The Price of Creativity in Regulation

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Everyone wants to be valued. We are individuals. Some want to keep their heads down. Some would rather be members than leaders. Members want to follow. Leaders want to lead. When a leader first leads often there is only one person following. That person is the leader themselves. In markets where million voices scream how is yours heard?

A market with a million people is called a Saturated Market. Saturated Markets exist in situations where the general public has market acceptance. Examples of these markets are: financial services, insurance, medical, mortgages, accounting, real estate, and legal. Progressive examples (those becoming saturated) are: crytocurrency, biotechnology, business cash advances and social media.

Saturated Markets exist when regulators notice that the amount of unaccredited investors participating tips at least 1% of the general population. These individuals usually participate with their last dime. These people participate in transactions they have no understanding of. This recipe this brews a lot of trouble for outliers. Outliers are the Professional Entrepreneurs. Creativity is valued. Creativity is the spark of innovation. Creativity is first understood by only the creator. Innovating in a market where frameworks are designed to keep safe standards can cause difficulty in creativity. A Professional Entrepreneur requires creativity to thrive.

Regulators are not innovators. Innovators create. Regulators prevent misinformation, predatory acts, and unsophisticated participants. Regulators typically don’t understand activities that are creativity. Be careful of three types in your endeavors: 1) People who don’t care, 2) People who don’t understand and 3) People who don’t have money.

If you innovate with these types of people regulators become leery of your activities. If these people lose in your transactions it spells disaster for you. Creating a new product means creating new clients. Clients that try new products do so at the behest of their salesperson. The salesperson is the Professional Entrepreneur. When losses mount with these people pressure from third party regulators arrives. The price of creativity in regulation is high. With professionals sometimes there are “fiduciary duties”. Fiduciaries duties exist when professionals must place the clients’ needs above their own.

Saturated Markets usually demand fiduciary relationships.

Placing the needs of your client above your own can be detrimental. Consumer protection agencies do not care that you need $5,000 a month to live. Say for six months you take $10,000 a month. You live off $5,000 and spend $3,500 keeping the lights on. You save a mere $1,500 for six months. You work with one client. You log 40 hour work weeks. You are working with a product that has never entered the market. If you take 6 months service fees to provide service no one has ever heard of — you may create violations with your regulator if your client complains. The inability to understand what you do causes concern. Despite the fact that an “employee” who works 160 hours a month “deserves” the pay — the innovating professional doesn’t.

Innovation exacts a heavy toll on regulators who wish “compliance”. As a Professional Entrepreneur it is imperative that you 1) qualify your audience, 2) properly explain your product / service, 3) avoid third party regulators who possibly throw shade on voluntary disclosures.

This is why the best situation for a Professional Entrepreneur is transactional. This is why it is best to work on a “performance” basis. The creativity that Professional Entrepreneurs employ is hard to understand. A valid compliant exists under the following premise: 1) A Material omission or material misstatement that causes financial loss where the professional knowingly knew (or displayed a gross negligence) that such aspect should have been disclosed.

Sound complicated? I am attempting to organize years of education into a concise sentence. The take away is “If you are in a saturated market and get an unsophisticated client…make sure you don’t charge them up front.”

The meat of any valid compliant is “financial loss”. Measure your performance by earning income. If you do this you avoid the financial loss part. With no financial loss you have no complaints. Don’t engage in activities that you can’t measure income. It’s not smart for any person. I prefer to adopt performance in all situations. I get paid more. You should too.


About Christopher: Christopher Knight Lopez is a Professional Entrepreneur. Christopher has opened over 7 businesses in his 14-year career. Christopher’s purpose is to take advantage of various market-driven opportunities. Christopher is a certified Master Project Manager (MPM) and Accredited Financial Analyst (AFA). Christopher previously held his Series 65 securities license. Christopher also has his General Lines — Life, Accident, Health & HMO. Christopher has managed a combined 286mm USD in reported Assets Under Management & Assets Under Advisement. Christopher has work experience in 29 countries, raised over 50mm USD for various businesses, and grossed over 7.5mm in his personal career. Christopher worked in the highly technical industries of: biotechnology, finance, securities, manufacturing, real estate, and residential mortgages. Christopher is a United States Air Force Veteran. Christopher has a passion for family, competitive sports, fishing, martial arts and advocacy for entrepreneurs. Christopher provides self-help classes for up-and-coming entrepreneurs. Christopher’s passion to mentor comes from belief that entrepreneurs need guidance. The world is full of conflicting information about entrepreneur identity. See more at

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Christopher is a Professional Entrepreneur with over 14 years of experience, a Master Project Manager, Financial Analyst, & Master Financial Planner

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