Everybody talks about the best places to invest your money. They’ll talk about stocks and commodities, mutual funds, and real estate; but what about building a business? What about building and investing in your own business?
Let me ask you a quick question—how many millionaires do you know? If you’re like me, it’s really not that many.
Now, let me rephrase the question—how many millionaires do you know who are famous and have achieved true wealth by creating their own business?
The answer is, basically every single millionaire you can think of has made their money by creating their own business and gaining wealth through that method.
Today, I’m going to explain why your business is the best investment you can possibly make.
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Typical Investments are Based on Performance of Others
Typical investments are usually based on the performance of others. Let’s think about it for a second—with the stock market, all you’re doing is investing and betting that a company has good leadership in place, and will be able to raise the price of their stock shares.
With mutual funds, it’s the same thing. It’s really just a fund of those same companies, and you’re betting that the collective portfolio of companies will perform well and get their stock shares to increase in price.
Even when you’re investing in currency, you’re betting that a nation is going to make its own currency even more valuable on a global scale.
Or, you might invest in real estate, which means you are basically investing in the tenants of that particular place to make sure they’re going to pay everything on time and pay down the mortgage.
The point is, when you are investing in third parties, you lack control. You have very little impact on the outcome of everything that’s happening. Granted, there are a few things you could do to safeguard yourself, but at the end of the day, it’s in the hands of other people to perform well.
Investment in Business Is Based on YOU
That’s what makes your business different; when you’re investing in your business, you are investing in you. Do you work hard enough? Are you willing to bet your own money that you work hard enough to beat your competitors?
Can you manage others who work for you? Can you prioritize the right tasks to make sure your business is going to be profitable in the future? Can you generate enough revenue to keep the doors open and continually grow?
And lastly, are you resilient and able to weather the downtimes? For example, right now, we’re in a recession caused by a global pandemic. Are you able to push past this and continually invest in your business?
Even though things aren’t perfect right now, you need to be able to keep your business afloat, because the bad times will pass.
Typical Investments Are Nice to Diversify
Now, don’t get me wrong; typical investments are nice to diversify your income, and you should absolutely consider them part of your portfolio. They are slow-building, consistent income. You’re not going to make a lot of money quickly with these, but it compounds over the years.
Over time, all of the money you’re investing will really add up. It’s not something that’s going to make you a lot of money in the next 30 years, but by year 31 or 32, you’re going to have a lot of money set aside.
Your Business Is Where Real Wealth Is Made
But the truth is, your business is where real wealth is made. For those who don’t know me that well, I started a business that was a simple blog six years ago. Once I created it and started writing for it, the blog grew and grew and grew.
Now, that business (along with some other blogs and websites I created) is worth $750,000. That never would have happened through traditional investments, which is one of the main reasons why I like websites.
If you’re interested in that, click here to learn how to start a blog. If you follow that link, you can see what it’s all about and decide if it’s for you.
Going back to my point about why businesses are where real wealth is made—it’s just a faster path to income. All the time and effort you put in really leads to income in your own business.
With businesses, you have full control of all of the business decisions. You can determine exactly what direction you want to go and everything you want to do. Basically, you control your own destiny.
You also have the ability to pivot if you need to. For instance, if you’re consulting for businesses and all of a sudden you decide you want to consult for marketing, that’s no problem. All your business has to do is make a quick little shift, and all of a sudden your business can generate more revenue in the new area as opposed to what you were doing before.
Keep in mind that exponential growth is possible. It’s not always super common for this to happen, but it is much more likely that you could make a lot of money quickly with a business than with slowly investing money into a savings account or a mutual fund.
What Is Happiness to You?
One question that you have to ask yourself is, what is happiness for you? I ask this because when businesses start, they don’t make a lot of money. Over time, however, those businesses will become more profitable.
But even though you’ll have less money in the beginning, you will also have total freedom to work on whatever you want and create a business you’re actually passionate about, versus working a nine-to-five grind.
What If You Fail?
Now, we’re talking about business here, so I have to say it—what happens if you fail? I personally recommend that when you start a business, you start it as a side business; don’t start it and leave your full-time job.
It makes a lot more sense to still have your full-time job and start a side gig in your free time because if you fail, there’s no loss of anything but your own time. You’re still able to go right back to your job, and your paycheck never suffered.
Some people might argue, “Well, Ron, isn’t that just a waste of time and money?” Yes, you could say it’s a waste of time and money, but I actually don’t think it is. If you fail with your own business, it’s okay because it’s really just an expensive learning experience.
Even though your business didn’t go according to plan, you’ll have a set of skills that you didn’t have before. It’s very valuable in life to continue to gain more skills as you go along.
Those who are a little bit more brazen than me might say, “Ron, I’m in. I’m just going to quit my job and go 100% all-in on my own website.” Unfortunately, some of those people are going to fail. Now, what happens to them because they left their full-time job? Nothing—all they do is get a new job. Think about how many jobs you’ve had in your life; it’s not that impossible to get a new one.
The point is, there are always going to be plenty of jobs out there, so you just need to take the risk and be willing to put yourself out there to try to start a side gig. Don’t even consider failure as an option.
I think the moral here is that life is too short to worry about failing or worry about the “what-ifs.” You owe it to yourself to create a business. It’s something that I think everybody should try at least once.
The ones who will succeed are the ones who will try once and fail, try twice and fail, and try three times and fail. Then, on that fourth time, they will try and actually succeed, which is what I did.
If you’re interested in that, again, you can click here to learn how to start a blog.
So, there it is, you guys—that is why I personally feel that a business is the best investment you can make. There aren’t many methods that have a faster path to wealth than owning a successful business.