Home » Archive » Dollars and scents: Know your banker

, written by Jeremy. Read the commentary.

The first job of every entrepreneur or corporate dilettante is to know your banker.

The mistake made by entrepreneurs is assuming their key resource is ideas. And corporate-types always mistakenly assume it’s knowledge.

For entrepreneurs the key resource is cash. How to get it, how to keep it, and what to do with it are the primary questions.

For corporates it’s power.

Having power, as a young or new employee isn’t a possibility. So, much like an entrepreneur that’s always trying to borrow more money, you’ve got to begin by borrowing power.

How to find it and how to get it? Come back tomorrow.

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Copyright Jeremy Heigh

Commentary

One common theme I see is failure to respect the principle of appropriate financial scale.

One fellow I know has lots of great ideas, but only ones that he could implement if he
already had his first $10M, so he never gets off the ground. I am trying to convince
him to start small, like self-financing a hot dog cart, but no luck.

Another guy I know who sold a fairly complicated patent for $700K, says he lucked out on
that patent, but that now he goes for small simple inventions, cheap to prototype and
test, self-financed.

Thanks Randy,

How does this scale, metaphorically, to your work? That’s the relationship I’d like to draw out. What do you your entrepreneur friends have to teach you about your government spot?