One company is for your regular customers, and one is for your investors. 5. Who is on your board of directors or advisory board? The market runs on confidence. If the company has a strong and respected board of directors or advisors, the market has more confidence in the future success of the business. Peter advises, "If someone comes to you and says, 'I'm going to take my company, public,' ask that person, 'Who on your team has taken a company public and how many companies has he or she taken public?' If that person cannot answer that question, ask him or her to come back with the answer. Most never come back." 6. Does the company own something proprietary? A business should own or control something that an- other company does not. It could be a patent on a new product or drug, a lease of ground in an oil field, or a trademark such as Starbucks or McDonald's. Even people who are owners and respected experts in their field can be considered assets. Examples of people being assets are Martha Stewart, Steven Jobs when he started his new company (Apple Computer), and Steven Spielberg when he formed his new production Are You the Next Billionaire? 447 company. People invested in these people because of their past success and future potential. 7. Does the company have a great story to tell? I am sure Christopher Columbus must have told a great story to his underwriters, the king and queen of Spain, before they raised the capital for him to sail off to the ends of the earth. A great story must interest, excite, and cause people to look into the future and dream a little. There should also be integrity behind the story, because our jails are filled with great storytellers who have no integrity. 8. Do those involved with the company have passion? This is the most important thing that Peter looks for. He says that the first and last thing he looks for in any business is the passion of the owner, the leaders, and the team. Peter says, "Without passion, the best busi- ness, the best plan, and the best people will not be- come successful." Here is an excerpt from Fortune magazine's article on the 40 richest people under 40: The MBAs don't fit into the (Silicon) Valley scene. MBAs are traditionally risk-averse. The reason most people go to business school is to ensure getting a six-figure job after graduation. Valley veterans look at B-school people and don't see the fire in the belly they themselves had when they were roman- tic renegades. MBAs look at Silicon Valley and see something far different from what they were taught in business school. Michael Levine joined eBay after graduating from Berkeley's Haas School. The former investment banker does not speak with the same passion displayed by hardcore entrepreneurs. 450 Rich Dad's Guide to Investing Many young people leave small towns to look for great job opportunities in a bigger city. I think that this loss of smart young talent is caused by our schools teach- ing young people to look for jobs.