Innovation drives growth - innovate or die

Every generation needs a revolution - an entrepreneurial revolution

In Billions, traders are encouraged to constantly think of 3 innovations in their job.  Requiring from those who buy and sell securities.   And to be constantly to search for opportunities and how to seize them. ie to act as entrepreneurs and to see their jobs as owners of business.

But we are secure with tried and true.  It is better to be on autopilot   It takes a lot of effort to think of and start a new one and face obstacles like inertia from stakeholders, risks, possible loss.

But that is the way to go.   Innovate or die

Reversal of fortunes of business leader - fate or lack of successors

Every generation needs a revolution - an entrepreneurial revolution

As we observe trend in family fortunes, one can not help but notice two setbacks:   cancellation of franchise for their huge media company -  it is bleeding huge.  And the backing of off of two probable buyers backed off from the purchase of its another media company.

Well it has sold its interest in energy.   But the more important development is that there no able business leaders among its new generation.  So inheritance of PHP is not a guarantee for success.  Capable men, successors are.  

Entrepreneurs create something from nothing

Every generation needs a revolution - an entrepreneurial revolution

A businessman wanting to go into business into his own wanting advice and consultancy needs x millions for his venture and thinks this is easy going with me lending that money.  Not knowing much the proponent and having not so proud record in his business dealing, the possibility would not be very positive.

I said we could device ways how to obtain financing like firming up deal with the land owner, having plans, having x deal with contractor. or even ML money.  It seemed he took the advice because  he has not

returned and taken my ideas without compensation 

It reminded me of my experience and others too:

1.  We borrowed P500k from a rural bank to start an SLA.  In a year we were able to repay the loan and

      make some profit too.

2.  We started a real estate project with merely P15K between me and the chairman.   We bought the lot

      on terms from a fmr ambassador was able to sell 97 plots total inventory in 6 mos, paid for the

      development and landowner.  We sold lots from Php 18K to P35K only including those fronting

      the highway.  But the beauty in the story is that we started the project business without much

      money.

     Thus capital does not refer to money capital but your head.  Capita  Head.  How you use it to build

     something from nothing

3.  In another business, we presented plans, borrowed against them with promise of 100% return (of

     course they were private equity and we kept our word.  We were able to finish the project

     sell them and repay the lenders

On a similar note, I heard a story from a famous Makati businessman who got a big parcel of land

a former army camp.  He had no money.  But the mandate from the President was to make the land

generate cash.  Thus he bidded out the land which later was developed into a CBC, and a huge

cemetery.  

They were something great from nothing

True entrepreneurship.

Or we are into Lance Gokongwei paradigm that to produce millions, you have to invest billions.

What do we say to inherited wealth, to ML equity, spin offs, hedge fund investments?