5 tips for turning scrap metal into gold

A year and a half out of college, Stephen Greer flew out to Hong Kong in February 1993 on a one-way ticket with no idea what his next step would be. Within three months, he had incorporated Hartwell Pacific and decided he was going to start trading in something, anything. After six months of chasing wild geese -- Christmas tree ornaments, chicken feet, clay pots, jeans, rakes -- he got a request from a contact in Germany to look into the scrap metal market in Asia. 

Not long after, Greer was trading in scrap metal. The economics major soon fell in love with the raw material that tells fascinating stories of countries’ economic development. In his book "Starting from Scrap: An Entrepreneurial Success Story" Greer tells of how he turned scrap metal into a US$250 million business by the time he sold it in 2005. Here, he shares a few of his tips on being a successful entrepreneur. 

Opportunities are time-sensitive

Stephen Greer: "A friend of mine has a notebook he carries around; he calls it his notebook of great ideas. And he’s thinking at one point in his life, he’s going to execute [his ideas]. But we’re both middle-aged now and he’s got this great notebook of ideas, but he hasn’t executed.

"The definition of an entrepreneur is 'risk-taker.' Nobody can teach you to take a risk. All business schools can do is teach you how to evaluate a risk. And if you evaluate a risk too long, that’s what they call analysis paralysis. Opportunities go away because they’re time sensitive.

"You can study cases, and that’s great for learning what worked and what didn’t. But at the end of the day, risk is up to your own gut and that’s what you have to live with. I want to say to young people: If you’re ever going to try it, now’s your chance. Being a young entrepreneur is a great way to get amazing life and business experience. 

"A lot of parents are saying to me, 'I want my kid to read this book,' but I think the parents should read this book. The way my father taught me was like standing behind the kid who’s learning to ride a bicycle, getting ready to make sure his head doesn’t hit something if he falls, but letting him fall, letting him have the freedom. My optimism comes from my parents. They helped me to convert low moments into opportunities and growth -- in crisis is opportunity."

There is a right place and right time in the world, all the time

Greer: "The reasons for my success were obviously multi-layered and of course timing and location played a part along with judgement and a lot of sweat. I believe that Asia continues to be one of those right places, and in my opinion, Hong Kong is really the leading international city in Asia. Hong Kong is the North Asia hub and Singapore is more the South East and South Asia hub. My view is that North Asia has more exciting dynamics.

"That said, Hong Kong is becoming more of a senior management and headquarters hub. Sourcing, selling and back office functions are increasingly moving closer to the supplier, buyer or the market. In most cases in North Asia that is predominantly China. If the nature of your business is pioneering new markets (in China as an example), you may even need to skip past Shanghai and move deeper into China's up-and-coming cities such as Chongqing. One basic value add a trader or value-added services provider creates is just being where there clients don't want to be or don't have the ability to be. So move to Chongqing and enjoy the 'fresh' air ..."

What goes around comes around

Greer: "If you’re a person of high value and character, that’s the way you’ll be treated by your customers and employees. I remember speaking about it with my wife, and our objective was to cultivate employees who would not just like what they do, but would love the company, who could be moved to tears for the company. And if we did that, then the company would be in very good hands and we would be very successful.

"You can’t BS people. You have to treat them with love and care, show them that you have an interest in their futures and they will return to you with loyalty and love. You have to build the trust and that to me is the morality thing. To me, it’s about whether you’re going for the fast buck, or whether you’re going to do something right. You can do something for a quick buck, but all eyes are watching, and that will come back to haunt you."

Luck is believing you’re lucky

Greer: "The reality is that, for most [entrepreneurs], it’s about hard work, persistence, determination and luck. That’s the real story. A lot of entrepreneurs out there have been bankrupt twice or so before they ultimately became very successful. You have to have that 'stick-to-it' attitude, and believe it’s okay to fail.

"Luck is the aura that you create about yourself -- positivity snowballs. Having a positive mental attitude is an enormously important tool for a successful businessperson."

Start with the end in mind

Greer: "You have to know where you want to end up, which includes planning your exits. Who would you raise capital from? Who would view you as a strategic partner? What would be your IPO story? What company would want to buy you as part of a strategic acquisition? Those are your insurance policies. And if you can’t answer any of those questions, then what are you building? If you want to have a business that’s going to outlive you, you have to ask yourself those questions."