Lesson #5: Know Your Enemy
Lesson #5: Know Your Enemy
Despite always thinking big, Morgan avoided the fate that befell many other financiers of his time, that is, falling into the trap of underestimating his competitors. He had faith in his own abilities, but he never got overconfident; he knew not to believe that any deal he got himself involved in would succeed. One of the keys to Morgan’s significant success was thus his ability to sense his own limits as well as those of his enemy. He understood the strength of the forces that could align themselves against him and he was wary of them in every move he took and every decision he made.
Morgan had learned his lesson from the Hall Carbine Affair, where he financed entrepreneurs who, unbeknownst to him, were attempting to sell refurbished guns back to the same government it had bought them from. It didn’t take him long to sense that something was amiss, and so he withdrew himself from the deal. But, it would be a mistake Morgan was determined never to make again. He had been ill informed and he had jumped too hastily into an agreement about which he knew little about. He had been blinded by dollar signs and had not done enough research on those with whom he was conducting his business.
From that point on, Morgan would occupy much of his time learning as much as possible about not only his competitors, but also anyone with whom he was involved with professionally. It was the job of Morgan’s staff to do as much research as possible on a prospective client’s business, ensuring that he would know more about it than the client himself did.
It was this research that allowed Morgan to make the kind of wise business decisions that would characterize his career. In the 1870s, Morgan had become interested in a young inventor named Thomas Edison and, aware of the promising new industry in which he was working, agreed to finance his experiments with the electric light bulb. The venture would prove extremely successful and Morgan would eventually go on to form General Electric Co. The shining moment of this partnership came in 1882, when Edison was the first to ever introduce electricity and lighting to offices in New York City, including the Drexel, Morgan building. It was Morgan’s understanding of the industry, and all its actors and possibilities that led to one of the most successful examples of venture capitalism in history.
Morgan was a confident man, but never a cocky one. He knew there was always the potential for failure, which led him to keep a watchful eye over his surroundings, anticipating his opponent’s every move and thereby informing his own.
Lesson 5 Know Your Enemy
Like this article? Share it with your friends
 |
Free Download - How He Built An Empire: J.P. Morgan’s Success Factors |
“A man always has two reasons for doing anything,” Morgan believed. “A good reason and the real reason.” Morgan was a mastermind when it came to knowing and being able to read his enemy. He knew his limits but he was able to sense theirs as well. He was thus able to navigate himself through the competition to end up on top.
Despite always thinking big, Morgan avoided the fate that befell many other financiers of his time, that is, falling into the trap of underestimating his competitors. He had faith in his own abilities, but he never got overconfident; he knew not to believe that any deal he got himself involved in would succeed. One of the keys to Morgan’s significant success was thus his ability to sense his own limits as well as those of his enemy. He understood the strength of the forces that could align themselves against him and he was wary of them in every move he took and every decision he made.
Morgan had learned his lesson from the Hall Carbine Affair, where he financed entrepreneurs who, unbeknownst to him, were attempting to sell refurbished guns back to the same government it had bought them from. It didn’t take him long to sense that something was amiss, and so he withdrew himself from the deal. But, it would be a mistake Morgan was determined never to make again. He had been ill informed and he had jumped too hastily into an agreement about which he knew little about. He had been blinded by dollar signs and had not done enough research on those with whom he was conducting his business.
From that point on, Morgan would occupy much of his time learning as much as possible about not only his competitors, but also anyone with whom he was involved with professionally. It was the job of Morgan’s staff to do as much research as possible on a prospective client’s business, ensuring that he would know more about it than the client himself did.
It was this research that allowed Morgan to make the kind of wise business decisions that would characterize his career. In the 1870s, Morgan had become interested in a young inventor named Thomas Edison and, aware of the promising new industry in which he was working, agreed to finance his experiments with the electric light bulb. The venture would prove extremely successful and Morgan would eventually go on to form General Electric Co. The shining moment of this partnership came in 1882, when Edison was the first to ever introduce electricity and lighting to offices in New York City, including the Drexel, Morgan building. It was Morgan’s understanding of the industry, and all its actors and possibilities that led to one of the most successful examples of venture capitalism in history.
Morgan was a confident man, but never a cocky one. He knew there was always the potential for failure, which led him to keep a watchful eye over his surroundings, anticipating his opponent’s every move and thereby informing his own.
Lesson 5 Know Your Enemy
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
|
To learn more about the Evan Elite Author Program please contact us. |
|
 | ||
 |
||
 |
||
 |
||
 | ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
 |
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
 |
 Benefit From Analytics Acronym Soup How To Get Media Attention Get 'em Good or Get 'em Gone! Make $ From Your Invention |
|
 | ||
 |
Fortune Hunters
CBC Entrepreneur TV | |
 |
The Top 10 GTD Times Posts
Best Posts for Productivity | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
|||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
| ||||||||||
|
| ||||||||||
|
|
||||||||||