wantrepreneurship to entrepreneurship

From Wantrepreneur to Entrepreneur

Erik Entrepreneurship, Thoughts of a Mastermind 3 Comments

THIS POST MAY CONTAIN PAID AND/OR AFFILIATE LINKS.

Many people dream of owning and running a business someday.

The idea of being your own boss sounds great: you can wake up when you want, the money is always there when you need it, and life is an endless vacation.

Going to the beach? Just charge it to the company card!

Unfortunately, most of what I just said is so incredibly far from the truth…

From Wantrepreneur to Entrepreneur

Many people come to read The Mastermind Within to learn tips and tricks to better their financial situation.

One of my goals is financial freedom and in many of my articles, I look to share my passion of personal finance with you and other readers.

If financial freedom is your goal, there are many avenues and paths you can take to get your closer to financial success. When I think about getting to financial freedom, I think about businesses, real estate, investments, and cash flow which exceeds your basic expenses.

For me, I’m looking to become wealthy in a short mount of time. With this blog, another business I’ve started, my side hustles, and my real estate, I’ve experienced first hand that through successful entrepreneurship and investing, tremendous wealth in a short amount of time is very possible.

In the last year, I’ve thrown myself into entrepreneurship and I’ve learned so much. It’s time to give back.

Let’s Make March the Month of Entrepreneurship at The Mastermind Within

wantrepreneurship to entrepreneurshipYes, I’m about $10,000 in the hole with my business. Yes, I’ve had failures, roadblocks, and struggles along the way. I’ve been burnt out, and I’ve wanted to drop everything at a loss and go back to playing Xbox or hanging out at the bar with my buddies.

At the end of the day though, I love building and I love helping people. The core of entrepreneurship is providing value and making other’s people’s lives easier.

For the last two months, the articles on The Mastermind Within have been all over the board – personal finance and self improvement articles on random subjects, my success stories spun into vague personal development articles, and posts about silly things I’m doing in my spare time to build my skills.

Entrepreneurship is such a vague subject. BUT, this month, March 2018, I’m going to perform a deep dive for you. For the next 10 posts (Monday, Wednesday, and Friday for the rest of March), I will be talking about different parts of Entrepreneurship. Posts on entrepreneurship are something this blog is missing – and building up this content base will be beneficial for all of us.

This post is setting the stage, and on Friday, we will dive in.

“Success does not consist in never making mistakes but in never making the same one a second time.” – George Bernard Shaw

What is Entrepreneurship?

First, what is entrepreneurship?

From Business Dictionary, entrepreneurship is defined as follows:

Entrepreneurship is the capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit.

No where in there does it talk about the beach unfortunately πŸ˜‰

Put another way, entrepreneurship is the creation and ownership of a money making endeavor. As an entrepreneur, you are responsible for the successes and failures of the business. There are no days off, and each day, week, and month, there has to be an effort to make your customers happy – otherwise you won’t have customers.

Late nights, financial, emotional and physical stress, constant emails and meetings, coffee always by your side – there’s a lot that is overlooked by non-entrepreneurs. Like I mentioned above, I’m over $10,000 in the hole, but I’m still plugging away. I go to bed happy though, because I know I’m learning, creating, and building something amazing.

Everyone knows the statistic that over 90% of businesses fail in the first 3 years.

However, with all risk, there is potential for great rewards: freedom to do what you want with your time and skills, and potentially great wealth.

Who is better off financially? Someone who loses $10,000 10 times and makes $1,000,000 dollars the 11th or someone who loses $10,000 and goes back to a day job? That’s the kind of potential I’m talking about!

The Potential to Build Wealth Fast and Become Free with Entrepreneurship

Before going any further, while I did just make a point that with entrepreneurship, you have the ability to build wealth incredibly fast.Β  I bring this up as a fact: financial freedom is a possibility with entrepreneurship done right. At it’s core, The Mastermind Within is a personal finance and financial freedom blog, so I find that it’s important to talk about the financial side of things. That being said, I need to call something out, to ensure we are on the same page.

If you approach business to make money, good luck. Trying to make a quick buck is never going to result in massive wealth. Creation of an amazing product or service, and doing this over many years is how you can fully leverage the equation above.

I want to make this completely clear: you won’t become rich without putting in the work and cutting corners. If you come to entrepreneurship with selfish motives, you will fail. You can make $50, $100, $1,000 cutting corners, but that’s not sustainable, nor is it something worth talking about. Become a servant to your customers, grind, learn, grow, and you’ll be able to do whatever you want. Let’s build something worth talking about.

β€œA man wrapped up in himself makes a very small bundle.” – Benjamin Franklin

I love a get rich quick scheme just as much as the next guy. Turn $100 into $10,000 in 10 days? Sign me up!

Unfortunately, the only person getting rich off of those schemes are the people selling them to you. Everyone else is the loser.

Instead, building wealth and getting rich fast requires a person to increase their income to a level where they are saving a substantial amount each and every month.

But, building wealth isn’t just about saving. It’s about building and accumulating assets which have value. Building wealth is more than just having a pile of cash; true wealth is attained when you have assets which are producing passive cash flow and income.

The Fastlane Wealth Equation

In the book, The Millionaire Fastlane, MJ Demarco argues if you want to become rich, then you need to get in the Fastlane and build a business.

The Fastlane wealth equation is:

Wealth = Net Profit + Asset Value

where Net Profit = Units Sold x Unit Profit and Asset Value = Net Profit x Industry Multiple

All businesses leverage this equation. A Fastlaner builds wealth by providing value to their customers. They can increase their wealth by selling more units, or profiting more from each individual unit sold. In addition, as profits increase, the underlying business asset increases in value. You can see how it is possible to get rich fast (not to be confused with “Get Rich Quick (Easy)).

Building wealth fast is possible with entrerpreneurship, and many people have used this equation to get to financial freedom.

This is one of the reasons entrepreneurship excites me, but the financial wealth component is not what I will be focusing on.

Let’s go from Wantrepreneur to Entrepreneur

β€œKnowledge has to be improved, challenged, and increased constantly, or it vanishes.” – Peter Drucker

Maybe you have an idea you want to get started on. Maybe you’ve already started pursuing clients and customers. It’s also possible you just enjoy thinking about wealth and want to learn more about the things which go into starting a business.

If you fall into any of the buckets above, you’ll want to come back the rest of the month for targeted articles geared towards going from wantrepreneur to entrepreneur.

On the agenda is a wide variety of topics:

  • My entrepreneurship story – an update on my kombucha kit business, as well as talking about the last year, failures, successes, takeaways, and future plans
  • Things to consider before starting your business
  • How to actually go about starting your business
  • Structuring your business and a often neglected topic: the legal side of running a business
  • Sales and marketing
  • Customer service
  • Finance and accounting for businesses
  • and a few other topics (can’t let the cat all the way out of the bag πŸ˜‰ )

At the end of each post, I will have an exercise for you to complete. After this month, you will be able to take all of these posts and go out and create something your very own! (and maybe you can get started after the conclusion of each post!)

Conclusion

I’m excited to dive into the inner details of entrepreneurship, and dig into many business topics which generally aren’t talked about. From idea to execution, from sales to marketing, and from customers and clients to accounting, there is so much to cover – and I hope that I’m able to answer all of your questions.

My true calling is being a full-time entrepreneur. While I’m not quite there yet, that doesn’t mean I can’t share with you my passion and talk about everything I’ve learned in the past few years.

Let’s take action today and go from being a wantrepreneur to entreprenuer.

Readers: are there any topics you’d like me to touch on in this series? What

Erik

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Comments 3

  1. Great post, Erik! Creating something of your own definitely takes a lot of hard work. Some days I ask myself why I am I doing this without seeing a return.

    I am in the hole too. Not 10k but still in the hole. Last month I signed up for the Rockstar VIB program. That’s $50 a month for a site that is not making any money. But I enjoy writing and the FI community has been incredibly supportive.

    I will be looking forward to your other March posts. As always, keep up the good work!

    1. Post
      Author

      Thanks Jerry for stopping by and the comment.

      I’m in the hole in another business I’m working on. It’s unfortunate, but I will detail it on Friday!

      $50 a month isn’t bad at all… if you are trying to make it into a business which is bringing in $1,000, don’t worry about $50. If you are spending $500 and aren’t getting a return, then maybe it’s time to reassess your strategy.

  2. Good stuff, Erik! Reminds me of a few good reads on the topic. One of my favorites is Tim Ferriss’s “4 Hour Work Week.” If nothing else, he inspired me even before Mr. Money Mustache to come up with some way to escape the rat race, mainly through entrepreneurship.

    The main take-away was to avoid anything that required excessive amounts of your time. Since time is finite, service jobs (like massage therapist) suffer for lack of free time and limited ability to experience a multiplier effect in earnings. Selling a product however, as Mr. Ferriss promotes, allows the freedom and multiplier effect. Or something like that. πŸ˜‰

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