The “Game Plan”
Wealth Equation 📖
- Wealth Accelerator: Asset Value (of company)
- Wealth creation is driven by:
- Net Profit = Units Sold x Unit Profit
- Asset Value = Net Profit x Multiple
Create Wealth by... 🏗️
- Building successful and/or high growth companies.
- Doing so enables you to achieve 1.) a high net profit potential and/or 2.) a high multiple.
- Both of which drive the valuation of your company, and in turn your personal wealth as an owner of the company 💰
- Entrepreneurship is THE road to becoming “rich”, i.e. achieving “financial freedom”.
- Most of the world’s richest people built their wealth via entrepreneurship either directly or indirectly (have a look).
Building companies has unlimited potential for wealth creation 🧗🏼
- It allows you to base your wealth creation on unlimited factors (net profit/asset value).
- It allows you to profit from taking business risks, by providing you with accountability via ownership of the business.
- It allows you to apply leverage to your entrepreneurial ideas via people, capital, and products.
- That’s why you’re able to disconnect your inputs from your outputs via successful entrepreneurship (why?).
We live in times of huge technological change, providing plentiful entrepreneurial opportunity 🚀
However, some words of caution are needed 🚧
- Pursuing entrepreneurship for monetary reasons is usually a bad idea!
- Building a successful company is very hard. Only a few people achieve it.
It’s not for everyone. You need a high pain threshold to work through the difficult process of building a successful company.
- Solely relying on monetary motivation when building a company might not be a big enough “why?” to push through all the hardship involved.
- You need to be passionate about solving a problem. This passion should fuel your entrepreneurial journey.
Here’s what passion about a problem looks like.
- You don’t need to look for your passions, they usually choose you.
- If you’re passionate about solving a problem, GO FOR IT 🎯!
“One of the huge mistakes people make is that they try to force an interest on themselves. You don't choose your passions, your passions choose you.” - Jeff Bezos
“Don’t start a company unless it’s an obsession and something you love. If you have an exit strategy, it’s not an obsession.” - Mark Cuban