DRAFT — assembled from the store. Every element is read from the library; the video is cued to a coded passage.
Exponential Entrepreneurs

The 97  ›  Capital and deals

Bonus Strategy A: Option Trading

The point

Option trading, but it's not stock: it's getting control of assets and access distribution channels. Where somebody doesn't see an advantage and you do, you're able to lock it up and capitalize on it.

Jay Abraham · Taking Your Business Profits Beyond Exponential — Six-Hour Master Course Cued to 3:56:48 2 min 25 sec loading…

Why it matters

There is something in your market you have looked at, priced, and put down. A location, a list, a licence, a piece of equipment, a route to a market that somebody else already owns. You costed the purchase, the number was absurd, and you moved on. You priced the wrong thing. You do not need to own it. You need the right to use it, and the right is nearly always cheaper than the asset, because the owner is not using it either. My friend did not buy the Rose Bowl. He bought the weekends nobody wanted, on a percentage of revenue, with nothing down. He knew nothing about flea markets. That did not matter, and here is the clause that made it not matter: he wrote into his agreement the right to bring in a partner. Then he sold the whole thing to the largest flea market operator in the country for $500,000 cash and a royalty that has paid him millions since. That second move is the one nobody makes. You are not obliged to be good at the thing. Tom Kremer had no factory, no distribution and had invented nothing. He bought a licence on a Hungarian puzzle and handed it to Ideal Toy, who sold 300 million of them. Ken Hakuta paid $5,000 for the North American rights to a toy he did not make, and earned roughly $20 million. Get the right first. Then decide whether to run it or sell it.

The mistake almost everyone makes

Asking what the asset costs, hearing the number, and stopping there. You never go back and ask the owner what the unused part of it would cost, the empty hours, the dead wall, the weekends, which is the only question with a cheap answer.

The test: Name the asset in your market you decided you could not afford. Now say what its owner charges for the hours nobody is using. If you cannot, you never asked.

Where it shows up — 8 worked examples

WhoWhat happened
Seven Towns (Tom Kremer)Bought a licence on a Hungarian puzzle at a trade fair and handed it to Ideal Toy, which sold 300 million cubes.
Ken Hakuta (Wacky WallWalker)Paid $5,000 in 1983 for North American rights to a Japanese toy he neither invented nor made, and earned roughly $20 million.
EMX RoyaltyStakes mineral ground cheaply, then hands the drilling to a company that funds it; one project paid $3,407,383 and left a royalty behind.
Cape Cod Fisheries TrustHolds fishing quota no small boat could afford and leases it back cheaply; twenty local businesses landed $3,455,873 in 2021.
Schools PlusRuns school halls and pitches after hours at its own risk, paying each school 40% to 70%; over 40 million pounds returned so far.
Make Shift (Peckham Levels)Took a five-year lease on seven derelict levels of a council car park and filled them with 50 studios and over 600 jobs.
AkippaBooks out other people's driveways and empty lots, charging the owner nothing until somebody parks; 31,000 spaces and 1,600,000 members.
Energy Efficiency Services LimitedReplaced 8.9 million streetlights across 1,400 Indian cities with nothing paid up front, taking its money out of the electricity saved.

What it solves

The words a business owner uses for this before anybody has told them the name of it. If one of these is a sentence you have said out loud, this is your strategy.

  • There site list piece“There is a site, a list or a piece of kit in my market I have wanted for years, and buying it is never going to be possible.”The use of it without the purchase: a written right over the part nobody is using, paid for out of what it earns rather than out of capital you do not have.
  • Opportunities keep landing front“Opportunities keep landing in front of me that I have no crew, no kit and no licence to take, so I wave them past.”What to do with an opportunity you cannot execute: tie up the right first, then hand it to somebody who already has the skill and keep a share of the result.
  • Nothing put down bank“I have nothing to put down and the bank has already said no, so anything needing capital is closed to me before I start.”A way in that costs nothing at the front, where the owner is paid out of revenue that does not exist yet, so there is nothing for you to fund and nothing for them to lose.
  • Once ask owner about“I did once ask an owner about their empty space and the conversation went nowhere, because I did not know what I was actually asking for.”The shape of the ask itself: the term, the renewal on performance, the percentage, and the one clause that turns a right into something you can sell.
  • Took something now running“We took something on and now we are running a business we are frankly not good at, and cannot get out of.”The clause that lets you bring in the operator who is good at it, written in at the start, which is the whole difference between a right you are stuck with and a right you can sell.
  • Clients take strategies build“My clients take my strategies, build real businesses on them, and I invoice for the hours I spent explaining.”A position in the result rather than a fee for the advice: the right agreed and written down before the work starts, instead of a share you go asking for afterwards.

The challenge

Get a written right to something you do not own.

Find one asset near you that sits idle: a hall after four o'clock, a car park on Sundays, a wall, a territory nobody is working. Write down what it earns its owner during those dead hours. Then make one written approach: no money down, you carry the cost and the risk, the owner takes a percentage of whatever you bring in. Ask for three years, renewable on performance, with one line that lets you bring in a partner. That line is what makes the right sellable.

How you will know it is done One written proposal, sent to the owner of an idle asset, naming the term, the split and the partner clause, read to your pod.

The AI layer · second pass

Once this is working, here is what to multiply

Improve the system first. Then multiply it. This panel is the second run at the strategy above, and it is deliberately useless until the first run is done.

Before you point anything at this You have got one written right to something you do not own, on performance, nothing down.
What it multiplies Sweeping a whole market for capacity nobody is using, pricing what the unused part earns its owner, and finding the operators who could run that asset better than you.
The trap Replicating a right you have never tested. Artificial intelligence will push the same instrument out again and again without once asking whether the line that makes a right sellable is in it, and what you finish holding is not fifty options but fifty obligations.