The other day I was talking with my wife Claire about the secret of the rich; that the amount they are worth is disproportionate to the amount they earn. Think about, if you have a small business with a small team making $250K profit per annum, then you probably have a business worth a multiple of 1-2x so you’re worth between $250K and $500K.
If you invest in the business and increase the profits to $2M per annum over a three year period, then depending on your industry that business is now probably worth a multiple of 4-7x, so you’re now worth between $8M to $14M.
So what you’re worth is far more than what you’ve made.
If you just focus on what you’re dropping out the bottom right now then you are in danger of missing the real value that your business can be worth in the future.
That’s why the rich get richer disproportionately; they focus on longer-term value not just shorter term wins.
Change isn’t that hard.
Our lives are filled with paths that we have seduced ourselves into believing are impossible for us to take.
A while ago I encouraged my daughter Zara not to listen to a friend who wanted her to do something that she didn’t feel good about.
When we focus on a past that we don’t like, we are living in a state where we are hoping an imaginary future will heal a non-existent past.
Recently I was in a situation that wasn’t what I wanted, but there wasn’t anything I could do to change it.
Is it to never stop believing?
If you fill up every area of your life with little regard for the quality of what you’re filling it with, there’s not much room left.
“Fortune favours the bold.”
“Look before you leap.”
So, which one is it???
We all make them.