| Barriers to Entry... it sounds like a big term but it's not | | | | large part, they have already passed the barriers to |
| so tough to understand. Every business will have a | | | | entry. They have money and contacts certainly two of |
| certain degree of difficulty during the start up and | | | | the biggest hurdles to starting a business or making a |
| growth phase. Some businesses will require a special | | | | profit. They have power and influence because they |
| education to get into and others may require both a | | | | have this money. So for the rich, they often don't even |
| special education and a lot of money. It is generally | | | | have to risk a lot of money. They can make some |
| thought and I believe it to be generally accurate that | | | | calls to see what need there might be for a certain |
| the higher the barrier to entry, the more potential to | | | | business and if it is worth doing, only then do they have |
| profit big and conversely the more potential to lose big. | | | | to risk buying equipment to get started. They often |
| This is exactly why for example in the lawn | | | | play calculated low risk games. Interestingly this is also |
| maintenance industry it is often harder to earn a high | | | | why it is important to think like the wealthy. They play |
| income than it would be in that of golf course | | | | at another level. You can too, you just have to start on |
| development. The lawn maintenance industry requires | | | | a smaller ball field and work your way up. |
| very little start up capital (cash) and no formal | | | | Barriers to entry include but are not limited to: time (to |
| education whatsoever. Because of this more people | | | | incubate and grow a business), money, contacts and |
| can get into the business therefore increasing | | | | education. Ultimately these barriers are moot though if |
| competition and driving down profits. Golf course | | | | the entrepreneur doesn't posses the secret solution to |
| development on the other hand requires years of | | | | success. Do you know the three elements to |
| education, credibility, contacts and certainly loads of or | | | | success? If you don't you may want to read my |
| access to, loads of money. This is one reason why | | | | article, "The 3 Imperatives to Success". |
| you hear the term the rich get richer. It is because in | | | | |