Patrick Bet-David - Your Next Five Moves: Master the Art of Business Strategy

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First Gallery Books hardcover edition August 2020

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Interior design by Michelle Marchese

Jacket design by Nancy Tran

Jacket illustration by Depositphotos

Author photograph by Duke Morse Photography

Library of Congress Cataloging-in-Publication Data

Names: Bet-David, Patrick, author.

Title: Your next five moves : master the art of business strategy / Patrick Bet-David, with Greg Dinkin.

Description: New York : Gallery Books, [2020] | Includes bibliographical references. |

Identifiers: LCCN 2020010273 (print) | LCCN 2020010274 (ebook) | ISBN 9781982154806 (hardcover) | ISBN 9781982154820 (ebook)

Subjects: LCSH: Strategic planning. | Entrepreneurship. | Success in business.

Classification: LCC HD30.28 .B4585 2020 (print) | LCC HD30.28 (ebook) | DDC 658.4/012dc23

LC record available at https://lccn.loc.gov/2020010273

LC ebook record available at https://lccn.loc.gov/2020010274

ISBN 978-1-9821-5480-6

ISBN 978-1-9821-5482-0 (ebook)

To my father, Gabreal Bet-David, the Aristotle of my life

Authors Note

I tell stories that go back more than thirty years and do my best to describe those events accurately. The people in the book identified by their first and last names are real people. Those mentioned only by first name are either composite characters or people whose names and identifying details have been changed. The essence of their stories is factual.

Introduction Before Your First Move

When I first watched Magnus, the documentary about Magnus Carlsen, I couldnt stop thinking about the parallels to business. Carlsen is a Norwegian chess prodigy who became a grand master at thirteen. Talk about a visionary; he is constantly thinking as many as fifteen moves ahead. In doing so, he has the uncanny ability to predict (and control) what his opponents will do. I was also impressed by his meticulous preparation. Because Carlsen has played the game in his mind so many times before it actually happens, he is unflappable in the heat of battle. Plus, he has to deal with something founders and CEOs face all the time. He said, If you want to get to the top, theres always the risk that it will isolate you from other people.

After watching Magnus, I continued to think about how much successful entrepreneurs and chess masters have in common. It didnt surprise me when I learned that Tesla and SpaceX founder Elon Musk started playing chess at a young age. Hes able to see things more clearly in a way that no one else I know of can understand, his brother, Kimbal, said. Theres a thing in chess where you can see twelve moves ahead if youre a grand master. And in any particular situation, Elon can see things twelve moves ahead.

That quote about Musk put everything into perspective. Most people dont think more than one or two moves ahead. Those people are amateurs and flame out quickly in business. Effective strategy is about making a move and being prepared to launch another series of moves based on how the market or your competition reacts. You must think beyond your first strike to execute an effective strategy. When you start to get really good, you anticipate how others will react and can deploy a series of moves that are nearly impossible to counteract.

Though business is a game of thinking several moves ahead, this is not a book about chess. This book is about taking the vision and mindset of a chess master and applying it to business. In fact, you dont even have to know anything about the game. There arent any specific chess examples in the pages that follow, but there are plenty of examples of successful men and women who think like winning chess players.

People who dont think more than one move ahead are driven by ego, emotion, and fear. Your top salesman threatens to quit if you dont give him a raise. The emotional amateur responds by saying Nobody threatens me or We dont need him anyway. The practical strategist, on the other hand, is plotting his next moves.

The same approach applies to parenting. Giving kids whatever they demandwhether its candy, an iPad, or permission to skip piano practicefeels fantastic. They smile and tell you how much they love you. You also know that the alternativean all-out tantrum during which venom and hatred will be hurled at youwill feel awful. This scenario shows you that, as with most business decisions, one is clearly the easier choice; the otherwhich entails thinking five moves aheadis the more effective choice.

I wish somebody had taught me to think this way when I was transitioning from salesman to sales manager to founder to CEO. At every stage of my development, this kind of critical thinking would have saved me millions of dollars and dozens of panic attacks. When I reflect on how I went from a hot-tempered, insecure, cocky health club salesman to a strategic, self-aware, confident CEO, I see that the key was learning how to think at least five moves ahead.

Some of you overachievers may be wondering why only five moves ahead. There are two reasons. First, five moves is the sweet spot of thoughtful strategy and swift action. Though there may be times when you will want to think beyond five moves, such as at an annual off-site meeting or when you are analyzing a possible acquisition (or building a colony on Mars), thinking too many moves ahead can lead to paralysis by analysis. Five moves is enough to make sure you are anticipating future outcomes and seeing moves and countermoves. The second reason is that, on a macro level, there are five moves you need to master to succeed in business. Ive divided the book into these five moves to make sure you know exactly what you need to do to achieve success.

There are many things I cant do. Im six foot five and 240 pounds but cant play basketball or throw a football. I cant write code or rebuild an engine from scratch. But if theres one thing I can do, its help entrepreneurs and C-suite executives put together a strategy to conquer a market. When I sit down in a boardroom with a founder or a CEO, we approach strategy as a game. The only difference between business and chess (or Monopoly or Final Fantasy, for that matter) is that were playing for millions (or billions) of dollars instead of bragging rights. With this mindset, leaders learn how to create the strategies that position them for growth.