Growth opportunities and doing the math

If it’s the right thing for your company to expand rapidly, consider giving some of your profits away.

This can be engaging a marketing company; hiring a top salesperson or sales organization; accepting money from investors; and whatever is relevant in your industry that fosters growth.

I talk to many business owners who are so focused on costs and percentages in a vacuum, that they lose the context of those numbers, don’t appreciate the ability of strong partners, and lose sight of why they want to grow in the first place. And because of that, their performance hits a ceiling and they set themselves up to either get eaten alive or remain unfulfilled.

Owning 100% of a million-dollar company sounds sexy; but for me – I’d rather own 1% of a billion-dollar company.

Of course – the above is over-simplified and there is much more to making a decision that relates to this. You need to make sure that growth is truly a lifestyle and decision with consequences that you’re prepared for (which is why I wrote “IF it’s the right thing…” in the beginning); you need to properly vet growth partners (they are not created equal, and the cheapest is never usually the best); you need to play out best/average/poor-case scenarios (plan for the best but prepare for the worst); and you need to take inventory of your current resources (is your existing manpower, capital, experience, and team reflective of your 1-, 3-, 5-, and 10-year goals?).

But don’t be so consumed with how much something costs that your blinders are on to how an investment could return for you. Marrying your spouse COSTS you. Having kids COSTS you. Buying a nicer, more reliable car COSTS you. Going to the gym COSTS you. But they can be exponentially rewarding, and if you only lived life based on what’s safe and how much something costs…it’d be a sad life on at least, 1,031 levels #exaggeration

If you really want to measure costs, compute the loss of opportunity as well. Don’t orphan that super important metric.

Let go of what is, so that you can receive what’s possible. If you want to go fast, go alone; but if you want to go far, go together.

Where stock trading fits in my portfolio

Through trial and error, research of my favorite investors, taking personal inventory, and no longer swimming in denial (get it?! “The Nile?!”…never mind), I have decided to call it quits on stock trading.

  1. I am not allowed to invest in public stocks except in my retirement accounts. I am not a numbers guy, I do not have an unfair advantage of any sort, it’s not very interesting to me, nor do I choose to have the full-time commitment needed to be excellent at public companies investing. I have been stock-free for a few years now, and no longer have a sense of FOMO whenever partners, clients, family, and friends talk about how much they’ve capitalized on a buy/sell. I am comfortable letting it fly over my head.
  2. My retirement account only contain ETF’s (exchange traded funds). According to Tony Robbins’ research in his new book “Money: Master The Game,” over 90% of mutual funds NEVER beat the market; and management fees charged by mutual funds eat earnings that equate to substantial amounts of money over time (in the thousands to even hundred-thousands). I am playing the long-game here anyway, so why not join the market via low-cost ETF’s and let it run?

I’d rather invest my growth capital in startup and emerging companies – which I will write about in the near-future – with much better chances and less risk, contrary to popular belief.