“Insanity is doing the same thing over and over again and expecting different results.” said Albert Einstein. Do you find yourself doing the same thing over and over with your business and your finances and wondering why nothing ever changes? Use a different strategy and see a different result.
In this article we will look at the different mindsets and the transitions to abundant wealth.
Four Business Strategies
Did you realise there are four key strategies for making money from business? Each strategy requires a totally different mindset.
The wealthiest people in the world have one thing in common, they started with a business. Jeff Bezos started Amazon from a small office using just a computer. Taking orders and posting books to clients. The business went through several changes. Each stage requiring a different mindset allowing the business to grow to the global enterprise it is today and making Jeff Bezos the wealthiest man in the world.
An individual has four different business mindsets they go through. It is the personal growth, continued learning and openness to try something different learning from mistakes as they go along, that lets a business grow and prosper. Too often, people hold on to preconceived ideas around business which prevents them from taking the steps to grow a business from an idea to a global enterprise.
Most people start with an employee mindset. They progress to being self-employed before becoming business owners and finally investors.
It’s the mindset at each level that determines if the person can grow a business and take it up through a variety of growth strategies until reaching the pinnacle of business success.
Mindset of an Employee
Many people start their working life as an employee. Employees trade time for money. They get a paycheck based on the hours worked. In theory.
The mindset, of the employee is based around the employment contract of remuneration for hours and benefits. This is the “what’s in it for me?” mindset. If I work for you, what do I get in return. There is nothing wrong with this mindset, after all, the employee is giving up precious hours to work. Hours they can’t get back.
In a 2021 survey of junior investment banking analysts, it was found they worked on average 95 hours per week but for very low pay considering the hours they work. During the summer of 2021 there was a big shift in remuneration for these employees with two pay rises put in place and a further two scheduled for 2022.
The change by the employers was more about retention as once the apprenterships are completed many go on to become self-employed.
The self-employed person also trades time for money, often at a much lower rate of return.
Jack of all trades, is the expression that comes to mind when thinking of someone who is self-employed. They do everything for their business. Marketing and Sales to get the business off the ground. They provide the service and have to source all the suppliers and materials for their business.
Generally, they are the last person in the chain to get paid after suppliers and taxes. Many are very low paid with longer working hours.
Yet, being self-employed teaches a different mindset. One of moving from work being provided as an employee, to someone who is learning the skills of an entrepreneur. They are investing time and effort into building an income generating asset. These are all skills that are necessary to make the transition to a business owner.
Many people remain self-employed as they are unable to make the mindshift to that of a business owner.
How Many Businesses Do You Need?
Business owners have successfully transitioned to the mindset of running a large business.
Their focus is on the managers for their businesses who will look after the day-to-day operations; whether their business will be national or international; return on investment and who the investors are that they will work with.
Billionaire, Richard Branson, has over 400 companies. He is unable to work in them all so brings in the expertise to build and manage his businesses. Each business is an income producing asset. An investment.
Jeff Bezos’ Amazon, has 40 subsidiary companies that operate under the Amazon umbrella. His other company Bezos Expeditions has 15 subsidiaries.
As you can see, the wealthiest people in the world run big businesses, acquire businesses through mergers and acquisitions and have a totally different mindset to those of as self-employed person. They create the Habits for success.
Business owners have their investment work for them. They don’t work for money.
Why Investors Make the Most Money
Being an investor is about acquiring income producing assets. These assets can be business, property, digital and precious metals. The sole focus of an investor is creating or acquiring more and more assets. Generating more income and reinvesting it into more assets. They embrace the Age of the Entrepreneur.
They have the experience of building businesses. They will have some of their own but also invest in other people’s businesses through buying shares either privately or publicly traded shares.
Money made from business is reinvested into property with many having large portfolios. These again generate more income for reinvesting.
Digital assets are mainly shares and cryptocurrencies although some will have bonds and lending amongst their assets.
And finally, they will hedge everything with Gold, Silver and other precious metals.
Are you ready for the Transition
When you change your mindset, it doesn’t happen overnight. It takes around 20 years to become an overnight success. Yet, the wealthiest people in the world have put in the time and effort to consciously change the way they thing about business, property, digital investments and bullion.
They work at their craft and reap the rewards of practicing, failing, practicing and practicing some more.
Next time you think about making money, remember to think mindset first. Because without the shift in mindset from employee, to self-employed, business owner and then investor the results will not materialise.
If you are finding yourself doing the same thing over and over again and not reaching the financial goals. Stop and think. Are you doing the same thing over and over again but expecting a different result.