Aside from building businesses, another passion of mine is investing in assets. Both of them are a means to make more money if you know what you are doing, but how money is made between the two are very different.
I’m going to simplify the difference for both of them for you right now by sharing my perspective: In business, to make money you need two critical assets: Customers and Employees. While in Investments, to make money you need two different kinds of assets: Money and Experience.
Let me elaborate, the key to making money in business is that you have to concentrate on selling to your customers. Even if you have no money to begin with, even if you have no experience to begin with, as long as you can find a customer willing to buy something from you (emphasis on buying from you) then you are in business. And the more customers you have, the more business you have. If you have no customers, then you are not in business regardless of how much products / services you have to offer or how many branches you have.
Next, you can not properly maintain a business on your own, sooner or later your business will grow, you will have more customers and you will need help, and so the next critical asset in making money in business is to have very good and very loyal employees.
Now finding and maintaining really good employees is very critical to your business’ success. It is not easy but once you have assembled a great team of superstar employees, trust me, your business will be making money during good times and even bad times.
Now, let’s explore the world of Investing. Let me ask you, do you think you need customers and employees as an investor of say paper assets like stocks, mutual funds or bonds? What about real estate? Or more liquid assets such as currencies? Think about it, and you’ll realize that you don’t.
What you should know in the world of investments, is that instead of customers, you will need money and instead of employees, you will need experience. Why? because the main way to make money in investments is to “convert” your money into “something else” that will make you even more money. This is the world where the now famous line of Robert Kiyosaki comes in: “The rich do not work for money, the rich make money work for them”. But to make your money work for you, you need to find that “something else” that will make you money without you having to work for it, and to do that without being scammed or duped requires experience.
In my business classes as well as my investment classes, I ask my students if it is really businesses that they want to pursue or would they rather pursue investing because I explain to them that you do not have to be a business person to be an investor nor do you have to be an investor to be a business person. The two roads are mutually exclusive and you do have a choice to pursue one or the other (or even both).
So I’ll ask you my dear reader the same question. “To make more money right now, and given a choice, would you like to start a business, would you like to learn how to invest?, or would you like to learn both?”
To help you decide on which road to take first, let me share some more practical advice. If you love people (customers / employees), if you do not have a lot of money to spare but you have time and a willingness to make sacrifices as well as learn along the way, then I suggest that you pursue the road of business ownership. It is a tough and challenging experience but should you overcome the many hurdles and obstacles, I assure you, you will be a cleverer person because of it.
On the other hand, if you have a job that you love and that pays you well, or already a business owner and you have some money to spare. (money that you can afford to risk) I suggest you pursue the road of the investor. There are many seminars on investing out there right now, most of them free, but be careful on which seminars you attend as it may cost you more in the long run.
For me, I am both a business owner and a seasoned investor. It has taken me a little over 10 years to get to where I am, and having traveled both roads, and exploring both worlds I would like to wish upon you the same rich experience that I have and the kind of success that you deserve.