You can do as an american and be filthy rich. Risky business. Old time rock n roll theres a time for playing it safe, and the time for Risky Business. John thats our show tonight. Just take those old records off the shelf. John Risky Business for those of you who know the tom cruise movie, i want to be clear, our show is not about running a brothel in your home. Well talk about other Risky Businesses. Actually all business is risky because most fail. But that process of trying and failing and maybe failing again, but sometimes succeeding is what made america prosperous. Many people call it the American Dream. But now im told, the American Dream is dead. You cant just make it if you try, the American Dream is dead. John really . I assume thats just the victim mentality all over the leftwing media. But conservative economist David Goldman says the American Dream is dead. John, its not dead, its under an evil spell like sleeping beauty. We can get it back, people are not perceiving entrepreneurship effect in their lives the way it did in the past. John really . Because i am. I see it all around. Maybe im bias because i work at fox business, but i see all kinds of people with new idea us. Are bias because you have a job. Simple fact. The russell 2000 companies, smaller expanded companies have half the number of jobs before the 2008 financial crisis. Because the United States government has done Everything Possible to make it hard for people to take a new idea from inception to startup to expansion. John because they keep passing more rules. Absolutely. Before the show, i had lunch with the former chairman of one of the largest Home Furnishing chains. And i told him id be on the show. Tell him shut washington down, thats all we need do. John good luck with that. You also a globalization makes it tougher. I think it would make it easier, you get customers all over the world. Globalization increases the threshold, john, you need to hire the people overseas, the marketing people, the Government Relations people, the translators. Government relations people. When youre dealing with a lot of countries, particularly in the developing sector, which is where a lot of the growth is coming from, dealing with governments is art, not a science. John i interviewed one billionaire, a good example of someone whos achieved the American Dream. When mark cuban was 24 years old. He had no money and no job prospects so he created several companies. I just worked. I mean literally all night, all night, every night. To me the most patriotic thing can you do as an american is be filthy rich, you are creating job, opportunities. John cuban started compuserve, hd net and broadcast. Com, he sold that company to yahoo for 6 billion dollars. Now hosts a tv show that invites entrepreneurs to pitch ideas and sometimes invest in them. 500,000 for 45 of the company. John its exciting and it shows a hit. Probably stole the idea from this old pbs show. Looking for money to grow. We call it money hunt. Hes got a product thats very good. What will make the market different . I want to reposition your entire company already. Every time you think this guy has gone over the rainbow, he keeps suck you back in. John the speaker there was entrepreneur miles spencer. Here he is almost 20 years later. And now you dont just give him advice, you are investing in companies . Thats correct, both cash and most importantly is the mentorship and advice, Team Building and leadership. John what about the scene, the dream is dead . Absolutely not. I dont think the dream is dead it. Dies in certain sectors, Creative Destruction is what built this country, thats what Many Companies are built upon. Every time a dotcom failed, there was a google that emerged. John one business featured on miless old pbs show was pirate brands, they make things like smart puffs and pirate booty. Miles gave the ceo advice, and apparently you helped him. A couple of seasons ago, he came on the show doing 2 million in sales. He walks in here at 17 headed to 25. John that turned out to be one of the programs big successes. They sold out to a big food company. B and g foods, robert was a tremendous entrepreneur but really a scientist that created tasty treats, need the team buildership and entrepreneurship. John wouldnt it succeed because it tastes better, isnt that all you have to do . A quaint thought, i suppose. Today its a global economy, economy that competes across so many different categories. It is crucial to have so many great marketing, great product. Its not about a one trick pony anymore. John any other successes on the pbs show . One particular company register. Com, which is so good, we did invest in them. We put them on as an expert. Deutsche banc took them public in 2000. John failures . Tons of them, one entrepreneur we wrote a check about six figure on the show, and i think the money was gone before the commercial break. And john that was the. Com bubble. Entrepreneurs pitch and wrangle a check out of predators after 20 minutes. It takes a lot more to build a business than a 20 minute john , theres an excitement, there i feel it around fox business. Being an entrepreneur, taking the risk, trying something, it builds adrenaline. I absolutely thrive upon the adrenaline. And part of the adrenaline is when you invest odds are youll fail. 80 fail in the first year, 10 in the second. 5 in the third. Five Companies Left standing out of 100 in three years. John the five have to be profitable enough to pay for the 95 failures. And then some. One of my hits would pay for 10, 15, 25 failures. Im also an entrepreneur. I used to be executive at bank of america, now i work for a twoyearold investment bank. I love entrepreneurship, the question is are ordinary americans seeing the benefits of entrepreneurship in the way they did in the past. In the reagan administration, most jobs were created by startups. Big companies lost jobs. In the obama administration, the russell 2000 has half the jobs, most are coming from big companies. The confidence that ordinary americans have, that entrepreneurship would improve their lives has been lost. John where did you have more fun, big company . Small company, no question. John our current president is schizophrenic about business. In 2011 he said this american has always been a nation ofdoers, we build things, take risks and believe if you have a good idea are and willing to work hard enough, you can turn that idea into a successful business. John yes but then two years later, he said this if youve been successful, you didnt get there on your own. You got a business, you didnt build that. Whats that about . Two years later, is this politics . Kernel of truth what obama is saying, all the 1980s and 90s had government participation, microchips, microwaves, lasers. John some. But a small amount. The big point is government doesnt pick who succeeds or fails. Its the free market who does that. Thats the great thing about entrepreneurship. It is much more exciting to start a business than to work for a large company. John now the president says its government job to help businesses succeed. Ive called on my entire administration to help entrepreneurs get loans, cut through red tape, speed up innovation, and get their businesses off the ground faster. John what . Theyve done the opposite. Pass a thousand new rules every week, all the rules are obstacles to entrepreneurship. When i interviewed mark cuban, he said under todays rules he could not have built the businesses he once built. A lot of the things, there is so much paperwork and regulation, so many things you have to sign up for that, you have a better chance of getting in trouble than you do of being successful. This is what upsets me when the president says were going to help people get loans. Like theyre going to pick and choose . I dont know whether government wants to be our partner here. Government isnt the partner they think of. And partners that i think are sweating payroll or working late hours over the weekend or developing products. Someone that shows up in april on one day and wants a dividend check isnt a partner. John the left says income inequality, which is big in america, that thats a threat to the American Dream. No one cares if bill gates becomes a gazillionaire, the problem is Median Household Income is down by 10 in the last ten years. The threat to the American Dream is people are not make the kind of money they had in the past. Didnt have the opportunities. Its a question of how they get rich. People get rich by creating new companies and new products which benefit everybody. Nobody cares, thats the dream. The equality issue is a complete red herring. John now is something called cb research that has a death chart. Tell me about that. Occasionally i use the death chart to assess what kind of industry i would like to invest in next. It is the Statistical Analysis of how many businesses started within Certain Industries and how many failed within Certain Industries. Those are the ones you wanto stay away from. The top here, social media is booming. Category killer. Facebook. Theyre worth thousands of other social media businesses responding. Competition to that, most of them have been wiped out. Gone, wouldnt invest in that today. John linkedin had a column, ten reasons you have to quit your job, which went viral. Everyone is an entrepreneur, thats one of the arguments. Abundance will never come from your job. This says the dreams alive, go do it. I certainly think so, being an entrepreneur and creating businesses is so much better than working at your job. Having said that, its not for everyone. Theres a lot of stress, theres a lot of lumpiness, a lot of risks, which is the title of this segment. John yeah, im checking. Most of people are not entrepreneurs. John how do we pronounce it . Two different ways. An entrepreneur knows that his perpetual motion machine is going to make him a trillion dollars with absolute certainty. Theyve got complete faith in the projects. John a good entrepreneur is deluded. 90 are going to lose shirts and the 10 make our lives better. Most people do not have the faith in themselves and the vision to be entrepreneurs, thats why most of us ought to be working for those entrepreneurs who do have a competence and the vision. Theres a great saying, many great young entrepreneurs didnt know what they couldnt do. John and final thought, amazon, i learned, will now pay employees 5,000 to quit . Leave bonus. Ive done it in my companies after 90 days, if someone doesnt espouse our core values. If someone doesnt have the wheels john motivated. Exactly. Theyre going to become cancer and affect others within the organization. We cant run fast on a bad wheel. We offer people a leave bonus after 90 days. John thank you, miles spencer, David Goldman. Thank you. John keep the conversation going on facebook or twitter. Use the hashtag Risky Business. Biz, actually, let people know what you think. Coming up, more Risky Business, like a bar where the price of booze fluctuates like the stock market. Get a good deal on a drink if you come at the right time. Im going to call it market crash. John next, look at these delicious desserts. They were made by this 12yearold and her moms kitchen. When she sold some, government demanded she stop. Shes here to explain next. mother vo when i was pregnant. 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John lemonade for sale lemonade for sale thats me making a fool of myself outside this studio. I tried to sell lemonade legally. But i couldnt do it. Fox lawyers let me do this only if i gave people their money back. And didnt let anyone drink the lemonade to. Sell lemonade legally would have taken months of paperwork. You must complete a 15our food protection course, register for food safety exam. Pass it and register for sales tax certificate. Apply for temporary Food Establishment firm, arrange to be inspected by the Health Department. That takes three weeks to get an appointment. Buy a fire extinguisher certified by the government, and get a contract for Waste Disposal and more. I gave up but im optimistic about the future because there are Young Americans who dont give up. A lot of fight, the entrepreneurship killing bureaucrats. Chloe stirling is one of these people, shes 12, and joins us with her mom, heather. Chloe, you took a baking class, and what happened . Two years ago i took a baking class and after that first class, i decided they really liked to do it, and so when all my friends saw the pictures of them, they decided they wanted me to bake cakes and cupcakes for birthdays and stuff. John and started paying you for them . Yes. John and heather it just grew . It just grew. She found herself in business based on popular demand. John and shes always liked doing this, at eight years old. What happened . Eight years old, the ipads came out and she came to me and her dad and said she wanted one, we said no. She decided she was going to earn it and started a pet sitting business and ended up buying an ipad. John at the time they cost 600 bucks, a lot of pet sitting. She did it. John then the cupcakes, you sold how many . I was selling probably a dozen a week. She had orders every weekend booked a month and a half out. How much money . I really dont know. I just knew i was putting all the money in my savings account. John how much money . She doesnt even take money out of savings account. John roughly, 10,000 . No [ laughter ]. No, she probably made 50 bucks a week, maybe. John the local paper did a feature story on you, and immediately after that, an email came from the Health Department saying to you, to mom said please call us about your daughter, and when i called they said she is not to bake anymore, do not let another cupcake leave that house. John do not let another cupcake leave the house. Yes. John we asked the Illinois Department of health about this. Why would they shut chloe down. What they said was in a statement, without standard sanitation training, clear labeling of ingredients that could cause potentially fatal allergic reactions, we could not ensure the safety of foods. So what about that, chloe . Theyre just protecting me from you poisoning me. Um, i thought that it was kind of odd that they wouldnt let an 11yearold bake out of her home and sell it to friends and family. John but youre making money . Yeah, i was making money, but still i was only 11. I wasnt making like a lot of money. John she might have poisoned somebody. Shes never sold a cupcake to anybody that was not 100 aware theyre buying a cupcake from a child, that was prepared in her kitchen. Everyone that ever ordered anything from her came to her. Shes never advertised. Shes never had to go look for business, they have come to her willingly and never made anyone sick, either. John whats happening now, youre going to give up . Were not giving up. Were in the process of trying to change the law so me and other people like me can bake out of their home. John and youve made progress. A state representative has gotten the legislature to vote to change the law. Yeah, weve gotten 100 of the votes towards us on the committee and the house. John and also people are donating commercial Kitchen Equipment to you . Yeah, the Health Department, part of the big issue was there are no options for her. There wasnt an avenue for her to take. If she wanted to bake, we had to buy a bakery or add additional kitchen to our home. John and they say this with a straight face, buy a bakery or build another kitchen. Yes. Shes been supported all over the country. John people volunteered to do carpentry work for you . One company that is leading the way for building chloes kitchen. John this is what it takes to be an entrepreneur in america today. Thank you, chloe and heather. Good luck to you. Thank you. Thank you. John coming up, another entrepreneur fighting the bureaucrats and so far hes winning hes defeated these. 750 pages of regulations. Some more good news, next. So ally bank really has no hidden fees on savings accounts . Thats right, no hidd fees. Its just that im worried about, you know, hidden things. Ok, whys that . Well uhhh. Surprise um. Well, its true. At ally there are no hidden fees. Not one. Thats nice. No hidden fees, no worries. Ally bank. Your money needs an ally. 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