<h2>CHAPTER 1</h2><p><b><i>Assessing Resources—What's in Your Pocket?</i></b></p><br><p>After I wrote my first book, <i>Bootstrap Business</i>, which told the story ofhow my partner, Ron Porter, and I took $5,000 and within one year grew it into a$1.2 million business, I had the opportunity to be interviewed by GarrettGunderson for a national radio show. Garrett is the author of the <i>New YorkTimes</i> bestseller, <i>Killing Sacred Cows</i>, and he started the interviewby asking, "Rich, tell me about how you started this last business." I said,"Oh, I took $5,000 and ..." Garrett interrupted me midsentence and said, "No! Noyou didn't."</p><p>I was kind of stunned and tried to explain, "Well, yes, I actually <i>did</i>start it with $5,000." He corrected me again, "No you didn't." And I retorted,"Yes, I did!"</p><p>After what I initially thought was a rather awkward beginning, Garrett went onto explain that the $5,000 my partner and I put up was the smallest part of theequation. In fact, in his words, the money was really meaningless. And in makingthat point, Garrett was teaching an invaluable lesson.</p><p>Most people assume we need to have money to succeed in business and to reach ourgoals in life. If we want to start a business, the reasoning goes, we first needcapital. If we're given a major project at work, we immediately want to knowwhat our budget is. If we want to take our family on a much-needed vacation, thefirst thing we do is check the balance of our bank account (or, if we reallyenjoy paying interest, our credit cards). That view develops a straight-linementality as we undertake whatever we have set our sights on—whether it'sa house, a business, a contribution to our team at work, a strong marriage and astable family ... you name it. But if all you think in terms of is how muchmoney you need to achieve your goals, you're missing the fact that success isactually the result of identifying and maximizing a couple of foundationalresources that have nothing to do with our traditional view of "capital" andhave everything to do with zigzagging toward our intended outcome.</p><p>The point Garrett was making was that Ron and I succeeded because of what hecalls "The Value Equation," which is that <i>mental capital</i> (meaning ourknowledge, skills, talents, and passions) plus our <i>relationship capital</i>(meaning the quality of our relationships with a broad pool of friends andassociates) will equal <i>financial capital</i>.</p><p>Yes, at some point money is often needed if we are to reach our goals. But thatform of capital will grow out of the knowledge and the relationships we have,and the pace at which it grows will be influenced in large measure by ourpassion. If you need proof of this point, consider this extremely condensed listof transformative businesses that got their start in a college dorm room orgarage: Apple, Facebook, Microsoft, Hewlett-Packard, and Google. And while thefounders of each of these companies are now household names worth billions, theyall began with little more than their smarts and their passion to achieve theirgoals, combined with their networks of friends.</p><p>This view of capital is very different from how most of us think aboutresources, and most people get the equation backwards. We think, "If only I hadsome money, I could reach my goals or realize my dreams." Money cannot buildintelligence, relationships, or passion. But intelligence, relationships, andpassion can always yield money. Coming to this view, though, may require you toadjust your thinking.</p><p>A few years after I graduated from college with a degree in electronicengineering, I enrolled in an executive MBA program while working for Novell,then the pioneer in computer networking (and yet another company founded by fourguys with little capital, a bright idea, and a lot of passion—who are nowmultimillionaires). The vice president in charge of the division where I workedwas Dave Owens. As I neared the completion of my MBA, I was preparing to move toanother division in the company. Before I made the move, Dave called me into hisoffice and asked me a simple question: "Rich, who do you work for?" The answerseemed obvious, and I told him I worked for him. His response was "Wrong!" andthat was the end of that meeting.</p><p>A week later he called me back in and again asked me, "Rich, who do you workfor?" Well, I had been thinking about his question, and this time I confidentlytold him, "Novell!" Again, he told me I was wrong. A week or so later, hisadministrative assistant made yet another appointment. I rather timidly wentinto his office, only to be asked the same question for the third time. But thistime when he asked, "Who do you work for?" I answered, "I work for myself."</p><p>Finally, I had found tthe right answer, and as a result my view of resourcesshifted dramatically. Whether we work for someone or are off on our own,,,, seeing<i>ourselves</i> as the person we work for will light a fire under us toidentify the resources we can access, rather than waiting for buckets of moneyto appear through venture capital coups or budget allocations.</p><br><p><b>What Are Your Resources?</b></p><p>Now that you know who you work for, you need to take an honest look at twothings: what your resources are right now and where they can take you.</p><p>I currently drive an Audi A6. I love this car, and I love going on road trips init. No matter the distance or destination, I know I'm going to get there, and Iknow I'll travel in comfort. I can sing along with my favorite music on thesatellite radio, and my biggest worry is that my speed will creep up to thepoint where I'll get a ticket. Driving this car is an absolute pleasure!</p><p>My Audi A6 is dramatically different from what I drove in college. When my wifeand I were first married, we drove a 1972 Dodge Colt that had been...