Want to innovate? Study criminal masterminds
From El Chapo to Felix Gallardo, history’s most infamous criminals are known for their violent lifestyles and lawless actions. However, they’re also recognized as successful businessmen. In this article, we’ll take a look at the similarities between entrepreneurs and criminals. We’ll also look at five business lessons we can learn from organized crime, and how the study of criminal masterminds can give you a competitive leg up in your industry.
Similarities between Entrepreneurs and Criminals.
Some of the world’s most remarkable criminals have made more money than a startup can dream of. However, the two character types aren’t so dissimilar. Both entrepreneurs and criminals have a hunger for their work, they work day and night to get results, and both are capable of thinking outside-the-box. Much like entrepreneurs, criminals must also have good capital, a system in place for the distribution of goods, and the ability to manage and command a team of employees. Arguably, the only difference between entrepreneurs and criminals is the legality of the acts undertaken. So, as long as you remain a law-abiding, non-violent entrepreneur, you could really learn a thing or two from criminal enterprises.
Lessons from Criminals
More and more organized crimes have begun to execute flawless business tactics to become seamlessly functional in recent years. History has shown that a criminal’s ability to innovate continuously to survive is particularly impressive. So, Let’s look at some of the most crucial business lessons as told by criminals…
Build a Hierarchy
Every business needs a definite hierarchy for employees to understand where they sit in the chain of command, and who they should report to. Not only does this encourage teamwork and positive collaborations, but it also motivates those at the bottom to work their way up the ranks. This business model is favored by the Italian Mafia and the likes of Charles “Lucky” Luciano. Luciano took the Sicilian based crime syndicate and transformed it into an international enterprise. When he arrived in the USA, Luciano chose to create a gang hierarchy instead of implementing disparate groups. This resulted in the creation of the most powerful criminal organizations in the country.
Keep Costs Low
In order to succeed in a tough market dominated by well-known brands, you may need to undercut your competition. Take Frank Lucas, an African-American gangster who undercut the Italian-American Mafia. How? Instead of purchasing heroin from the USA, Lucas smuggled it back from South-East Asia. This genius maneuver cut out the middleman. In most instances, buying direct is one of the quickest ways to save on costs, but this can be hard to organize and difficult to maintain. However, it’s always worth weighing up the pros and cons of cutting out the middleman.
Network, Network, Network!
Putting yourself out there and networking is one of the best ways to make new business contacts. These contacts could develop into successful business relationships and grow your profit. Take Meyer Lansky, a Russian-American criminal who made millions through illegal gambling. Lansky is known for his ability to network. This ability eventually allowed him to make ties with the Mafia and increase his profits tenfold. Never turn down the chance to talk with a fellow entrepreneur. Always reach out and make connections within your industry. You never know who you might start talking to.
Use Innovative Management Methods
Spotting emerging trends, realigning your business model, and adjusting your selling technique are all ways you can change your management methods. Take Joaquin Guzman, the world’s most powerful drug trafficker. His innovative mind made him millions. Instead of paying his employees in cash, Guzman paid his traffickers in drugs. This allowed his team to build their own trafficking franchises and expand the business. Innovation really is the key to success.
Earn your Customer’s loyalty
Building a reputable brand that’s trusted by customers can only be done if you provide a loyal service. Take Al Capone, who provided the American people with high-quality alcohol during the Prohibition. He kept his customer base by being loyal to those who purchased from him from start to finish. That goes for your employees too! Capone is renowned for building honest business relationships, and lying in the workplace was one of his pet hates.
Conclusion
In conclusion, it’s clear that for criminals to work in a competitive, high-pressure trade successfully, they have to be entrepreneurs. With this comes some fascinating business tactics. While we in no way want to glorify history’s most infamous criminals, we do find their rationale and business decisions fascinating. If you enjoy learning new ways to be innovative, we’ll be back next week! Get ready for more tips on how to use the mindset of a criminal to grow your legitimate business.
Originally published at https://kareempjackson.com/. Let’s connect to discuss SaaS, product development, startups and blockchain. Follow me on LinkedIn, Instagram, Facebook.
