Hank [BS/MSEE,
MSM $$$, Ph.D. Mgmt] teaches 
Merrill Lynch, LehmanSachs Group and Morgan Stanley Brothers Holdings, Bear Stearns, Goldman are setting aside between 45 percent and 50 percent of revenue for compensation bonuses this year. Wall Street paid out a record $23.9 billion in bonus money last year, a 17 percent increase over the bonuses paid at the end of 2005, according to the New York State Comptroller’s office. According to John Gibson’s Fox News
show Tuesday, bonus $$$ in 2007 will top $38 billion.
The annual Forbes list of billionaires, based on an annual ranking of the world’s wealthiest people is compiled and published by Forbes magazine on 8 March, 2007. There are altogether 946 billionaires on this list, with 178 newcomers and 17 returning after some period of absence. The total net worth is an estimate measured in United States dollars, based on the closing stock prices and exchange rates on 9 February 2007.
So what we’ve got here, is lots of money to be spent, always an opportunity for entrepreneurs. KRISTINA ZIMBALIST author of a Time special titled How They Spend It states, "The challenge for today’s rich is to set themselves apart from the merely affluent. You want things no one else can afford or experience. The challenge is to always stay ahead." I suggest you take the time on Turkey Day and read her article. You will learn that billionaires shun what mere money can buy; they are into watches that cost 1/2-1 million per, art, airplanes, and personal service like you can’t believe. An example of personal service is the arrange for four young Wall Streeters to be helio’d in, and dropped off in the Amazon with only knives for four days "on their own." To prepare for this "adventure," the four trained with Brazilian Special Forces.
The point is, money begets money, and more and more is becoming available which spells opportunity for entrepreneurs. And BTW, don’t eat too much today! My family Thanksgiving is Saturday. Hank
There’s a credit card that caters to this crowd: http://en.wikipedia.org/wiki/Centurion_Card
I don’t have much to say on this topic except that these people will show up knowing what they want and the ability to pay whatever price you ask, you just have to make it happen. They don’t want to hear a no or fifty things, if you can do it, great, otherwise move on.
Sometimes these characteristics will be seen in all businesses. In dry cleaning, you should expect people to show up and say that they need something done for the next morning because they have to catch a flight or something. In web hosting, people will say that they’re going to be on digg, slashdot, and every other major traffic driving site and that they need a cluster of servers by the next morning. Whatever business you’re in whether it’s dry cleaning or providing technology services, you’ll encounter situations like this and just need to have a plan for them.
I think Ankit said it all. People with that kind of money will pay whatever price you set for a unique service. Just make sure that you can actually deliver in a short amount of time.
And I didn’t get your advice soon enough, Hank. I definitely ate too much yesterday. Enough so that I wasn’t hungry for dinner tonight, 24 hours later. But it was all so yummy!
I agree with Katie and Ankit, billionaires are bored with the amount of money they possess and they need to spend it in some way to get their “kicks.” Of course they will spend their money on unique services and they want that service in a short amount of time. But, maybe if they invested their billions back into businesses instead of obserdly unique services others including themselves can profit more. These billionaires could potentially invest in an entreprenuer and if all goes well reap more money from the investment. Just my thoughts! Have a great thanksgiving today Hank!
Too bad not a lot of billionaires are donating (enough) to charity. I can’t remember where I read it, but apparently helping others releases chemicals in your body (endorphins, although again I can’t remember properly) and those chemicals make you happier. So really I think billionaires would be better off donating a lot, not only would they be a lot happier, but the media coverage would help distinguish the billionaire if that’s what he’s after.
Ethical billionaires, huh Janam? Yeah, that is lacking from the face of this world.
Talking about spending for unique stuff, if you add up the money for that product, part by part, whatever it is, it would actually reach millions. So, it is definitely worth the money. The question is, do you want it[the product] or not?
Example: While, I would definitely go for a Breitling, I won’t buy a Rolex, not because of the price(Breitlings could get as expensive as Rolex watches) but because of the need. Breitlings offer a lot for anyone in aviation than Rolex that buying a Rolex would be a waste. Not of money though! Because when you think like a billionaire, you no longer care about the money, you care about its use and your need.
At the same time, it would not hurt to help another fellow human or donate some money for any other social cause. In fact, it helps your reputation.
If people have money they are going to spend it. It may not be spent on the best things, but people want things that they can show off and parade about, whether it be a new watch or an airplane.
When I read this blog, I am reminded of a previous blog about platinum coated strollers. There are plenty of business opportunities to serve these billionaires. I think the key to success in this market is offering an extravegant and distinguished service that no one else can buy. Additionally, it is also important to have these services offered literally on demand. Starting a business that targets billionaires might be hard to start. The start up costs associated with these businesses are probably extremely high (for example, buying a hellicopter).
As Hank said, there is alot of money to be made by providing for billionaires. Some billionaires like to take trips into space by hiring the Russian government to do it. If anyone could find a cheap, fast, and exciting way to get lots people into space for a few days, you could become a billionaire yourself.
And if anyone whats it make a few fast hundred million dollars, find where those four defenceless billionaires are landing and, well, I don’t think I can say anymore. All I know is those billionaires better watch out for Guerrillas, and I don’t mean the Animals.
HMM…if I was a billionaire I’d probably look for a nice little island to buy off Australia’s Great Barrier Reef. I’d then proceed to buy all the wonderful accouterments and services to go along with it. You know: mansions, pools, boats, helicopters, staff, seafood buffets, etc. Haha, but there definitely is a lot of money to be spent with this crowd. It just takes a person with enough wit and confidence to get their foot in the door with one or a few of these individuals and business would good! Like others said, it is of utmost importance to perform at all costs though. If one cannot handle that heat, they might as well get out of the kitchen. Sorry for the cliche.
I agree with both barb and janam. Taking that money..and investing it into something productive sounds like a far better idea than random items etc. Dont get me wrong..I do enjoy things..but- at some point..i get frusterated with useless clutter. bummer though- the time link didnt load(after many attempts)..would absolutely love to see the random items bought by bored billionaires.
Random: My dad has had some of these uber uber wealthy billionaires approach him about building their own type rocket..and sending them into space. i dont know any of the details (he was very candid about it)..but- intriguing enough.