Whether you’re an office worker, beginning entrepreneur, or someone more experienced in the self-employed realm, here are nine practical tips for how to build wealth.
- Wealth is derived from solving problems. You can solve small problems for many people (think advertising), big problems for few people (business with limited scale), or big problems for lots of people (businesses with a lot of scale). But avoid solving small problems for a few people. And it’s very pertinent to marketing, whether you’re launching a new product, entering a new vertical, or testing a new advertising angle.
- Figure out how to work for yourself as soon as possible. If you work for someone else, figure out how they make more money and help them make more of it. Being a salaried employee can be great if it’s stable and it fits you well.
- Seeks positions in the part of an organization that brings money. Sales, acquisition, and capital raising are examples. Cash flow helps sustain every business. Focus your marketing efforts on parts of the company that generate it. And learning to sell is important no matter your profession.
- Give people bad news promptly. Ideally, you want to give bad news only when you have found a solution or suggestion to fix that problem.
- Be a long-term owner of assets. Buying and selling frequently will eat your money through costs and commissions. This is mostly about investing and owning cash-producing assets. For web-based businesses, it’s the same thing: In the long term, assets (whether it’s content, e-commerce, an email list), those assets bring in money.
- Take a few accounting classes. All businesses must keep their income greater than their expenses and assets above their liabilities. At the beginning of your career, find a great bookkeeper and keep that person around.
- Thank your employees often. You can use words or bonuses that are not necessarily cash-related.
- All people go through ups and downs. Sometimes people need more time off and sometimes more is expected of employees. It’s not necessary to worry too much about the natural ebbs and flows unless there’s a new equilibrium from expectations. Be tolerant of their down periods, but not indefinitely.
- Nobody is going to solve your problems. You can get advice and get help. But in the end, you’ll be working it out on your own. Nobody cares as much about your business as you.