Nick Huber here with the Sweaty Startup Podcast to talk about something that I think is pretty important. If you’ve ever wondered how to start a startup you first need to understand the difference between value and money. And I think that is what separates the really good businessmen and women, the really good entrepreneurs, the people who are really good at personal finance from the people who are not. It’s understanding that difference. So what do I mean?
Number one:
Let’s say your business needs a truck. You go to the dealership, You look at two trucks. One is five years old with 60,000 miles on it and priced at $15,000 and the other one is brand new, fully loaded platinum, and it’s $70,000. A real entrepreneur understands that there’s something off there with the value and the money of the two trucks. In other words, the Savvy entrepreneur can recognize and will never buy a brand new Ford F 250 Platinum for 70 grand. He’ll buy the used vehicle because it provides the same utility, especially when he’ll save $55,000 plus interest buying that truck.
Number two:
Early on, people think that when building the business it’s the dollars in your checking account that are really what you’re making. Well, a Savvy entrepreneur understands that he’s created value. What do I mean by that? The value is in the fact that you built a business that is going to produce money for you from here on out that there is earning potential every single month, forever. It’s an asset that also has value in selling it on the open market down the road. So again, you’re adding value.
Number three:
The third way is really understanding the value of time and where they’re putting it. Real entrepreneurs understand that value is really in the time in building the business – the time that you’re putting in the system and the time that you’re doing training. Those things might not put money in your pocket that minute, but there’s value. You’re sowing seeds in a field.
The people who are just looking at the dollars and their return for time right this second miss out on opportunities because they don’t get them immediately paid but rather they’re getting paid six months from now.
This is why the Sweaty Startup is one of the top entrepreneur podcasts because I’ll tell it to you straight. Every step you’re taking right now is adding so much more value later on. Business is about momentum. You get some customers now, you get more customers the next year. Then you get some employees. Then you get a business that’s thriving and growing. The stuff you do on day one, when the money is not there yet is just as important as the stuff you’ll do later. The value and the money are not always equal – it’s not a one-to-one ratio. It’s so easy to think that trading time for money and money and value are equal. No, they’re not. You’re going to bridge that gap between doing something now that’s adding value later and turning that into money later, that’s what you’re going to do.
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