Years ago, I was chopping wood for a barbeque. I wore sandals, and stupidly supported the wood with my foot. Bang! I chopped right into the tip of my front toe. The only thing that prevented me from cleaving the entire toe in half and limping for the rest of my life was my sandal. Idiot. At the emergency room, they injected directly into the quarter-inch wound before sewing it up. Ouch! I no longer chop in the direction of my feet.

I was preparing for a camping trip

I was going preparing for a camping trip to Ponta Do Ouro in Mozambique in the summer of 1972. (Don’t go there now, unless you like the idea of landmines – you might lose more than a toe…) As I packed my VW minibus camper, I carried my snub-nosed .38 Astra Special revolver on a sleeping cushion. As I stepped up into the back door, the loaded gun slipped off the pillow, hit the bus’s floor, and went off. Since the windows and other doors were closed and a bullet was definitely fired, it can only have passed between me and the inside of the one door – a very small space – a close miss, if ever there was one. Stupid. I learned an important lesson and gained a renewed respect for guns.

I have met more conmen, shysters, and outright thieves in the past twelve years than I ever thought possible. And with governments fast going the way of outright socialism and banks and the taxman collaborating to put the squeeze on business owners, we live in an increasingly  dangerous business world. It’s time to grow up and realize that we are at risk, and that we need to limit our risk.

When I tell people to do business with no cost and no risk, I mean it.

I know a fellow with a giant ego and a small IQ who regularly sought to differ with me on this point. I have seen him lose a lot of money, since he doesn’t understand how to avoid risk and cost. If he did, he wouldn’t lose so much money in his harebrained schemes, or work with thieves. Knowing how business works, and understanding the odds, the risks, and the fact that there are a few dishonest people around, makes it necessary, if one wishes to get rich, to avoid risk and costs. And it’s easier than it seems.

How To Avoid Risks, Costs and some Dishonest People

1. Use leverage and existing resources instead of paying for new ones. Work strategically and don’t rely on any one source of income.
2. Pay for results, not promises.
3. Be VERY careful whom you associate / do business with. Remember that people can change for the worst – easily and quickly, so be prepared for that.
4. When you smell a rat, RUN. Cut bait. Delete. Immediately.
5. Test people in many ways to make sure they are still loyal and honest. Be a detective.
6. Don’t disclose the identities of your Joint Venture partners.
7. Triangulate deals – don’t sell your own products and services.
8. Align yourself with people who share your philosophy – don’t link up with mystics, socialists, environmentalists, or reverse racists.
9. Don’t trust government or work with government or their agents.
10. Operate with no overhead – lean and mean. Expect the best and prepare for the worst. Spread your income and diversify.

Joint Ventures allow one to operate as above, and the older and wiser I get, the more I appreciate the power and sophistication offered by the Joint Venture systems I use. If you’re carrying a gun, make sure it’s not pointed at you.