| Entrepreneurs thrive during periods of rapid change, | | | | billionaires) while large companies run to the courts in |
| and we are living in such a time right now. The good | | | | an effort to hold back the economic tsunami brought |
| news is that the more rapid the change, the greater | | | | on by these new technologies and quick-witted |
| the opportunities available to entrepreneurs.The | | | | entrepreneurs.We first saw the digital world impact the |
| explosion of new technologies make this an | | | | music industry; now it's affecting Hollywood's monopoly |
| unprecedented period in economic history for | | | | on film and video distribution, and soon we'll see it |
| entrepreneurial opportunities: cheap computers, new | | | | affecting the publishing and education fields. Much |
| software applications and digital networks - namely the | | | | faster, lower cost digital systems are replacing |
| Internet - are powerful tools available to everyone who | | | | traditional, slow physical manufacturing and distribution |
| wants to create financial independence and improve | | | | systems.As the older physical systems crumble under |
| his or her lifestyle.The Money GameI've been a student | | | | the economics of the new technologies, countless jobs |
| of business since I began my career as a venture | | | | and careers are being lost in the process. We see |
| capitalist on Wall Street. Over the years I raised millions | | | | long-term employment disappearing; pensions are on |
| of dollars to finance numerous entrepreneurs and | | | | the way out; salaries are not what they used to be. |
| start-up companies until I decided to become an | | | | And this comes at a time when the cost of living |
| entrepreneur myself and financed my own companies | | | | continues to rise. As a result, we all need to begin |
| in broadcasting, alternative energy, software, and | | | | thinking more about becoming entrepreneurs - to |
| telecommunications. I was the CEO of the company | | | | understand and take advantage of these new digital |
| that built the first digital network in Moscow, in 1990, | | | | technologies by creating new information products and |
| and started one of the first B2B Internet service | | | | services that will leverage our skills and |
| providers.It's from this perspective that I see fantastic | | | | expertise.Traditionally, entrepreneurs have not only had |
| new entrepreneurial opportunities unfolding. And | | | | to have the ability to envision something new, they had |
| nowhere is this more apparent than in the world of | | | | to raise the capital and build complex organizations to |
| communications and information.Because information | | | | supply their new product or service, and then they |
| and communication are fundamental components of | | | | required the skills to lead, coordinate and manage |
| every human interaction and business transaction, | | | | them.InfopreneursWhat makes the Internet and |
| each new communication medium - the telegraph, | | | | information publishing businesses so exciting is that |
| telephone, radio and television -- has had a | | | | they don't require the traditional skills of money raising, |
| successively greater impact on the world, and created | | | | organizational development and management to launch |
| great fortunes for those who rode each wave of | | | | and build. This opens the new financial doors to a |
| change. The Internet will be the most significant wave | | | | much larger group of potential |
| of all.The InternetThe Internet now makes it possible to | | | | entrepreneurs.Entrepreneurs capitalizing on the new |
| reach almost any person, anywhere in the world, in | | | | areas of digital information publishing are becoming |
| only a few seconds and for only a few pennies. But | | | | known as infopreneurs. They think and work |
| what makes it even more significant is that computers | | | | differently.Infopreneurs are the new entrepreneurs |
| can convert all the traditional analog forms of | | | | who envision ways to apply new information |
| information (sound and voice, printed words, pictures | | | | technologies and systems to satisfy market needs |
| and data) into a common digital medium for | | | | and wants. They can see and create new economic |
| transmission over the Internet. This capability is radically | | | | models. They don't need to raise capital; they create it |
| changing existing businesses and creating vast new | | | | instead. They don't manage large organizations; they |
| entrepreneurial opportunities.While the Internet is | | | | guide small teams. They don't work in corporate office |
| affecting every business in every industry, its greatest | | | | complexes, but in bedrooms across America. They |
| impact will be on the information industries' products | | | | don't have onsite employees, they have contractors |
| and services. Think of some of the biggest businesses | | | | spread around cyberspace. And they make a lot of |
| in the world. Think entertainment (music and movies), | | | | money. This is the new breed.The businesses they |
| think broadcasting (news, information and | | | | build are also different.Virtual BusinessesInfopreneurs |
| entertainment), think publishing (books and magazines), | | | | are creating a whole new category of opportunity |
| and biggest of all, think training and education (books, | | | | known as virtual businesses. Virtual businesses exist |
| courses and continuing education).To see the Internet's | | | | almost entirely inside computers and networks. Most |
| potential impact, let's look at one small, well-established | | | | of the business functions that are handled by teams of |
| medium: the book.Analog EconomicsA physical book | | | | people in the offline world are now embedded in |
| requires harvesting trees to make paper, onto which a | | | | software applications. Virtual businesses are |
| story or information is transferred via a printing press. | | | | automated collections of hardware and software |
| Then many hands and lots of energy are required to | | | | connected to their customers via digital networks. |
| move the book from manufacturing plant to retail store | | | | They operate 24/7, selling and delivering information |
| and, finally, to the consumer. This process is resource, | | | | products to worldwide markets, with minimum human |
| labor and capital intensive.To see how this works in | | | | intervention.Virtual businesses receive their customers |
| financial terms, let's consider the author of our book.In | | | | over the Internet and respond with automated product |
| the analog world she writes her book and receives 10 | | | | presentations and virtual salespeople. Automated |
| percent of every sale, or $2.50 on each $25 book | | | | eCommerce engines process transactions, and |
| sale. The publisher retains the remaining $22.50 for | | | | products are shipped and delivered electronically. |
| manufacturing, distribution and selling expenses. Let's | | | | Software systems provide supervision, control and |
| further assume that her publisher pushes hard and | | | | management.Virtual businesses exist today that were |
| sells 25,000 copies in one year, a decent number in the | | | | started on shoestrings. Yet they serve the same |
| offline publishing world. Our author would then earn | | | | number of customers and produce the same level of |
| $62,500 ($2.50 x 25,000 copies) for her creative | | | | profits as venture-backed companies launched with |
| efforts.Digital EconomicsThe same book can be | | | | millions of dollars and significant investments in plants |
| produced and packaged in a digital form known as an | | | | and equipment. There are virtual businesses run from |
| 'eBook', and delivered anywhere in the world in | | | | bedrooms that make more than companies with |
| seconds, at 1/100th the cost and with almost no | | | | hundreds of employees. This is truly an entrepreneurial |
| environmental impact.So let's assume our author writes | | | | heyday.Benefits of Becoming an InfopreneurIf you've |
| that same book, but decides to become an | | | | often thought about becoming an entrepreneur, or |
| entrepreneur in the digital world by setting up a small | | | | you've looking at your existing economic world quaking |
| Web business and selling her eBook online, over the | | | | and shaking, if you no longer see a bright future in a big |
| Internet, to a worldwide market. And for the sake of | | | | organization, if you're worried about your financial |
| this example, let's assume she sells the same number | | | | outlook, if you long for something different or more |
| of books at the same price.Looking at the costs of | | | | lucrative, consider becoming an infopreneur.Becoming |
| doing this, over the year she'll spend about $2,500 to | | | | an infopreneur offers many significant benefits.· |
| build the Website, $4,000 a month for a half-time | | | | You get to be your own boss. Working for yourself |
| Webmaster, $150 per month to host the Website (that | | | | brings the freedom to work on what you want, when |
| sells and collects money 24 hours a day, seven days | | | | you want.· You can work anywhere. Since all |
| a week), and an additional $10,000 per month to buy | | | | your activities take place via the Net, you can be |
| pay-per-click ads on Google to get traffic to her site.At | | | | anywhere in the world...on the beach in Hawaii, in a |
| the end of one year her expenses ($2,500 for | | | | mountain cabin in the Alps, or at a Starbucks in |
| construction, $48,000 for the Webmaster, $1,800 for | | | | Manhattan.· You don't need much capital. Info |
| hosting and $120,000 for advertising) would total about | | | | businesses can be launched on a shoestring and throw |
| $172,300. On the income side, her revenues ($25 per | | | | off capital instead of consuming it. The only significant |
| copy x 25,000 copies) would total $625,000. When we | | | | capital you'll need is the intellectual capital you create |
| subtract her expenses from her revenues, she's left | | | | by learning how to exploit these new |
| with $452,700. Cheap digital tools and the Internet's | | | | technologies.· You can start in your spare time |
| reach provide her with the leverage to do a little more | | | | and at your own pace. You can start slowly and |
| work...but make a lot more money. She could never | | | | maintain your nine-to-five gig while you learn the ropes |
| enjoy this sort of success in the offline world.This | | | | and develop the confidence and income to make the |
| simple example shows the amazing leverage of | | | | big leap to independence.· You don't need |
| becoming an entrepreneur and selling information | | | | employees. All the specialized talent, skills, and help |
| products in the new digital world. Whereas in the | | | | you'll require can be hired over the Net, on a contract |
| physical world our author earned 10 percent of the | | | | basis. There's no overhead or burn rate to keep you |
| revenues ($62,500), in the digital world she earns more | | | | up at night. You don't even need any real management |
| like 70 percent ($452,700), or seven times more | | | | skills.· You can make a lot of money. I personally |
| income.The New CapitalThis new digital world shifts | | | | know infopreneurs that make millions each year and |
| the advantage from those with, or having access to, | | | | employ only a few outside contractors. One is making |
| financial capital, to those with intellectual capital. And | | | | over $8 million, after expenses, with just nine |
| that's exciting.In the analog world of physical publishing, | | | | employees. That's the leverage of virtual |
| setting up the systems to manufacture, store, ship, | | | | companies.Internet information publishing is the most |
| distribute and retail books requires lots of financial | | | | accessible entrepreneurial opportunity you will see in |
| capital. Plants and offices have to be built to hold the | | | | your lifetime. It's the easiest, fastest and least risky |
| equipment, people and inventory. Trucks have to be | | | | way to create financial independence, or build a |
| purchased to transport the books to the stores that | | | | fortune. Best of all, you can do it on your terms, with |
| have to be opened to sell them. As a result, | | | | no venture capitalists or shareholders telling you what |
| entrepreneurs have had to start almost any venture | | | | to do.Maybe you should consider becoming an |
| by first raising a lot of financial capital, commonly | | | | infopreneur.-------------------------Wayne Van Dyck is the |
| known as venture capital.Again, the Internet changes all | | | | CEO of Six Degrees Media Inc. in Sausalito, CA. His |
| this.In the digital world, the business infrastructure is | | | | company designs, builds and operates virtual |
| embedded inside computers and networks, and | | | | businesses, including and He is a contributing author to |
| increasingly intelligent software replaces most of the | | | | Walking With Wise Entrepreneurs along with Donald |
| manual and clerical functions critical to any business. | | | | Trump, Harv Ecker and Dan Kennedy. |
| Setting up a digital business requires intellectual capital | | | | is the first complete Internet Business-In-A-Box. Now |
| but relatively little financial capital. Thus the power shifts | | | | you can create a complete online business in less than |
| from the people with the money to the people with the | | | | 30 minutes with NO technical skills or expensive |
| ideas and intellectual horsepower to recognize, | | | | webmasters. Better yet, you get all the traffic and |
| harness, and leverage the new information | | | | conversion tools you need to really make money. You |
| technologies.The Economic TsunamiAlready we've | | | | get over $25,000 worth of technology for less than |
| seen 30-year-olds start with little or nothing on the | | | | the cost of a cup of coffee a day. |
| Internet and become multimillionaires (even some | | | | |