Start-Up: Gangsters, Royalty and Entrepreneurship

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So are you asking what these folks have in common? If you are an entrepreneur (and a serial one at that) are you considering that you could be ruthless, feared yet beloved by those close to you?

When I was back in graduate school (oh so long ago), I had the benefit of taking a seminar called The Entrepreneur. We spent an entire semester studying the nature of those unique members of the business community that love to start businesses. Now before we get started, please understand that all start-ups are not Microsoft, Google or Facebook. The scary story is that the vast majority of new businesses fail - it's not for the faint of heart. Risk is high, and the commensurate rewards can be very high. Being your own boss is a fallacy. Your customers are your boss, and your employees are your most valued resource. So how do Niccolo Machiavelli's "The Prince" and Mario Puzo's “The Godfather” gangster epic fit into this picture? Well, there was actually much to learn about the parallels to today's entrepreneurs.

If "The Prince" had been written today, it most likely would have been reviewed as it was in 16th century Europe, as a manual for grabbing and keeping political power. I'm sure that some in his day felt vain enough to think that they were the title character, as would some today. The book was intended to promote that there is one way to gain and hold on to power - - through instilling fear in those you can control. I sincerely hope many have learned that while this method of leadership can work in the short term, it cannot be a serious long-term leadership strategy. Yet, many entrepreneurs use their zealous vision and drive to succeed to take them down the Prince's path. Have you ever met one of these or worked for one? Unless there is another incredibly strong motivator for those around the founder, business symptoms can include lack of morale, employee turnover, backstabbing and stagnant (or declining) market share. The trick is to take the zeal for the company/product/service and instill that innovative spirit in staff through more constructive methods.

The Godfather has "an offer you can't refuse" business model advocacy. In the beginning, Vito was simply doing a favor that someday will be repaid. The trick is the cost of the favor is usually much more that you expected. And quickly, the use of force was required to instill a reputation on the streets. But how does Vito think like an entrepreneur? He looked at markets where his twisted sense of morals aligned with where he felt he could make money. Yes, he paid off police, judges and politicians to have them look the other way that was only because he could. It was the philosophy that "every man has a price". The Corleone School of Business essentially teaches that you can make up the rules as you go, as long as you have the resources to stay in business. However, even gangsters have limitations. Look at what happened in Havana when Castro led the revolt in Cuba. All the investment and influence the casino owners had in the island didn’t make it with them on the boats and planes as they escaped the island, never to return. High risk, high return and the loss of everything.

So, the lesson? As long as you can make the rules in your own little pond of a business, they are yours to make and yet be wary of the greed to takeover other ponds since their rules are usually completely different. Any exceptions? Always. Look at Richard Branson. He is arguably the most successful entrepreneur in the world considering he had jumped from business to business and industry to industry while being so successful. And he is one a million. If you want to read more, check out his Wikipedia entry.

So, I guess graduate school was good for something... Thanks to all those that toil in classrooms today, both physical and virtual, to increase the collective knowledge of the rest of us. This student is eternally grateful.

Michael Salogga is Business Development Manager for Carson City as well as the Business Counselor for the Nevada Small Business Development Center. He can be reached at MSalogga@carson.org