Questionable reasons to become an entrepreneur #9 – I have inside information

You are reasonably well-connected in the industry and every now and then you get to hear some “inside” information. Most of the time, you don’t think about it much and get along with your life. Last time though, when THAT inside information becomes public, it becomes a really BIG thing. You think about it and you feel like banging your head – you knew it way before everyone did.

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Next time around you think that you should act fast. May be there is an arbitrage opportunity and you can make use of it. May be you can just create a company and take advantage of the timing of this information.

Before you do something radical, think about this again.

Here are some points to consider:

1. Ideas are not everything: You are smart enough to come up with your own ideas and there is not a need to rely upon an idea to be prompted by some “inside information”. Ideas are plenty and as we talked before ideas are only a small part of what it takes to build an enterprise.

2. Inside information may not be exclusive to you: The fact that you got that “inside information” is the proof that it might have been “leaked” to more than you. There is no guarantee that it was exclusively given to you.

3. There is no way to verify the information: Unfortunately (or fortunately) you can’t talk to the PR department of the company to verify this “inside” information….

4. Risks are unknown: One way is to take a calculated risk and the other way is to gamble. Using “inside information” to take a major step in your life is akin to gambling. You be the judge.

5. Ethics are (highly) questionable: Last but not the least, ethics of doing something like this is questionable. Why would you want to risk your identity for something like this?

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