To claim your success as an entrepreneur, you need to change the way you think about time and money, even if it is the reverse of what everyone else is thinking, which is usually the case.
Most of the world thinks about money in terms of wages. You are paid a certain amount of money if you work a certain amount of time. As an entrepreneur, you don’t get paid for your time — you get paid for your knowledge.
After you get a start in this business, you’ll no longer be jealous of the lawyer who makes $300 an hour, because you can make thousands of dollars on a business deal. A deal may take several hours or several weeks, but that doesn’t matter. You have to get away from associating money with time.
I recently did just one business deal in which I made over $50,000. Some people don’t make $50,000 in a year, but I made it on one deal. I was able to do this, because I don’t base my earnings on time — I base them on me. There are entrepreneurs just like me who make more on one business deal than some people make in a year. This is possible because they are not basing the amount of money they make on the amount of time that they work. They are basing it on themselves and their knowledge.
Do you know how many people will pay you if you know where to find money, products or services, and they don’t? Things that they need, but do not have? That’s what going into business is all about — putting people who need something, whether it’s money, merchandise and inventory or services — together with people who are in a position to meet their needs.
By changing the way you relate your earnings to your time, you will realize that the earning potential as an entrepreneur is unlimited. The problem with wages is that you can only make money as fast as the clock can tick.
The lawyer making $300 an hour only makes money when he bills for it. Since there are only so many hours in a day — and days in a week — there is only so much time for which he can bill. He has limits on the amount of money he can make.
When you base your business on your knowledge rather than your time, there are no limits to what you can earn.
By accepting the challenge to change the way you think about time and money, you will begin moving from consumer thinking to investor or entrepreneurial thinking.
Consumer thinking is looking at money in terms of how much things cost. Entrepreneurial thinking is looking at money in terms of how much of a return you get from your efforts.
The following example illustrates the difference in these two ways of thinking:
Suppose you found a potential client who lives several hundred miles away from you. After the initial phone conversation you realize that if you can close this deal, you stand to make a large sum of money. Also, the potential client has stated that if he is satisfied with your business, he may have many other deals for you.
Because this deal is so important — and it looks promising based on the preliminary information you have already gathered — you decide to purchase a plane ticket so you can go meet with the client in person and develop a strong relationship with him.
After making your plane reservations, you call a close friend to share your enthusiasm about your potential deal. His reaction is this, “Why would you spend the money on a plane ticket? Don’t you generally conduct your business over the phone with out-of-town clients?” Normally you would conduct business over the phone, but you stand to make much more money from this deal than other deals you have put together, and you may be preparing yourself for future deals with this client.
Your friend is a consumer head and does not realize the value of paying for an expensive plane ticket when long-distance phone charges are so much cheaper.
You, on the other hand, are thinking in terms of business. To you, the cost of your plane ticket is merely the cost of doing business in landing a very profitable deal and possibly future deals.
Sure, in terms of airfare, you may not have gotten the best deal possible if you look at it like a consumer, but because of your expense and your efforts, you earned the client’s business. If you look at the airfare expense as an entrepreneur, you got a great deal.
Moving from consumer thinking to entrepreneurial thinking is essential if you want to claim your success in your business.
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