER take employees from small business owners, even if I don't know the owner because that creates bad air between a possible future encounter. Employing someone after they leave a large corporation, I believe, is okay because large companies burn through people more frequently and have a large number of performers.

Finding A Business Partner

After talking about getting a business partner for a new venture, a few readers requested that I write about how to find a good business partner. There is no playbook to find a good business partner, but I use some of the following strategies when I am seeking a partner for a new venture.

Note that each situation can vary and depending on the talents of the person, I sometimes look for all factors and sometimes just particular talents in a future partner.

-An expert- As mentioned in a post about exploring new turf, it is a great benefit to have someone who knows the industry's ins and outs, when you are starting up a new company. They usually know what to avoid and what helps in terms of growth and planning.

-Financial capacity- This is sometimes a huge factor and sometimes not. Depending on the size of the venture, I offer partnership on the amount of financial capacity people have. If a person can bring more money to the table, it is certainly a good thing, but if a person doesn't have a lot of money to invest and they have A LOT of talent, I still might take them on board as a partner.

-Experience- I really don't deal with any people who are inexperienced because I don't like to deal with the lack of knowledge some people have. It just slows down growth of a company and if there are more than just one other partner, things can get complicated.

-Involvements- If I am starting a new company and a prospective partner has connections or involvements in other companies in the same industry, I will take a closer look at them because they might be able to "pull some strings" to accelerate the company's growth.

-A little different- Say that two people want to start a web service. I would say that the ideal combination of talents should be that one person is a guru at programming and another person is a guru at marketing. Having a partner with some different expertise can help a company tremendously. There isn't much sense in having a whole lot of something and absolutely nothing else.

-A known person- I haven't really ever done business with people I don't know. The only time I do that is when someone I know brings someone they know to the team. Having the assurance that you have known a partner for a long time before you do business with them will give you a better sense of their style and abilities.

The factors always remain that you might want someone to be your business partner, but they may not want to come on board. Then there are other options such as: giving them a bigger share of the company for less investment, just hiring them for their talents instead of giving them partnership, restructure the venture as how they would like to roll it out.

It also goes to say that you should never put all your eggs in one basket and rely on a business partners talents to take a company to the top. Make sure you find the right staff and bring on more than just one other partner if necessary.

Working Alone

I hear about new ventures aspiring entrepreneurs are taking on, frequently, but one thing I don't hear as often as I would expect is that people have business partners. A lot of time people want to start-up a company single-handedly- or at least being the only founder so they can take a bigger piece of the action, but I say people shouldn't fish alone. Working alone can only mean that you win big, if you win at all. Most of the time, I never work alone, because I at least have one other business partner involved with each venture.

There are plenty of pro's to working alone, but I want to discuss the how it can really hurt an entrepreneur if you start a company alone and there is nobody standing by your side. Of course you have to find the right partners to take on the venture with you, but when you do it is all worth it.

-Multiple brains- We all know two brains are better than one, so the same thing goes for taking on a new venture with more than one person. When you are starting up a company, you will always run into problems, but it is how you address those problems, which will put you on top or make you fail. Having another person that is part owner of the company will surely give you high quality input on what should be done to address each problem.

-They don't just work for you, they work with you- Often times I hear entrepreneurs say, "Oh, I'll just hire a few people, instead of having a partner," but that doesn't work the same as a true business partner. People who work for you, do just that, they work for you. People who are involved with a company at an ownership level, care more about the success of a company and will generally put forth more effort and time into the venture.

-You think something is flawless, but they don't- When I think something is great and one of my partners thinks it is absolutely worthless. It brings a chance for discussion to the table. Flagging a possible disaster before it may happen. When you have someone to "check your thinking" usually it can be nothing but good in the end.

-They have connections too- It might take you two months to do something, which they can get done in two days. Having another person taking on a business with you, will also bring their expertise and connections to the table. You can probably expedite more with their knowledge.

-The risk is spread out- The more stake they have, the less you are in for. Obviously, if the company does well, you will do better if you have more interest in the company, but if the company tanks, you only lose a certain part and don't have to face that bigger loss you would have faced, had you taken on the company alone.

-In crisis, it isn't as tough- When a company is facing trouble from more than one direction, it can be stressful on the owner. But if there is more than one owner, the stress is spread out and there is more confidence that you can pull through. All the business partners can sit down and discuss how to get the company out of trouble, instead of having to process everything single-handedly.

Some may argue upon the fact that you still win more, if you win. But it always comes down to more risk, more reward, but even so- I would rather have 50% of something than 100% of nothing.

For all entries on business partnerships click here.

Update: If you think that a future business partner might steal your idea, there are a few things you can do when seeking a partner and telling them about your idea.

1) Don't tell them the whole thing, just a rough sketch- While you don't want to keep them in the dark, you don't want to let them know each and every move, until they actually are a real partner and have brought something to the table themselves.

2) Sign a non-disclosure so they don't start telling the world about it.

3) If you can't trust who you are considering to be your partner, do you really think they should be your partner?

Finding A Good Staff

While it is true that tons of people are out of jobs and there are increasing unemployment rates, it is still tough to find good help. There are plenty of smart individuals out there, even those willing to work hard, but it is still tough to sift through the applications. I always find that referrals are the best way to hire people, but even then, you can never predict the future each employee will bring to the company, whether it be positive or negative.

Skills my management team seek when interviewing:

-Achievement: There are numerous people that can "work," but my team always tries to find people that have truly "worked" for other companies in the past. By "worked" I mean that either they have done something significant for the company or have proven to be an asset for the company.

- Energy: My management team always looks for energy an enthusiasm in people, but sometimes it is just superficial. Anyone can act and that is what a lot of people do when they are on interviews. They try to pass off as really interested in the job and try to put that big smile on, but when you get deep into the interview, the interviewer can see through the smile- to see if it is fake or not. If the person doesn't know too much about the company or position, it may be that they aren't truly interested and they are probably going to stick around for 6 months or so.

- Vision: People always ask about the past, my people ask about the future. It is good to know what an applicant has done for companies in the past, but asking them how they would make your business better can give you an idea of their "visionary" skills. If my team doesn't have a vision, they have no motivation and I will be seeing no growth.

- Paths Crossed: We all work with different companies even though we are employed by one. It is good to know if your applicant has worked with people from other companies in the past or if they have "connections" with other companies in your industries, because they truly may be an asset for your business.

- Innovation: "If you are given the opportunity to create something significant for my company, how would you go about it?" While my interviewers don't ask for a novel, they touch base on key thoughts. If the applicant was put in charge of assembling a team and executing a plan, they are asked what skills they have and would use to get the project started.

Hype Doesn't Last

I have ran businesses that have picked up "hype" and I have also seen many businesses running into a stage of hype and then taking a drastic fall into the red. It is always great to have some buzz around what you are doing, but you should realize that it will never last forever and you should plan for those times so you don't end up pulling the plug on your venture.

-Some hypes are natural and some are artificial, but what is the difference?

Natural hypes are when the public or users create a craze for a certain product and an artificial hype is when companies create their own "fame." I have personally owned businesses that have dealt with both situations and I can say that, natural hype lasts longer than artificial, but both eventually die out. A natural hype would be something like Facebook. Facebook didn't create it's own fame, but instead capitalized upon it occurring, taking advantage of all who wanted to invest. On the other hand, companies that create their own fame, usually end up tripping on their own shoe laces.

-How can you take full advantage of a hype and still keep some "buzz" around yourself after it dies down?

Taking advantage of hype means being prepared. I don't just mean that you should have a plan, but you should have a plan, execute the plan, and keep up with innovation. There was a MySpace craze once upon a time, but MySpace didn't really "innovate" so they weren't able to hold on to most of their users, who ended up heading to Facebook. Another good example of how a company didn't take advantage of their product hype was Krispy Kreme. Krispy Kreme doughnuts were some what of a "delicacy" when they went nation wide, but then people soon realized that Dunkin' Donuts had bigger doughnuts, so eventually the customers went back to Dunkin' or became Dunkin' customers if they weren't previously. I think that Krispy Kreme should have came out with a cheaper product or something that could be compared to big names like Dunkin' which would have saved many stores from being in financial trouble. Recently, the word on the street seems to be that Krispy Kreme might end up closing all of its doors for good.

To sum up taking advantage of a hype, I would say that you have to present new products or services while people are naturally (or artificially) obsessed with your business. When you truly appeal to them while they are coming your way, there is a higher chance that you will be able to sustain the "hype" and potentially keep some sparks around after it dies out.

-Does hype always mean that you will be in the green or can you lose money during hype?

It is important to note that you don't always have to be profitable during a hype and you can be going in the red big time if you don't see it coming or ending. Many businesses don't judge properly when they are in the middle of a hype. This causes them to over expand, over staff, or even overspend projected budgets during the hype. The worse thing is that companies don't see the hype fading away and still keep the same amount of spending and budgets around. While it is necessary to have staff for the hype, you shouldn't end up like some Web 2.0 companies which hire a bunch of people and then the service loses its luster and it is facing laying off 70% of its staff. If you are able to visualize the future and current standing of your business, there is a greater chance that you will be getting a clear projection when you sit down for future planning.

Always remember, anything that grows fast is likely to collapse twice as fast. You should never assume that you are set for life when you start tripling or quadrupling your expected earnings, but on the other hand you have to take maximum advantage of the "hype," when or if it occurs. And don't over expand on "hyped statistics."

Exploring New Turf

Many entrepreneurs pursue entering industries which they are very new to all the time. There are numerous advantages to diverse ventures into different industries, but there are some things to keep in check. Entrepreneurs usually have a type of business or an industry that they dominate. Whether they have been active in the field for years or have had tremendous success with a business in a short amount of time, they know the business in and out...most of the time.

I have explored various fields, having success and sometimes tough times with new ventures which I know little about, but there are things that I have learned over time which can really benefit entrepreneurs exploring new turf.

1) Study all you can, before hand- Sometimes I am proposed an opportunity, but then don't dig into it right away since I have no time. Then when I actually do decide to get involved with a new venture, I try to balance between learning more about a business and grow the business at the same time. This is extremely difficult because you are focusing on trying to grow something you don't know much about! If you think you are going to go with a new business venture as an entrepreneur, you should get right down to learning everything you can so you can focus on bringing up the business when you start the venture.

2) Get at least one person on your team that is a guru- I can honestly say, this can make an entrepreneurs life easier. Everytime I venture off with a new opportunity, I try to find the best of the best in the industry. If I can bring in the people who have had tons of experience in a specific industry, I find that I can avoid a lot of the setbacks before hand. While I pay these "gurus" far more than an average employee, it is all worth it most of the time because they make up for it with the bottom line.

3) Don't follow the misconception of "we're good to go"- I've never personally thought this way, but I know a handful of entrepreneurs that have felt like they were "good to go" before they started a new venture, thinking they learned what was necessary to kick start a business, but then they find out they only know 5% or 10% of the business.

4) Micromanage when you can- While you don't want to micromanage every aspect of your new venture, you should try to, when you can- and when there is time. As the head of the new start-up, you will want to get to know all the details of the business. Why? Because when employees leave - "the gurus" - you will want to know what they knew.

5) Question yourself- I'm not saying that you should second guess yourself, but what I am saying is that you should question your knowledge. For example, if you are buying an existing business, which already exists, try to see how the daily operations work and see if you can manage that. Ask yourself, if you can handle the little aspects, while focusing on the big picture.

6) Plan to DOMINATE- Having the feeling or the goal that you plan to dominate, you will keep up innovation in your new venture. When entrepreneurs want something, they have to reach out and grab it. If you want to dominate, you have to tell that to yourself EVERYDAY.

When you are exploring new business ventures, you should keep an open mind and try to understand all you can about the idea or concept that the business delivers. I can say that it is always an adventure to wander off into new industries and many times I've seen more growth in a shorter amount of time with a new venture than an existing one.

Slumdog Millionaire Business Model

First of all, I would like to say that Slumdog Millionaire was an extraordinary film, so if you have not seen it, I think you should check it out. But, have you ever questioned what made it a hit in the box office? ...Besides the fact that the movie was based upon a kid winning a million dollars? It was great because it captured the hearts of all the people who saw the movie and enough for them to promote it within their communities.

What did Slumdog Millionaire do to create a long-lived positive response and how can we learn from it for our businesses?

It was different- Too many movies these days involve action and just action. I have never seen a movie that can even relate to Slumdog Millionaire. It shows that if your business is different, no other business can steal your reputation.

It had a new cast- This was the first movie that Dev Patel and Freida Pinto had ever filmed! This shows that someone who has had no experience in a certain profession, can still make it! Starting up a new business or even if you are starting a business for the first time, is no reason to say, "I'm a newbie, I won't make it." You have to give yourself AND your business a chance to prove what is possible.

A great product, will find its way- A lot of the movie was filmed in another language, even so, people still enjoyed the film. If your product is something that people really can use, it will find its way.

It was not predictable- Often times, you can tell where a movie will end up. Slumdog Millionaire was not the least bit predictable. There was always a twist to things or the unexpected happened. In your business, you should have a different approach and make things ironic. If you are offering some sort of service, go a step beyond than what the users or customers will expect from you. It will set your business apart.

It was ready for the attention- The cast didn't know that the film would be such a success, but when it was they were ready for the attention. Even, if you think that your business won't explode with sales all over the place, you should be ready for it. You never know when the rush will flow in for YOUR product.

The stars look up to others in the industry- When Dev Patel and Freida Pinto were asked who they would like to work with in the future, they had answers. This shows that they are not glamored by their own success. Even if you are running a superstar business, there is probably someone better than you -in some aspect, even if not sales- in your industry. You should always learn from someone better and try to adapt their knowledge.

Danny Boyle had a sense of openness- Danny Boyle was working in a whole different country, with a brand new cast. He had an open mind and was willing to work with a new setting. In business, if you are narrow minded, it will only anchor your success, however, if you keep an open mind, chances are you will be able to adapt to new situations.


What are your thoughts on Slumdog Millionaire's Business Model?

Business 101 With 50 Cent

Besides the phenomenal success 50 Cent has had with his rapping career, he is also a very powerful and smart businessman. Most people don't know of many of his successful business ventures, but he has sold companies for millions of dollars to large corporations. 50 Cent uses his name or even better, his "brand," to establish connections. The sale of Vitamin Water to Coca-Cola landed him with a cool $400 Million in the bank with his 10% share in the company (before taxes).

How exactly does "50" do business?

Works Around An Established Brand- As a rapper, 50 Cent gets a lot of hype from his fans, undoubtedly his albums rake in big dough for him, but he has gone a step further and expanded "50 Cent" as more than just a rapping phenomenon. "Bulletproof," a video game of 50 Cents lifestyle, also added to his fame in the gaming industry. Aside from the entertainment industry, he is also involved in the production of the G-Unit clothing line and has an agreement with Reebok to produce G-Unit sneakers.

Uses His Resources- As a celebrity, it's easy to make connections, but it's not all about making connections in life, it's about getting to really know people. 50 Cent does business with many people and across all industries, he gets to know people and isn't afraid to utilize his resources to learn and get involved in different types of businesses. If he had not started doing business with different people away from his entertainment career, he would not be in the shoes he is in today. Last year, 50 Cent also listed his house for sale, but got the exposure across to millions of people, by doing an MTV Cribs episode of his house. Even if the whole intent of the show wasn't to market the house, I think it was probably something which was high on the list, which probably influenced him to go throw with the episode. This is a perfect example of how, if you want to sell something, getting the maximum exposure is key, using the right connections can really assist you with that.

Isn't Afraid To Take Risks- As I mentioned previously, 50 Cent's involvement in foreign industries is something which he wasn't skilled at to start off with. Despite the fact that he was new to doing business in markets other than entertainment, he wasn't afraid to learn a little and lose a little. Getting involved in the stock market has also caused him to lose, in some of his investments, but if he didn't take risks, he wouldn't be able to diversify.

Has A Well Established Group- G-Unit, a group made of 50 Cent and his closest friends who are also rappers, is a well established group in the music industry. The power of the group is probably more than the power of 50 Cent alone. Having the G-Unit group, enables growth of all members in it. In the business world, most people try to get ahead alone, sometimes it involves claiming every man for themselves. For example, in the case of a promotion, if there was only one position and there were 5 candidates for it, every man would work their hardest to get that seat. It's not always advantageous to travel alone though, groups have more minds and more minds equate to more knowledge. Knowledge=Power.

There are many more factors that make Curtis Jackson "50 Cent" the successful businessman he is. I chose to write about 50 Cent because he is not viewed as the "most successful" businessman in the rap industry, instead he seems to be #2. Most people view Jay-Z to be the #1 businessman in the rap industry. I wanted to reflect that even though 50 Cent is a hard worker and has been tremendously successful this far, he is still not #1. Don't expect yourself to be #1 quickly, but trying to get that #1 spot, will keep you going.

Choosing the Right Team

A lot of the success of the business depends on who is behind the operations. Not only because of what kind of innovation employees can bring to the table, but because they are the ones to market the business.

How do you go about choosing the right team, whether it is a retail small business, a professional venture, or an online venture?

I would say that you need to find a group of individuals that will want to work with you to bring up a great business from scratch. You should try to get involved with the people around in your community or network in the same industry as you. The group of people should be able to work together and be able to understand each other. No business can be successful unless the human resources of the company is in sync.

If you are an entrepreneur, you really don't have to look much further than some of the biggest companies around in today's world. Look at Google for example. Sergey Brin and Larry Page were not the greatest friends after they met, but they shared the same idea and wanted to start a revolutionary type of search product. They put their minds together and came up with algorithms for Google Search and that was the beginning of Google. They really didn't talk about money or anything else at the start, but focused mainly on coming up with the product. If you can find or put together a team that will focus on creating the product you have in mind and then looking to monetize it, chances are you will have great success.

Without the right team, many businesses have failed. The basis of a well known business are the people behind it, living up to the reputation of the business.