Do You Really Know Bill Gates? The Myth of Entrepreneur as Risk-Taker 185 Comments

Written by Tim Ferriss Topics: Entrepreneurship, Marketing

Before I had to establish my no-blurb/no-review policy for books due to volume (picture: one day’s mail), I received an e-mail from Rick Smith, the founding CEO of the World 50, one of the most exclusive senior executive networking companies on the planet, with members and contributors like Bono, Francis Ford Coppola, and Phil Knight…

He was interested in having me look at his new book Leap, and I suggested he send it along with the understanding that I might not have the time to read it. To tell the truth, it took me a looong time to bother flipping it open, as the subtitle “How 3 Simple Changes Can Propel Your Career from Good to Great” is–in my opinion–devoid of sex appeal and misleading. It should be subtitled “How to Propel Your Life from Good to Great.” “Career” is not the right word at all.

I finished the book in two sittings.

Finally, here was a book that destroyed the myth of entrepreneur as risk taker, using case studies ranging from start-ups that became Fortune 100 companies, to Live Aid and the Girl Scouts.

One of the most frustrating types of resistance I encounter when talking about lifestyle design or entrepreneurship is a general response along the lines of: “That’s great for you, but I have kids and a mortgage. I’m not a risk-taker.”

The fact of the matter is, most of the uber-successful entrepreneurs I know hedge their bets and place small bets while keeping one foot on secure ground. This often includes testing the waters while employed full-time, as Rick himself did before creating World 50 from nothing. Most of them never gamble in real-life, and a decent percentage don’t invest in the public market (like me) because of the lack of control. Are there mavericks who lay it all on the table for the big win or cataclysmic loss? Sure. But don’t believe, just because the media likes to highlight such daredevils, that they are the majority of kick-ass founders. They aren’t.

Here is an excerpt from Leap that shows just how far off most perceptions of entrepreneurs are.

In this case, we start with Bill Gates.

Putting All the Chips on the Table?

Growing up as I did, with an early interest in business, it was almost impossible not to envy people like Gates, and even measure myself against them. Gates had placed all his chips on the table at one time and walked away richer than Croesus. And me? Well, I’d never even sat down at the table. The way I saw it, I couldn’t.

I graduated from a state university with a stack of loans to repay. No sooner had I begun to dig my way out of personal debt than I met my wife (who failed to bring her own shovel). I remember her father joking with me soon after we got engaged. “Son,” he said, “I want to let you know about Lori’s dowry—you get her student loans and her bad teeth!” He laughed from deep in his chest. I moaned from the same spot. Add to that three children born within five years, and I felt like I was slogging through quicksand.

If only I was in a different position, I used to think. If only I had the courage to take on more risk, like Bill Gates, like lots of others I used to list to myself. And then finally, years later, I realized that that’s not how it happened at all.

William Henry Gates III was born October 28, 1955, in Seattle, Washington, to a family with a rich history in business, politics, and community service. His great-grandfather had been a state legislator and mayor, his grandfather was the vice president of a national bank, and his father was a prominent and very wealthy lawyer.

Because young Bill excelled from his earliest school days, especially in science and math, his parents saw that he was enrolled in prestigious Lakeside Prep, known for its intense academic environment. This was in the late 1960s, when the world of computing was just beginning to peek over the horizon and carried a golden price tag. But no problem. To assure Lakeside’s students wouldn’t be left behind, the school held a fund-raiser and, with the proceeds, rented what it thought would be a year’s worth of time on a computer owned by General Electric.

Bill Gates, his close friend Paul Allen, and a few others torpedoed that plan in a big hurry. They started hanging out in the computer room day and night, learning everything they could, even to the detriment of their other academic obligations. Within a matter of weeks, the expected year’s worth of allotted computer time was gone, but that was no problem either. The school simply struck a new deal, this one with Seattle-based Computer Center Corporation, to get additional computer time at good rates.

That might have worked if young Gates and his friends hadn’t immediately started (a) hacking into CCC’s security system so they could reset the meter that tracked computer use and (b) crashing the system just for fun. They were caught, and the company banned Gates and his cohorts from its computers for several weeks. (The thought of Gates and Allen as the godfathers of a hacking subculture that has cost Microsoft and the world overall hundreds of billions of dollars does indeed boggle the mind.) But again, the exile was only temporary.

CCC’s business was beginning to suffer from the system’s weak security and the frequency with which it crashed—many of the same flaws Gates and his friends had been exploiting—so the company offered the gang a deal: find the bugs and pinpoint the weaknesses in the system, and they could have unlimited use of the computer.

In 1970, Computer Center Corporation ran into financial trouble that would eventually put it out of business, but by then, Gates and Allen had found a new computer home at the University of Washington, where Allen’s father worked. Lakeside also pitched in: during Gates’s junior year at the prep school, the administration offered him a job computerizing the scheduling system. Over the summer, Gates and Allen wrote the program, which coincidentally assured that Gates was assigned to classes with mostly girls—a sequence straight out of a nerd’s revenge movie.

In the fall of 1973, Gates left Seattle to begin his freshman year at Harvard, part of his preprogrammed life plan. Allen, who almost certainly could have been admitted to Harvard along with his pal, chose a different route. He wanted hands-on experience, but the two remained in close contact, often discussing the potential of one day starting a company, and at the end of Gates’s first year at Harvard, Allen moved closer to Boston so they could continue to pursue the still-vague possibilities. Then, in December of Gates’s sophomore year, the vague future began to take on a more exact face.

On a visit to Harvard, Allen stopped at a convenience store and noticed the current issue of Popular Electronics magazine. On the cover, under the title “World’s First Microcomputer Kit to Rival Commercial Models,” was a picture of the Altair 8800. Energized as he had never been, Allen showed the magazine to Gates, and within a few days Gates had called the maker of the computer, Micro Instrumentation Telemetry Systems (MITS), and told them that he had written a BASIC computer program that could be used on the Altair.

This was a lie. Gates and Allen were just trying to gauge interest from the company. But MITS was deep in its own deception: the computer shown on the cover had not been developed yet, and even the prototype had been lost in shipping. Still, the magazine article had generated interest far exceeding expectations, so MITS asked Gates and Allen to come in and demonstrate what they were thinking. Only then did the two set out to write the code. Gates focused on programming while Allen worked on simulating how it would work on an Altair 8800, which they didn’t have.

At the meeting eight weeks later, the program worked perfectly, and MITS arranged a deal to purchase the rights to Gates’s BASIC. Gates would later say that it was at this moment he knew the software market had been born. Yet, despite his growing certainty of the opportunity in front of him, Bill Gates waited another 12 months, until his junior year, to drop out of school and, with Allen, form Micro-Soft. And even then, the company might have amounted to little more than a footnote in the history of software without Bill Gates’s mother.

Long active in community service in the Seattle area, Mary Maxwell Gates became the first female president of the United Way of King County and eventually chair of the executive committee of the national United Way, then one of the most influential nonprofit positions in the world. Serving on the exec committee with her back in the early seventies were, among others, John Akers, who would later become the CEO and chairman of International Business Machines (IBM), and John Opel, who preceded Akers in both positions.

Mary Gates mentioned her son’s new business to Opel, who by many accounts then relayed this information to other top IBM executives. There’s no definitive record of what got said when to whom, but only a few weeks after Mary Gates got the ball rolling, IBM took a huge chance by contracting with Bill Gates’s fledgling company to develop an operating system for the company’s first personal computer. The success of both the IBM PC and the Microsoft Disc Operating System (or MS-DOS)—and the sweetheart deal that let Microsoft retain rights to its software—is what ultimately made Bill Gates the richest man on the planet.

Experience, Not Faith

So, did Bill Gates walk away from one of the world’s most coveted degrees toward an uncertain path? Well, he did ultimately make decisions from which there would be no turning back. That part of the myth is dead on. But was Gates a great risk taker? That’s a more complicated story.

His family’s money and position provided cover for his youthful computing hijinks and helped assure that he would have the best education available. As for the famous Harvard dropout story, he didn’t really. Rather, he took a formal “leave of absence,” a kind of emotional umbilical cord that kept him tied to Harvard long after he had vacated the campus, just in case things didn’t work out. But by then, he had already turned the odds in his favor. After half a decade of dancing with the opportunity, beginning early in high school, he had already covered most of his downside risks. He knew, for example, that he loved the work, and the early Micro-Soft had projects in the pipeline.

What’s more, Gates had validation that both he and Allen were highly competent with this new technology, and he could see that the topside potential was huge. The industry was just emerging, and his mother was in the particularly influential position of head of a United Way executive committee that also included two future CEOs of the world’s dominant computer company. As they say, it’s often not what you know but who your mother knows that can land you billion-dollar contracts.

Far from being one of the world’s great risk takers, Bill Gates might more accurately be thought of as one of the world’s greatest risk mitigators. And in that, he is not alone. The simple fact is that everyone is afraid of risk at some level, including everyone I interviewed for this book. That’s a given of human nature. But the further fact is that Door No. 3 is a myth, whether we’re talking about the myth of Bill Gates or the myths that we privately tell ourselves.

You don’t have to be fearless to make dramatic changes in your life. Transformative change isn’t propelled by raw courage. It’s “sparked” by a series of events that build exposure and experience, both of which help to create asymmetric risk. Through sparking, the upside opportunity is confirmed while downside risk is mitigated. Ultimately, the leap—when it comes—is not one of faith but of experience, even of comfort, just as it was for Gates.

###

Interested in more behind-the-scenes stories? Check out Leap. It can be read in two quick sittings and will get you off your ass to do whatever it is that you aspire to do.

Posted on September 13th, 2009

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185 Comments

Matt - Zero 2 Hero — September 13th, 2009, 6:44 pm

That’s why they say, “It’s not what you know, it’s who you know.”

I still think it took some guys for him to walk into a meeting with only a magazine cutout and no prototype.
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Mike — September 13th, 2009, 6:50 pm

Tim,

I trust your opinion on a book, and if you read it in two sittings, it was probably entertaining. But I’ve read this same story of Bill Gates, the Altair and Basic so many times, and written by some many people, in print and on the web. Could you give us a better excerpt to give us some indication of why this book is worth reading?
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RichR — September 13th, 2009, 6:53 pm

Sounds like Bill was doing what he loved. Reminds me of Paul Graham’s wonderful little essay…

http://www.paulgraham.com/love.html
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Randy Webster — September 13th, 2009, 6:56 pm

Tim,

Great article! Insightful, with the respect of mitigating your risk taking! And also, the “leap” is one of experiance, not faith..

Randy
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David Turnbull — September 13th, 2009, 7:00 pm

That’s why I find it amusing when people think I’m taking a risk not going to university or getting a job, instead choosing to build a business. But the thing is, I figure I have 4-5 years until all my friends are finished with their further education and at that point they’ll all have their student loans to pay off whilst I’ll remain out of debt.

I’d consider debt and not having the time to build assets that early in life to be a bigger risk than anything business-wise. Obviously there are the benefits of taking the standard route and it does require self discipline to get things done but it really doesn’t feel like I’m taking a risk.

And that was a very interesting look into Bill Gates’s early life. Sort of annoyed that I didn’t get up to more computer-related mischief at school.
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Ken Kurosawa — September 13th, 2009, 7:08 pm

This section is very similar to “Outliers” by Malcolm Gladwell. In his book, he also tells the story of Bill Gates and his successes.
The success of Bill Gates was not only do to his skill, but circumstances that gave him opportunities to hone his skill by being able to work on programs for over 10,000 hours. Bill Gates didn’t do it all on his own, but through many lucky breaks and people that supported him.

Entrepreneurs know risks vs. investments?
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Sachit Gupta — September 13th, 2009, 7:10 pm

Tim, This seems like a great book; I actually heard of it a few weeks ago. Just curious, is there anywhere we can see what you’ve been reading? Would love that!
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Baker — September 13th, 2009, 7:11 pm

The most important point in this whole article is the Gates and Allen shopped around their ideas before they were even designed. That’s the key in risk mitigation. They artificially planted seeds that created the demand, even before the new the specifications of the product.

They had the right skills, were in the right place, but most importantly they actually took the initiative. That’s what I take away from this.
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Ravi Janardhan — September 13th, 2009, 7:13 pm

Thanks Tim for this wonderful post. It’s seconded my understanding of the so-called/much hyped risk taking. It’s myth breaker & helps many like me.
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Hunter Nuttall — September 13th, 2009, 7:21 pm

So many people describe themselves as “not a risk taker,” and use that as an excuse not to do anything without a guaranteed outcome. This should be a very interesting book, and one that takes that excuse away from people.
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Greg — September 13th, 2009, 7:21 pm

It’s always fascinating to me to separate the urban myth from fiction. Reality often times doesn’t correspond with public perception. The truth is that people like Gates make big bets, but they’re very calculated and well-reasoned. Above all, they have faith in themselves to be successful.
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Ricky — September 13th, 2009, 7:22 pm

Sounds like a great read! Adding it to “must read books” list
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Wayne — September 13th, 2009, 7:30 pm

The risk maybe wasn’t as great as what most people believe, but the fear had to be enormous. Anytime you walk away from the thing(s) that others have made you believe you should be doing, the FEAR is magnified. (ie. having a regular corporate job)

Gates had an obvious family reputation to uphold.

The difference between Bill Gates and 99% of the other people in the world, is that Bill moved forward with his dream despite his fear.

F – false
E – evidence
A – appearing
R – real

Sadly, most people will reach the end of their life and look back with much regret. Fear keeps them from reaching their dreams and living the life they could and should have.

“When you get to the end of your life and look back on what you’ve achieved and accomplished, that will be what you have traded your life for.” Peter J. Daniels
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Jose Castro — September 13th, 2009, 7:31 pm

David you bring a really good point. School is not for everyone and if one is wise you can use your early 20′s to build assets and a nice fortune. @ Tim, this can also be said about the guys who started Google. Having the right contacts and being driven can be an explosive concoction.

Have a blast in Nica…..Go to Granada!!!!!

Jose
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Alex — September 13th, 2009, 7:41 pm

Yeah, I’m excited to read the book. The story of Bill Gates is really interesting. Aside from some of the advantages he had that u discussed above, I also like what Malcolm Gladwell said in Outliers about Gates (and Jobs for that matter). He said that Gates was born in a very narrow window of time, when he would subsequently come of age right at the start of the information/computer age.

In fact, according to Gladwell, Gates may have been the only teenager in America with access to some of the cutting edge technology of the late 60s and early 70s (some not only no other teenager had, but access most R&D depts of most corporations and universities didnt have).

But listen, risk-taking is was it is.

Thanks for the review.

Cheers,

Alex
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Leroy Lyne — September 13th, 2009, 7:45 pm

Kinda sound like a regurgitation of Malcolm Gladwell’s “The Outlier” one of the best books on success I ever read. Sound like this guy just flip the text around a little bit. He told Gates Story in exact manner. I did not even have to finish reading it, I read Gladwell Book 5 times already. Wonder why Tim did him this favor. I’m certain Gladwells book is far better.
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- Tim Ferriss — September 13th, 2009, 9:44 pm
  
  Hi Leroy,
  
  This wasn’t a favor. I don’t do posts as favors, as I don’t need to. I found Outliers infinitely less interesting than The Tipping Point and Blink, but the two books are–regardless–quite different in emphases.
  
  Tim
  Reply
Ehren — September 13th, 2009, 8:20 pm

All this stuff sounds very similar to what Malcolm Gladwell wrote in “Outliers,” though from a slightly different angle. These analyses, not only of Gates but others, are all pretty much saying the same thing about the stories of hugely successful people. One, these people had experience that most people didn’t have prior to the emergence of a huge trend. Gates and Allen were relatively unchallenged in computer programming, as so few people their age had access to computers while in school,

Two, these people had the resources to make the most of the right opportunity when it presented itself. Not everyone has the financial and emotional resources to change course when the golden opportunity of entrepreneurship presents itself.,

Three, these people happened to be in the right place at the right time for things to fall together for them. If MITS had needed their operating system any earlier, Gates and Allen might not have had the knowledge necessary to pull off their stunt; any later, and they might have been too entrenched in some other programming venture to backtrack and pursue the MITS project.

I’m interested in knowing if, by the subtitle for “Leap,” if Smith offers advice for the common man to prepare for such success, which Gladwell’s book doesn’t appear to do (though it might, as I about 100 pages left to go).
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Mark Lewis — September 13th, 2009, 8:22 pm

Great insight; mitigate when possible and only take necessary risks. I suppose the great entrepreneurs always find a way to mitigate while all the rest ride their luck.
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Rick Smith — September 13th, 2009, 8:44 pm

Mike, great point, the gates story has been written 100 times. But what always ticks me off is that it is written from a PR point of view. Before I experienced my own Leap, i was just an average guy, the perineal “B student”. And it all happened so quickly. But most people who go through this transition are reluctant to say how normal and average they were before it happened. Reading anyone’s resume, you would assume they never missed a step. But that is not how it is with friends, colleagues, or with the most successful people like Gates who actually make the Leap.

This is a book written for the average person who is ready to break out in their life.

Rick Smith (author of The Leap)

p.s – and Tim was right about the sub-title…
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Norman Dacanay — September 13th, 2009, 9:12 pm

Interesting read Tim , have to make it a point to check it out…also did you know that A.J. Jacobs new book is out? Looks pretty good as it basically highlights different events and experiences from his past books.

Also Malcolm Gladwell’s Outliers was also just released and looks promising.

Cheers
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Mark — September 13th, 2009, 9:22 pm

Tim,
Thanks for sharing and I’m excited to read the rest of The Leap! This author also published another book called The 5 Patterns of Extraordinary Careers, and it is a great reference to this day. Smith’s experience is inspirational in the fact that he dwells on being an average guy who has found many formulas to success.
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Kelly Jewett — September 13th, 2009, 9:38 pm

Tim- I hope they included your story in LEAP. It is far more inspiring. I could probably do without Windows but not lifestyle design.
BTW Random in China was hysterical.
Keep up the great posts.
Kelly
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Sean Oliver — September 13th, 2009, 10:11 pm

Thanks for the sneak preview, putting this in the shopping cart now.
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Ian Coburn — September 13th, 2009, 11:30 pm

It’s good to see a book like this out there; thanks for bringing it to light. Looks like it addresses two of the biggest misconceptions–the risk-taker mentality you mention and the “overnight success-” notion. Oftetimes the media calls someone an “overnight success” but once you delve deeper, which most people don’t, you find they’ve usually put in years of work, which often consists of many failures.
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Corbett Barr — September 13th, 2009, 11:35 pm

Hey Tim, thanks for sharing the story about Gates. This is right in line with the myths about entrepreneurship dispelled in the book The e-Myth (which I think I also heard about first from you).

Speaking of calculated entrepreneurial risks, can you share a little more with us about how you choose which books to review here on your blog? How much does a post like this pull in for you from Amazon? It would be nice to know a little more about the inner workings and monetization of a top blog like yours.
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- Tim Ferriss — September 14th, 2009, 10:34 am
  
  Hi Corbett,
  
  Thanks for the comment. The Amazon surprisingly doesn’t add up to much, and perhaps I’ll give some exact numbers in a future post. I haven’t given too much thought to monetizing this blog, though I’m sure that will happen at some point in a more intelligent and systematic fashion
  
  All the best,
  
  Tim
  Reply
Faramarz - Anxious Candy — September 13th, 2009, 11:46 pm

Very interesting- Bill gates has always struck me as a smarmy kind of guy you know the kind that wouldn’t have come up in a hard scrabble kind of way. You tell just by looking at him that a lot of his success has come from lucky breaks and his ability to hold people hostage at the point of his monopoly
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Mark Penrith — September 14th, 2009, 12:22 am

Oh man, I figured this post was just too long to enjoy. Then I got reading and was sucked right in.

Thanks for sharing,

Mark
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Shane — September 14th, 2009, 12:58 am

I get the same feeling Mike described: Seen and read the Bill Gates story too often, by now…
Having said that, the premise of the book seems very interesting. I like a book that goes about deconstructing clichés.

@Tim: Funny, I found Outliers way more interesting than Blink.
(Never read Tipping Point)
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Dan Johnston — September 14th, 2009, 1:45 am

I had a conversation about this with my former boss as I left to pursue my own business. In today’s society there is really very little actual risk, even if you do put it all on the line.

I’d be surprised if any balanced individual didn’t also have family or friends who would offer a couch to sleep on while rebuilding.

Keep your living expenses low and 6 months rent in the bank, or available on credit, and what is the worst that can happen? Everything crashes and you wait tables or park cars while you come up with the next business.
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Chad Jewsbury — September 14th, 2009, 1:53 am

Great post Tim! This book looks interesting…
It reminds me a bit of a This American Life episode from a few months back. (at least one act of it)… about how we build more exciting myths around founders, inventors, and creation stories.
Its the first few minutes of the episode.. definitely worth a listen.
http://thisamericanlife.org/Radio_Episode.aspx?sched=1303
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Nick — September 14th, 2009, 2:43 am

A comment on the comments.

Be careful of forgetting that bill gates is an exceptionally talented and driven person – there’s a desire to think that successful people are not so, as this gives you an excuse for not succeeding. I think this is the theme for books such as outliers and the key to their popularity.

The take here though is simply the last paragraph.
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Huy Zing — September 14th, 2009, 4:24 am

Yeah Philip Greenspun covered most of this already http://philip.greenspun.com/bg/
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Rick Smith — September 14th, 2009, 5:18 am

From: Rick Smith

Interesting discussion, but I wanted to clear up some apparent confusion with Gladwell’s book Outliers. His thesis was that your environment contributes greatly to your ultimate level of success – good or bad. My book, The Leap, seeks to answer an entirely different question – Is it possible for everyday people, those on a lifetime trajectory of ordinary, to break out and achieve extraordinary things in their careers and lives? My research has found that it happens all the time, and it is quite replicable. In fact, I lived it.

Gladwell uses the Gates story to show how incredibly advantaged he was, with opportunities that tipped the scale in his favor. My point is that, even without these tremendous advantages, you still don’t need to take big risks to break out in your life. Most people who make the Leap don’t. Risk mitigation is a powerful life strategy that works for the privileged and ordinary person alike.
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Michael — September 14th, 2009, 5:32 am

Wow… some revealing stuff.

I’m sure a great majority of successful business ventures are less riskier then they are made out to be by print and media.

I’ll add this to the book list. As many have pointed out already, definitely check out the book Outliers by Gladwell.

Mike
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Joe — September 14th, 2009, 5:33 am

Couldn’t find this on the UK Amazon, is it out here?
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Christopher Laney — September 14th, 2009, 5:39 am

Totally agree with this. I had a similar revelation several years ago, when I realized I was on the wrong path in life. Yet the path I felt I should be on, a writing career, seemed impossible to leap toward without sacrificing my family’s needs, which included young children. But then it dawned on me I could simply take one step at a time, lateral moves that brought my true path closer, while I pulled my current path, the one that provided income, with me.

I looked at ways to hone my writing skills in my current job, taking on work that utilized those talents, as well as working after hours on magazine articles–a labor of love that didn’t seem like work–until one day, I realized the paths had moved much closer to each other, even seemed to merge ahead on the horizon in a distant shimmer. Was that vision ahead real or a mirage? I wasn’t sure, but I did know the leap had become much shorter, and while it still require faith in myself and the universe, it was a much smaller risk than before.

Good info. Thanks for posting.
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amonle — September 14th, 2009, 6:03 am

The realities of success are always in the lifestyle details that few people talk about. Great preview – one to get!
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Jason — September 14th, 2009, 6:40 am

Rick,

Except… your story proves that Bill Gates wasn’t average at all. He came from a wealthy family, had exceptional opportunities, and had a mother with incredibly coincidental connections.

If anything, stories like this just prove that luck and coincidence are the real forces behind most great success stories.
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Moses Kemibaro — September 14th, 2009, 7:37 am

This is a great post. I have been an internet entrepreneur for 7 years or so. What I now realize on reading your post is that although I could have been in business for 10 years by now, I joined a firm doing what I planned to start prior to going it alone. I also built up lots of key contacts with customers and partners prior who ended up really jump starting my business. I also stayed employed for an extra year while I test drove my business concept with several early stage clients. So, the truth is that we entrepreneurs are not really risk takers – we cover all the bases first and then make the jump.
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Karlil — September 14th, 2009, 7:44 am

Sure it may work for Bill Gates, but some business involved taking risk no matter. Depending on which line of business we’re looking at, you might be taking more than you could afford to take.

In normal circumstances, anyone who is trying to build a business must be optimistic about the future. Therefore, to take the risk or otherwise is ultimately a choice some must come to face.

Not everyone is born with silver spoon in their mouth. To simply say that entrepreneurs don’t take risk in building an empire is misleading and generalizing.
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miltownkid — September 14th, 2009, 7:47 am

This post was well timed for me for a couple of reasons. One of them being your “no-blurb/no-review policy for books” which I didn’t know existed but I’ll have to convince you to transgress when my book is ready for release (it only exists in the form of a title). And second, Bill Gates was on my mind all day yesterday and this morning as I just did a chart of “teachers” in my life. I ended up leaving him out for some reason when I wrote it up, but he popped in my head later as being a large motivation for me to pursue business (I actually view/ed him as competition. The guy to beat!)

I think books like this are important. I’ve been listening to the “Genius Network” interview of Michael Michalowicz (author of ” The Toilet Paper Entrepreneur “) and a big part of what he talks about is the “real” stories. Everyone sees the end result, but very few pay attention to what REALLY went in to the creation of a Bill Gates, Jackie Chan, Warren Buffett, Richard Branson or a Tim Ferriss. The general thought seems to be “That guy got lucky and POOF millionaire.” The follow up thought is “I’m not lucky, so I shouldn’t try.”

Being able to observe the successes I’ve experienced in life so far has clearly shown that any “instant” or what appears to be quick success has roots that are deep in time, experience and hard work.

Anyhow, yours is the only blog I follow and I buy every book that is recommended (Emergency was the PIMP JUICE! I got my copy signed and everything. )

Oh! One more thing (about the comparison to “Outliers” by Malcolm Gladwell in the comments. I have yet to feel compelled to read the book (although I’m sure I will eventually). Seems like it can be summarized in a sentence “Do stuff for a long time and you will be awesome at it.” That being said, “Tipping Point” was the SCIENCE!
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Michael M Margolies — September 14th, 2009, 8:17 am

Although this is a great and often told story about Gates once again it illustrates that rich well connected person can take risks and has choices many others do not. I don’t begrudge him this, It would be sad if he had not taken advantage of this. But people like to trot out these stories and say see look you can do it too! That is simply not the case, he had no risk, he had wealth and position to fall back on, he was well connected and had a parent who created opportunities for him. This again is all fine but does not apply to the average guy to gal wanting to start a business.

It is all on the line when regular people decide to start a business even if keeping on foot in a job. There is the risk of getting fired even if there is no conflict of interest, there is the risk of neglecting family responsibilities and loosing valid relationships with spouses and kids. I can tell you how many successful business owners and executives who have lost their wives and have no real relationships with family or friend beyond superficial business contacts. When a regular person starts up a business no matter what the idea is the risks to every thing else in their lives is huge, the pressure is huge, failure is often a humiliation that friends and family never let go of, the pressure is tremendous and even after success comes of the few sometimes the pay off leaves them alone and lonely at the top with their money.

The Bill Gates story although a fine story in it’s own really does not apply to the regular person with regular means, his lack of risk really does not relate at all.

Now someone tell the story about the guy Bill conned out of Windows and gets credit for creating and there we have an example of someone who worked hard risked it all did not know what he had and was paid little for it buy someone who knew exactly what he was buying. For Gates it was a brilliant business move, for the other guy a disaster.
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Mike — September 14th, 2009, 8:57 am

Rick Smith,

Thanks for taking the time to write back. It sounds like I’m your target audience for the book without a doubt. Perhaps you’ll make it into my weekly feature, “What I’m reading”

Mike
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Jordan Laubaugh — September 14th, 2009, 9:25 am

I thought it was a pretty cool post Tim.

I often run into the risk question a lot from people. I get comments like, “well you’re just a gambler”.

My simple answer to myself and those who ask is that risk is a pretty misused made up sort of thing.

I came from a really low income family. Moved out at 18, with absolutely no assets. Since then I’ve been working on fixing that. My view is, what am I really risking?

Likely that thought process will change when I have a million dollars. But hopefully not .

Jordan
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Zack Bartlett — September 14th, 2009, 9:36 am

I 100% agree. I started my own design company with years of experience and clients already lined up, so the “leap of faith” wasn’t really there, it was more like just moving towards new possibilities and opportunities that I already knew I could take.

I love all your posts, keep em’ coming!

Zack
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Jonny — September 14th, 2009, 9:48 am

Excellent post. So few post around the internet have much to say these days but I think this one was exceptionally insightful so thank you to the author for taking the time to write it.

Also, kudos to Leroy for eliciting a response from Tim.
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Doc Kane — September 14th, 2009, 10:06 am

Tim,

Hadn’t heard of the book…thanks for the intro. To toss my hat in the ring as an entrepreneur, I think there are three skills that we regularly tap into.

1. Creative idea generation (problem solving)
2. Actual “movement” toward a goal
3. Persistence, despite failure

Each one is difficult to manage in a single instant, let alone every day!

Always a pleasure to read about other entrepreneurs!

Thanks for sharing,
Doc
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Charlie Broadway — September 14th, 2009, 10:14 am

The writing that is getting overlooked here is Nassim Nicholas Taleb’s Fooled by Randomness and The Black Swan. He would have a field day with this post hoc analysis of the life of Bill Gates.

People get lucky breaks. Ordinary success takes only hard work. Extraordinary success takes hard work and luck. If Bill Gates had not been so lucky, he would certainly have been successful in the ordinary sense much like the rest of his family.

A more interesting story would be Steve Jobs who seems to not have gotten the lucky breaks that a guy like Gates did. Jobs was definitely a risk taker even sleeping on the floor of a friend’s place and dropping out of college after a semester. But his repeated string of successes in the face of adversity points more to true talent than being a mere coin flipper.

Most success advice stems from people who are successful largely from giving advice on how to become successful. This would be a guy like Tony Robbins who has spawned a virtual industry on this model. I refer to him as the self-fulfilling prophet. But you will notice Bill Gates writes no similar self-help garbage. This is because his success is non-repeatable, and he knows it. Remove any of his lucky breaks, and he is a computer sci professor at MIT.

The point I do get is that phenomenal success does not necessitate risking colossal failure as well. It is not the choice between wealth and poverty but ordinary success and extraordinary success. I don’t think people need to know how to be extraordinarily successful but to learn to be happy with ordinary success since this is where most of us will end up. This is why Taleb is so helpful. His success is relatively modest but very repeatable.
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- Tim Ferriss — September 14th, 2009, 10:32 am
  
  Taleb is brilliant. I recommend that everyone at least read the wikipedia pages on his books.
  
  Tim
  Reply
  - Don Schreffler — December 25th, 2010, 1:02 pm
    
    Brilliant is correct, no doubt. He was speaking recently about how it was a no-brainer to go short the long term US treasury bond market. Proven correct as of late. Not only a brilliant thinker but capable of communicating his premises and conceptual conclusions clearly, in print, as well. Definitely on my would-love-to-have-dinner-with list
    Reply
lingvoj — September 14th, 2009, 10:14 am

I don’t believe “It’s not what you know, it’s who you know.”
I could be the son’s president but if I’m an idiot I won’t do very well. Who you know is important at first but whether you are up to the task us up to you.

So it’s better to become so good you can’t be ignored.
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Dynasty — September 14th, 2009, 10:16 am

I understand how frustrating those types of responses can get when you talk about lifestyle design or entrepreneurship. In general people have alibis to explain their lack of achievement or reasons for failure. At times, I am guilty of it as well. Fortunately, I know it’s fatal to success and try to break the habit.

As Elbert Hubbard once said, “It has always been a mystery to me, why people spend so much time deliberately fooling themselves by creating alibis to cover their weaknesses. If used differently, this same time would be sufficient to cure the weakness, then no alibis would be needed.”

In other words, I’m sorry you’re the burden of so much resistance but you’re not the one with the issue .

About the closing comment on this post:

Sure, one does not have to be fearless to make dramatic changes in life. Yet, courage and taking action is a good dose for making dramatic changes. Fear can be the one substance which ignites the fire for transformative change, by taking something dreadful and exchange it for something more valuable. In essence, experience and exposure serve a great purpose but ultimately knowledge and experience are of little use unless one puts it to practical application .

Amusing post, keep up the great work.
______________________________________

@MiltownKid Hey, wassup! Hope you’re well. Thanks again.
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Bradley Gauthier — September 14th, 2009, 10:26 am

I agree with Tim that the tagline is off putting for me. I read or listen to about one or two books a week. However, I saw this book and never thought twice about skipping it. Any book that has the word career on the cover is a no go for me – unless it is surrounded by a synonym of the word kill.

@Rick Smith, Thanks for clarifying the differences between Outliers and Leap. When I started out I had little money but I had a strong belief that what I was doing wasn’t a risk but rather a well thought out strategy that calculated and limited risk.

Adding the book to my future read list…
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Nick Sparagis — September 14th, 2009, 10:46 am

I always enjoy the debunking of myth. Did Bill Gates take a big risk? In hindsight “no”, but at the the time, in his mind, that was a big risk. The big challenge is handling that risk psychologically, and he did.

Was the risk measured? No, how could he know the upside was $60b in personal wealth? He did mitigate the downside by keeping the door open at Harvard.

Bill Gates best asset was his support system. Most of us would have sold the program to IBM for what we thought was a lot of money. Instead, Gates retained the rights to his program. That’s how he became the richest man in the world and not just another rich man.
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Mat Miller — September 14th, 2009, 10:53 am

Thanks Tim, great post. I, too, recently discovered this book, lucky
to be sent an early version. And like you, I didn’t know what to
expect. But I couldn’t put it down. It is certainly one of the more
provocative and entertaining books I have read in years!

I also liked gladwell’s Outliers, but found The Leap much more
relevant to my situation, just a guy trying to figure out my what to
do with my life. Where and how I can have the most impact.

Thanks for sharing this with the world, I think it may help a lot of
people. Looks like you are already having a big impact (Leap is now
#1 on Amazons business bestseller list!).

http://www.amazon.com/gp/bestsellers/books/3/ref=pd_ts_b_nav
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Kristjan-Olari Leping — September 14th, 2009, 10:58 am

The fact that you do not have to take high risks may be encouraging to new potential businessmen. Still this example of Gates proved that he his family background help him although he did much hard work.
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Steve Bellante — September 14th, 2009, 11:33 am

Fear of the unknown is a common reaction for most of us. Even when we know what we want, we often find ourselves afraid to go after it still on the risk of it not working out. I think people are more afraid of failure then anything else simply because we all live in a society where we are born and raised to think failure in any sense is a bad thing. I like that you put an emphasis on the fact that you don’t have to be a risk taker to become an entrepreneur, but rather simply the courage to follow your dream.

This served as a nice reminder to me about the many misconceptions that exist around the idea of entrepreneurship and life outside the norm.
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Mike — September 14th, 2009, 12:09 pm

Thank you Rick (and Tim) for killing the #1 reason I’m still at my corporate gig. You’ve now forced me to think of other reasons not to start my own company.
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Lloyd Budd — September 14th, 2009, 12:20 pm

Great food for thought.

Rick Smith you wrote above in a comment “My point is that, even without these tremendous advantages”. Bill Gates coming from tremendous advantage isn’t a good example of this and isn’t a good motivator for the rest of us, so Tim doesn’t seem like an awesome selection. One has to wonder if he had opportunities to mitigate risk that others do not have — though my feeling is that isn’t fundamentally the case for most of us (most of *choose* our stresses).

Rick, you might confirm your sources for “At the meeting eight weeks later, the program worked perfectly”, because Steven Levy’s Hackers (and other accounts) suggest “The BASIC was far from a working version, but it was close enough to completion and its routines were sufficiently clever to impress Ed Roberts.”

Adding Leap to my list of books for when I need fresh inspiration!
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Charles — September 14th, 2009, 1:01 pm

Interesting, but ultimately it is a reminder of a hard truth, that people are born into opportunities (whether or not they seize them is another story).

Turning it around in a positive way could be simply suggesting that you look for that firm ground you can keep one foot on, and actually do what it takes to take advantage of it. Don’t burn the ships, look for a way to secure them as best as you can to minimize risk.
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Angela Bowman — September 14th, 2009, 1:44 pm

Tim, I used to think that entrepreneur = risk taker. I’m in my mid-30’s, straight A’s in high school, went straight to college and got my business degree, and have held the traditional jobs working for other people. Then I met my husband, the innovative/creative/software genius. He’s a self-taught non-stop idea generator – which often conflicts with my traditional/analytical/safe self.

But then we both read your book. And now we are finally on the same page, after being married for what, 15 years now. Tim, could it be that you helped our marriage?! Your concept of “working smart, not hard” REALLY hit home with me. And I don’t want to be old when I retire! So now we’re working together, with me analyzing his business ideas with your concepts in mind. What a team we are now! You’re on a first-name basis in our house, Tim, we’d love to meet you if you’re ever in Boise Idaho.

With the “Four Hour Workweek” insight, and having just read “The Tipping Point” and “The 22 Immutable Laws of Marketing”, I feel so empowered with this knowledge. To me, the only risky thing about being an entrepreneur is going in blind.

Rick, I truly believe you’re right, that everyday people can break out of their ordinary life to achieve the extraordinary. But my future success would be such a better example to drive your point home

Angela
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Eric Goldstein — September 14th, 2009, 2:21 pm

Great post! Life is really about taking
risks. The more you can step outside
of your comfort zone, the more you grow!

Too many people play life small. When
you play BIG you get BIG results!

If you’re going to play life, you might as
well play big. Thanks for the great share:)
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Shane — September 14th, 2009, 2:30 pm

@Charlie: Very good point. I suspect that “How Bill Gates/Warren Buffet/Richard Branson did it” misses the point for almost everyone. You can’t expect to model your life or business after theirs and get the same results, because besides being very, very skilled at what they do, they were probably also extraordinarily lucky.
And wanting to become a billionaire or even millionaire might be wasted ambition anyway. Monetary wealth has only so much to do with leading a successful and fulfilling life and it’s importance has been vastly exaggerated.

@Dynasty: Interesting quote by Hubbard. Personally, my greater problem is that I tend to idle and distract myself instead of investing myself in something worthwhile. I realize that I’m idling, so at least I seem to be past the stage of fabricating excuses…

Thanks to Rick Smith for joining the discussion.
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David — September 14th, 2009, 2:31 pm

People simplify Taleb into “it’s all luck.” Gladwell says hard work and luck, explaining the cultural contribution to luck. The problem here is using the Gates’ example, one of monumental success, on a website for the 4HWW. Most of lifestyle designers don’t need Gate’s level of wealth to live their dreams, nor do they want to spend their nights in a computer lab. You need a BIG dose of luck to be the richest person in the world. For 4HWW’ers looking to have enough money and time to live their own life, you need a lot less. I assume that is what this book is about – taking incremental steps of exploration without betting the farm. This is exactly what Taleb would recommend – tinker with a new life without giving away your safty net.
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- Tim Ferriss — September 14th, 2009, 5:00 pm
  
  Yes, David, this is precisely what the book is about: small tweaks, one at a time.
  
  Tim
  Reply
Tony Hollowell — September 14th, 2009, 3:10 pm

Man, this is good stuff.

Tim, I think you do a great job (on the blog and in your book) of explaining the “risk of innaction.” Many people look at changing their life and their career and their work as a risk, but it is so important to realize that simply doing nothing is also a risk. Doing something you hate is VERY risky, even though it might appear on the outside that things are smooth.

Building up a lifestyle that does not tolerate change or disturbance is the most risky lifestyle around.
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Alex — September 14th, 2009, 3:54 pm

Well if it’s who I know more than what I know, (though from Bill Gates I can see what you know is still damn important), I’d best be working on knowing people.
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Kechi Anyadike-Danes — September 14th, 2009, 4:06 pm

Tim,
I know this is not related to the topic above but thought this would be one of the fastest ways of possibly getting a response. Im a uni student and have just finished reading the 4 hour work week for possibly the fifth time, which means a lot since I dont normally enjoy reading. Anyway i have come up with an idea for my muse and i was wondering if i could ask you a quick question. Like you i have an idea for a supplement based muse but unfortunately i for obvious reasons have not alot of money. However after completing one of the exercises in the book that has you define your nightmare scenario, what steps you would use to get back to your previous state and the benefits of going ahead it seems as if the benefits definitely outweigh the possible worst case scenario. I was wondering though if you could tell me if you had the contract manufacturer do research as far as ingredients and amounts for your supplement or if you knew the entire science behind it. As although i am not a scientist supplements is an area i find very interesting and read a bit about, i have read about some ingredients that replicate the effects i would like my product to have. I hope this post makes sense and that you can help. Thanks
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Adam Rulli-Gibbs — September 14th, 2009, 4:09 pm

Perhaps the luckiest break Bill Gates got was to find something so profitable and so interesting to him, so early in life.

I count myself in the majority in not doing so

I’ve been opening and closing hobby websites for the best part of a decade before finding a subject that sufficiently interests me to put in the ongoing level of work required. (and I was in full time employment for several years before I even started browsing the web, let alone developing on it.)

The web has provided such a lucky break to so many… although maybe none quite so lucky as was Bill!
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Gavin — September 14th, 2009, 4:25 pm

Interesting take on risk perception in entrepreneurs, thanks for sharing Tim.

I totally agree that entrepreneurship is more about opportunity spotting than risk taking. People just get caught up on the risk taking phase because its the last 10% of the action taken, so they attribute success to the risk taking, not the calculation that actually led to the risk being taken.

Love the ‘dry test’ of promoting the software and PC before it was built too. Great way to test demand before investing in creating a product! Good lesson there

As this example with Gates shows, the true cause of Gates’ success was a culmination of factors both by his own doing and the cards he was dealt. I think it should be pointed out that even if Gates’ mum didn’t help him land a deal with IBM, he still could very well have succeeded even if not to the same extent.
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Monica Harrington — September 14th, 2009, 5:20 pm

As someone who’s actually worked with Bill Gates and with his father (who is a remarkable man who went to college and law school on the GI Bill) and therefore has a pretty good understanding of his family situation, I thought you might be interested in the career advice I just posted for my own nephews and nieces – one point of which is that “Understand The Best Contacts are the Ones You Make for Yourself.”

Oh, and by the way, I’ve been CMO for two successful startups (Valve and Picnik)- which my college dropout husband cofounded. Neither of us had any family contacts to help and our families struggled. But were were hardworking and focused and had built enough experience to get jobs at MIcrosoft when it had its pick of people from around the world.

Bill Gates had lots of advantages – which he’s the first to admit….but I think everyone should be aghast if the lesson people take from his life is that you don’t have to work hard and work smart. You might also want to read the post from his dad that appears today on the Huffington Post in which he talks about Bill’s mother and the lessons his children learned from her.
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Monica Harrington — September 14th, 2009, 5:48 pm

And Tim, I think your larger point that successful entrepreneurs work to mitigate risks is right on – but that doesn’t mean they don’t take them.
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Levi — September 14th, 2009, 5:48 pm

@lingvoj
“I don’t believe “It’s not what you know, it’s who you know.”
I could be the president’s son but if I’m an idiot I won’t do very well. ”

Ever heard of George Dub?
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Schmidty — September 14th, 2009, 6:14 pm

This is a great story.

Its interesting that reducing the risk with anything you do will make that step into the unknown and out of your comfort zone much much easier.
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Adler — September 14th, 2009, 6:15 pm

this book would be interesting if it would interview most of the people who lost their business during the .com.

It’s easy to talk about successful stories with all needed ingredients (be it mother’s contacts, hard work or luck). Leaving aside, maybe, the majority of the stories, i.e., people who struggled to ‘leap’, lost their business and tried again misses the real learning about what and how they did it.
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Paul Norwine — September 14th, 2009, 6:47 pm

“Yes, David, this is precisely what the book is about: small tweaks, one at a time.” – Tim

I haven’t read the book but the above statement is so simple and true that it’s often overlooked. Many people do not reach the goals they set for themselves but it’s not because they are afraid to take risks, it’s because they fail to acknowledge the relevance of the accumulation of their small successes to their achievement as a whole. Every goal looks formidable when you are first starting out…but if you keep your nose to the grindstone and continuously fight for each of those “small successes,” you can’t help but reach your goals.

Thanks, Tim – I look forward to reading Leap…

Paul
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Ian — September 14th, 2009, 7:52 pm

Tim, I think you’re being a bit naive here propogating mainstream thought… Bill Gates and Microsoft are basically a front company for the C I A. It was simply luck that the C I A backed Gates. Think about it… There is no way on this planet that the military industrial complex would let one guy have a virtual monopoly over the personal computer software market without their intervention and co-operation. Moreover, many of the technologies we see in IT originated from military R and D. The internet being a good example.
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Dan P. — September 14th, 2009, 9:36 pm

Choosing Bill Gates seems to (more or less) fit one part of your thesis: the assertion that you don’t have to “put all the chips on the table” to find success.

But this same example contradicts the second part: even if I hadn’t read Gladwell’s account (which goes into greater detail re: Gates childhood), your excerpt, particularly in the last paragraph, shows how Gates’ connections gave him a tremendous edge over the competition.

I would be willing to take a look at another excerpt from the book. I would hope that you’ve dug deeper than just the Gates story, and could perhaps provide a more interesting, less run-over example.
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miltownkid — September 14th, 2009, 10:25 pm

@Dynasty – What up thuggin’!
@Tim – You gotta hook up some kind of replying system! Is the WordPress.com one going to get released to the general public?

I want to add something to all of the debate about “luck” vs. “hard work.” I’ve still only read the first chapter, but the title says it all “The Magic of Thinking Big.”

Bill Gates didn’t “accidentally” become a billionaire because of who his parents were and who they were connected to and what resources they had access to. Think about this one. Billionaires have kids too! Mathematically, based on resources and connections, those kids should be TRILLIONAIRES! Bill Gates got big because he wanted to. Otherwise he would have stopped somewhere along the line.

I will agree that the timing was important for Gates and what he did, but that’s true for everyone at anytime (Warren Buffett talks about this as well, for example if everything about W.G. was the same except for his skin color… No billions). There are opportunities just like Gates’ (perhaps better than Gates’!) surrounding all of us right now. They’re just hard for us to see. Keep looking!

One other thought I wanted to add is that it’s up to you and me to decide what success is for us. Too bad all of the books about success focus on people with a lot of material success. A book should be written that balances things out, profiling a Mafia Don, a tribal Chief, a fisherman, a monk, etc.

Basically people who have painted a vision of their future and have done what’s necessary to get there. THAT’S true success. That’s (obviously, but seldom talked about) what it’s all about.

[/epicmanicrantingmode]
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max — September 15th, 2009, 12:02 am

Thanks Tim,

I have read Bill Gate’s book about 10 years ago, it’s refreshing to see another side of Bill Gates and reincarnation of the creator of “blue screen of death”. I also see that Bill Gates did something very special for computers that prolliferated everything else today including Apple’s comeback.

What I’d like to see really is though, some thoughts on people like Linus, the creator of Linux, of how much money he “didn’t” make while making open source, the true force behind technology today. Even my new phone is a linux-powered device, not Windows, a Palm Pre.

Well, the book seems lke a great read though, I will have to definitely get it next time at the bookstore at Borders. Your book is still the greatest though.
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Cath Duncan — September 15th, 2009, 4:45 am

I’ll definitely look out for this book for my Bottom-line Bookclub! It sounds like it’s piled with ideas on how to be agile by learning how to test and adapt until you get the results you want – I’m all over that! It’s a great strategy for managing fear, but more than that, it’s a great strategy for the innovation and design process.

Cath
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Allen — September 15th, 2009, 5:44 am

Considering any Entrepreneur a risk taker is silly. Sitting in a cube or assembly line waiting for your layoff is taking a much bigger risk than being in control of your own life. To me, even the best case scenario of showing up 60 hours a week for the rest or your life, to do work that is “tolerably uninteresting” is the worst possible life to have.
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Florian Komm — September 15th, 2009, 5:46 am

Thank you Tim! Very good review. I enjoyed reading it a lot.

Lots of entrepreneurs I know tell me that, they started part time or if not, recommend it to new entrepreneurs.
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Daily Bytes: Digital Food for Thought – September 15, 2009 | BrandWorks — September 15th, 2009, 6:45 am

[...] Do You Really Know Bill Gates? The Myth of Entrepreneur as Risk-Taker [...]
Liam McIvor Martin — September 15th, 2009, 7:18 am

Great Post, I just did a talk at the McGill University about in essence the same myth of risk and entrepreneurship. In terms of getting young people motivated to get off their butts and aspire to something I’m finding it quite difficult. I even stole a lesson from the 4hww and challenged everyone to email me with their best elevator pitch for personal help from me but I haven’t gotten any bites.
This is a little off topic but any suggestions to help motivate university students into entrepreneurship?
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Rick Smith — September 15th, 2009, 7:22 am

@Liam Mclvor Martin “any suggestions to help motivate university students into entrepreneurship?”

How about 10% unemployment…
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El emprendedor y el riesgo — Recursos Para Pymes – Información y Software para emprendedores — September 15th, 2009, 11:16 am

[...] emprendedores. Uno es de Derek Sivers, al que he descubierto hacer poco y sigo incondicionalmente, otro es de Tim Ferriss, al que ya le seguía la pista desde hacía [...]
Tony Meade — September 15th, 2009, 12:54 pm

Thanks for this recommendation, Tim. As always, you seem to post exactly what I need to know about.

Rick, I will check out the book when it’s available, and I’ve subscribed to your blog feed.

Thanks again!
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Jim | AccentHelp — September 15th, 2009, 1:49 pm

Oddly enough, reading this post really jumpstarted me on a new line of development that I’ve had on the back burner for a while. Looking at the post again, I’m not even sure where the inspiration came from other than the idea that Gates built a lot before he took the risk to quit. I’ve been putting off developing this new website for a while because I’ve been continuing to build my other one, but there’s no reason to hold off and wait for one to come to completion (especially since it’s not designed to ever by “completed” anyway). Thanks again, Tim. Though your posts are sporadic much of the time, I find that the majority of them have more impact on me than most blogs that I see. Keep being selective!
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Charlie Broadway — September 15th, 2009, 3:30 pm

People want advice on how to get rich –and pay for it. Now how not to go bust does not appear to be valid advice –yet given that over time only a minority of companies do not go bust, avoiding death is the best possible –and most robust –advice.
NASSIM NICHOLAS TALEB
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Lloyd Budd — September 15th, 2009, 3:57 pm

miltownkid, in response to “You gotta hook up some kind of replying system! Is the WordPress.com one going to get released to the general public?” It is already part of WordPress core since 2.7 (for about a year) – http://ottodestruct.com/blog/2008/wordpress-27-comments-enhancements/

It is optional and the theme needs to be updated to support it.
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Eric Beck — September 15th, 2009, 5:15 pm

Tim,
Great post. And the bit about luck and focused effort is right. But the myth about risk persists. I think the word entrepreneur almost valueless these days. Risk is inherent in all strategies and game theories. There is NO riskless strategy. So if risk makes the entrepreneur then we are all one.

But the term is usually defining someone who is successful, not a risk taker.

I used to be the Intl. director of training at Gerber’s E-Myth Worldwide and while there I learned first hand the reason the book is so powerful is not because of dispelling a myth. Not the entrepreneurial one at least.

I’ve heard Michael say over and over that “the only reason to start a business is to sell it.” That is what entrepreneurs do. But after working with literally thousands of small business owners, I’ve never met one that did that. Not one.

What they do is work very hard, get overwhelmed by a lack of systematization, and then most bail out. Those who make it do so usually in spite of anything like sound strategy. They do so because their top three competitors just happened to go out of business the month before or from some other fortuitous concurrences.

So the idea that entrepreneurs are those who take huge risks is really just bravado and Donald Trumpeting. Most are very, very calculating and look for the 1 in 11 ratio that keeps them very wealthy and able to keep playing the game.

However, 99% of the working world (read small business) does NOT do anything like this. They find some passion, follow it, hawk everything and twist every relative’s arm and some how start their thing. Then it’s a matter of time until one of two things happen: 1) They burn out and quite or 2) They hit some level of luck that pays for them to capitalize on that luck and keep things going.

And rarely, one will get so lucky, like Gates, that what they’ve built connects to a distribution system that is just enough ahead of the “pack” that, like surfing a great ocean wave, they can ride it for one hell of trip – and in retrospect they say holy shit how did that happen?

But everyone else tries to delineate, cognate, and fundamentalize their method to sell a book or prove a point. We just hate mystery and have to crush anything we can into quantities so we can remove our manic fear of the unknown.

In reality, no body knows how Gates did it. Even him. So here’s to the adventure, not the seat belts!

I think great success in is “being available” and having, much like you seem to, a lifestyle that is “available.”
Cheers,
Eric
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Leonard Irwin — September 15th, 2009, 6:29 pm

Tim

Thanks for this tidbit of information. I really feel you have given me the step by step process to overcome my fears. It is the litle steps that make the difference. In the past I looked for really great big LEAPS but with this book I can take small steps to success. The Bill Gates story is helpful for me to put things into perspective.
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Christine Elisabeth von Malsen Hueber — September 15th, 2009, 6:43 pm

This looks like a fabulous book & I’m eager to read it! I’m so enthusiastic in fact, that I Twittered, FaceBooked and posted on LinkedIn about it!

I hope everyone benefits!

Best,
Christine Elisabeth von Malsen Hueber
Your Exclusive Social Networking Strategist & Business Management Solutions Expert
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Fernando Torres — September 15th, 2009, 6:50 pm

I just finished the test offered on the book’s website and I found it a well constructed test with a slight different approach than most of the other career assessment tests. Check it out: http://www.leapbuilder.com/
Tim – it would be interesting if you shared your results of the test with us.
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kare anderson — September 15th, 2009, 7:44 pm

Tim
I agree with you re “hedge their bets and place small bets while keeping one foot on secure ground.” You may also enjoy Peter Sims book out next year, Little Bets … yet I recall that you know him so you may be inspired to write an unsolicited review
http://petersims.com/little-bets
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Anthony — September 15th, 2009, 9:58 pm

Good read. I was recently reading the blog of Markus Find (founder of Plenty of Fish).

A year or two ago he said the same thing…the best entrepreneurs aren’t risk takers (well, paraphrased anyway, what he said was slightly different and a bit more abrasive ha).

But yeah, this is my wake up call to continue refraining from my old gung-ho ways. Thanks for posting

-Anthony
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DaveinHackensack — September 15th, 2009, 11:15 pm

Tim,

Why did Brian Oberkirch stop blogging? Do you know?
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omoleye gomez — September 15th, 2009, 11:41 pm

Common people respect the brain of this man (Bill Gate), the story of Gate can never be over-flogged, never. In years to come he will continue to inspire millions into taking that bold step (risk or no risk involved). How i wish i can have a friend like Paul Allen. Gate and him could have decided to rest on their oars, reason, their parents are well to do.

Somebody posted above saying that Gate bought window cheap from the original programmer, the man does not know it value, the idea could have return to where it came from, thank God for WINDOWS, it changed the world, thank you Bill Gate.

@Rick, please keep up with the good work. we need stories like this in my part of the world (Africa).

@Tim, am reading the full detailed tit bit! on the true story on Bill Gate from your review, am even more impressed now than ever, thanks, like i said before stories like can never be over told.
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Reijo — September 16th, 2009, 5:49 am

Great post! I’m in the middle of transition period in my career, so this posting really hits home. Apart from Tim’s and Rick’s books, I think Paolo Coelho’s Achemist book, and many more, are really valuable for anyone trying to take a “leap”. Transition and taking a leap is also about feelings, passion and supra-intellectual.
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Saul — September 16th, 2009, 6:34 am

Hi all,

I had a conversation w/an entrepreneur about this last night. He was saying things along the lines of “I need a team of risk takers to go with me, who are willing to risk it all for the success of this project, I’ve been homeless before and sold multi million dollar companies, I’m willing to do it again.”

To which I had to point out that although it might make for a good story, risking everything is NOT a key to success, and is definitely NOT a requirement to success.

Tim – thanks for the great post, I actually have a copy of the galley to this book on my desk and appreciate the write up and the timing.

All the best. . .
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- Tim Ferriss — September 17th, 2009, 9:02 pm
  
  My pleasure, Saul. Thank you and everyone for the comments and contributing to the dialogue.
  
  Best,
  
  Tim
  Reply
Jonny — September 16th, 2009, 7:13 am

Tim, This life you lead – Is it worth it?
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Ergest — September 16th, 2009, 7:32 am

Hey Tim, the revised version of your book is already on Amazon for pre-order. What’s different in it? http://www.amazon.com/4-Hour-Workweek-Expanded-Updated-Anywhere/dp/0307465357/
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Ballmer’s Billions – Microsoft and Usercentric Design | Interactive Design and User Experience Blog from Zemoga — September 16th, 2009, 7:57 am

[...] Tim Ferriss has an interesting post on his blog about Rick Smith, the founder of World 50 and the author of the new book LEAP. Ferriss’ post focuses on Smith’s deconstruction of the myth of Bill Gates as a risk-taking entrepreneur. And that got me thinking about Microsoft in general. [...]
Dynasty — September 16th, 2009, 11:27 am

Yo Tim, any goodies for a sneak preview on your updated book?

@Ergest- good look’in out.
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Stephen Nash — September 16th, 2009, 12:41 pm

Great read, and pumped to get this book. Given the downturn in events recently, I’ve taken a part-time job…wasn’t my dream, but it was necessary for sure. What is interesting is that I find I get MORE done without the hyper-stress felt in the winter/spring. Having a bit of cashflow helps me focus and build. It’s seems then important to discover you’re own threshold for risk/stress and try and exist there. Easy to say, hard to do. Experience is the only guide.

Love your blog Tim.

Sn.
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What do you think of Bill Gates? « Christine Elisabeth von Malsen Hueber — September 16th, 2009, 2:27 pm

[...] to send me his new book Leap, after reading my enthusiastic comments on Tim Ferriss’ blog. Tim posted an excerpt of the profile of Gates, showing how successful entrepreneurs are [...]
SH — September 16th, 2009, 2:32 pm

I know a few entrepreneurs in the UK and France and the funny thing is that they don’t really have that much in common other than they only take a bet when they can calculate the risk. The risk appetite changes from person to person but none of them go into anything blindly.

btw, I enjoyed the post, thanks.
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Quinton Goodman — September 16th, 2009, 6:52 pm

Tim-

I am new to your blog and book, but so far I love them both!!
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Michael — September 17th, 2009, 3:26 am

Tim,

I already new some part of the story of Bill Gates but the details here are very inspiring.
Mass media contributes to spread the poker player entrepreneur type which is why most people never start their businesses.
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Michael Medlock — September 17th, 2009, 6:51 am

Books like Outliers, Blink (which I a currently listening to) and I presume Leap is that they are one sided. This is perfectly natural of course, but what about the people who took amazing risks to achieve, or who didn’t come from the “right ” environment?

I will read the book because it sounds interesting, but I while I am reading I will try to remain aware that just like everyone else I tend to look for evidence that confirms what I already believe to be true.

M
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Kevin VanDriel — September 17th, 2009, 10:02 am

Tim,

I read your book last year in one night and, in eleven short months, have entirely changed my circumstances. I have achieved DEAL. But, I still work for the same company because I love the project I’ve been trying to launch for five years, the company itself, and its customers. In fact, now I work MORE instead of less, make the same money, and haven’t started any side business. But that’s irrelevant. Your “buffet” offered me the meal I wanted.

DEAL is exactly the incremental step taking you just mentioned in one of your replies to someone who practically accused you of reciting Gladwell’s thesis in Outliers (an excellent read).

As with the comparisons with Gladwell, I can see how you’re looking at it from a different angle. Incremental risk taking is the only risk taking I know. Why make it black and white and ruin years of hard work with some 50/50 luck?

Tim, while lots of your blog posts are irrelevant for this audience of one, this post today re-affirms I should stay subscribed.

Thanks for taking the time to read this sir.

Kevin Vandriel
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- Tim Ferriss — September 17th, 2009, 8:55 pm
  
  Thank you for taking the time to comment, Kevin
  
  Tim
  Reply
Dynasty — September 17th, 2009, 11:51 am

Hey Tim,

I am going to go out and buy fifteen of your books (update version) and give half to my most influential connections and the other half to a couple local libraries here in LA.

Keep up the amazing work!
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Dynasty — September 17th, 2009, 11:57 am

Alright, make it twenty books. The extra five go to local libraries.
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miltownkid — September 17th, 2009, 1:16 pm

@Liam McIvor Martin
RE: Any suggestions to help motivate university students into entrepreneurship?

After spending 5 years teaching little kids in Taiwan English and 29 years teaching “adults” to leave me alone and let me do what I want to do, what I’ve learned is that it’s all about “framing.” Your students can’t see the gems that you see in the text because the text doesn’t relate to them. If they’re my age or younger, I’m sure a title change to “The 80 Hour Gaming Week” would have motivated a few of them… lol

I also HIGHLY recommend “Got Game” (for both gamers and “old guard”).
http://www.amazon.com/Got-Game-Generation-Reshaping-Business/dp/1578519497

@Lloyd Budd FRESH! Tim! We’re waiting…

@Reijo Agreed 100%! The Alchemist has the SCIENCE!

@Ergest Good lookin’ INDEED! I’m gonna have to put some money in the bank and order that! Or get my girlfriend to do it…

@Dynasty I accept your challenge! First I’m going to get my book back from the guy that stole mine and donate it to the downtown library, I’ll figure out my next move after that.
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Caroline — September 17th, 2009, 2:35 pm

Fabulous story. I’m usually deterred by too much text (being completely ADD as most people in my generation generally are) but this one got my attention.

My entrepreneurial friends and I were just talking about the risk about going about your own thing today. Now I feel so much better. It doesn’t have to be all about having nothing to eat and complete desperation. Woot!

Thanks so much Tim. I just bought the book (also recommended yours to my friends)!
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Lev — September 17th, 2009, 4:22 pm

I like reading your work because you seem very curious and creative in your relationships to things, so big thanks for the explorative spirit.

This article didn’t move me particularly, for a few reasons I think. Firstly, it is largely a historical account of another guy, and secondly because the point you were making seemed to be how you don’t need to take big risks to be an entrepreneur, but the example seems to be of a guy who had the freedom to be creative and curious with his career/lifestyle because he came from money and was in a wealthy school that gave him access to the technology forming the latest upcoming trends. What I draw from this is that if there was a myth about Gates being a risk taker, than it was wrong, he was simply a product of good breeding, financial security should anything go wrong, and being in the right place at the right time. I don’t think your example helps your argument, but like your stuff for the most part old bean. Thanks
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Cognitive Engagement » Blog Archive » Leap — September 17th, 2009, 5:06 pm

[...] looking forward to reading Leap, based on what I’ve read so far at the Blog of Tim Ferriss. According to Leap, Bill Gates and many other seemingly crazy entrepreneurs didn’t really [...]
Lori — September 17th, 2009, 5:27 pm

Hey Tim,

I’m a first-time commenter at your site – been here many times.
Great stuff!

I was inspired to comment here today, though, because I’m glad someone is telling it like it really is. As a former scientist, I can tell you that what holds true for winning the Nobel Prize holds true for big business. It takes work, a series or good luck, happenstance, money, and planning.
The cliche, “There’s no free lunch” is overused and popular for a good reason. Because there is no free lunch.

Thanks for the work you are doing to change the world. Cheers!
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Dynasty — September 17th, 2009, 7:56 pm

Hey All

OMG, you guys rock! I emailed @MiltownKid and here’s what I said,

” I just posted a comment; donating updated version of Tim’s book to local libraries. Perhaps, you would be interested in donating at least 1 book to a local library? If so, post your generosity on Tim’s blog.”

He’s his response (freak’in amazing) ” @Dynasty I accept your challenge! First I’m going to get my book back from the guy that stole mine and donate to the downtown library, I’ll figure out my next move after that. …I’ll get my friend in Taiwan to do the same thing…”

And no joke, his friend from Taiwan got a hold of me.

Thanks so much for your tremendous support. Join the fun and celebrate with kind generosity. Many, many, thanks.

Have a fabulous night
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mark t — September 17th, 2009, 9:27 pm

@Timothy Ferriss

When is your next book coming out???
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DaveinHackensack — September 17th, 2009, 11:04 pm

“Alright, make it twenty books.”

Great save. I was wondering how you were going to divide 15 books by 2.
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Friday Links « Scott H Young — September 18th, 2009, 6:12 am

[...] Entrepreneurs Don’t Take Risks – Tim Ferriss posts a book excerpt claiming the standard myth about starting a business (that entrepreneurs are daredevil risk-takers) is completely false. He uses Bill Gates life as an example, showing how a series of small starts pushed him towards starting one of the largest companies in the world. [...]
zhang shu — September 18th, 2009, 8:05 am

Hello, Tim. I’m a Chinese reader for your book <>. My english is poor so I hope you can understand what I said. I just read the first chapter and start to action. I want to build a company and be a CEO. I start to find some success CEO and email or SMS to them. I begin to do this the day before yesterday. I have email two CEO but nobody reply.

Suddenly, I remember you. You are a success CEO and like to help others. so I come to your blog and ask you two question.

I’m 21 years old and one years later will graduate the college. I have no forte, but want to build a technology company,like Internet company,mobile phone company and so on.Can I success?

I know nothing about how to build a company, only a dream. but I will do. Can I success?

I almost know your answer , I can success. But I want to hear your suggest still. The two question is only want to recognize you. And can you teach me what to ask when I first time to email a CEO?

Your friend is so many and the comment is so so many , I hope you can see my comment.

Your chinese must good because you come to China so many time, so I translate my poor english to chinese.
???Tim.????????4?????????????????????????????????????????????????CEO??????????ceo????????????????????????????ceo????????????????????

??????????????ceo?????????????????????????????

???21????????????????????????????????????????????????????

??????????????????????????????????

????????????????????????????????????????????????????CEO????????????

?????????????????????????
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zhang shu — September 18th, 2009, 8:09 am

Oh ,god. your blog can’t use chinese. hope you can understand what I said and hope you email to me.
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Bastian — September 18th, 2009, 8:14 am

interesting topic. I always like different perspectives on the same person. I think that way everybody can learn whatever he needs to learn from it. For example one person can be a karate master and an excellent cook. If I want to learn cooking I’ll book such a course with him and if I’m interested in karate I’ll go to his dojo.
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Jodi — September 18th, 2009, 9:37 am

Bill Gates had the advantages of connections and know how on starting a business, but anyone can (and should) do it – social media is a great way of making connections and there is plenty of practical knowledge on the web on how to create a business. – after all entrepreneurs and small business are the people who will turn the economy around
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Ben Long — September 18th, 2009, 3:10 pm

Bill Gates was in the right place, at the right time in history doing the right thing. Obviously, his passion was the driving force behind it all. How else could someone go for a decade without taking a vacation!
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Augusto Forino — September 18th, 2009, 6:18 pm

Hello I’m Italian and reading this post I can tell you that the story is completely different from that translated into Italian, is very similar to that of the film Pirates of Silicon Valley. From what I can understand Bill Gates took advantage of the opportunities that had simply, has recognized and exploited them. everything is to understand the opportunities. Opportunities are words, we have before us the letters, combining letters we create our own opportunities.
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Tony Hollowell — September 18th, 2009, 7:54 pm

So, I just finished the book, and I highly recommend it. Very good stuff, especially the last chapter. Rick notes that in biology, variation is necessary for evolution, and we should think similarly in finding our “vocation.” Finding something that is the best fit for you is aided by gathering various experiences and then “evolving” from those experiences to your ideal work.

There also seems to be some concern in the comments that this recommendation for the book is non-authentic because of the potential financial benefit to Tim, but this does not seem to be a well-founded fear. In this “business”, nothing can be more important than trust. Tim has thrived at what he does not because of some marketing scheme, but because he makes a positive impact. He has my trust because 1. his book is very good and 2. every book he recommends is also very good. I have read most of the “restricted reading” that he suggests, and these are all excellent reads. Do you think Tim would want to break our trust by recommending some crappy book so that he can make a few cents on the dollar for every book sold? That just isn’t worth it. Trust pays.

If this book was recommended by Tim and it was a crappy read, I wouldn’t read more books that he suggests. Short term gain of a few pennies, but a long term loss. Even though there may be some monetary gains for this recommendation, that is fine by me, because the bottom line is that I benefited from this recommendation.

To many companies fail to realize this concept. They just take the money and run, and while this works in the short run, it is simply non-sustainable. Any product can do well initially, but if its crappy, people stop buying it.

A good investment matures over time, and building trust is one of the finest investments you can make.
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- Tim Ferriss — September 19th, 2009, 10:50 pm
  
  Thank you for the comment, Tony. It is a great read. I encourage anyone who thinks I post _any_ book for financial gain to sign up for Amazon affiliate and give it a go. Even if you sell hundreds of books, which only a well-read blog can, it’s pennies compared to anything else most people could be doing.
  
  If I were blogging for money alone, I’d have both advertising on this blog, right?
  
  Thanks again and all the best,
  
  Tim
  Reply
Kim Ann Curtin — September 19th, 2009, 12:36 pm

Hi Tim:
Gee whiz after reading all of these comments I sort of wish now that you chose another chapter to feature from The Leap.

Folks this book is NOT about Bill Gates and/or “who you know vs. what you know.” And it def is NOT similar to Outliers.

It’s about how to find “the place where your deep gladness and the world’s deep hunger meet” as Frederick Buechner speaks about.

It’s a tool box for people who may not know what they want to do yet are moderately or very certain it’s not what they are currently doing. It’s also for those that are on the path but want it to become more easeful.

After you take Smith’s primary color assessment test he asks you to lift it up beside this ruler. What could you create with your gift that would be Big, Selfless and Simple?

Now mind you Selfless doesn’t mean unprofitable. In fact the funny thing is those are usually the ideas that really generate. Meet the needs of the market place. That is job #1. And when you really focus on other people and their needs and where and how those needs can be met by your service then you’ve found yourself a hit. Just like you did Tim by meeting the need we all had to not work crazy hours every week.

Thank you for featuring this book and always turning me on to powerful people and useful information. You never waste my time and I thank you so much for that.
Warm regards, Kim
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Christopher Fetterman — September 19th, 2009, 3:08 pm

Hey Tim, I was wondering if you could put your random show as it’s own topic in your topics menu or have it’s own button at the top menu of your blog. Also if you could throw it in itunes so I could subscribe to it that would be equally awesome.

with a smile,
Ristopher
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- Tim Ferriss — September 19th, 2009, 10:44 pm
  
  Done! Just made that change. Thanks for the reminder and enjoy
  
  Best,
  
  Tim
  Reply
Mark McLemore — September 19th, 2009, 8:02 pm

Thank you, Tim. I’ve been riding the entrepreneurial roller coaster for a couple of months now, and this post reminds me that I’m creating my muse the right way. I’m using only cash, and I’m wrapping up the last 5 hours of a music degree while I start my business (not the one in my URL–that’s for quick money). I won’t miss a beat if the muse fails (but the market testing reminds me that it has potential).

So the “career-path” umbilical cord, the worst-case scenario analysis, and the support of positive people made pursuit of this idea inevitable. Take heart, everyone.

Thanks for being so positive! Haha.

Mark
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TEI — September 19th, 2009, 9:00 pm

TIm

I have read your book, it’s great.

Anyway, I think becoming richer depend on cognitive and thinking.

So, listen other oppinion of richers, it will be advantage for listener.

Tei
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Eric — September 20th, 2009, 3:30 am

Interesting post, but maybe you can explain to a foreigner: Why is “career” on the cover such a bad thing? Any negative connotation I am missing? I thought it sounds rather positive..
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TEI — September 20th, 2009, 9:54 am

someone told me that “risk=rich”

is that true?
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Adam Conroy — September 21st, 2009, 9:26 am

I find it funny that you picked a picture of MC Frontalot and no one has picked up on that (or at least mentioned it). In that gaming world he’s a bit of a mini celebrity. I was actually expecting you to writing something about him in the article. Just found it funny.

Good article though, thanks.
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- Tim Ferriss — September 21st, 2009, 10:40 am
  
  MC Frontalot rocks
  
  Tim
  Reply
Akash Puri — September 21st, 2009, 11:28 am

Hi, I am compelled to share a few of my thoughts here..!!

(1.) In Tim’s book besides all the concepts (that are excellent), I think the most important one is “To begin with the end in mind”.. So the question is “Do you want to be the richest man or among the richest men in the world ..!!”

(2.) Though, by reading about people like Bill Gates and his likes, you may generalize a few things, but again quoting from Tim’s book – different people have used different methods and approach to achieve success and all of them are right. Make your choice and take the road that’s best for you.. but do not forget where you want to reach so that you begin with the end in mind !!!

Hence …
(3.) I look at money as a resource to buy things that I need or want but if one has to pay for money (yeah !! you have to SPEND your time making money.. so that’s a price !!) in denominations of the most limited and scarcest resource called TIME then one is very poor, cause if you have money in your pocket but no time to spend(read as enjoy) it then I pity you, cause you are living “below the line of time poverty”… !!!!

4 Cheers to the 4 hour work week… !!! and 164 hours enjoyment week… !!!
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Shane — September 21st, 2009, 1:40 pm

@Eric: Also foreigner, here. (insofar as anyone can be a foreigner on the interwebs)
“Career” has a negative feel to it for me as well. When I see “Improve your career”, I think about climbing the corporate ladder, sucking up to managers and getting promoted to a larger cubicle.

I guess most people here are after “lifestyle design”, which would often involve ditching the whole corporate thing and doing something independant.
That’s my take, anyway.
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Rick Smith — September 21st, 2009, 1:57 pm

Love the discussion about the word “career”. Actually, Tim was right, it is the wrong word for the message of the book. In fact, I had a major fight with my publisher about changing it. In the end, we left it, because it at least narrows down the audience initially (you cant reach every group until you have directly reached one group). Who knows, may change with the next printing.

The negative connotation is exactly related to the traditional corporate ladder. Sure, that is still the goal for some, but not for many these days. I think those attracted to Tim’s site and conversation are drawn, as I am, to the notion that life should be lived uniquely, and not along a path set superficially by someone else.

The last chapter of my book, The Leap, is called: A Perspective on Life-Work Design (certainly a term inspired by Tim’s Lifestyle Design). The point of this entire chapter is that everyone’s ideal path is unique to them, if you only have the courage to pursue it.

(from the last chapter): “What you are doing now is a matter of record. What you should be doing – what work is right for you, what career track will bring you the greatest fulfillment, what summit to be looking at the world from, where your leap should be taking you – is utterly personal and singular. A million monkeys at a million word processors couldn’t begin to scratch in print the surface of possibilities. That’s where the real clarity lies, where careers become callings. That’s where your future begins.”
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Omar — September 22nd, 2009, 4:05 pm

Interesting. Have to pick up the book.
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jb — September 22nd, 2009, 9:32 pm

Same story is in Outliers by Malcolm Gladwell.
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The truth about Bill Gates | Urgency Flow — September 24th, 2009, 1:09 am

[...] something Ferris also stated. But the underlying thought witch can be extracted from this article might be that succesfull entrepreneurship does not come with romanced story’s about school [...]
Stephen — September 24th, 2009, 3:02 am

Love the story. Really shows where people come from.

In life I always like to remember if someone has done it before then you can achieve it to. When you look at stories like this risk is only a perception in your mind.

I really am waiting for your health book to come out. Can you work really hard on it as I have finished the 4 hour work week and ready for the next offering.
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Matthew Rehrl — September 24th, 2009, 7:24 am

Bill Gates isn’t lucky – he is driven and focused, and able to both seek out and see opportunities when and where they arise.

There is actually, a classical treatise on this type of “luck” in someone’s own words – The Conquest of Gaul – Julius Ceasar. A lot of plebes in Rome probably thought he was lucky to .
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Trevor Theriault — September 24th, 2009, 9:02 am

Tim,

Just got back home after a 12 hour car ride listening to the 4HWW twice.

WOW! I am pumped!

I just signed a sweet deal with a company in NJ, and we are moving forward with my invention. The DCT “Diver’s Communication Torch” will be on the market in 2 Months. After 5 Years it has finally happened. Thanks to reading and listening to your book and acting and doing it.

I want to send you one as I know you are a certified Scuba Diver.

Thanks for everything, and I hope to run into you while I am globetrotting, The dives will be on me…..you buy the beers after.

Cheers,

Trevor
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Lou B — September 25th, 2009, 2:51 pm

I can’t help it but I notice a lot of discussion on LUCK and RISK. Which I believe are very deceiving if discussed on their own.

Many successful people mention Luck as a contributing factor to their success. I believe they use that word to sum up events and things in their life they’d rather not discuss or wish not to share (secrets, not too proud moments). You are lucky if you win a million in a lottery – no doubt. But as far as business strategy or concept – find it very useless. How do you replicate and objectively measure someones luck?

RISK – another very useless variable to discuss on its own. Of course RISK exists, you are at risk the minute you are born. Everything you do in your entire life involves risk. LIFE is a very risky endeavor. Amazes me why are people so afraid to go into business because of this variable. We are OK with short term risks, but no one likes to make a life changing decision because of risk.

Yet, so many people marry a partner just to divorce them and loose half of everything (better yet, do it over and over, helloo), engage in activities resulting in short term pleasure knowingly risking long term goals – in other words we do so many stupid things everyday that are risky – but don’t even bother questioning them. Yet we all think of our-self as exceptionally bright.

Don’t ask yourself whether risk exists or not, whether it is bad or not. Ask yourself how it BLENDS and coexists in your life. ALWAYS consider risk with all the other variables involved in creating your life. One of the most important partners of risk is PROBABILITY.

INCREASING the odds and PROBABILITY of your success is the name of the game. Risk all of a sudden becomes a very relative term.

Rambled enough here. Aren’t you luck to read this long post?
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Octobox — September 26th, 2009, 11:24 am

Tim — GREAT THREAD

I think a lot of folks are missing the point here.

1) Un-informed Optimism
—2) Crash-Burn Escape Velocity
3) Informed Optimism

Escape Velocity has two roots: 1) Humility (an “ability” or “skill,” in terms of speed, at recognizing truth and submitting to it) and 2) Forward Moving Will-Power.

Will and Humility (given the above definition) can we ever move-forward and submitt to self-realized genius.

I have a site going live in 6-8weeks (Hero Talk); wherein we are playing with the biggest names in Military and 1st Responder Training — we have an 18,000,000 community with total top-down and bottom-up groundswell.

We’ve been at this for 18 years and NO-ONE (including ourselves) has made a dent in PTSD Training owing to training costs.

I meditated on the Success / Failures of Youtube and Facebook and came up with a new model.

You are 100% Right — When you talk about “The Myth of the Entrepreneur” — who was I even 6 months ago, just another mid-level trainer. Now I’m working with the biggest names.

Thanks for Shining the Light Brother,

Octobox
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Metrodorus — September 28th, 2009, 10:23 am

Hi Tim and all

I’m trying to get ideas for my ‘muse’ which for me will be an internet based business which I can run without giving up my ‘day job’ in the first stage.

I need a little help – I have an MBA (so I shouldn’t be too bad at general business stuff), but I’ve always been corporate and building entrepreneurial muscles is new for me. Now it’s really just about identifying business opportunities and the challenges of starting up online.

What do you think of the following books:

Moonlighting on the Internet
(Yanik Silver with Robert Olic)

The Online Professor’s Practical Guide to Starting an Internet Business
(Danielle Babb)

Are there any others I should look at?

Many thanks in advance
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Gary FitzGerald — September 29th, 2009, 7:03 pm

“outliers” is the book that really blows a lot of these myths away
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El emprendedor y el riesgo « grandes Pymes — October 8th, 2009, 4:32 pm

[...] emprendedores. Uno es de Derek Sivers, al que he descubierto hacer poco y sigo incondicionalmente, otro es de Tim Ferriss, al que ya le seguía la pista desde hacía [...]
Deepak N — October 12th, 2009, 2:42 am

Hi Tim,

More than the risk-reward scene, you can’t ignore the fact that Bill Gates was little more ahead of his time than anybody and saw first what was coming. Even such an ability is extremely rewarding and if it was only about taking risks to succeed then Las Vegas would’ve seen unmanageable crowd. But there’s no denying the fact that not all the moms are capable of clinching deals for children!

Deepak
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The Leap – How Three Simple Changes Can Propel Your Career From Good To Great | thelifething.com — October 28th, 2009, 6:19 pm

[...] it happens I am not going to review the book as Tim Ferris does a very good job at his post “Do You Really Know Bill Gates – The Myth of The Entrepreneur a Risk-Taker” which is worth checking [...]
c. love — November 3rd, 2009, 7:13 am

hi fans of tim-
I’m wondering if anyone’s come across any of Tim’s thoughts on personal RELATIONSHIPS in addition to the blog about the value of irritating people?
thanks!
Christina
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Brad — November 4th, 2009, 8:52 pm

I just came across this post today and I thought to myself; this is the exact situation I am in”.

It’s a common assumption that those who have become successful entrepreneurs risked everything to get where they are.

Keeping our families secure (as we so think of it) by having a job that pays the bills, seemingly allows us to reduce the risk of starting our own venture.

The ultimate goal is financial independence, but it’s important to satisfy the basic needs of those who need you.

Bit by bit, we’ll get there.

Thanks for the great post Tim!
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Nic young — November 9th, 2009, 6:39 am

I have to agree with Shane on Outliers being more absorbing than Blink. i didn’t get to the end of the latter which is unusual for me when reading a book.

Outliers had little to do with risk, for me it was saying success is a combination of being in the right place at the right time and putting in a LOT of work.
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Emilio — November 20th, 2009, 12:26 am

We see it everyday… being an entrepreneur is risky, but in fact, NOT BEING one is even riskier.

It may be slower at first, but in the long run it pays off tenfold
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Eric — November 23rd, 2009, 10:51 pm

I’ve had a sneaky suspicion that this was the majority route with entrepreneurs being that I’m doing the same plan myself. One year in to my first business, I’m still working full time for another job until the see saw turns just enough where the “risky” jump is nothing more but a small step. I suppose there are times to gamble, but it’s nice feeling the water first!
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Oleg Mokhov — November 24th, 2009, 11:44 am

Hey Tim,

Calculated risks, rather than just any risk, is what lets you achieve your goal faster.

You make bold moves to focus on the big wins, but you don’t mindlessly try stuff. You plan and figure out what would be the most effective way to do something that’ll give you most of the results (80-20 style), and take your risks there.

Looking at the phrase ready-fire-aim, you do indeed fire and just do it (hope me linking to an article I wrote isn’t spammy – just thought it’s relevant and helpful to the topic)… but that ‘ready’ stage is where you calculate the firing beforehand. It isn’t simply called fire-aim for a reason.

You have limited ammo, so you want to make it count. You can’t predict the future, but you can analyze your choices and focus on the 80-20 ones.

Mindless risks leads to wasted resources. Calculated risks leads to big wins.

Great reminder to take risks but to be selective and make them calculated,
Oleg
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Scott Barrington — December 6th, 2009, 6:52 pm

Malcolm Gladwell’s book Outliers explains some key parts of Gate’s success in great detail to. It’s an interesting read. http://bit.ly/8MSSyJ
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Dieter — December 11th, 2009, 7:51 am

hey tim,

nice article! i think bill is a great Entrepreneur, he makes shit to gold
we can learn a lot from those people.
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Kerstin — January 10th, 2010, 1:10 pm

Just a thought :

I´d put the definition of risk-taking differently : people like Gates are able to exactly calculate risk – what they finally “take” is a specific degree of uncertainty – not risk.
And obviously they manage uncertainty better than their fellows.

Cheers,
Kerstin
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E.C.G. — March 13th, 2010, 4:59 am

Hi from Mexico.

Just an update:

I’m guessing this post is from 2009. As of March 10, 2010, Forbes Magazine considers Carlos Slim the richest man on the planet, just .5 billions up from Gates. Financial markets go up and down.

Emmanuel.
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Marvin Barrett — April 2nd, 2010, 11:18 am

The Bill Gates story has always fascinated me, well at least the parts I was aware of. This article has highlighted other points that I wasn’t aware of so it’s been quite an eye opener for me as I have tried to model myself around entrepreneurs like Bill Gates.

It’s really about perceived risk. You could say Bill Gates took a risk from leaving Harvard (although technically was a ‘leave of absence’) he still had to make a decision that most would of faltered on.

I agree with you though Tim, in my view I would more see him as a risk mitagator rather than risk taker

Thanks for the post.
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Dan Britton — July 26th, 2010, 6:14 am

At some level everything we do is a risk, from crossing the street to eating a burger. The key is to have as much informtaion as possible about the risk versus the reward, then make the decision
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heather — August 2nd, 2010, 7:44 am

I’m mos struck my Bill’s constant planning and creativity. WE always assume brilliant business leaders “fell” into their position, but chance and balls are a great combo!
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Cameron Benz — August 3rd, 2010, 9:48 am

Tim, I’m a little late responding to this one but wanted to point something out. The idea of the entrepreneur as a “risk taker” I believe stems from the statistical data that says 9 of 10 businesses fail in the first year (I think I remember the numbers correctly) and that 9 of 10 of those businesses fail in some relatively short period thereafter. What those statistics fail to point out is how well conceived were those businesses and were the founders starting a business or painting themselves into a position of self-employment? Few of the small business owners I know really had much of a plan say nothing of having a planned virtual architecture that will allow them to remove themselves as the choke point in the business.
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Mike Peters — August 22nd, 2010, 4:45 pm

Did you ever watch the movie “Pirates of Silicon Valley?” It’s basically this entire post, but they go into a lot more detail in certain areas. They also include a lot more about Steve Jobs, and the Apple/Microsoft competition. This article reminded me of it, and I figured that if people haven’t seen it, and they are interested, they should check it out.
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Gary — August 23rd, 2010, 2:23 am

Don’t know what he did just want to do it!
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AAA — September 1st, 2010, 7:51 pm

Really like the post. I have been in the middle of keeping one foot in and one foot towards the future. I always give myself an excuse saying that I am too busy to work on my own project after a long day at work.

Also at work I am not happy at all. It isn’t awful, but I feel I could be doing much more. When does it become too far trying to hold on to something while working toward something else? Do you have to wait until you are successful at something else before you can move on to the next project?
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Alex HUCK — September 28th, 2010, 3:16 pm

Hi,

As soon as I read the title I wanted to know more: mainly because I disagreed completely due to some previous scientific readings I had done while studying Epidemiology at Cambridge University.

I have attached the link to one article in Nature Magazine entitled “The Innovative Brain”, which principally explores the difference in risk taking behaviours of entrepreneurs and other business actors. Interestingly enough, the article was published in Nov 2008, just less than a year before Tim wrote this one.

Of course, there are different approaches to the same problem or observation, but this scientific evidence, I believe, could be a pertinent addition to the cogitation one can have on such a topic.
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[Use personal name] — October 23rd, 2010, 7:27 am

Hi from Mexico.

Just an update:

I’m guessing this post is from 2009. As of March 10, 2010, Forbes Magazine considers Carlos Slim the richest man on the planet, just .5 billions up from Gates. Financial markets go up and down.

Emmanuel.
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Jackie — May 26th, 2011, 9:40 am

Bill Gates decision was a calculated risk; well though out and well planned. It’s not like he jumped in head first without a solid plan. Life is full of risks; sometimes not taking a chance is a risk by itself because you risk not ever reaching your dreams.
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Raffy from Brazil — July 9th, 2011, 1:46 pm

ANYONE HERE THAT HAS SOME EXPERIENCE/KNOWLEDGE ON AUTOMATIZATION,
I’m looking for a little random advice to help me think straigt and act right.

My father’s got a pretty successful electrical engineering company here in Brazil and he’s the Superman-do-it-all of it. He has put his WHOLE time and life on it. A couple of years ago he started burning out of all the effort, but is still keeping his business.
The cup will be passed on to me if I want, which I do but I’m no electrician and also still want to keep living my life outside of the work. Thus I’m looking to apply what I learnt in T4HWW and automatize as quick as possible. I already started making my moves.

I need an Elance type website for the Portuguese speaking world. Does anyone knows of one?
Some case studies would be VERY, VERY welcome to help me guide through this as I also have to prove to him that this is possible and it won’t kill the company in the process.

I can be easily reached at cabeludorafael-at-gmx-.-de.
I’ll also be checking this post for any tips, tricks and the like.

Cheers all,

Raffy from Brazil
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- Raffy from Brazil — July 9th, 2011, 1:59 pm
  
  By the way, I apologize if my post seems completely misplaced. I just know that Tim’s blog is probably one of the top places where knowleadgeable people gather therefore here I am, searching for wisdom.
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average electric bill, average electricity bill — December 12th, 2011, 5:12 pm

Definitely imagine that that you stated. Your favorite reason appeared to be at the web the easiest thing to take into account of. I say to you, I certainly get irked even as other folks think about worries that they just do not know about. You managed to hit the nail upon the highest and defined out the entire thing without having side effect , other people could take a signal. Will likely be back to get more. Thank you
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Kvisoft — February 29th, 2012, 12:45 am

I agree with you. No risks, no success. Risk is the way from good to great!
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Cody — May 4th, 2012, 10:52 am

In order to build a brick wall, you must lay each brick separately to reach the final product. From looking and studying successful people, I have learned that it is crucial to not jump from beginning and expect to reach your goal immediately. You must learn each important step along the way. Thank you for this post and introducing me to yet another great role model.
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