THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about...

39
THE BIG Why It’s Easier to Build a Big Company Than a Small One!

Transcript of THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about...

Page 1: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

THE BIGWhy It’s Easier to

Build a Big Company Than a Small One!

Page 2: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 1

Ideas That Can Change Your Life™ in Business

The Big Why It’s Easier to Build a Big Company

Than a Small One!

James Skinner, Mark Victor Hansen, and Roice Krueger

“The Big” is about building big companies. It’s

about playing big in life. It’s about helping out the

planet in a big way. And the best part is big is

easier than small! Who would have thought?

___________________________________________

Page 3: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 2

Ideas That Can Change Your Life™ in Business

The Big

The Authors

JAMES SKINNER is the founder of two global financial

groups that manage billions of dollars of assets. He is

also recognized as one of the world’s foremost business

thinkers and appears regularly on Japanese television.

MARK VICTOR HANSEN is the co-creator of the Chicken

Soup for the Soul empire and is the best-selling nonfiction

author of all time. His goal is to make the planet work

for all humanity!

ROICE KRUEGER co-founded Franklin Covey, the

world’s largest training company, and has supervised

consulting projects for 80 percent of the Fortune 500.

NOTE: Ideas That Can Change Your Life™ is a

collaboration of three of the world’s most amazing

authors, speakers, and thinkers. The first person “I” may

refer to any of the authors.

Page 4: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 3

Ideas That Can Change Your Life™ in Business

The Big

“The Big” i s one o f our most request ed presentat ions .

We hope you enjoy “si t ting in .” Welcome!

Big Companies Are Easier to Build Than Small

Companies!

We want to teach you how to become exceedingly well-

off in an abbreviated amount of time. Would that be

good? Everyone say, “Yes!”

Then let’s talk about The Big.

In the process of living my life I’ve noticed that

when it comes right down to it, newspapers essentially

write about everything that is not happening in the

world. Does that make sense? By that, I mean they write

about the news: rare and unusual events that stand out

from what is generally happening.

For example, war is an unusual event. If you look at

the number of countries that are actually at war with one

another, there are very few; but reporters write about

those areas instead of writing, “The world is at peace

today.”

Page 5: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 4

Ideas That Can Change Your Life™ in Business

The Big

Book authors do the same thing. They write lots of

books about things that seldom happen.

One of the topics they love to write about is the

success story of someone who starts a business in their

garage that eventually becomes big. The reason authors

like to write about this is that it is actually very, very

rare. Does that make sense?

Think about most big companies; how do they get

big? The answer is they start big.

Now, everyone say, “Start big!”

Get a list of the top 1,000 companies in the world

and see how many of them were ever small.

In the process of building several businesses (I first

built a couple of small businesses, and then I built a

couple of really large businesses), I realized it’s actually

easier to build a big company than a small company!

Page 6: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 5

Ideas That Can Change Your Life™ in Business

The Big

Everyone say, “Easier!”

So, how exciting would it be to know that you can

actually build a big company with less work than it takes

to build a small company? Is that exciting?

And how exciting would it be to know that you

could build a billion-dollar company as fast as you can

snap your finger? Snap! How many of you would like to

make more than $1 million in one day? It’s easy! Are you

ready?

What we have found is that there is actually a very

orderly process for creating a big company, a big

business.

There are eight points. Everyone say, “Eight

points!”

We’re going to go through these very quickly.

Page 7: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 6

Ideas That Can Change Your Life™ in Business

The Big

1. People with Big Goals Build Big Companies!

The first thing you need if you ever want to have a big

company is a big goal. That’s because people with small

goals go out and build small companies. And the reason

that people with small goals go out and build small

companies is that they see themselves as small.

I want you to take out a pen and write down on a

sheet of paper how much money you would like to

have. Write it as a number, with no words. How much

money would you like to have? In dollars, yen, euro—it

doesn’t matter. Have you got the number written down?

Now my question is Why didn’t you write one more zero?

How hard is it to write the next zero? It should be easy,

but it’s actually very hard.

When I was with leading entrepreneur Roger

Hamilton in Bali for ten days, he and I decided to write

a book called The Promise; and he said, “The size of your

future is the size of your business promise.”

Page 8: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 7

Ideas That Can Change Your Life™ in Business

The Big

Marriage is essentially a promise, right? And so it is

with business. Business is just a promise for future

delivery, and then you’ve got to deliver it.

To start off, we’re asking you to think in a new way.

You do that by asking a different question.

I called up a good friend of mine a couple of years

ago and I said, “How would you like to have $100

million?” He was driving to work in his car, and he

almost had a traffic accident. The conversation got even

more interesting from there.

“Well, I’d love to have $100 million,” he said.

“How many projects do you have going on right

now that have the potential to give you $100 million?”

He parked his car and sat for ten minutes thinking

about the fact that he didn’t have a single project going

that even had the potential to give him $100 million.

Page 9: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 8

Ideas That Can Change Your Life™ in Business

The Big

“You’re in deep doo-doo,” I said. “You’d like to

have $100 million, but you haven’t even got one thing

going on that even has the potential to do it.”

2. All You Need is a Big Idea!

So, you need to start with a big goal, which will lead you

to the next thing: a big idea. Big companies are built

with what? Big ideas. And another word for idea is a

story or a promise. And the great thing about ideas or

stories is that they are free.

Your big idea is absolutely free to you. It’s going to

cost someone else a couple million dollars one day in

the near future, but for you it’s free!

So, if the story you come up with is not working,

what do you do? Get a different story!

How much does that cost you? Nothing!

I want you to know that the whole process of

creating a big company costs you nothing! You’re going

to get very excited about this in a minute.

Page 10: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 9

Ideas That Can Change Your Life™ in Business

The Big

Let’s give you an example. A few years ago, some of

my partners and I created a big idea. We said, “We’re

going to become the first hedge-fund company on earth

that does away completely with a fixed management fee.

We’re only going to charge you a fee if we make you

money.”

Is that an easy story to understand?

So you have people from hedge fund “A” who

come to sell you some funds, and they say, “We’re going

to charge you a fixed percentage of your assets every

month whether we make money for you or not, and

we’re also going to charge you a performance fee.”

Or you can come to us, and we say, “We’ll just take

the performance fee.”

Since then, because we started out big and had big

goals, I wouldn’t even go to a meeting if there wasn’t at

least $100 million on the table. Anything less was

pointless. And it has worked. Today, when someone

Page 11: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 10

Ideas That Can Change Your Life™ in Business

The Big

gives me $100 million and we make a ten percent return

(that’s $10 million on top of the $100 million

investment), my firm gets 20 percent of that (or $2

million in one year from one client!).

So, get a big idea. I’ll show you next that once you

have a big idea, you don’t have to know or do anything!

Are you getting excited yet?

You don’t have to know anything!

Are you now really excited?

Everybody say, “I’m excited!”

3. Big People Make You Successful!

Get excited! You don’t have to do anything and you

don’t have to know anything! When you have a big idea,

it will attract big people because big people like to do

big things.

Page 12: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 11

Ideas That Can Change Your Life™ in Business

The Big

For example, I sat on a plane recently; and I said to

myself, “Boy, at four o’clock this morning, my knees

were shaking and I’m writing out a big idea on selling a

billion books.”

The guy next to me overheard me and said, “I have

a way to sell a billion books.”

“Well, yours is probably the same as mine,” I said.

At the time, I thought there would really be only one

idea.

Well, Mark had one way to do it. James had another.

Then Roice had a completely different idea about how

to do it. Then our friend Roger Hamilton came up and

said, “I’ve got a way to sell 10 billion books and end

illiteracy.”

Do you see that once you’ve got a big idea, you

mass-attract (by the Law of Attraction) the people to

you who know how to make that idea happen? Does

that make sense?

Page 13: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 12

Ideas That Can Change Your Life™ in Business

The Big

Now I’m going to tell you how you know in advance

whether your business will work. Or if someone comes

to you and says, “I’m starting a company. Would you

like to invest?” I’m going to tell you how you know in

advance whether their business will work or not. Would

that be useful to you?

This will save you lots and lots of money and it will

save you lots of heartbreak because you will know, in

advance, whether your company will be big. The only

question you need to ask is “How many big and

successful people are leaving their day jobs because they

want to participate in this idea?”

Back when we started our hedge-fund company, I

didn’t know whether it would work or not. I’ve never

known whether my businesses would work. But I’ve

learned not to judge that way anymore. Now, I just look

around and see how many people are leaving their day

jobs to be part of this big idea.

So when the head of alternative strategies for one of

the world’s largest banks said, “I want to leave my day

Page 14: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 13

Ideas That Can Change Your Life™ in Business

The Big

job and join you,” I said, “Hmm, interesting!” And then

when the regional director of one of the largest banks in

the U.K. said, “I want to leave my day job and come and

work for you,” I said, “Hmm, interesting!” And then

when the head of one of the world’s leading private

banks said, “I want to come and help you run your

business,” I said, “Hmm, I know it’s going to work!”

You don’t have to know anything! You don’t have

to do anything!

The Big People that are attracted to your idea can

make it all happen for you!

Remember when Bill Gates had a big idea: He said

I’m going to get a computer in every house. So what followed is

that the smartest students and the smartest people

around wanted to come and join him. He paid them not

with money but with options in the growth of the

company. Then he gave all these really smart people

1,600 projects to work on each year, and the company

got big from there.

Page 15: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 14

Ideas That Can Change Your Life™ in Business

The Big

4. We Live in a World With Too Much Money!

So, once you have a big idea with big people, it makes it

very easy to do the fourth step, which is you get some

big capital.

Everyone say, “Beaucoup bucks!”

There are people today who have too much money,

and they have no place to put it. I’m not kidding. One

of the largest investment banks in the U.S. recently

launched a private-equity fund and raised $30 billion in

one day. Now for those of you who cannot do the math,

that is $30,000 million!

What that means is that if we give $1 million to each

of 3,000 entrepreneurs to invest in a new business, the

fund manager has only done 10 percent of his job!

It’s a problem! The fund manager has to find a place

to put $30 billion! He needs your big idea! He (and the

economy at large) has lots and lots and lots of cash. But

he doesn’t have enough big ideas. He doesn’t have

enough engines.

Page 16: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 15

Ideas That Can Change Your Life™ in Business

The Big

For the first time in human history, we have excess

liquidity. There is too much money! Everyone say, “Too

much money!”

So, we went to a private-equity guy, and we thought

we were being very ambitious: We said, “We would like

to give you 10 percent of our company.” You have to

remember, there was no company yet—just an idea and

some people! OK, so we said, “We would like to give

you 10 percent of our company for half a million U.S.

dollars.” He said, “OK,” and wrote the check. We were

stupid! Half a million dollars doesn’t solve his problem!

You need to ask for $10 million or $50 million so that

you can be a part of his budget!

Everyone say, “Budget!”

You need to know this word whenever you deal

with big companies, which you’re going to be doing a lot

because we are talking about “Big.”

Page 17: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 16

Ideas That Can Change Your Life™ in Business

The Big

We are talking about billions. We’re talking about

how you make a ton of money in one day.

The people who are in big companies operate based

on budgets. And if you only take a half a million dollars

of his money, you are not a solution—you are just

another problem. You need to be a line item on his

budget.

Everyone say, “Line item!”

A line item means they actually track you as an

individual line on the budget. As soon as you’re a line

item, they can’t get rid of you! Because to get rid of you

they need permission from the board of directors! And

nobody, no division manager, wants to have to go to the

board and explain why a line from the budget has

disappeared. They lose their jobs over stuff like that.

Now think about this for a moment. The original

founders of the business basically invested nothing. And

they own 90 percent of the business. Then venture

capitalists invested half a million and now own 10

Page 18: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 17

Ideas That Can Change Your Life™ in Business

The Big

percent of the business. So how much is the business

worth on day one? $5 million!

Now if you’ve got 90 percent of $5 million, how

much have you got? $4.5 million. And if you share that

with two other partners, how much do you personally

have?

You have $1.5 million each just for telling the

story—in one day!

You’re supposed to clap about now!

You can make $1.5 million just for telling a story.

And if they don’t give you at least $1.5 million for telling

a story, tell a better story!

When I was on the board of one of the world’s

biggest airlines—Evergreen Airlines—I came up with a

million-dollar idea and gave it to the chairman, Dell

Smith, and he said, “Do you understand that that’s

worthless to me?”

Page 19: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 18

Ideas That Can Change Your Life™ in Business

The Big

“Why?” I said.

“Each of the many, many planes I own, including all

the ones rented to UPS, costs $170 million.”

A million dollars is like a penny to him.

When you’re thinking big, you get to play with big

money. When you borrow $1,000 at the bank, the bank

owns you. But when you borrow $100 million, you own

the bank.

I want to tell a true story about a friend of mine. His

name is Teiichiro Hori. He produced the Tokyo

Olympics, then he produced the two most successful

pavilions at the Osaka International Exposition, and

then he produced the two best-selling TV shows in

Japanese history—and it wasn’t enough. He needed to

do something even more interesting.

He went to a friend of his and said, “I have an idea,

I have a story, I have this really cool thing I want to do,

but I need $500 million and I need it tomorrow.”

Page 20: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 19

Ideas That Can Change Your Life™ in Business

The Big

Now here’s the thing: If you try to borrow $50,000

from a bank, how many people have to sign the form?

At least four people. And it takes weeks! Or months!

They’re getting better these days, so maybe weeks. And

then maybe they don’t give it to you.

Now if you want $500 million, how many people at

the bank can give it to you? One! How many people

need to sign for it? One! The bank president is the only

one at the bank who can do it for you.

So my friend went to the president of the bank, and

said, “I need $500 million, and I need it by tomorrow.”

The bank president said, “What do you need it for?” He

said, “I want to build Disneyland in Tokyo.” The bank

president said, “That’s cool,” and he signed the form!

It’s a true story. My friend Teiichiro Hori needed to

show the Disney people that he had $500 million in

capital or they were going to take it to China first.

Page 21: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 20

Ideas That Can Change Your Life™ in Business

The Big

Big companies play with big partners! What this

all begins to attract to you is big partnerships.

When we wanted to get into the funds business in a

big way, we immediately went out and started working

with all of the world’s largest investment banks.

When you have big partners, you have big capital

and big people. And it smells like a big business. It looks

like a big business. It tastes like a big business. It is a big

business!

This is how big businesses are created.

People who are playing big go out and tell a big

story to other big people, and they get big capital, and

they bring together big partnerships; and all of a sudden

they have a big company.

5. Big Distribution Makes You Rich!

There’s one more thing that you absolutely need. Are

you ready? Because making $1.5 million in a day is not

Page 22: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 21

Ideas That Can Change Your Life™ in Business

The Big

really very interesting. It’s not. What do you do

tomorrow? You don’t want to get bored, right?

This is the killer. This is where all the little guys in

the garage muck it up and where Bill Gates got it right.

I’m now going to give you the genius of Bill Gates

in one line. Everything that made Bill Gates rich in one

line . . . would you like to know? Here it comes, and I

wish I were joking. Are we giving this stuff away for free

today? We’re nuts!

The genius is big distribution.

I have a friend named Robert Kiyosaki, author of

Rich Dad, Poor Dad. Brilliant guy, right? Why is he so

brilliant? He’s brilliant because he partnered with AOL

Time Warner for all of his distribution.

Now for AOL Time Warner to make Robert

Kiyosaki rich, how serious do they have to be about his

project? Very? No, not at all! They snap their fingers:

Poof, he’s rich! They don’t have to put the full might of

Page 23: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 22

Ideas That Can Change Your Life™ in Business

The Big

their empire behind him! They just go “poof,” and he’s

rich!

Say, “Big distribution!”

You know, if you want to meet a lot of rich people,

go find everyone who sells stuff to Wal-Mart.

There was a guy named Mr. Simplot. Mr. Simplot is

a very simple man in a very simple business. And he

lives in a very simple place called Idaho. He produces a

very simple thing called “potatoes.” A long time ago he

met a really crazy traveling salesman named Ray. And he

said, “Ray, I will sell you all your potatoes.” And Ray

said, “That sounds good; that’s one less problem I have

to worry about.”

But Ray’s last name was Kroc. And he was operating

a little company called “McDonald’s.” And the Simplot

potato became the standard potato for McDonald’s.

Billions of dollars in potatoes!

Page 24: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 23

Ideas That Can Change Your Life™ in Business

The Big

Everybody gets so messed up thinking they need a

big business opportunity.

Opportunity is the only thing in business that is

unlimited. Your capital is limited. Your manpower is

limited. Your management talent is limited. Your time is

limited. But opportunity is everywhere, even in simple

things like potatoes.

I live in Singapore on “Embassy Row,” and my

neighbor two doors over is building a new house—

50,000 square feet—on Embassy Row. The first time I

saw it, I thought they were building a new government

building. It’s not. It’s his house. And he made his entire

fortune selling frozen spring rolls. Some of you may

know this man. He’s a billionaire, from frozen spring

rolls!

The other night I was invited to a dinner at a great

club in Newport Beach, and the guy that I sat with was

telling me about a time just ten years ago when he

walked into a 7-Eleven. Now if you remember, ten years

ago all the windows used to fog up so you couldn’t see

Page 25: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 24

Ideas That Can Change Your Life™ in Business

The Big

the Coca-Cola, you couldn’t see the candy, you couldn’t

see the magazines. So this guy figured out how to do

double-paned glass and signed an exclusive contract that

made him a multimillionaire in the first year, and he

immediately had to hire hundreds of people—all that

just because he figured out a way to make it so the

window wouldn’t fog up and people would buy more

stuff.

Point to your temples and go, “Hmm, that’s

interesting.”

All you’ve got to do is have the idea. Did he execute

the idea? No. All he did was have the idea and then hire

the people to execute it.

He got paid for his thinking.

Let’s get back to big distribution. The reason Bill

Gates is richer than a guy named Jobs is not that he has

a better operating system. We can get shot in Seattle for

saying this stuff, but it’s true. It’s because he went to all

the computer manufacturers and said, “We’ll just install

Page 26: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 25

Ideas That Can Change Your Life™ in Business

The Big

our operating systems on all your computers and take

away one of your problems.” So he got huge

distribution. His distributors were IBM, NEC, Fujitsu,

Sony—all of them! That’s why he’s the richest man on

earth: because he has the biggest distribution and none

of it is his!

Same thing: Some of you have read about Dr. Andy

Grove, one of the founders of Intel, who says, You need

to create a strategic inflection point. Anyway, he came up with

a little logo that says “Intel Inside.” He got every

computer manufacturer to want to put that logo on their

boxes, and it made him $10 billion. Distribution!

6. Everybody in the World is in the Business of

Helping You!

So, you have a big goal. You want to play big. You start

telling it to people. If lots of powerful people want to

leave their day jobs and come work for you, you know

it’s a great idea. If not, you tell a different story because

they’re the ones who are going to make you rich. When

you have some big people, you go out and get some big

capital. Then you go out and get some big partnerships,

Page 27: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 26

Ideas That Can Change Your Life™ in Business

The Big

great suppliers, great people to work with, and great

banks. Then you get some big distribution. You’re a

done deal!

Now here’s the thing I want you to get: Everybody

in the world is in the business of helping you.

That’s where you’re supposed to say “Oooooh” and

“Aaaahhh.” Why?—because you’ve never heard this

before.

OK, I’m going to tell you something that I

guarantee you’ve never heard before. What business are

your customers in? They are in the business of what?

What do customers do? They buy! Your customers are

in the business of buying stuff from you.

How cool is that?

Customers are in the business of shopping!

Purchasing departments are in the business of

purchasing. And people have to buy stuff. Stop making

Page 28: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 27

Ideas That Can Change Your Life™ in Business

The Big

the customer the enemy. They are in the business of

buying.

How many of you are confident that you could go

one week without buying something?

None of you. I dare you to go one week without

buying any electricity, any water, any food, any clothing,

any lodging—nothing. You won’t make it.

Your ancestors could survive in the jungle without a

flashlight—but you’d be toast! You need to shop.

So, shoppers are in the business of shopping.

Employees are in the business of working for you.

Suppliers are in the business of supplying. Distributors

are in the business of distributing. And the coolest thing

of all is that venture capitalists are in the business of

giving you all the money you need to do it in the first

place!

7. You Will Make So Much Money You’ll Have to

Give it Away Just to Get Rid of It!

Page 29: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 28

Ideas That Can Change Your Life™ in Business

The Big

This brings us to number seven, which is big charity.

Everyone say, “Big charity!”

Paul Newman is an actor who gets $20 million a

movie. At 82 he still very active in his acting career by

making multiple appearances in TV and movies every

year. A couple of years ago he didn’t like the salad

dressing at a restaurant; so he went home, made his own

salad dressing, and began to give it away to his friends.

They all said, “Paul, this is so good we want to buy it.”

He said, “Well, I don’t want to be in that business.” But

he started selling it and donated 100 percent of the

proceeds to charity to help kids with terrible diseases.

He started calculating the total amount of money it

would take to cure this disease worldwide, and it was

$100 million a year, so he just started a restaurant.

First, he had a big goal. He said, “I’m not going to

borrow the money or ask anyone for the money; I’ll

create the money.”

Page 30: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 29

Ideas That Can Change Your Life™ in Business

The Big

Everyone say, “I’ll create the money!”

He had a big story. He said, “What I’ll do is I’ll do

the first five-star organic Italian restaurant. We’ll do it in

Westport, Connecticut, and we’ll get the biggest people

to contribute to it, people that are already successful”

Now, he’s got big capital, so he’s going to franchise it—

he’s going to open up thousands of franchises across the

country. He’s got partners, he’s going to have big

distribution, and he’s going to make $100 million that all

goes to charity—and that gives him the biggest legacy

that I know of in that area.

Now the really cool thing about giving money away

is that it doesn’t cost anything. Do you get that? It’s a

little bit complicated.

I want to tell you a little story. Several years ago,

when I was just starting out with my company, it was

November, and I said to my assistant (we were the only

two people in the company), “I want to take 100

orphans to Disneyland next month for Christmas.”

Page 31: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 30

Ideas That Can Change Your Life™ in Business

The Big

“Have you looked at the bank book lately?” she said.

“We don’t have any money!”

How many of you have ever felt like you don’t have

any money? I’m going to tell you what my mother

taught me: “You don’t need more money—you need

more faith!”

So I said to my assistant, “Don’t worry about it. You

get the kids. The money will show up.”

She had a funny look on her face. “OK. It hasn’t

worked that way for me in the past, but if you say so.”

So she went out and visited all the orphanages and

found us 100 orphans to take to Disneyland. In the

meantime, I started meeting with people like you. I’d

say, “Oh, we’d like to help some people. We want to

take 100 kids to Disneyland. What I want you to do is to

sponsor one child to play at Disneyland for one day. So

you’ve got to pay for their ticket and their lunch. Would

you be willing to do that?”

Page 32: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 31

Ideas That Can Change Your Life™ in Business

The Big

And everyone said, “Sure!”

Then I would say, “There’s one more thing I want

you to do. I want you to actually come to Disneyland

and play with the kid. Are you willing to do that?”

And everyone said, “Sure!”

There were some people who couldn’t come after

all. They said, “I have a board meeting that day. I’d

really love to come, but will you just take some of my

money?”

I said, “Sure!” You know we have to pay for the

buses and some of that other stuff.

And when we were all done, my cost of taking 100

children to Disneyland was minus $2,000!

Do you know what that means? The cost was minus.

That means there was $2,000 left over!

Page 33: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 32

Ideas That Can Change Your Life™ in Business

The Big

We couldn’t use all the money that people gave us,

so we gave the $2,000 to the orphanages to buy hats and

gloves for the kids.

Then there was the tsunami in 2004. Everyone was

talking about Indonesia and Phuket, but there were

some other places that were hit, like India. So we

immediately sent an emergency medical team of

paramedics to India. We just told a bunch of people we

wanted to send this emergency medical team to India,

asked what we needed to do, and explained that we

needed some money. They all gave us some money.

There was so much money left over that we bought two

fishing boats for the village.

Link an idea like this with a really big business, and

you can change the planet.

Here’s one more story: We published Chicken Soup

for the Soul 1 and 2, and later Chicken Soup for the Teenage

Soul and others. Well, one day I got a call from Saul

Price, who runs Costco, the biggest competitor of Wal-

Mart.

Page 34: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 33

Ideas That Can Change Your Life™ in Business

The Big

He said, “Look, I’m selling 20,000 of your books a

week, and everybody thinks it’s a cookbook. So we

would like a cookbook.”

I said, “Look, Saul, I love ya and I appreciate you

selling all those books, but we don’t do cookbooks.”

He said, “The first order is a quarter million.”

I said, “Saul, I can do a cookbook.”

Now, we don’t do any books unless there’s a charity

tie-in, so we said, “Look, by Thanksgiving we’ll sell a

quarter of a million books, but what we’re going to do is

put ‘Feed L.A. on Turkey Day’ in the front of the

book.”

We went to the Union Rescue Mission in L.A. and

told them what we were planning.

We started getting calls from the biggest health food

store in L.A., which at the time was Mrs. Gooch’s, and

Page 35: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 34

Ideas That Can Change Your Life™ in Business

The Big

she said, “I’ll provide all the turkeys.” Then we got a call

from Whole Foods: “We’ll provide all this, we’ll provide

all that”; and we provided money just to make sure

everyone at the mission had clothes and more. So many

people came, and we did the distribution. When you

think big, it is amazing what you can do!

8. Multiply It!

The final part of the story is to multiply whatever you

are doing. Replicate it. Find ways to do it again and

again. Find ways to make it 100 times bigger and 100

times faster than it was before.

When we started the Franklin Covey organization,

we had a big idea called “The Seven Habits of Highly

Effective People,” which basically was it’s time to stop

focusing on personality, or how we appear on the surface, and to

start focusing on character, or how we really are underneath.

Stephen Covey’s idea attracted a lot of big people,

including some of the world’s best presenters and video

producers who turned this into the best-selling training

course in history.

Page 36: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 35

Ideas That Can Change Your Life™ in Business

The Big

We were doing a lot of good in the world, but it still

needed to be multiplied.

We decided the best way to do this was to replicate

our work around the world. We ended up having

licensees in 70 countries!

There are so many ways to multiply. Licenses, new

markets, different countries, extensions of your product

line—the list goes on!

We found out that the knowledge needed to run a

hedge fund could be applied to running capital markets

or private-equity businesses as well.

Once you build something big, the law of

accelerating returns kicks in. You accelerate faster and

faster. The next big thing becomes easier.

Everybody say, “Accelerating returns!”

Page 37: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 36

Ideas That Can Change Your Life™ in Business

The Big

Konosuke Matsushita in Japan had built more than

1,800 companies by the time of his death. Only one of

them was ever a small company—the first one. Once he

learned how to do it big, there was no reason to start

small. He multiplied the system he had created in sector

after sector.

Be Big!

So there you have The Big. It’s all you need to make a

big company.

Remember: A big company is easier to make than a

small company.

You just need a big goal. You need to see yourself as

somebody who’s going to do something big and

meaningful in the world, because that is why you were

born.

Then you need to get a big idea, you tell the story,

and if the story is not attractive to people, you get a

better story. And it’s free! And the really great thing

about the story is that it doesn’t even need to be your

Page 38: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 37

Ideas That Can Change Your Life™ in Business

The Big

story. You can go to others and say, “What are you

bothered about?” They might say, “Oh, I wish I had

someone to solve my window problem.” They’ll give

you the story!

Then you go out with the story, and it attracts some

big people.

Once you have the big people, you attract big

capital. Ask for big money; it’s easier. W. Clement Stone

said, Always ask for more than you need, borrow it for longer

than you need, and pay it back faster.

Once you have some big capital, you’re poised to

have some big partnerships. Remember, you don’t

actually need to do anything. Design companies are in

the business of designing. Manufacturers are in the

business of manufacturing. Employees are in the

business of being employed. Everybody is in the

business of doing this for you.

Then you get big distribution, which will make you

mega wealthy without doing anything. You don’t

Page 39: THE BIG Big Completed.pdfgarage that eventually becomes big. The reason authors like to write about this is that it is actually very, very rare. Does that make sense? Think about most

© 2007, James Skinner, Mark Victor Hansen, and Roice Krueger, All rights reserved. 38

Ideas That Can Change Your Life™ in Business

The Big

actually have to sell anything because there are people

who make their entire livelihoods selling stuff for you.

And then, if you’re going to be that big, there’s no

possible way that you’re going to use all the money. It

can’t be done. When you’re making $1 million a day,

how do you spend it? There’s no person alive who can

shop that much without dying. So you need to go out

and do some big charity and save the planet. And then

multiply your efforts to become a force for good in the

world.

We wish you well on your journey to The Big!

With best wishes,

James Skinner, Mark Victor Hansen, Roice Krueger

___________________________________________