Wealth Factory Teaches Entrepreneurs How to Invest -- When you hear the word "investing," what comes to mind? For most people, it's the stock market. It's putting retirement money into something and hoping that someday you can retire. When you're a business owner, investing is a different thing, because YOU are an investment, and your BUSINESS is an investment. Your business can provide cash flow, equity can be built, and you can control the outcome. Most businesses resist putting their money in things they don't understand, and I don't think we'd hear many Fortune 500 companies say, "We have a bunch of cash! Let's diversify our money into our competitors in the S&P 500." But small and medium sized businesses all the time are told, "Take this money that you earned through value creation and knowledge, and hand it over to someone else, a 'financial expert,' and they'll take care of your money. First of all, nobody cares more about your money than you do. Secondly, most wealth is NOT built in the stock market by people who set up plans and automatically hand their money over to other people. It's built by the businesses that launch their stock int a public market, or people like Warren Buffett that buy the stock and own it outright. There's a completely different set of rules for investing when it comes to entrepreneurs. The stock market is not the place for you to create wealth. It's your BUSINESS, your ABILITIES. Instead, it should be about preservation, liquidity, and cash flow. Because isn't that what we're looking to do with our legacy? With the money we earn in our business? If you have a major exit, and someone buys your business from you, don't try to go multiply that in the stock market, because many times it gets minimized. We've heard the joke: "How do you end up with a million dollars in the stock market? Begin with two million." That happens far too often with entrepreneurs. Don't look at that as your key way to grow. Look at it as the way to preserve. AND, when you focus on investing, consider how it will benefit you now, and in the future. A very smart man once said, "Invest all your eggs in one basket, and insure them well." Focus, and don't diversify. For many business owners, diversification is di_worse_ification. The money ends up in worse hands and places with automatic fees, it's hard to control, and almost impossible to understand. In this video, Garrett Gunderson dives deep into the rules of investing for entrepreneurs. Enjoy.
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