In this blogpost, I’m going to talk about investing.
I’m not an expert when it comes to investing, but I believe I have some awesome thoughts I can share with you. Because investing is closely linked to business and to scaling your business. There are different types of investment categories that you want to invest in as you’re advancing throughout your business development and as you’re scaling your business.
Investing when you’re starting out and when you’re scaling your business.
The first investment you should make should be in yourself.
The reason why is because investing in yourself will always have the highest ROI. What do I mean by investing in yourself? I mean investing in mentorship, online courses, but it could also be in your health and fitness and even in your mental health. Getting a therapist, for example, doing some work on yourself and overcoming mood and anxiety problems you might have. Well that’s one of the best investments you could ever make. Just in terms of how you’re going to feel in your life, but also, in your business. If you’re more confident, if you have better skills in terms of managing your mood and how you feel… Well that’s going to impact every other area of your life in a massive way.
So, in the beginning you shouldn’t try and go make investments in real estate and buying stocks and things like that. Until you’re making 100K or have a 100K saved up on your bank account, I believe the only two investments you should make should be in yourself and in your business. Invest in self education, mentorship, high ticket coaching programs and learning from people that are ahead of you. For example, I continuously invest in myself and my self-education. Just in the last couple of months I invested more than 30K dollars just in myself, in mentorship and things like that. So, this is something that never ends.
Investing in yourself has the highest ROI
And why does it have the highest ROI? Your own skills will always give you the highest ROI, because a skill that you’ve acquired, something that you’ve mastered will serve you for the rest of your life. And your skills and your experience start accumulating and compounding over time. If you acquire one skill, such as copywriting, for example, and then you acquire another skill such as selling on the phone and then you acquire another skill, like advertising…
Well your return on those skills is not going to go up in a linear way, but it’s going to be like an exponential curve, because you will be able to pull your skills together and to use them in unique combinations and apply them to opportunities that show up in your life. Building up your skills, gaining experience form working with amazing people who are ahead of you… Well the more you do this, the more money you’re going to make. The ROI you will get from this is unmatched.
There’s no traditional type of investment that’s ever going to match that type of ROI. A skill that you’ve acquired 10 years ago, could make you millions of dollars 10-20 years later. If you combine that skill with the right opportunity and with the other skills that all work together in a way that allows you to capitalize on opportunities in your life. So, you always must start by investing in yourself.
There will be fear and resistance, but go ahead because that’s where the biggest growth happens
You should never fear this, although most people will fear investing in themselves. That’s normal. Go out there and work with mentors, even if you don’t have that much money, if you have someone with who you could work with, even if it is expensive, trust me, it’s going to be better than investing in whatever else you had in mind. You will feel that resistance, that fear, before you make a big investment in yourself. Let’s say you invest in a 5K, 10K or 15k coaching program, that’s going to hurt a little bit, you’re going to feel that resistance. But you should go ahead, of course after doing your due diligence, you should go ahead because that’s where the biggest growth happens.
And the ROI long-term from making investments like this in yourself, is going to be bigger than any other type of investment you can make. I’m speaking from personal experience. Mentorship and investing in myself has given me the biggest return from anything that I’ve ever invested in. So, start with yourself. You are the most important part, the most important person in your life, you’re the one who needs to generate results, who needs to go out there, provide for yourself and your family…You need to invest in yourself to make yourself strong so you can show up as a leader for your family, for your employees in your business… And the moment you stop investing in yourself is going to be game over, trust me.
Then, number 2: you want to invest in your own business.
Why is that? Because investing in your own business is always going to give you a higher ROI than traditional investments. Let’s say, you run an advertising campaign and you have a return on investment that’s really good, for $1 that you invest in ads you get $10 back for example, that’s a very big return. In most cases, with traditional investments, the actual gains and ROIs you’re going to get are going to be way smaller than with, for example, advertising.
With advertising you can invest in your business, so you can scale your business and you’re going to make more money. That’s also less risky in a sense, because you’re more in control of what’s going to happen with that investment. You’re the CEO or owner of your own company, so you’re kind of in control of what’s happening there. If you invest in yourself you make sure that your skills and your mindset are on point.
Get an office, get an employee, those are investments not expenses
And then you take that strong version of yourself, that you’ve build up with mentorship and masterminds and investing in yourself and start investing more into your business. This includes things like getting an office. It’s an investment, it makes you a lot more money than it costs. Hiring employees for example, those are investments not expenses, that’s a way to 10X the productivity of a business. And in the scaling process that’s going to make you a lot more money than if you wouldn’t have those employees.
I would rather invest in an employee or in an office, where I can make a lot more money with my existing business than investing in some real estate property and rent it out and just make a little bit of money with that. The amount of money I can make by having an office, employees, using the right software, by investing into paid advertising is always going to be way higher than with traditional investments like stocks, real estate etc. If you could get the type of investments and returns that we can generate in our businesses, if you could get that on Wall Street, people would go crazy. You need to understand that if you’re in business, you need to invest into your business and you shouldn’t be scared of doing that.
Invest in yourself and your business first, before investing in traditional investments
A little recap, before you have a 100K saved up on your bank account, I believe you should only invest in yourself and in your business. Pay yourself, put some money on the side and then invest back into mentorship and into advertising, get an employee, get an office, do whatever you must do to scale your business. Because investing in your business, taking your business from 10K per month to 100-300K per month, that ROI is unmatched. You’re never going to get that if you only invest in real estate early on, it is just going to distract you and you’re just not going to get the same returns.
You need some decent capital to make big gains with traditional investments
Now, only once you have a 100K saved up, then you can start considering investing in some traditional investments. But I believe once you have a 100K on your bank account, just go out there and repeat step number 1 and step number 2 until you have a million dollars on your bank account. Why? Because a $100K is really not that much. It might seem much to you right now, but it’s really not that much. You can blow a 100K really fast if you’re stupid and it’s really not that much money.
If you want to make big gains with traditional investments, you need some decent capital that you can invest into real estate or whatever you want to invest in. It’s going to be more profitable for you, to just not get distracted by these traditional investments that have a much lower return on investment. And instead just double down and scale your business.
If you’ve a 100K saved up, awesome, good job, you’ve bootstrapped your business and now go and scale your business and start making a 100K a month. Once you’re at that level you will quickly be able to have a million dollars or even several million dollars on your bank account. And at that point you have way more capital that you can start investing in a proper manner into things like real estate or stocks. And then you can take a part of what you’re making in your business, a part of what you’ve saved up and you can then start investing that into things like real estate. Start playing big, when it comes to traditional investments, don’t do these small things as I mentioned.
Once you invested in yourself and your business and you’ve made some money, then you can start building some real wealth
Focus on number one, number two and then once you really have made some money, then you can start building some real wealth. What I mean with real wealth is you can now take the money and create it with your business, you can now strategically invest into cash-flow producing assets like real estate, you can buy bigger real estate properties, you can get into multi-family real estate things, you can rent out units and you can start making good money with that.
That way you can eventually get your traditional investments to the point where you’re making so much passive income from your investments, that it is almost matching or even exceeding what you’re making in your business. And that’s awesome and when you’re really building wealth. Once you take the money that you’ve made and invest it into real estate, then you have something tangible, you have money in real value and real estate is to be proven to be a very solid investment over time, historically it generated so many millionaires and is proven to be a very good store of value and an investment that really works well to protect your wealth and to generate more cash flow.
A lot of people have 10K on their bank account and they want to start to invest into real estate, or cryptocurrency or stocks… I don’t recommend that. But again, I’m not an investment specialist, but you can make bigger gains by investing in yourself, building and scaling a real business and then taking in the excess money that you’ve generated with your business and make proper big investments in real estate for example. That’s the proper sequence, in which you want to solve problems. That’s the proper wealth building process.
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