9 Misconceptions of Entrepreneurship

Summary

In this video, the speaker addresses nine common misconceptions about entrepreneurship that often deter people from pursuing their dreams. He debunks myths such as entrepreneurs being born, the necessity of cheating or stealing to succeed, and the belief that being an entrepreneur means being selfish. The speaker emphasizes the importance of hard work, execution, and the reality that entrepreneurs serve many 'bosses,' including customers and employees. He encourages viewers to challenge these misconceptions and consider entrepreneurship from a new perspective.

Takeaways

• 😀 Misconceptions often prevent people from pursuing potentially beneficial actions due to incorrect beliefs or understanding.
• 🚀 The belief that entrepreneurs are born is a myth; entrepreneurship can be learned and developed over time.
• 🛑 Cheating or stealing is not a necessary part of being a successful entrepreneur; integrity is key to long-term success.
• 🍀 Luck is often a result of action and preparation; it's not a standalone factor in business success.
• 🤝 Building a large company requires unselfishness and contribution to the community, not just personal gain.
• 💡 A great idea alone is not enough; execution is what truly matters in turning an idea into a successful business.
• 💸 Raising capital is not the only requirement for business success; it's more about the entrepreneur's reputation and track record.
• 🔗 Initial connections are not prerequisites for entrepreneurship; they often come as a result of hard work and recognition.
• 🚧 Starting a business doesn't require a massive risk; many entrepreneurs begin part-time and scale up as they test their ideas.
• 👥 Entrepreneurs are not their own bosses in the traditional sense; they are accountable to customers, employees, and other stakeholders.
• 📢 Challenging misconceptions about entrepreneurship can open doors to opportunities and a chance to live a dream life.

Q & A

What is the main purpose of the speaker in the video script?

The speaker aims to clarify misconceptions about entrepreneurship and encourage people to challenge these misconceptions to pursue their entrepreneurial dreams.

Why does the speaker emphasize that entrepreneurs are not born?

The speaker emphasizes this to counter the misconception that only certain individuals are naturally suited to be entrepreneurs, asserting that anyone can become an entrepreneur through hard work and learning.

What is the speaker's stance on the idea that one must cheat or steal to win as an entrepreneur?

The speaker strongly opposes this notion, stating that success in entrepreneurship does not require dishonest practices and that integrity is crucial for long-term success.

According to the speaker, what is the role of luck in entrepreneurship?

The speaker acknowledges that luck can play a part in business success but stresses that it is the hard work and preparation that create the opportunities for luck to occur.

Why does the speaker argue that entrepreneurs are not selfish?

The speaker argues that building a large company requires the contribution of many people, and thus, an entrepreneur must be unselfish to create value for employees, customers, and society.

What misconception does the speaker address about the necessity of a great idea or product for entrepreneurship?

The speaker dispels the misconception that a great idea or product alone is sufficient for entrepreneurship, emphasizing that execution is far more important than the idea itself.

How does the speaker view the role of raising capital in entrepreneurship?

The speaker believes that while capital can be helpful, it is not the key to success. Instead, one's reputation, track record, and relationships are what attract capital.

What is the speaker's opinion on the importance of connections in entrepreneurship?

The speaker suggests that connections are not a prerequisite for entrepreneurship but rather a by-product of hard work and legitimacy in the business world.

Why does the speaker say that entrepreneurship is not a massive risk?

The speaker argues that entrepreneurship does not necessarily involve a massive risk, as one can start a business part-time and test the market before fully committing.

What misconception does the speaker address about being one's own boss as an entrepreneur?

The speaker clarifies that being an entrepreneur does not mean being one's own boss, as customers, employees, vendors, and other stakeholders have significant influence on business decisions.

What challenge does the speaker issue to the audience regarding the 'subscribe pillow'?

The speaker challenges the audience to find or create a pillow that can be customized with the Valuetainment and YouTube logos, promoting creativity and engagement with the channel.

Outlines

00:00

🚫 Misconceptions of Entrepreneurship

The speaker addresses common misconceptions about entrepreneurship, emphasizing that entrepreneurs are not born but made. He refutes the idea that one must be naturally gifted or have certain traits to be successful. Using examples from sports, he illustrates that success is not about innate talent but about hard work and perseverance. He also challenges the notion that entrepreneurs must cheat or steal to succeed, asserting that integrity is crucial for long-term business success.

05:02

💰 The Myth of Entrepreneurial Luck and Greed

This paragraph dispels the myth that entrepreneurs are selfish and only care about money. The speaker explains that building a large company requires unselfishness as the majority of the company's value goes towards employees, infrastructure, and other operational costs. He also tackles the misconception that success is purely a matter of luck, arguing that while luck can play a role, it is the result of hard work and strategic action that sets the stage for fortunate opportunities.

10:05

💡 The Importance of Execution Over Ideas

The speaker stresses that having a great idea alone is not enough to guarantee success in entrepreneurship. Execution is key, and many people fail because they do not follow through on their ideas. He also criticizes the belief that raising capital is the solution to all entrepreneurial challenges, pointing out that capital is attracted by a solid reputation, a strong track record, and effective networking, rather than being a starting point.

🤝 The Role of Connections and the Risks of Entrepreneurship

In this section, the speaker discusses the importance of connections in business, noting that they are often a by-product of hard work and dedication rather than a starting advantage. He shares his personal experience of building connections from scratch, countering the notion that successful entrepreneurs come from privileged backgrounds. Additionally, he addresses the misconception that entrepreneurship involves massive risks, suggesting that many businesses can start part-time and grow organically.

🛠 The Entrepreneur as Servant, Not Boss

The final paragraph challenges the popular belief that entrepreneurs are their own bosses. The speaker argues that being an entrepreneur means being accountable to customers, employees, vendors, and various other stakeholders. He likens having children to being an entrepreneur, where one is responsible for others and thus not truly the boss. He concludes by encouraging viewers to reconsider these misconceptions and not let them hinder their entrepreneurial aspirations.

Keywords

💡Misconceptions

Misconceptions refer to incorrect beliefs or ideas based on faulty thinking or understanding. In the video, the speaker addresses this term by discussing various false beliefs that people have about entrepreneurship, such as the notion that entrepreneurs are born rather than made, which is a misconception the speaker aims to debunk.

💡Entrepreneurship

Entrepreneurship is the process of designing, launching, and running a new business, which typically involves risk and innovation. The video's main theme revolves around clarifying misconceptions about entrepreneurship, emphasizing that it is not solely about luck, being born to it, or having initial connections.

💡Execution

Execution refers to the act of carrying out a plan or idea effectively. The speaker stresses that while having a great idea is important, it is the execution of that idea that truly matters in entrepreneurship. The script mentions that many great ideas exist, but few are actually brought to fruition due to a lack of execution.

💡Capital

Capital, in a business context, refers to the funds used to finance a business venture. The video mentions that raising capital is often seen as a key to success in entrepreneurship, but the speaker argues that capital alone is not enough and that it is more important to have a solid reputation and track record.

💡Connections

Connections denote relationships or links, especially in the context of business, where they can refer to networking or knowing influential people. The speaker refutes the misconception that successful entrepreneurs must come from a background of strong connections, sharing his own experience of building connections through hard work and legitimacy.

💡Risk

Risk is the possibility of loss or injury. In the video, the speaker talks about the misconception that entrepreneurship involves taking massive risks, suggesting instead that many entrepreneurs start part-time and test their ideas before fully committing.

💡Selfishness

Selfishness is the quality of being concerned excessively with oneself. The speaker counters the stereotype that entrepreneurs are selfish, arguing that building a large company requires a commitment to the well-being of employees, customers, and other stakeholders.

💡Luck

Luck is the chance occurrence of events, especially those that are favorable. The video discusses the role of luck in business success, with the speaker stating that while luck is a factor, it is the hard work and preparation that create opportunities for luck to play a role.

💡Idea

An idea in the context of the video refers to a concept or plan for a new product or business. The speaker emphasizes that having an idea alone is not enough; it is the execution and the work put into developing the idea that lead to success.

💡Boss

Being one's own boss typically means having control over one's work and decisions. The speaker challenges this notion by stating that as an entrepreneur, one is not truly the boss but rather accountable to customers, employees, and other parties involved in the business.

💡Valuetainment

Valuetainment is a term used by the speaker to refer to his channel or content, which aims to provide value and entertainment. The speaker uses this term in the context of a call to action for fans to send in pillows customized with the Valuetainment logo, showing how the community is involved in the content creation process.

Highlights

Misconceptions often prevent people from taking actions that could benefit them.

The definition of a misconception is an incorrect thought or opinion based on faulty thinking or understanding.

The belief that entrepreneurs are born is a misconception; entrepreneurship can be learned and developed.

Physical attributes or background do not determine one's ability to be an entrepreneur.

Misconception: Entrepreneurs must cheat or steal to win; this is false and can lead to legal consequences.

Luck in business is often the result of hard work and taking action, not mere chance.

Entrepreneurs are not inherently selfish; building a successful company requires consideration for many stakeholders.

Having a great idea alone is not enough; execution is what truly matters in entrepreneurship.

Raising capital is not the sole solution to business success; it is a byproduct of hard work and a strong reputation.

Initial connections are not prerequisites for entrepreneurship; they come from demonstrating value and hard work.

Entrepreneurship does not always require massive risk; many businesses start part-time and grow organically.

Being an entrepreneur does not mean being one's own boss; customers, employees, and partners have significant influence.

Misconceptions can be challenged and questioned, leading to a different perspective on entrepreneurship.

The speaker's personal story illustrates how close he was to not pursuing entrepreneurship due to misconceptions.

A call to action for viewers to challenge their own misconceptions about entrepreneurship and share the video with others.

A creative challenge for viewers to send in custom pillows for the Valuetainment channel, fostering community engagement.

The importance of not letting misconceptions prevent one from living their dream life, as shared through personal experience.

Transcripts

There are many different misconceptions in life.

Many.

And one of the things misconceptions tend to do is they tend to prevent people from

doing things that could benefit them.

They say things like, "Oh my God, I don't know if I want to do this" because in their

mind, this is what they believe, so they don't do it.

So the definition of a misconception, the meaning of misconception is a thought or an

opinion that is incorrect because it is based on faulty thinking or understanding.

So today, I want to clarify some of the misconceptions of entrepreneurship.

I'm right now at College Station, Texas, which is the home of the Aggies, Texas A&M University.

These guys invited me to come and speak to their next class of entrepreneurs.

They have a program here called Entrepreneurship Society.

And last time when I was talking to these young, aspiring entrepreneurs, they had so

many different misconceptions.

I have nine of them I want to share with you.

So the first one is this.

Here's one of the biggest misconceptions that I keep hearing about.

Entrepreneurs are born.

Constantly.

Entrepreneurs are born.

You are born an entrepreneur, which is an absolute lie, if there ever was one.

Yes, it's like saying one is born with a forty inch vertical leap.

Yes, you're right.

Larry Bird did not have a 40-inch vertical leap, so he cannot dunk like LeBron James.

Yes.

But that doesn't mean you are born to be a basketball player, and Larry Bird is not.

That has no meaning.

Michael Jordan was born to be a basketball player.

But Steph Curry was not, because he's 6'1" 170 pounds.

You can't say that because he's a tiny guy.

Muggys Bogues was a 5' 3" basketball player.

5' 3" and he played the NBA, nearly ten something years, and he was pretty good at it.

So the same goes to saying this person is not meant to be an entrepreneur because he's

too shy.

This person's not meant to be an entrepreneur because he had a 1.8 GPA in high school.

This person's not meant to be an entrepreneur because he's a certain nationality or color

of skin.

No.

Don't buy it.

It's misconceptions.

Someone's trying to persuade you, that you can't become an entrepreneur and it's not

the truth.

It's faulty thinking, and you need to question it.

You don't need to just say, "Oh, this guy on YouTube said that entrepreneurs are born."

BS.

Don't buy it.

It's a misconception.

#2: The second thing is something I struggled with is, you have to cheat or steal, to win

as an entrepreneur.

You do not.

You do not have to cheat or steal as an entrepreneur.

I've watched this for many, many years with my business.

I had to compete and some people did it the right way, some people did it the wrong way.

Some people had shortcuts and every single time there's a shortcut, we're tempted.

Everybody's tempted.

I was tempted.

Every time, I'm sitting here competing against a guy that's making 400 grand a month, and

I'm only making 30 grand a month, and I'm 25 years old, whatever it is, 26 years old.

And he's doing certain things that I don't want to do.

But if I have to compete with him, I have to do that to compete with him.

I didn't do it, he kept doing it.

He lost his licenses.

We kept going.

Now if I would have done it, I would have also lost my license.

You do not have to cheat or steal to win in business.

You don't.

You do not have to cheat or steal to win in business.

People say that, because it is a way out for them to say, I chose not to be an entrepreneur

because I am a noble human being.

And because I'm a noble human being, I refuse to cheat, because it's against my character.

That is not true.

You don't have to cheat or steal to become an entrepreneur.

There are laws, you break them, you're going straight to prison.

#3: They got lucky.

This whole lucky thing.

And by the way, I talk about lucky quite a lot.

On one end, luck doesn't happen accidentally.

For example, nobody is going to go on a date with a beautiful girl by not talking to her.

You have to take action.

There's got to be a conversation.

No one closes a big sale, without knowing anything about their products, because the

bigger the sale it is, the more educated the customer is.

You can't just go to a customer and ask for a $200,000 check and they're going to say

yes and you know nothing about your product.

It's not going to happen.

You have to work your butt off to become an expert.

You have to immerse yourself on it.

You're going to go through certain breaking points that you don't feel like doing anything,

and you want to throw in the towel.

Those moments are things that people don't see.

Nobody sees I'm in Hilton right now.

And I remember one time we were on the tour last year when we were doing the entrepreneurship

tour.

We stopped by Conrad Hilton where he accidentally bought this building, it was a hospital?

It was something.

It wasn't a hotel, right?

He bought this thing, he turned it into a hotel.

Next thing you know, it started growing.

There's Hiltons in Iran.

And I'm in Iran, I've gone to a Hilton when I was a kid growing up, Hilton was like insane.

We don't know the stories of when Hilton almost went out of business.

We don't know the stories of his arguments with his wife.

We don't know the times where he's at a hotel room by himself away from a kid's birthday

because he has to be at a business meeting, and he's absolutely feeling crap about the

fact that he missed an event for his kid or . . you don't know those moments.

So you can't say they got lucky.

There is luck involved in business.

I'm not telling you there isn't.

Nothing wrong with getting lucky.

But there's got to be a lot of hard work before you get lucky.

#4: Selfish.

Entrepreneurs are selfish.

Entrepreneurs are selfish.

You'll hear the word selfish, greedy, and all they care about is money, quite regularly.

They're selfish.

They're very selfish.

They're all selfish.

All they care about is themselves.

Listen.

You can't build a billion dollar company - when you build a billion dollar company, the guy

that built a billion dollar company, he doesn't keep the billion dollars.

The billion dollar company, he probably keeps a fifty million dollar salary per year, let's

just say if you build a billion dollar company.

Now if you own a big part of it, sure.

The value of the company is yours.

But if your company grows to a billion dollars per year, he takes $50 million a year income.

Even people say that's greedy.

Let's say he takes a $50 million a year income, because I'm picking a the greediest CEO you

can think about.

He's taking a $50 million a year income, he built a billion dollar company, okay?

Where does that $950 million go to?

You tell me.

Does that go in his pocket?

No.

It goes to what?

It goes to employees, it goes to healthcare.

It goes to building.

It goes to a lease.

It goes to construction.

It goes to long communication, Internet, servers.

These are all jobs being created.

A billion dollar empire is creating $950 million dollars of revenue to other people that lead

to taxes.

You can't be selfish and build a big company.

You just cannot.

You can be selfish and be a salesperson, because all you're doing is selling and it's all you,

one person show, one-man show, because it's all about you.

Yes, you can be selfish.

I agree with you.

It's impossible for you to build an empire being selfish.

It's mathematically impossible for you to build a big empire being selfish.

The math doesn't make sense.

You can't win an NBA championship without having assist.

You can't.

It's never happened, and it's never going to happen.

You can't win a baseball game without having somebody that's double playing the team, catches

the ball.

You can't have it.

You can't have a no hit.

I can go on with any different sport.

You cannot do it without having a team that's selfish.

It just does not work.

It is not going to work that way.

Not in the world of business.

#5: All you need is a great idea and product.

A lot of people message me and say, "Pat, guess what, man."

What's that?

"Man, I've got this product, you and I need to team up.

It's a billion dollar idea.

I promise you, bro.

You're going to be a billionaire.

You can do this."

I'm like, you really think ideas are what makes a billion dollar.

. you think the idea is what makes it a billion dollars?

Really?

You think an idea is?

An idea means nothing.

Nothing.

You know why?

Because very few execute.

Very few execute.

And here's another thing about ideas.

There are many crappy products in the world that are sold on the shelves of Wal-Mart.

Many.

There are many crappy products in the world that are sold at Macy's and people buy.

And their products suck.

There are many shirts that you go buy, where the strings are out with the shirt.

It's just terrible.

People buy them.

Why do they buy?

So your idea that you have, means nothing if there's no execution.

An idea's just an idea.

There are many great ideas out there.

Execution is the issue.

#6: All you need is to raise capital.

People say, Pat, if I raise money, man - like last time one kid was asking me, "I'm telling

you, if I had a million dollars right now, I'd do this."

If I heard, every single time somebody told me "if I had a million dollar investment,"

I'd be a billionaire today.

Everybody wants to talk about if they had money and raised capital.

It means nothing.

It means nothing.

It does mean a little bit.

Don't get me wrong.

But you're not going to get a - I get messages, "Pat, can you do a video on how to raise capital?"

I'll do a video on how to raise capital.

Can you do a video on how to raise capital?

Can you do a video on how to raise capital?

I will.

I'll definitely do that.

"Because if I have the capital, I'll do this, this, this with my business."

And I'll tell them.

I'll say, have you ever wanted a pass before?

Who are you?

How hard do you work?

What's your track record?

What relationships do you have?

What associations do you have?

Who needs to bet on you?

Would you bet on you?

Why should someone bet on you?

If you can answer those questions, you'll eventually raise capital.

If you don't have that, you ain't getting capital.

It's that simple.

Your reputation and track record and the relationships and the associations who validate you, will

attract the capital.

If you don't have this, there is no capital.

It's simple.

You have to have a lot of this on the front end, to get the money.

#7: They all had great initial connections, because it's all about the contacts and connections.

My connections were guys who went to the nightclub on a weekly basis.

My connections were guys who were chasing skirts.

My connections were my boys and we'd sit down and talk sports all day long and you know,

play spades or play whatever cards, play all these other games.

That's my connections.

So who are my connections?

I didn't go to university to be part of an alumni.

What are my connections?

My connections from the military never ever introduced me to anybody in business.

These are my connections from military.

They don't have a business background.

Who are my connections?

Connections are a by-product of a lot of work, of people seeing you saying, "This guy's legit.

He's working hard.

Let's connect him to this person."

It's not, Hey, this person had a father who's related to Vanderbilt and.

. . no.

It does not work that way.

If you have that, it's an edge.

I had zero.

My parents have never been entrepreneurs.

I don't come from a business background.

My dad stopped going to school after 8th grade to help support his family.

I'm not the smart kid on campus.

Nothing.

None of that stuff.

I had to work my tail off to get my connections.

If you're looking for shortcuts, misconception.

#8: It's a massive risk.

I've got to take such a massive risk.

This is why I don't want to become an entrepreneur.

I've seen so many people lose everything and all this other stuff.

Yes.

There are a lot of people that lose everything.

You're right.

There are a lot of people that go all in.

And we always want to watch on YouTube guys who go all in, who what?

Who win.

Oh, this guy went all in.

What a smart guy, man.

He went all in and he won.

Now that guy's a great poker player."

Okay, there's a little luck there, right?

But you don't have to go all in every single time.

Many people can start a business part time while you have a job and you just start testing

your product and see how people are responding to it.

Anybody can start a business part-time and work through it.

You don't have to start full-time.

When Apple got started, when I interviewed Steve Wozniak, we can put a clip of it.

But when I interviewed Steve Wozniak, they started their business while he had a full-time

job, and Steve had a full-time job, and they started messing around with this thing out

of their garage and then it grew and they said, "Let's quit our jobs."

And Wozniak didn't want to quit his job for a few months.

But they finally did.

They started part-time and they tested it.

You can, too.

#9: Last one is entrepreneurs are their own boss.

Everybody says, "You become an entrepreneur, you're your own boss."

That is the misconception.

You are not your own boss.

You are not your own boss.

Like when people say, "When you have kids, you're the man of the household."

Really?

Your kids tell you what to do.

You have to drop them off at school.

You have to pick them up in the morning.

You get a lot more sleep if you don't have kids.

They wake you up three, four times in the middle of the night.

My daughter right now is waking us up in the middle of the night two or three times.

They're the boss.

I'm not the boss.

I happen to support and fund their life, but they're my boss.

So as an entrepreneur, my customers are my boss.

I have tens of thousands of customers that are my boss.

I have thousands of sales people that are my boss.

I have employees that are my boss.

I have vendors.

I have partners.

I have relationships, I have the media.

These are people that you yourself had to learn how to support and the more, the better

you improve and the more you grow your business, then the more leverage and influence and trust

you have, it's easier to move your business.

But you are not your own boss when it comes down to running everything 100% of the time.

That is a misconception of entrepreneurship.

So look.

I can go on and talk about many, many more things, when it comes down to misconceptions.

My challenge to you is, don't let these nine misconceptions prevent you from becoming an

entrepreneur.

Share this video with somebody else that maybe is on the verge of saying, "I don't want to

be an entrepreneur."

Or if they've said any of these nine things, have them watch this video.

And have them think about it from a completely different perspective.

Because unfortunately, unfortunately, unfortunately, many of these same misconceptions prevent

people from living their dream life.

Some kid asked me yesterday, he said, hey, how's it feel now, having the life that you

have?"

And I told him, I said, "I was this close of just being a regular guy, making 52 grand

a year.

This close.

I was this close.

This close.

Regular guy.

Regular guy, nothing is growing, nothing is expanding.

I was this close.

I almost bought into this misconception.

I almost did.

I almost was convinced by my family, friends, and many other media and associations that

I had.

but I didn't do it.

And I want to challenge you to do the same as well.

Now, we have a problem that I need your help with.

We're in Texas right now, without our favorite pillow, we left behind.

But this is what we want to do with our pillow.

And I'm putting the challenge out there to everybody, who is a big Valuetainment fan.

This is what we're doing.

I am looking for a new pillow for 2017.

A new subscribe pillow for 2017.

So I want you to, I'm going to give credit to the pillow that we use.

I want you to either find a nice pillow for Valuetainment that you can customize with

the Valuetainment logo on it and the YouTube logo on it, whatever it is, big or small.

I don't care what it is.

It's got to be a good one that I hold.

And it will be yours, for the rest of 2017 I will hold that pillow.

So, you can make it.

Custom make it.

Have somebody make it.

I don't care what it is.

You can buy one at the store that's six, seven bucks, that you like it, and you want to send

it to us.

Anything you find.

I want you to send us all the pillows.

Here's the address you can send it to 5001 Spring Valley Road, Ste.

number 1155 E., that's in Dallas, Texas, 75244.

We'll put the address in the description as well.

Send your pillows our way.

Make sure it's got subscribe on it.

Make sure it's got Valuetainment - be creative on whatever way you want to do it.

But I'm definitely looking forward to seeing some of those pillows being sent over to the

headquarters.

Again, the address will be on the bottom.

And if you haven't subscribed to this channel, please do so.

If you've got any questions, thoughts about what I talked about today, post your comments

on the bottom.

Take care everybody, bye bye.