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Lesson #4: “Remember that it’s a long-term game”

Article Overview: Hsieh was a millionaire before he even turned 30 years old. But selling his first company, LinkExchange to Microsoft back in 1999 did not signal the end of Hsieh in the business world. Sure, he could have retired with a handsome fortune and lived a comfortable life without ever working a day again in his life. But for Hsieh, business is a long-term game, and he wanted to be around for the long-term.

Lesson #4: “Remember that it’s a long-term game”

Hsieh was a millionaire before he even turned 30 years old. But selling his first company, LinkExchange to Microsoft back in 1999 did not signal the end of Hsieh in the business world. Sure, he could have retired with a handsome fortune and lived a comfortable life without ever working a day again in his life. But for Hsieh, business is a long-term game, and he wanted to be around for the long-term. Poker taught Hsieh a few lessons about market opportunities. It also taught him a thing or two about financials:

"I started to notice similarities between what was good poker strategy and what made for good business strategy, especially when thinking about the separation between short-term thinking (such as focusing on whether I won or lost an individual hand) and long-term thinking (such as making sure I had the right decision strategy)."

In poker as in business, Hsieh stresses the importance of remembering "that it's a long term game. You will win or lose individual hands or sessions, but it's what happens in the long term that matters."

If you adopt a long-term perspective, you can take more of the risks that might take time to pay off. "Play only with what you can afford to lose," counsels Hsieh, but "go for positive expected value, not what's least risky."

Few businesses, just like few poker players, ever win big by playing safe. They might win, and they might win many times, but they are likely to win small. "The guy who wins the most hands is not the guy who makes the most money in the long run," says Hsieh. Similarly, "the guy who never loses a hand is not the guy who makes the most money in the long run."

Take those risks you are afraid to take and you might just be surprised by the results. Take what you can afford to throw in the game and go for gold. After all, the truest entrepreneur will never settle for silver.

Still, you need to be prepared for the consequences of those risks. "Always be prepared for the worst possible scenario," says Hsieh, and "make sure your bankroll is large enough for the game you're playing and the risks you're taking."

If you are unsure of the rules or strategy of the game at that particular table, learn them before you jump in. "Don't play games that you don't understand, even if you see lots of other people making money from them," advises Hsieh. "Figure out the game when the stakes aren't high."

But if you never step in to sit at that big table and place that big bet, you will never win the big pot. And, says Hsieh, refuse to limit yourself to the pot - or the market - you see in front of you. "I realized that, whatever the vision was for any business," he says, "there was always a bigger vision that could make the table bigger."

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Article Tags: business world, first company, fortune, game, linkexchange, microsoft, millionaire



Related Forum Posts
Re: Playing sports or games with clients - If we are playing more than one game, I will let him win the first game, then win the second one and let him win the third. Business relationship should not be jeopardise because of sport or game. The reason is because some people don't like loosing.
Re: English TV Programme - What Ive seen on the show is sometimes turning down a contract if the deal isnt right - for example look for longterm instead of shorterm financial gain - dont just take anything to make a fast buck! My personal advice is to communicate more, not just to new or existing customers but your staff, even the small things! And most of all work smarter not harder!
Re: What are you doing if o have a bad day? - Glad you all like that idea. I don't play it too often, but it definitely helps with stress or relieving anger. David, that reminds me of another game for the NES called Galaga. It's also a shooting game in which you have to also dodge projectiles. Very fun as well. A pure classic. I would say that any video game would work well to just take your mind off of work. Who knows, you may be able to come up with a breakthrough idea from playing them!
Re: Playing sports or games with clients - [quote="ideasuniversity":rd7ddnmg]If we are playing more than one game, I will let him win the first game, then win the second one and let him win the third. Business relationship should not be jeopardise because of sport or game. The reason is because some people don't like loosing.[/quote:rd7ddnmg] But then would you really want to do business (or be friends) with a sore loser? Secondly, a client could be even more offended if he/she discovers that you deliberately let him/her win.
Re: Business hype - The Irish bar has a nice World Cup promotional campaign on to draw people in to view the games live... Each game has a special drink discount IF something happens during the game, and whenever possible the drinking theme is related to the game. EG: Half price drinks if Japan scores (as the bar is in Japan)... Half price tequila shots if Mexico scores first...


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