System of Success (S.O.S.) Exercise

System of Success (S.O.S.) Exercise

This is Scot Anderson’s Dice Game of Probability.

For this exercise, you will need two dice. There are over

two million millionaires in America today. Over one million

of those millionaires started out with less than one

thousand dollars. One million of the self-made millionaires

failed more than ten times in businesses. When they

did finally start the right business, the average rate of their

return was a hundred times. That’s average. Some people

made fifty times their investment. Some people made 200

times. Some made 500 times. The average rate of their return

was 100.

What I want you to do is pick a number between 2

and 12. Write that below beside the word “business.” Every

turn, you will pick a number. You will do a little math here

to keep track. Every number you pick represents a business

that you start. You will start off with a thousand dollars. I

don’t care who you are. If you put your mind to it, you can

come up with a thousand dollars to start a business.

In the investment column, write how much you are

going to invest. I have to let you know that there is a huge

chance you will fail. The odds are greatly against you. You

can, if you want, just hold onto your $1,000 and not risk

losing it. What you are going to do is roll both dice. If you

do not roll your business, as you probably won’t, you lose

that $1,000. Each roll represents three months, so every

three months, you can get a new $1,000. If you happen to

hit on your business, you get 100 times the amount you

invested. Now, go to the next line and write in your new

investment. Once again, you risk as much as you have. If

you have zero, don’t forget to get your new $1,000. But if

you have $10,000, you can risk it all or part of it. See how

long it takes you to become a millionaire.

Business (your #):

Amount Invested:

Number You Rolled:

Made or Lost:

Your New Total:

Here is an example of one of my rounds in this game.

It is not my best. In fact, it is closer to my worst. Realize

that I have never not become a millionaire in this game.

First of all, I picked the number 7. Why? Seven has the best

odds of coming up. Just like in business, you can start any

business you want, but there are better businesses to start

than others. There are businesses with better odds. Starting

your own restaurant, you have a nine out of ten chance of

failure. If you start a franchise restaurant, you have only a

fi ve out of ten chance of failure. The odds are better.

Forget that garbage about starting a business you

love. Those business fail more than any others. You know

what I love? Making money. Start a business that makes

money. Once you have lots of money, start a business you

love. I risked all $1,000. It’s like starting perhaps an eBay

business, something cheap, inexpensive, with little start up

cost. My first roll is a 6. I lost my money.

For the next three months, I reinvest another $1,000.

Once again, I rolled a 6. I did this eight turns in a row. I

rolled a number of 9s, a number of 4s. Do I quit, give up?

I have invested all I have for three years. “Let’s just stop.

This will never work.”

No risk, no reward. Finally, nine rolls and $9,000

later, a 7 comes up. That was nearly 3 years. But I hit

$100,000. I am going to now risk $10,000. I don’t think it is

wise to put all my eggs in one basket. So my next business

venture might be writing a book. This might cost around

$10,000. Maybe I will buy some property with $10,000

down. This time it only took three rolls to hit a 7. I am now

a millionaire.

Now let’s invest $100,000. Let’s start that dream

restaurant. Six rolls later, I now have $10,000,000. It took

me less than five years. It took some big risks. It took me

sticking in there for nearly three years, failure after failure.

Do you see how the principles work with the law of probability?

The whole purpose of that exercise is for you to

be able to picture the process. You start a business and in

ninety days, it’s not working? Either tweak it or scratch it

and start another. It still didn’t work? Do another. Finally,

your business hits. Now do something bigger.

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