(continued from front flap) t entrepreneurship · entrepreneurship 101 includes several pertinent...

This book is a must for anyone who dreams of founding, growing, and owning their own business. It also teaches you how to mobilize resources, develop an astute, sustainable strat-egy, write a brief and effective business plan, raise money, negotiate with investors, launch your business, and monitor financial progress.

Ideal as a stand-alone guidebook, this Second Edition of Trump University Entrepreneurship 101: How to Turn Your Idea into a Money Machine delivers unique value for readers at all levels: high school, college, MBA, DBA stu-dents; current entrepreneurs; corporate execu-tives; and anyone whose entrepreneurial spirit is ready to soar.

MICHAEL E. GORDON, PHD, has founded five companies and teaches entrepreneurship at universities around the world, including the Harvard University Extension School,

the International School of Management in Paris, and Babson College, where he is an Adjunct Professor. He coaches and trains executives on entrepreneurial leadership, corporate revitalization, and strategies for competitive advantage.

( c o n t i n u e d f r o m f r o n t f l a p )

In Trump University Entrepreneurship 101, Second Edition, you’ll learn how to:

• Build your own Money Machine!

• Start a successful business no matter what the economy is doing

• Unleash your entrepreneurial power

• Use social networking and cloud computing to build your business

• Create a simple (and successful) business plan

• Master the art of negotiation

• Concentrate on the customer

• Launch your new venture!

go

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on

ENTREPRENEURSHIP 1O1 Second EditionTrump University books are practical, straightforward primers on the basics

of doing business the Trump way—successfully. Written by leading experts

and including an inspiring first chapter by Trump himself, these books pre-

sent smart business wisdom illustrated by real-life examples from Trump and

other world-renowned experts. Perfect for anyone who wants to get ahead in

business without the cost of an MBA, these street-smart books provide real-

world business advice based on the one thing you can’t get in any business

school—experience.

Jacket Photograph: © Mark Burgin

Second Edition

ENTREPRENEURSHIP1O1

How toTurn YourIdea into aMoneyMachinemichael e. gordon, phd

Revised& Expanded2nd EditionIncludes

FREEDownloadableWorksheets!

With New Advice on Growing a Business in a Slow Economy!

ENTREPRENEURSHIP 1O1

( c o n t i n u e d o n b a c k f l a p )

$24.95 USA/$29.95 CAN

These are the best of times to pursue your entrepreneurial dreams! Opportunities abound. Trump University Entre-

preneurship 101, Second Edition guides you through the process step-by step, showing you how to unleash your entrepreneurial power, to overcome obstacles . . . and to flourish. It shows you how to identify and analyze business opportunities, select the most attractive one, and grow your business profitably.

Author Michael Gordon is an incurable entre-preneur who has founded five successful com-panies and teaches entrepreneurship at top business schools. He knows what it takes to start, run, and grow a business from the bot-tom up; and he knows that anyone with the drive and passion to succeed can learn the art of entrepreneurship. In this unbeatable busi-ness resource, he shares his lifetime of wisdom in a single volume that covers all the bases. This expanded Second Edition of Trump University Entrepreneurship 101 includes several pertinent new topics: Web 2.0, cloud computing, techno-preneurship, and opportunity recognition in turbulent economic times.

Gordon de-mystifies the entrepreneurial pro-cess using the concept of the Money Machine. You feed the entrepreneurial opportunity into the top of the machine; you devise and imple-ment an astute business design to maximize customer value; and out comes enthusiastic customers and money. The greater the value you add, the greater will be your profits. Are you ready to build your own Money Machine? Success goes to the bold!

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FM JWBT144/Gordon September 25, 2009 17:38 Printer Name: Courier Westford, Westford, MA

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ENTREPRENEURSHIP101

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Books in the TrumpUniversity Series

Trump University Real Estate 101: Building Wealth with Real Estate Investments,Second Edition

Trump University Marketing 101: How to Use the Most Powerful Ideas inMarketing to Get More Customers, Second Edition

Trump University Entrepreneurship 101: How to Turn Your Idea into a MoneyMachine, Second Edition

Trump University Wealth Building 101: Your First 90 Days on the Path toProsperity

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ENTREPRENEURSHIP101

How to Turn Your Idea intoa Money Machine

Second Edition

Michael E. Gordon, PhD

Foreword and Chapter 1 by Donald Trump

JOHN WILEY & SONS, INC.

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Copyright C© 2010 by Trump University. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted inany form or by any means, electronic, mechanical, photocopying, recording, scanning, orotherwise, except as permitted under Section 107 or 108 of the 1976 United States CopyrightAct, without either the prior written permission of the Publisher, or authorization throughpayment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web atwww.copyright.com. Requests to the Publisher for permission should be addressed to thePermissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030,(201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their bestefforts in preparing this book, they make no representations or warranties with respect to theaccuracy or completeness of the contents of this book and specifically disclaim any impliedwarranties of merchantability or fitness for a particular purpose. No warranty may be created orextended by sales representatives or written sales materials. The advice and strategies containedherein may not be suitable for your situation. You should consult with a professional whereappropriate. Neither the publisher nor author shall be liable for any loss of profit or any othercommercial damages, including but not limited to special, incidental, consequential, or otherdamages.

For general information on our other products and services or for technical support, pleasecontact our Customer Care Department within the United States at (800) 762-2974, outside theUnited States at (317) 572-3993 or fax (317) 572-4002.

Wiley also publishes its books in a variety of electronic formats. Some content that appears inprint may not be available in electronic books. For more information about Wiley products,visit our web site at www.wiley.com.

ISBN: 978-0-470-046718-3

Printed in the United States of America.

10 9 8 7 6 5 4 3 2 1

http://www.copyright.com

http://www.wiley.com/go/permissions

http://www.wiley.com

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This book is dedicated to the

entrepreneurial spirit within each and every one of us,

striving to burst free.

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C o n t e n t s

F o r e w o r d b y D o n a l d T r u m p i x

A c k n o w l e d g m e n t s x i

I n t r o d u c t i o n B u c k l e u p f o r Y o u rF a n t a s t i c V o y a g e x i i i

C H A P T E R 1 T R U M P O N E N T R E P R E N E U R S H I P 1

C H A P T E R 2 U N L E A S H Y O U R E N T R E P R E N E U R I A L

P O W E R 3

C H A P T E R 3 F E E L T H E F E A R — D O I T A N Y W A Y 1 5

C H A P T E R 4 S T A R T R I G H T — B U I L D O N T H E

C U S T O M E R M O D E L 2 7

C H A P T E R 5 F I N D I D E A S I N A T U R B U L E N T W O R L D 3 5

C H A P T E R 6 S E L E C T O N E ( A N D O N L Y O N E )O P P O R T U N I T Y 4 7

C H A P T E R 7 E X P L O I T O P P O R T U N I T I E S D U R I N G

C H A L L E N G I N G E C O N O M I C T I M E S 6 1

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C O N T E N T S

C H A P T E R 8 B U I L D Y O U R F O R T U N E A S A T E C H N O -P R E N E U R 7 3

C H A P T E R 9 B O O T S T R A P 7 9

C H A P T E R 10 P L A N F O R T H E W A R W I T H Y O U R

C O M P E T I T O R S 8 9

C H A P T E R 11 D E S I G N Y O U R M O N E Y M A C H I N E 1 0 1

C H A P T E R 12 V I R T U A L I Z E A N D G L O B A L I Z E 1 1 3

C H A P T E R 13 H A R N E S S W E B 2 . 0 F O R C O M P E T I T I V E

A D V A N T A G E 1 2 3

C H A P T E R 14 D O W E L L A N D D O G O O D 1 3 3

C H A P T E R 15 D E V I S E A W I N N I N G S T R A T E G Y 1 3 9

C H A P T E R 16 P R O J E C T Y O U R G R O W T H A N D

P R O F I T A B I L I T Y 1 5 7

C H A P T E R 17 M O B I L I Z E P O W E R F U L R E S O U R C E S

Q U I C K L Y 1 7 3

C H A P T E R 18 D E V E L O P A S I M P L E , E F F E C T I V E

B U S I N E S S P L A N 1 8 3

C H A P T E R 19 B E C O M E A W I N - W I N N E G O T I A T O R 1 9 9

C H A P T E R 20 R A I S E M O N E Y 2 0 9

C H A P T E R 21 F I X A T E O N T H E C U S T O M E R 2 2 5

C H A P T E R 22 L A U N C H Y O U R V E N T U R E ! 2 3 5

C H A P T E R 23 S U F F E R G R O W I N G P A I N S J O Y F U L L Y 2 4 5

N o t e s 2 5 7

I n d e x 2 6 5

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F o r e w o r d t o t h e T r u m pU n i v e r s i t y 1 0 1 S e r i e s

People often ask me the secret to my success, and the answer is simple:focus, hard work, and tenacity. I’ve had some lucky breaks, but luck will

only get you so far. You also need business savvy—not necessarily a degreefrom Wharton, but you do need the desire and discipline to educate yourself. Icreated Trump University to give motivated businesspeople the skills requiredto achieve lasting success.

The Trump University 101 Series explains the most powerful and impor-tant ideas in business—the same concepts taught in the most respected MBAcurriculums and used by the most successful companies in the world, includingthe Trump Organization. Each book is written by a top professor, author, orentrepreneur whose goal is to help you put these ideas to use in your businessright away. If you’re not satisfied with the status quo in your career, read thisbook, pick one key idea, and implement it. I guarantee it will make you money.

Donald J. Trump

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A c k n o w l e d g m e n t s

W here to begin? I am grateful to so many people: Donald Trump forinfluencing me to think the boldest entrepreneurial visions; Michael

Sexton, president of Trump University, for his continuous support and willing-ness to share his entrepreneurial thinking; Richard Narramore, senior editorat Wiley for shaping my thinking and keeping me on track throughout the pro-cess; Donald Sexton, author of Trump University Marketing 101, for his helpfulsuggestions; and executives in the Trump Organization who made time avail-able to share their knowledge and experiences—George Ross, Cathy Glosser,E. J. Ridings, and Meredith McIver.

Genuine thanks and appreciation to my business partner and dear friend,Lenard Cohen, for the great odyssey we shared. Without him, this book wouldnot have happened.

Particular thanks to: Dean Ray Comeau, my friend and colleague at theHarvard University Extension School, for his unflagging motivation and en-couragement from beginning to end; Babson Professors Donna Kelley andAndrew Zacharakis for their willingness to review challenging book materials;Richard Luecke for his meticulous, perceptive, and knowledgeable editingsupport chapter by chapter; Carl Hedberg for his ardent editorial review ofthe manuscript; Pat Nicolino for being so available to consult with me; andFrederick Gillis and Steven Voight for their enthusiastic and tireless researchand input on content over many months.

Colleagues and friends: Ian Agranat, Gunther and Judy Boroschek,Candida Brush, Bill Bygrave, Geoffrey Chalmers, Leslie Charm, HelenCoates, Walter Esquivel, Len Green, Sam Hariharan, Susan Hartshorn,

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A C K N O W L E D G M E N T S

Peter Horn, chancellor and director of research for the International School ofManagement, J. P. Jeannet, Bill Johnston, Evelyn Lager, Julian Lange, LouiseLawson, Ham Lord, Ed Marram, Edward Mills, Pete Mellor, Heidi Neck,Georgia Papavasiliou, Enio Pinto, Jay Rao, Mark Rice, Peter Slate, TomSimon, Janet Strimaitis, Natalie Taylor, Chris and Lori Wadsworth, MatthewWerner, and Yelena Zaharoff.

And most of all to my family and friends who have empathized and com-miserated throughout the birthing of this book: my dear, dear wife andsoul mate, Maria, who continuously filled me with confidence and toler-ated book materials strewn around the home; my beloved children, Adam andDeborah and her husband, Mike; my captivating grandchild Leo; my stepchil-dren, Oscar, Jose, and Elizabeth; my precious sister, Sandra; my forevercherished mother, Jeanne; my niece Andrea’s family—Joel, Jake, and Noah;my nephew Stephen’s family—Dana, Caleb, and Eli; my cousins Lori andBernie, Jerry and Linda; my wonderful extended family in Mexico—Angelinay toda su familia; Margaret and Fred Klingmeyer; Barbara and WarrenMcNeilly; friends for life—John Bergman; David and Nancy Weaver;Myron and Marie Waldman; Fred and Donna Alper; Garry and TherezaPrime; Harold and Eleanor Ottobrini; Jesse and Lora Erlich; Jim and KayBath; Ellis and Debbie Waldman; the family of Nirund Jivasantikarn; Lucia,Bruce, Sam, and Bianca Santini Fields; and Bev Santini. Did I leave anyone out?I sincerely hope not!

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I n t r o d u c t i o nB u c k l e U p f o r Y o u r

F a n t a s t i c V o y a g e

World stock markets lost 50 percent of market value from their2007 peak to mid-2009—the staggering sum of $19 trillion (that’s

$19,000,000,000,000! ). To put this in perspective, it is an amount equal tothe combined gross domestic products of the United States and China.1 Indi-viduals, businesses, governments, states, cities, universities, and organizationsof all kinds are poorer for this decline, many to the point of bankruptcy.Youngsters and oldsters alike are feeling the financial pain. And the economicmisery will surely last for years until employment levels, housing prices, creditflow, and consumer spending recover. While this situation is sad to the ex-treme, this is not something you should dwell on. Instead, focus on the biggerpicture:

TODAY’S CHAOS IS THE OPPORTUNITY OF A LIFETIMEFOR THE PREPARED ENTREPRENEUR!

Opportunities abound in the turbulence created by change and economicdislocation. Businesses are for sale. Asset prices are unbelievably cheap. Peopleand businesses are changing their buying patterns. Governments are printingand spending money to stimulate their depressed economies. The world isawash with bargains and change! By honing your entrepreneurial skills and

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