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