Frankie Says Don't Relax

"But when you relax with too much cash in your account and no need to hustle for a buck every day, you risk extinguishing the fire in your belly that drove you to become an entrepreneur in the first place." (pg. 186)

This quote is taken from the book 'Driven' by Robert Herjavec who is referring to an important lesson he has learnt while running his most current company, 'The Herjavec Group'. He explains that one of the most common problems for entrepreneurs is insufficient capital to carry foreword and promote their ideas, however what most people don't realize is that excess capitalization can also lead to problems. Robert explains that when he first launched 'The Herjavec Group' he was already very successful and so was able to back the company with millions of dollars. This luxury of excess capital meant that Robert and his team were able to relax more than most entrepreneurs in their position and as a result were not over concerned with short-term losses. However these losses continued to rise until Robert Herjavec had lost $650,000 in total, enough to bankrupt most start-up companies. However after reassessing the company Robert concluded that the excess capitalization he was providing had created a relaxed atmosphere in his company which now lacked the drive and commitment of a company fighting to brake even and as a result they were not growing. This conclusion relates directly to one of Robert's main theories on business which is that "your business either grows or it dies. Expansion isn't a goal or a business strategy. It is an undeniable fact of life." (pg.142) In this case the Herjavec Group was not growing and was therefore slowly dying, in fact the excess capital that Robert had provided originally was used to save his company rather that expand it. However after reassessing his companies values and goals Robert managed to redirect his company by being more aggressive in business pitches and focusing more on customer value. Robert successful managed to re-ignite the drive in himself and his employees that has lead to his success in the past.