OPEN RISK TAKER - DONALD TRUMP

The entrepreneurial traits that must be needed and applied to operate the business by the entrepreneurs is open risk taker. An entrepreneur who is an open risk taker will take chances in an uncertain environment of future. Every future contents uncertainty and risk. An entrepreneur should have a characteristic to take the challenge of uncertainties. An individual or business who to do things in a particular way that can potentially cause financial loss or physical harm, but could also present an opportunity for a rewarding outcome. The most successful people are the ones who brave to take big risks, which often means spectacular flameouts. For example, Donald Trump is an entrepreneur who brave to take risk. Donald Trump called himself as a bold empire-builder, the kind of businessman who can force through big changes in Washington as president. Trump’s business includes casinos, restaurant, real estate, travel, university and television station.

Trump shows that risk-takers could win big as well as lose big. With his billion dollar fortune, his monster hit TV show “The Apprentice”, his sprawling business empire and one of the most valuable apartments in New York City Donald Trump appears to be on top of the world.  But it wasn’t always this way. Trump went bankrupt three or four times and keeps bouncing back. He was in the real estate business and so when the economy is up, he could be worth a lot, when the economic is down, he would go bankrupt. At his lowest point Trump was facing personal bankruptcy with personal debts of $900M, and his business was declared bankrupt with of $3.5 billion in debt.When he first started out in real estate, Mr. Trump was one of the biggest risk-takers. But he learned a painful lesson during the recession of the early 1990s, when he was unable to pay hundreds of millions of dollars worth of debt. He engineered a comeback but less appetite for such high risk.

He does something differently from this usual strategy with a few projects. The most important example is the Chicago tower. The tower broke ground in 2004 near the height of the housing boom and cost about $850 million to build. With easy credit available offer, Mr. Trump loaded the project up with a $640 million construction loan from the Deutsche BankAG and $130 million of junior debt originated by Fortress. Both firms later sold most of the loans to other investors. The project initially seem to be successful. Mr. Trump raised asking prices on the residential apartments over $1,000 a square foot from about $600 and started paying down loans. But after the a difficult time for the economy of a country, condo sales slowed, leaving Mr. Trump without enough money to pay the $334 million balance on his construction loan when it matured in late 2008. Mr. Trump and his lender, Deutsche Bank, traded lawsuits before the bank in 2009 agreed to extend the term of the loan—which currently has a balance of about $125 million—through July 2013. Mr. Trump paid $48 million earlier this month to buy out junior creditors led by Fortress Investment Group on the 92-story hotel and condominium tower, according to people familiar with the matter. The Fortress group's debt, which could become a big headache for Mr. Trump, had approximately $130 million. However, that still left the problem of the loan from the Fortress group, which is steadily growing as it accrued interest problem. Given the decline in sales and prices, it became increasingly clear that Mr. Trump would have a difficult time pay back the money when it came due in about three years. Failure to do so would have put the risk of foreclosure of the project.But this is not the end of his business career. Within four years he had almost emptied his personal debts, reduced the size of his business debt and consolidation of several of his business interests to become a public company, which itself is forced to seek bankruptcy protection. After his unremitting struggle and never give up, he finally established his own kingdom. At the same time, Donald Trump also became a well-known entrepreneur in the world.

Trump is the manager producer of the show “The Apprentice” as well as its star. He also played a cameo roles in the movie and his comedy roles. Trump attributed his success is willing to take risks.He was once quoted as saying, “I like to think big. I always have. If you’re going to think anyway, you might as well think big.” When you play for high stakes you stand to lose everything, but that doesn’t have to be the end of the game.  If you keep your wits, you can recover from even the biggest failure.  “What separates the winners from the losers is how a person reacts to each new twist of fate."said Trump.