Scared Money
Scared Money collects dust more than interest. Scared Money never gets turned into capital.
Unfortunately, Scared Money is everywhere. Investors are playing with scared money. Businesses are trying to gain market share with Scared Money. Consumers are trying to shop with Scared Money. Employees are working for Scared Money. You have people out here trying to retire on Scared Money. Well in case you haven’t heard, Scared Money don’t make money.
Too many of us are working under “what if this fails” and still expecting to win. The farmer that’s afraid to plant is a farmer guaranteed not to have crops. No matter who you are Scared Money will never prosper. As an employee you can’t say “I’m making $40K while everyone else is getting laid-off so I better not take any chances” at work. Market leaders don’t counterpunch their way to the top. You can’t be afraid to invest in growth strategies or to listen to the folks you’ve paid to help grow your business. Now I’m not saying be reckless and take crazy risks just so you can say, “At least I tried.” All I’m saying is you gotta be in it to win it.
Too many of us are working under “what if this fails” and still expecting to win. The farmer that’s afraid to plant is a farmer guaranteed not to have crops. No matter who you are Scared Money will never prosper. As an employee you can’t say “I’m making $40K while everyone else is getting laid-off so I better not take any chances” at work. Market leaders don’t counterpunch their way to the top. You can’t be afraid to invest in growth strategies or to listen to the folks you’ve paid to help grow your business. Now I’m not saying be reckless and take crazy risks just so you can say, “At least I tried.” All I’m saying is you gotta be in it to win it.
Thy money perish with thee because
thou hast thought that the gift of God
may be purchased with money.
—Acts 8:20
thou hast thought that the gift of God
may be purchased with money.
—Acts 8:20
Other People’s Money
Credit cards. Loans. A business partner. Clients. Shareholders. Significant other. Parents. Angel investors… Regardless of the source, Other People’s Money is a beautiful thing. But OPM can be tough to get, especially if you or your idea is unproven. Still if you get some, things can be pretty sweet. However, no matter what anyone says, OPM always comes with strings attached.
Over the years, every businessperson I ever met who used OPM eventually learned a painful lesson: You are beholden to whoever cut you that check.
America’s funny with money—we equate cream with ownership. When you borrow money from someone, they treat you different, like they own a part of you. They want to give you their two cents on every little issue. They feel entitled to go too far; get personal, pry into stuff that has nothing to do with the money they loaned you. And depending on who loaned it to you, they’re liable to get down right trifling with you. Why? Because your broke butt owes them money. So if you take OPM, watch for the strings.
Over the years, every businessperson I ever met who used OPM eventually learned a painful lesson: You are beholden to whoever cut you that check.
America’s funny with money—we equate cream with ownership. When you borrow money from someone, they treat you different, like they own a part of you. They want to give you their two cents on every little issue. They feel entitled to go too far; get personal, pry into stuff that has nothing to do with the money they loaned you. And depending on who loaned it to you, they’re liable to get down right trifling with you. Why? Because your broke butt owes them money. So if you take OPM, watch for the strings.
Goodness gracious, where the cash at?!
Where the stash at?!
—Notorious BIG
Where the stash at?!
—Notorious BIG
Capital
My younger brother once asked me what was the difference between money and capital. I didn’t know the answer until I got deep into business. Then I learned. Man, did I ever learn…
Money votes, capital wins elections. Money buys brands; capital builds brands. Money gets you out of jail; capital built the prison and the system that hemmed you up in the first place. Capital funds wars. Capital gets buildings named after it. Capital doesn’t even exist to the average person unless it wants to. You ever see names in your company’s annual report with bunches of commas ‘n’ zeros behind ‘em and think, “Who are they and why are we paying them so much?” Well, capital is their boss. And when you get a business loan, that’s really not capital. That’s just a bank letting you borrow some of their capital. Money is money; capital is money plus power.
Capital is the hardest to get because it’s more about who you know than it is about what you know how to do. The best way to get capital, in lieu of banks is to build and pool resources. Many immigrant communities are brilliant at this. They’ll pool what they have and invest in each other. That’s how they build businesses, schools, and entire communities so quickly.
Money votes, capital wins elections. Money buys brands; capital builds brands. Money gets you out of jail; capital built the prison and the system that hemmed you up in the first place. Capital funds wars. Capital gets buildings named after it. Capital doesn’t even exist to the average person unless it wants to. You ever see names in your company’s annual report with bunches of commas ‘n’ zeros behind ‘em and think, “Who are they and why are we paying them so much?” Well, capital is their boss. And when you get a business loan, that’s really not capital. That’s just a bank letting you borrow some of their capital. Money is money; capital is money plus power.
Capital is the hardest to get because it’s more about who you know than it is about what you know how to do. The best way to get capital, in lieu of banks is to build and pool resources. Many immigrant communities are brilliant at this. They’ll pool what they have and invest in each other. That’s how they build businesses, schools, and entire communities so quickly.
Let me in now, let me in now.
Bill Gates, Donald Trump let me in now!
—Nelly
Bill Gates, Donald Trump let me in now!
—Nelly
