Why are some people good at business and others not?

[ADL Colin]

There are some people who just never seem to get this business. No matter what they do they remain making a low income. Others have created successful businesses over and over again?

So what makes one person successful at it and another not?

Intelligence? Luck? Ambition And Drive? The Right Heuristics?

If someone is just not getting it is there much hope for them? Ever?

[woj]

Originally Posted by ADL Colin

Intelligence? Luck? Ambition And Drive? The Right Heuristics?

Mostly willingness to take a risk (40%) + Ambition/Drive (40%)
with a little luck (10%) and intelligence (10%) mixed into it too...

[Nicky]

Originally Posted by woj

Mostly willingness to take a risk (40%) + Ambition/Drive (40%)
with a little luck (10%) and intelligence (10%) mixed into it too...

I'd put willingness to take a risk at 20%, ambition/drive at 50% luck at 5% and Intelligence at 25%.

[mikesinner]

It just a certain part of the brain that is more developed.

[$5 submissions]

Good question. One of the most common traits I noticed among successful people is that a lot of them think in mathematical ratios and efficiencies. For example, knowing how much the ROI is for each 100 or 1 mb block of bandwidth. In addition, they are able to extrapolate and come up with alternative "what if" scenarios. I think it is this ability that allows them to spot potentially profitable, not so profitable, and downright money losing opportunities.

Many also share the trait of not worrying about 'averaging' sunk costs that gets most people. They realize that for the loss it is and move on.

[TheSenator]

You need balls to survive in this biz.

[Joshua G]

vision...

[WWC]

It requires experience, education and some luck!

[webmasterchecks]

id say about 5% of the population is very good at biz, and most of them dont post here

[slavdogg]

right attitude
determination
critical thinking and problem solving skills
ability to learn quickly and adapt

To answer your question, you must first answer the question of why the same people keep failing or are always less successful than others.


Whats up Colin ?

[Kard63]

Originally Posted by Nicky

I'd put willingness to take a risk at 20%, ambition/drive at 50% luck at 5% and Intelligence at 25%.

Ha ha, conservative pussy! Sit back and cherry pick the good deals with that big brain of yours ;)

[webmasterchecks]

i remember reading that the top rated ceos have very similar brain chemistry to psychopaths, you don?t want any emotion in business decisions, I think that?s one of the hardest things

[kane]

I think a lot of it is just personality. I think most people like the idea of having a steady job with a reliable income. The idea of going to work 40 hours a week and knowing how much they will get on pay day puts a lot of people of ease and the idea of not knowing and risking things to forge their own path scares them and they are not willing to put up the risk. Sometimes I think the idea of investing any amount of money into something without a guaranteed for some people is something they are just not willing to do for whatever reason.

Here is a good example. A friend of mine gets laid off from his job. He works for a construction company and had a hire back date 90 days away when a new contract the company has will kick in. So he basically has 3 months off on unemployment with nothing to do. He asks me how to make some money online and I give him some advice. The advice I give him will have him spend about $200 (his wife was still working so they were not hurting for money). I tell him if he works hard during his layoff he could have a decent little side business going by the time he gets back to work. After a full day of showing him stuff and giving him advice I leave. The next day he tells me he isn't going to do it because he doesn't feel comfortable investing the $200 into something he doesn't know that much about.

So instead he spent the money on x box live and played halo. Six months later when I point out to him that he had spent about $100 on video games over those three months (xbox live cost plus buying another new game) he just shrugs. I then say, "For an extra $100 and the same amount of time you investing in learning how to kick people's asses at Halo you could have a business going right now." He just kind of slunk down in the couch and admitted that I had a good point, but it seemed like a lot of work to get things going.

So to me it takes a certain type of personality just to decide to make the jump and start a business . Of those people that start and run their own business I think they have a make up of 15% intelligence and ideas, %15 know how and learning (knowing or learning about the business they are getting into), 30% courage to try and be willing to fail and 40% hard work and ambition to put in the time to make it work.

[LoveSandra]

Originally Posted by woj

Mostly willingness to take a risk (40%) + Ambition/Drive (40%)
with a little luck (10%) and intelligence (10%) mixed into it too...

[BV]

If at first you don't succeed, redefine success.

[MrDeiz]

i believe in luck.

some ppl have it, some haven't

[kmanrox]

i'd say 50% genetics, 50% ambition

[V_RocKs]

Some people are just born stupid.

[BigRod]

I think the ability to balance all the above is the KEY

[StaceyJo]

Motivation, passion, attitude.

[ADL Colin]

Originally Posted by slavdogg

right attitude
determination
critical thinking and problem solving skills
ability to learn quickly and adapt

To answer your question, you must first answer the question of why the same people keep failing or are always less successful than others.


Whats up Colin ?

Hey Slav,

Great list. I used to teach high school and that is pretty much my list of what skills are required to become a great teacher too. I'd say those skills predict success in a lot of areas.

[notime]

love and passion for what you do

[ADL Colin]

One thing that comes to my mind is the ability and desire to make continual improvements in one's operation. Say are just starting out and have figured out how to make $30/day. This reminds me of my first day back in 1996. well, really about my 7th day. I think I made .57 my first day in Cybererotica's pay per click program. The first thing that hit me was "Aha! $30/day! This is already $11,000/year. Now how can I improve this to $35/day, $40/day, $50/day and so on". Automation and hiring are two of the best ways to do that. But even making little tweaks here and there can improve ratios and traffic. Takes good judgement too. Am I better off gunning for more traffic or better ratios?

Another thing is realizing that a cut in expenses is equivalent to a raise in income. Never forget the simple things. The bigger you get the more you should look for cost cuts.

[J. Falcon]

Attitude, ambition, balls and common sense.

[SordidMedia]

Originally Posted by daizzzy

i believe in luck.

some ppl have it, some haven't

Nonsense. Being successful is nothing to do with being lucky.

Often it is nothing to do with academic qualifications that some people will try and have you believe.

Some of the qualities needed are vision, determination, being innovative and being prepared to take risks. These type of skills tend to be inbuilt (and not something that can be learned).

[ADL Colin]

Originally Posted by Jesus H Christ

The number one thing I've seen is "timing" then followed by having this formula.

1.timing
2.money
3.execution
4.sales

I never seen a successful person last long in business just out of pure greed. The majority motivation (IMO) stems from having the business tools learned from family or schooling. This is why a high % of Jews will always do well because from birth they are taught how to succeed and the true value of money or the power that goes with it.

What do you mean by greed? Are you saying you've never seen anyone succeed solely out of a desire to create profits? Or do you mean something else?

[nation-x]

I watch alot of those that fail do the same thing that has been failing them over and over and over... this is the exact reason I made my current sig line.

[StuartD]

Not everyone can be an artist or musician either.
Some people, no matter how much you teach them, they can never have rhythm or understand how to draw very well.

You can take them a certain way but they'll never make masterpieces.

You can apply that to most anything, including business. It's just not in some people. You can teach them to a certain point but they'll never build an empire.

It doesn't mean they were "born stupid" as was said in one post. Perhaps their strengths/interests just lie somewhere else.

[Fletch XXX]

Some people dont even seem to be able to write emails in this business. Posting on a board is one thing, but when you send me an email at least TRY to be a professional.

[polish_aristocrat]

skills are another thing

to run a credit card cross sale operation, you require good business sense
to dominate the SE's, you just need to have proper skills

some people assume that everyone in this biz is a tech guy, but it's not the case

but it's surely not the most important factor, since things can be outsourced etc...

[Iron Fist]

Rich Contacts and Friends = 90% The Right Idea at the Right Time = 5% Keeping it Secret = 5%

[ADL Colin]

Originally Posted by polish_aristocrat

to run a credit card cross sale operation, you require good business sense
to dominate the SE's, you just need to have proper skills

We used to dominate the SE's and it was a business operation more than just having the proper skills. I don't doubt that one person with just the "proper skills" could do well at it but from our perspective it was more of how to run a good business. I've always believed in using as many employees as possible in your organization to brainstorm. Anyone who is capable of contributing should be brought into that role. You get a networking effect the more people who are working on a particular solution.

[ADL Colin]

Originally Posted by sharphead

Rich Contacts and Friends = 90% The Right Idea at the Right Time = 5% Keeping it Secret = 5%

i'd be willing to bet that almost everyone who has done well in this business started out without any "rich contacts and friends" but maybe you are joking?

[ADL Colin]

Originally Posted by Jesus H Christ

..Oh yes, I have seen many succeed on greed, but it's short term. This is why more then a few stock market firms are currently out of business.

As opposed to what then? I mean, most people I know who have done well have their number one motivation as making money. is it what they intend to do with the money that makes them greedy in your eyes? Or is it that you think they should have a more nobe motivation in owning a business -- like "to build something that lasts"?

[WeirdHomer]

Knowledge, skills, patience, unique ideas and investment money

I pledge by these

[CurrentlySober]

Because some people like poo, and some people dont...

[ADL Colin]

Originally Posted by WeirdHomer

Knowledge, skills, patience, unique ideas and investment money

I pledge by these

I'm down with the first three.

I've never cared much for unique ideas in business. I'd rather coattail on a great idea and be second or third to market on something more proven than trying to work with a unique idea. The failure rate is just too high.

Do you really need much investment money in this business? I started with $50 in my pocket. how about you?

[polish_aristocrat]

Originally Posted by ADL Colin

Do you really need much investment money in this business? I started with $50 in my pocket. how about you?

could you start again with $50? if yes, what would you do?

[WeirdHomer]

Originally Posted by ADL Colin

I'm down with the first three.

I've never cared much for unique ideas in business. I'd rather coattail on a great idea and be second or third to market on something more proven than trying to work with a unique idea. The failure rate is just too high.

Do you really need much investment money in this business? I started with $50 in my pocket. how about you?

I started with zero investment at the end of the 90's but along way i had to invest, now more then ever. The days where you can for example submit for free and have quality traffic is gone. Now i buy paid spots, add spots, etc... So for people starting now, i would say you need to invest.

I do work alot with the "old school" marketing strategy but i try new things along the way and have to invest to realize them.

[ADL Colin]

Originally Posted by Jesus H Christ

All business motivation is to make profit. The ones that last the longest IMO are the ones who strive daily and enjoy to provide the best goods or services for a competitive price. So when you ask "Why are some people good at business and others not?"...does "good" mean THE most profitable?

For me, yes. The most profitable for the longest amount of time.

What you've said is a little tricky in this business because many of us are B2B. Who is our customer? The affiliate or the end-user? You could provide a great service to your affiliates and only a so-so experience for your end-user and have a long term, sustainable business. There are people who have come in this business made over $10 million and then closed up shop -sometimes under shady circumstances. "good" or not?

I don't have any problem with your definition either. if it's your goal to create a long-term viable business aimed at creating the best experience at a "competitive price" that's great. i think that is one of just many ways to create a successful business though.
When I started out my first year out of college and was running circle-jerk sites I was providing no useful service to any end-users. I was providing a good course of traffic for people who wanted to trade traffic with me though.. And this lead to 6 figure income in my first year out of college. It was a good start and a good learning experience.

[ADL Colin]

Originally Posted by polish_aristocrat

could you start again with $50? if yes, what would you do?

I am pretty sure I could. Even though I only had $50 cash to my name I had something else; sweat equity. I offered my time and services to someone in exchange for server space.
Another thing people can use is credit cards though at the time mine were maxed.

I actually started without legal standing (no business license) until I had created a small profit.

I'd start the same way today as I did then. I'd start a niche targetted review site aimed at something in particular. Tube sites reviews, dating sites reviews, cam site reviews. Something like that.

In addition to the profits from the website it is a good networking opportunity. If you can get a review site going that sends substantial traffic people WANT to do business with you. I know I am always happy to be listed on review sites that send me signups :-)

How about you, polish aristocrat? How would you answer the same question?

[ADL Colin]

Originally Posted by Jesus H Christ

Some great points. My point is to first enjoy what you do AND make a profit.

"The affiliate or the end-user?" ...this is my prediction for the next year. I am willing to bet AFF and others will go 100% free and follow the lead of PlentyofFish.com or the new free version of Match.com. AFF is already "overexposed" so why even deal with the high cost of affiliates?

As the owner of a dating program I hope you are wrong. Marcus at Plenty of Fish makes his money from adsense. Basically he is selling his free visitors to paid dating sites. I'm not sure the free model would work very well if there weren't paid dating sites to sell teh traffic to.

Marcus at Plenty of Fish wrote something interesting a few months ago:

"The problem with free is that every time you double the size of your database the cost of maintaining the site grows 6 fold. I really underestimated how much resources it would take, I have one database table now that exceeds 3 billion records. The bigger you get as a free site the less money you make per visit and the more it costs to service a visit.

We are going to start introducing some products and features to try and get some of the 10 to 20 million dollars a month my users are spending elsewhere. There is really no money in being free and we have to start experimenting with other models now or we won?t be able to compete in 3 or 4 years."

[ADL Colin]

Originally Posted by kane

I think a lot of it is just personality. I think most people like the idea of having a steady job with a reliable income. The idea of going to work 40 hours a week and knowing how much they will get on pay day puts a lot of people of ease and the idea of not knowing and risking things to forge their own path scares them and they are not willing to put up the risk. Sometimes I think the idea of investing any amount of money into something without a guaranteed for some people is something they are just not willing to do for whatever reason.

Here is a good example. A friend of mine gets laid off from his job. He works for a construction company and had a hire back date 90 days away when a new contract the company has will kick in. So he basically has 3 months off on unemployment with nothing to do. He asks me how to make some money online and I give him some advice. The advice I give him will have him spend about $200 (his wife was still working so they were not hurting for money). I tell him if he works hard during his layoff he could have a decent little side business going by the time he gets back to work. After a full day of showing him stuff and giving him advice I leave. The next day he tells me he isn't going to do it because he doesn't feel comfortable investing the $200 into something he doesn't know that much about.

So instead he spent the money on x box live and played halo. Six months later when I point out to him that he had spent about $100 on video games over those three months (xbox live cost plus buying another new game) he just shrugs. I then say, "For an extra $100 and the same amount of time you investing in learning how to kick people's asses at Halo you could have a business going right now." He just kind of slunk down in the couch and admitted that I had a good point, but it seemed like a lot of work to get things going.

So to me it takes a certain type of personality just to decide to make the jump and start a business . Of those people that start and run their own business I think they have a make up of 15% intelligence and ideas, %15 know how and learning (knowing or learning about the business they are getting into), 30% courage to try and be willing to fail and 40% hard work and ambition to put in the time to make it work.

good description of the kind of experiences I have had and seen too. Well said.

[$5 submissions]

Originally Posted by webmasterchecks

you don?t want any emotion in business decisions, I think that?s one of the hardest things

So true. Quoted for Truth!

[M0nk]

I think its all those together, just put them in a jar and mix them with a wooden spoon for aprox 20 minutes and voila! :P

[tranza]

Why there are so many lucky people and so many idiots?