Entrepreneurs are exceptionally good at a few things, and one of those 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 Wealth Really Is
An important aspect of creating wealth is understanding wealth. Now most people think they know what wealth is, but if you ask them to define it, they usually come up with an answer such as “money” or “possessions”. These kinds of answers to the wealth question clearly show they do not understand it.
So, what is wealth?
Wealth is value. Dollars and cars and houses and oil reserves are evidences or tokens of that value, but they are not the value. This difference is a key element of understanding wealth, and understanding the difference helps one to view it properly. There exists a limitless supply of wealth in the world. Literally limitless. And this is because more can always be, and always is, created.
Many people think of wealth as being a large pie from which all people or societies or businesses can take a slice; some bigger, some smaller. This picture seems to make sense, but it is very inaccurate. If this were true, then the more people that existed would necessarily make the available slices (or size of each slice) smaller. But if you look closely, you will see that is simply not the case. Wealth is created, produced, and disseminated by people to people, but there is always more to be made, more to be given, and more to be taken.
For an example, consider a company which employs a group of people on a project and there has been $1000 allotted to it. When the project is done, the manager is paid a $1000. He has nine people who work under him. Each of those nine have done some work to generate the $1000 which came from the company they all work for. If the manager gives each one an equal share of the money, and includes himself in the pay out, each will get $100. Simple enough.
But what if there were only four people working under the manager? If he divides the money equally to himself and four others, each will get $200. In this scenario, the people working did the same work but received twice the money. This is an example of people sharing parts of a pie, which in this case happens to be $1000.
But we can’t stop there, because it must be understood the $1000 was not the wealth created, but the token of the wealth shared by the company to the workers. The company could have allotted $2000 for the project, or $4000, or any amount they chose. And the manager could have hired nine people or four or even twenty four. These are arbitrary decisions made by the company and manager but have no real effect on the value of the project… they are merely tokens of the value.
How Wealth is Created
The real wealth created here was the project itself: what was done, what was created, what was accomplished. The actual benefit produced is the real amount of wealth created. Perhaps a new public park was planned, or a new gate latch designed, or a new training manual written. The wealth was the project accomplished. The company may have paid a $1000 for it, but the real value of the project is unlimited.
A new park will likely 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 gate latch may be the best design ever and start a whole new line of products which lead to employment for hundreds of people which leads to better livelihoods for thousands. How could anyone put a dollar amount on that?
The new training manual could lead to better work production or to new businesses being created which generate millions of dollars which in turn enrich the community and lead to jobs and…
Creating wealth has limitless effects, and there are no dollar amounts to define it. Understand this and you understand how to build wealth.
How You Can Create Wealth
Creating wealth has an almost inherent characteristic of newness. If you consider the most notable illustrations of wealth, you will notice they involve the promoting and acting on IDEAS. Yes, the idea concept is the most valuable commodity on planet earth. And this is precisely where the average man or woman has an opportunity to make something phenomenal, something powerful.
The unmatched impact of small business ideas.
Not everyone has outstanding athletic skill, or a house in the best neighborhood, or rich parents. But we all have one thing for sure: our minds. And we are given the gift to be able to control our own minds, and use our minds, for good purpose. No one can take that from us. So it behooves us to take every opportunity to build, strengthen, and use our minds, all of the time.