Entrepreneurs are exceptionally good at a few things, and one of them is creating wealth. They understand the basics of what wealth really is and what it is not, and they understand that to create wealth today they must be masters at developing small business ideas.
what is wealth really
An important aspect of wealth creation is the understanding of wealth. Now, most people think they know what wealth is, but if you ask them to define it, they usually give an answer like “money” or “possessions.” These types of answers to the question about wealth clearly show that they do not understand it.
So what is wealth?
Wealth is value. Dollars, cars, houses, and oil reserves are evidence or tokens of that value, but they are not the value. This difference is a key element in understanding wealth, and understanding the difference helps to see it correctly. There is an unlimited supply of wealth in the world. literally unlimited. And this is because you can always create and always create more.
Many people think that wealth is a big pie from which every person, company or company can take a piece; some bigger, some smaller. This image seems to make sense, but it is highly inaccurate. If this were true, then the more people there would necessarily make the available servings (or the size of each serving) smaller. But if you look closely, you’ll see that it simply isn’t so. Wealth is created, produced, and spread from person to person, but there is always more to do, more to give, and more to take.
For example, consider a company that employs a group of people on a project and has been assigned $1,000. When the project is finished, the manager is paid $1,000. He has nine people working under him. Each of those nine has worked to generate the $1,000 that came from the company they all work for. If the manager gives each an equal share of the money and includes himself in the payment, they will each receive $100. Simple enough.
But what if there were only four people working under the manager? If he splits the money equally between himself and four others, they will each get $200. In this scenario, the people who worked did the same job but received the money twice. This is an example of people sharing pieces of a pie, which in this case is $1,000.
But we cannot stop there, because it must be understood that the $1,000 was not the wealth created, but the sample of wealth shared by the company with the workers. The company could have allocated $2,000 for the project, or $4,000, or whatever amount they agree on. And the manager could have hired nine people or four or even twenty-four. These are arbitrary decisions made by the company and the manager, but have no real effect on the value of the project…they are simply tokens of value.
How wealth is created
The real wealth created here was the project itself: what was done, what was created, what was achieved. The actual profit produced is the actual amount of wealth created. Perhaps a new public park was planned, or a new gate latch designed, or a new training manual written. Wealth was the completed project. The company may have paid $1000 for it, but the actual value of the project is unlimited.
A new park is likely to generate fun and healthy exercise for years and years for thousands and thousands of people. How could anyone put a dollar amount on that?
The new door latch may be the best design ever and start a whole new line of products creating employment for hundreds of people, leading to better livelihoods for thousands. How could anyone put a dollar amount on that?
The new training manual could lead to better job production or the creation of new businesses that generate millions of dollars that in turn enrich the community and create jobs and…
Wealth creation has unlimited effects and there are no defining dollar amounts. Understand this and you will understand how to build wealth.
How can you create wealth?
Creating wealth has an almost inherent quality of novelty. If you consider the most notable illustrations of wealth, you’ll notice that they involve the promotion and performance of IDEAS. Yes, the idea concept is the most valuable asset on planet earth. And this is precisely where the average man or woman has the opportunity to do something phenomenal, something powerful.
The unmatched impact of small business ideas.
Not everyone has outstanding athletic abilities, or a house in the best neighborhood, or wealthy parents. But we all have one thing for sure: our minds. And we are given the gift of being able to control our own minds and use our minds for a good purpose. No one can take that away from us. So it behooves us to take every opportunity to build, strengthen and use our minds, all the time.
