A lot of you guys have been asking me to talk more about business, so I will begin to incorporate it into the blog. However, you have to master money before you master business.
I did a post a while ago about How To Save And Grow Money, so be sure to check that out too.
The Only Class That Ever Taught Me Anything
Out of all the classes I took at three different colleges, I can honestly say that they were all useless except for one; economics.
Granted, I could’ve easily learned economics on the internet without paying tuition, but that’s for another post.
Economics has some very important concepts that you can easily apply to benefit your financial life. My favorites being, time is money, and supply and demand.
Let’s get it started.
Time Is Money
First, let me begin with a story.
A few months ago, this kid I knew had to go to the ATM to get cash for the bar.
There was literally an ATM across the street but he was adamant about driving to his bank so he can save $2.50 in ATM fees.
I was like “Dude, that’s so fucking stupid.”
He didn’t understand and we drove 30 minutes to get to his bank and back.
The gas alone was probably more than $2.50, but even if it wasn’t, the time he spent doing it was a fucking waste.
Needless to say that was one of the last times I hung out with that kid because I don’t deal with stupidity.
I would gladly spend $2.50 to save 30 minutes of my time, and so should you.
Acting like a poor person, even when you are poor, is a good way to stay poor forever.
Time is far more important than money, because you can always make more money, you can’t ever get more time.
One thing I never ever do, is return stuff. If I get something I don’t like from Amazon, a physical store, or even food at a restaurant, I will never return it.
It is not worth my time to go through the hassle of re-mailing something to Amazon, or driving back to the store, or sending the food back and waiting 30 minutes for something else.
Another example is how people work. In the past, you could either make a lot of money and be a slave to your job, or be pretty poor but be free.
But now the internet is changing that. Now you can have both time and money.
I could’ve finished my degree and worked 60 hours a week and make way more money than I’m making now, but I wouldn’t be free. I wouldn’t have time to do what I wanted to do.
Even though I’m not making as much money now, I can do whatever I want on any given day, and that is invaluable to me. I also am confident that in the next few years I will make more money online than I could’ve ever made working a job.
Supply And Demand
Supply and demand is another huge concept that you have to understand.
When you’re starting a business, there’s three things you have to ask yourself.
1. Are you smart enough?
2. Will you do whatever it takes to be successful?
3. Is there a place for you in the market?
I don’t know how smart each one of you is, and I also don’t know if you have the work ethic to be successful.
But if you run an idea by me, I can probably tell you if there’s a gap in the market where you can enter.
If there’s a gap, then there’s more demand than supply can handle. If there’s no gap, then there’s too much supply compared to demand (too competitive).
When I originally had the idea for Loser 2 Winner, I noticed that there was no one website focused solely on younger guys in college.
Most self-improvement websites are “for everyone”.
I saw a big gap in the market and I jumped in.
Even if you’re the smartest and hardest working guy out there, choosing an over-saturated niche will likely be problematic.
Really focus on narrowing down your topic and target audience, and remember that demand always has to be greater than supply before you proceed.
Scared To Spend Money?
One thing I’m seeing a lot of, is guys that are afraid to invest.
I understand where you’re coming from, as I used to be the same way until I started Loser 2 Winner.
I always used to be extremely careful with money, and it would take weeks of deliberation in my mind before I purchased anything.
Starting Loser 2 Winner quickly changed that mindset, as I experienced how much time and effort it took to have a good site.
I stopped being a little bitch, and spent some money on things I couldn’t do well, or would take me way too much time to learn (time is money).
Don’t try to do everything for free, that’s what losers do. That’s also a good way to have a shit site. You can hire guys from India to do anything for dirt cheap.
Also, when you’re starting a business, don’t expect to take the profits out and pay yourself. The business needs the money more than you do.
The business is like a plant, and you have grow the business with your time, effort, and money.
If you try to grow it without money, it’s like growing a plant without water. It will take SO much longer, and it has a good chance of dying.
Once again, time is money, and you will be doing yourself and your business a disservice by taking profits out.
Feed the business before you feed yourself. The business will thank you later.
Well guys, I hope you learned something new tonight.
Start applying these concepts in your life, and it will change the way you think.
Drop a comment or shoot me an email with a business idea and I’ll let you know what I think about the market.
I might start up some business consulting too.
Alright, that’s it for tonight guys.
Start thinking like a rich person, not a poor person.
Catch ya next week – Brian