Tuesday, September 8, 2009

Entrepreneurs Pave the Path to Wealth

What does wealth mean to you? Different societies define wealth differently. Probably the most common interpretation relates to the amount of money one earns. Or perhaps a high net worth. In a third world country, it may be as basic as owning a housing structure or having enough food to eat.

The American Heritage dictionary defines wealth as “an abundance of valuable material possessions or resources; riches.” This definition seems to closely align the American concept. Actually the term “wealth” derives from the old English word “weal.” which means well-being or welfare. Amazing isn’t it how far we have strayed. Current terminology has wealth and welfare at the absolute opposite ends of the economic scale.

The current preoccupation of many, if not most, North Americans revolves around wealth creation. Robert Kiyosaki details his ideas in his cash-flow quadrant. He explains the least likely employment status for financial security is as an employee. As an employee you have very little control over your income, duties or work schedule. Consequently, an employee has the least likelihood of wealth creation.

Self-employed status raises the bar slightly. At least in this capacity, the individual retains more control of time, earnings and creativity. Being a self-employed entrepreneur increases the potential for wealth creation. Michael Gerber agrees that “The entrepreneur in us sees opportunities everywhere we look, but many people see only problems everywhere they look. The entrepreneur in us is more concerned with discriminating between opportunities than he or she is with failing to see the opportunities.” Now take pure entrepreneurship to an even higher level on the cash-flow quadrant. Rise from self-employed to business owner. The business owner has ultimate control over income, work schedule and business creativity. Not only that, but the business owner leverages individual time and effort by also earning from the time, effort and creativity of his/her employees. At the business owner level, income is no longer restricted to personal production. At this point, entrepreneurship not only buds but develops full blown blossoms. Entrepreneurs thrive on creativity.

Entrepreneurs existed from the beginning of history. People have been creating, inventing and trading from the beginning of time. Even though the forms and techniques of business have changed with the evolution of commerce, the basic principles thread throughout history. Entrepreneurs have been creating wealth since the Stone Age. Entrepreneurs are the life blood on an economy. They stimulate the circulation of money. Entrepreneurs in a real sense are the creators of wealth and a stable economy.

Wealth creation remains a primary focus of most entrepreneurs. When we list the wealthiest people of the world, we see the names of Bill Gates, Warren Buffet, Henry Ford, and Donald Trump to name just a few. Each and every one of these wealthy men created their fortunes through entrepreneurship. In fact, most of them progressed from self-employed to business owner to investor. Investor is the ultimate in the cash-flow quadrant. With investor status, your money works for you instead of you working for your money.

As a rule, wealth creation is not an overnight process. The only instant acceleration to wealth is likely to be winning the lottery. Personally, I would not count on that method. Becoming an entrepreneur and progressing from self-employed through business owner to investor remains the most likely and most predictable method. Predictable, if you seize the opportunity when it presents itself. When opportunity knocks, the prepared answer the door. The lazy complain about the noise. Are you prepared and ready to seize the moment? Entrepreneurs eagerly answer the door.

Entrepreneurs take risks. They exhibit focus, commitment, determination, creativity and persistence. Is the road to riches always smooth and upward? No. It is not. Study the financial path of most extremely wealthy individuals and you will find scary financial lows immediately before the huge explosion to wealth. Jim Rohn talks about not having $2.00 to buy Girl Scout cookies. That was his turning point to achieve his fame and fortune. Jack Canfield and Mark Victor Hanson experienced extreme financial lows immediately before the Chicken Soup series skyrocketed to the top of the charts. No one said the entrepreneurship road was smooth and easy, but it certainly has wonderful results for those determined souls who persist. Winners persist and achieve. To true entrepreneurs, failure is not an option. Opportunities are usually wearing a disguise of work clothes. Or as Ann Landers phrased it “Opportunities are usually disguised as hard work, so most people don’t recognize them.”

Ah what sweet rewards for those who are innovative, consistent and persistent. Entrepreneurs create wealth. The recently released billionaire list was composed of eighty percent (80%) entrepreneurs. Are you ready for the challenges and rewards of entrepreneurship? Are you ready for wealth? Success is a choice. Wealth is a choice.

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