💰$63 Billion Entrepreneurial Mindset

Welcome Back, Hard Knocks community! 🚀 

Welcome to this weeks session here at the School of Hard Knocks where we share insights into what’s happening within the business world, lessons from entrepreneurs and actionable steps that you can apply into your business and life.

Here’s Today’s Schedule:

• How to Have a $63 Billion Mindset: How to navigate the hardships and challenges of entrepreneurship from NVIDIA CEO Jensen Huang

• Free Game: Wealth & Integrity with Wealth Management CEO Gil Baumgarten

• From the Hard Knocks Library: High Output Management by the Former CEO of Intel Andrew S. Grove

• In Case You Missed It: See one of our latest YouTube Videos

Let's get down to business🔥

How to Have a $63 Billion Mindset

The top 3 biggest companies in the United States by market cap are Microsoft, Apple, and NOT Google, NOT Amazon, but a graphics processing units (GPUs) and artificial intelligence (AI) company founded in 1993 called NVIDIA ($1.8 Trillion Market Cap).

On February 14th, 2024, NVIDIA took over Google to become the 3rd largest company in the United States and the 4th largest in the world. NVIDIA was founded by Jensen Huang, Chris Malachowsky, and Curtis Priem.

Under the leadership of Huang, who serves as CEO and has been instrumental in shaping the company's strategic direction, NVIDIA has continued to innovate and push the boundaries of computing technology.

To get to where he is now (worth $63 Billion), Jensen Huang had to learn several lessons in entrepreneurship that can help any founder that wants to build a billion dollar empire:

Know how to say “How Hard Can It Be?”: Huang confessed in a recent interview on the Acquired Podcast that if given the chance to revisit 1993, the year NVIDIA was founded, with the knowledge he possesses now, he would opt not to start a company at all.

He candidly admitted, "Building NVIDIA turned out to have been a million times harder than I expected it to be, any of us expected it to be." Huang expressed that the challenges, vulnerability, and hardships encountered along the way were far greater than anticipated.

Huang shared a valuable insight into the mindset of entrepreneurs, describing their "superpower" as the ability to remain oblivious to the full extent of the challenges ahead. He coined the motto, "How hard can it be?" as a mantra to propel himself forward, deliberately disregarding the daunting nature of the tasks at hand.

Focus on problems that can’t be solved today: As an entrepreneur, it's easy to get bogged down by the day-to-day grind. However, remember to also focus on the big picture. Deliberately tackling long-term, unsolvable problems can shape your strategic mindset. These challenges may require extensive research, development, or industry shifts, but prioritizing them can lead to significant value creation and competitive advantage in the future.

Often, breakthrough solutions emerge from addressing deeply entrenched industry or market problems. Don't shy away from innovation and disruption. Embrace these challenges as opportunities to reshape traditional business models and meet unmet needs head-on.

While it may seem daunting, grappling with unsolvable problems can be a source of inspiration and purpose, driving you forward on your entrepreneurial journey.

Find A Way to Serve a Need That Hasn’t Emerged Yet: NVIDIA strategically positions itself to fulfill needs that have yet to fully emerge in the market. By anticipating future demands and being proactive in addressing them, NVIDIA often finds itself in a unique position with limited competition when these needs materialize.

Jensen Huang emphasizes the importance of being agile and adaptable to seize emerging opportunities. By consistently innovating and fostering an ecosystem around its products, NVIDIA creates a competitive advantage similar to building moats. This ecosystem not only supports NVIDIA's offerings but also encourages the growth of complementary services and products, establishing a robust platform.

By embracing these principles, founders can position themselves for success when faced with entrepreneurial challenges. Jensen Huang and NVIDIA's journey serves as a testament to the transformative power of determination and strategic thinking in achieving extraordinary outcomes.

Words of Wisdom

Free Game

While filming for our Holiday Shoppers Video in Houston, Texas, we came across Gil Baumgarten, a wealth management CEO who became a millionaire in his thirties. He left us with some free game about creating a company that they just don’t teach in the traditional school system.

Gil has not only created a successful and wealthy life for himself, he also showed us in order to do it, you need integrity. Here are the lessons from our interview with Gil Baumgarten:

1. Delay Gratification - Play The Long Game

   Many people sacrifice their long-term desires for immediate satisfaction, often overlooking the value of delayed gratification. As the saying goes, "now" is one of the most costly words in the English language. Instead of impulsively pursuing instant gratification, consider the rewards of patience and perseverance towards your ultimate goals.

   Action Item: Practice delaying gratification by setting aside short-term desires in favor of long-term goals. Create a plan that includes achievable milestones and rewards for staying committed to delayed gratification. Limit buying things you don’t need and spending time doing things that don’t help you physically, mentally, spiritually, or financially. Remember, the journey may be longer, but the rewards are often greater.

2. Go into a Business with Recurring Revenue

   Building a business with recurring revenue, especially one that is non-transactional, offers numerous benefits. Such a model not only ensures a steady stream of income but also allows for scalability. By providing ongoing services or products on a retainer basis, you can leverage one set of transactions to serve multiple clients, enhancing efficiency and profitability.

   Action Item: Explore opportunities to create a business model centered around recurring revenue. Research industries or niches where subscription-based services or retainer agreements are common. Develop a strategy to deliver consistent value to clients while building a sustainable and scalable business.

3. Integrity is a trait of Success

   Integrity, both in your relationships with others and within yourself, is a fundamental trait that contributes to success. Being faithful to your commitments, whether to your spouse, family, or religious beliefs, fosters trust and respect. Even during challenging times, maintaining integrity can be a guiding light, helping you navigate through adversity and emerge stronger. This was the key to helping Gil get out of poverty and what he believes as the trait that led him to success.

   Action Item: Reflect on your personal values and commitments, and reaffirm your dedication to integrity in each aspect of your life. Consider how you can incorporate integrity into your daily interactions and decisions. Whether through acts of kindness, honesty, or loyalty, strive to uphold your principles and honor your commitments, knowing that integrity paves the way for success and fulfillment.

From the Hard Knocks Library

In Case You Missed It

We interviewed wealthy home owners all over Los Angeles in one of our recent YouTube videos asking them how they got rich and successful. We asked them to share their best life and career advice as well different questions about how much they have made, how to scale businesses and more!