How Poker Skills Teach Entrepreneurship

Top poker players are entrepreneurial and we can learn from them

In poker, as in business, success isn’t just about being right—it’s about being prepared when things go wrong. This is just one way that skills in poker translate to skills in business.

Eric Dunaway (Wabash College) and I explored the deep overlap between poker and entrepreneurship. Whether you’re building a business or building your bankroll in poker, the skills required are surprisingly similar. Here are a few reasons, and for more check out the video below!

1. Side Hustles and Brand Building

In our video we start with poker vlogger Wolfgang Poker, who sells hats emblazoned with pocket sevens—his signature hand. It’s not just merch; it’s strategy. Selling a few dozen hats helps him offset tournament entry fees, build his brand, and even attract sponsorships. It can be important for entrepreneurs to diversify their income streams.

2. Investing with Expected Value in Mind

Next, we look at Andrew Neeme, who—along with Brad Owen and Doug Polk—bought a majority stake in the Lodge Card Club in Texas. The investment reflects a classic poker trait: evaluating the expected value of a decision. They are calculating that the expected profits will be positive and the risks are manageable. The logic used by poker players is the same logic entrepreneurs use when deciding where to allocate capital.

3. Managing Risk and Emotional Setbacks

In a powerful video clip, Brad Owen recounts a hand that led him to quit professional poker for a while. It’s a reminder that variance, loss, and emotional strain are very real. The takeaway for entrepreneurs? Setbacks are normal. What matters is how you manage risk, control emotion, and keep going. And it is also important to manage business capital.

4. Liquidity, Opportunity Cost, and Risk of Ruin

In poker, managing your bankroll is important. Not doing so means a downswing could cause bankruptcy. The same holds in business, it is crucial to keep enough business capital and liquidity to survive a rough stretch.

5. Profits Must Cover Opportunity Costs

Just like poker players must cover not only the buy-in but also food, travel, and lodging, entrepreneurs must factor in all costs—equipment, rent, insurance, and more. It’s not enough to earn from your business. To be a full time entrepreneur you’re giving up a salary and that should be factor into determining whether the decision to become an entrepreneur, or full-time poker pro, is a good one.

For More, Watch the Video!

In both poker and business, you can make all the right moves and still lose in the short run. But if you understand variance, manage capital wisely, and make positive expected-value decisions consistently, you give yourself the best chance to win over time. Check out the video for more!