This post on twitter by an influential VC got me a little fired up because I think it is largely incorrect. He said:
Reasons people don’t get wealthy (a partial list):
1. A lack of skills
2. Lack of taking risks
3. Not building a network
4. Poor work ethic
5. Not reading books
6. Giving up after getting beat down
7. Fear
8. Being born at the wrong time
9. Being born in the wrong country
My responses:
Skills don't build wealth. The ability to lead and motivate other skilled people builds wealth. Entrepreneurs are jacks of all trades and masters of none. Communication and resourcefulness are keys.
This is what people don't get about entrepreneurship. Its not about taking massive risk. Its about little well-calculated wins one after another that get bigger and bigger. Its not the person who takes 1 in 1 million shots over and over.
You don't build a network, you earn a network by becoming good at something and helping people with resources solve problems. My network didn't grow at the networking events. It grew when I got really really good at one thing. Too many people put networking before doing.
Wealthy people work smart. They make very good decisions on where to work and what to work on. They plan, analyze and plan some more before swinging the hammer.
I learned more operating my business for 6 months than I could have learned from 100 books. Valuable yes but taking shots and mixing it up is 10x more valuable. Decision making is a skill that can only be learned through practice.
Stack the odds so you are more likely to succeed and you won't have to fail over and over again. Try something simple that other people have already proven is a path to wealth. Ignore Shark Tank, Tech Crunch, Trends and the media. Look at the world around you.
Fear is an entrepreneur's greatest asset. Its the reason why COVID won't bankrupt me and I say NO more than I say yes. The folks with no fear will be starting over in a few months.
Times always change and just because there weren't computers in 1980 doesn't mean it wasn't an unbelievable time to start a new business. You just had to be an even better communicator back then and you needed to look folks in the eye to make something happen.
I agree with this one. The birth lottery is the most important factor. Along with who your parents are and what kind of influences reach you at a young age.
@mariusk Especially agree with 2&4. All the “hustle porn” on social media paints entrepreneurship as grinding 24/7 to be successful. Not only is that untrue, but who would want to live like that anyway? I make more money working 4hrs a week as an entrepreneur than 40hrs a week at my old job.
But I would assume is you run all your real estate clients advertisements including websites building & maintaining, fb ad, ig ads, radio, paper flyers and sponsorships.
@613jono I always laughed when I would go into a meeting at a WeWork and see a bunch of people not working with all the "Get Shit Done" art around them.
@mariusk Great post! Although one gray area, and I may totally be losing the point here, but isn't the 3rd bullet contradicting the 1st one.
I've always just thought, being jack of all trades is a great asset, but perhaps also being master of something does count. It builds one's comprehension, ability to go deep and perhaps also acta as a reliable safely cushion (considering good skills are always in demand, no matter what the situation).
@cinemike I agree with you on this. Being a jack of all trades isn’t a requirement to be an entrepreneur. Many people have an expertise and decide to start a business, then employ others.
@mariusk I agree and disagree. I think this twitter post was probably aimed more at tech moon shots rather than tried and true sweaty startups.
Skills are part of building wealth. Being a great leader is a skill. Being a great leader takes years of making mistakes, learning from them, understanding how people operate, building a culture that makes your employees feel valued, etc. I have failed many times before mainly because I was not a good enough leader. It took time to hone this skill.
I somewhat agree with this one although quitting your reliable day job and starting a business IS a risk. When I first quit and became my own boss, I was terrified. Why? Because it was risky. What if I messed up the books? What if I didn’t get more work? What if I get sued? Sure, making small calculated risks is a great idea compared to putting all of your eggs in one basket and blasting off to the moon but it’s still a risk.
I definitely agree with “Too many people put networking before doing”. This is important because your network will naturally grow as you do more. This also largely depends on your clientele. For a sweaty startup, building or earning your network via doing is much more important than say if you were a politician. The latter would need to go to events, galas, etc.
I do believe this one to be true (in most cases) based on personal experience. Too many people making an attempt at a sweaty startup go read the 4 hour work week and think that they can instantly automate the process. Sure, you can automate certain things and develop systems and processes (which you should) that simplify the day to day but in almost all cases, you’re going to be working your ass off in the beginning to earn your reputation with a sweaty start up and to develop these systems. They’re called sweaty start ups for a reason. They’re hard until they are easy.
I have mixed feelings with your take on this one. Most of us in the sweaty start up realm didn’t make it to college. Hell, some of us didn’t make it out of high school. I got into my line of work because I didn’t think I had any other opportunity. I got really good at it then one day decided to start a business. I was/am really good at being a technician but I had NO idea how to run a business. That’s where reading came in. I needed to learn now and I needed to learn fast. Trial and error can only take you so far. The point is this: Read the books that are going to most benefit you. Stop reading the guru hype books and start reading the books that actually provide you with the knowledge to properly run your business.
Yes, ignore techy realty TV shows. We are in a different world here, man. Things are going to get hard, especially if people follow your advice on number 5. If you want to make it as a sweaty start up, you need to make some great decisions and never give up. The best way to do this is by learning how to run a business.
Fear can be crippling if not dealt with in the proper way. I believe fear is a form of failure and every time you over come it, you grow.
I think this is largely based on the business you start. Being born in a time that allows you to massively grow and create concrete footings in a revolutionary product will accelerate your success massively. This typically isn’t the case with trade workers, pool guys, moving companies. It also helps if you get to start your business out in a booming economy rather than a crippling pandemic. I think you and I were lucky to start our businesses during a time when the economy was booming.
I’m not educated enough to answer this one properly. I’ve hardly travelled to other countries. I do know, however, some very successful people who were born in some very terrible situations. It’s not the conditions you are born into. It’s the decisions you make that define who you become.
Let me finish by saying that I do not think your wrong, this is simply my two cents. Everyone’s experience is different.
WRONG - To be a leader is actually a skill, to know who to take few skilled people and make something good out of it is a skill that not many have.
WRONG - in everything you do there’s a risk, big one or minor that doesn’t matter, a risk is a risk.
WRONG - One of the thing you’d want when you build a business is to build a network. There are many business without one. You don’t just out content out there and expect a network to be built. You’re putting content out there to get audience and build network.
Has nothing to do with the twitter post 4th. Work ethic is one of the most crucial things you need to be successful.
WRONG - If you operate laundry business you don’t need books lol, but when you’re going for startups and businesses that you need brain in order to operate, without books and proper knowledge you’ll most likely fail.
I am sorry but this is one of the most stupid things I ever read. Failing isn’t your choice, and there are no “proven fields”.
WRONG - You don’t go bankrupt because you need money and you want your business to operate.. this is not a good example. When you have fears you won’t try new things and you’d rather lay on the couch and tell yourself “nah it won’t work” instead of trying it, that’s fear.
Nobody thought back in the 80s that there will be such things as computers, and few years ago no one thought that a company like Uber is going to kill taxis. The world will keep developing.
That's a skill. Also, why do you think people follow anyone? It's so they can get paid. Running a business is a skill. People tend to follow those with said skill.
