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The bleeding edge often lives in shadows and grey zones. Which side are you on?
Money VS Wealth
The more I learn about entrepreneurship everyday this is something that I keep coming across quite regularly, yet no one is really directly talking about it; in a nutshell it says that businesses are meant to create wealth and not money alone.
I probably understand this at a superficial level but there are certain questions that come to mind:
1. First of all, is it even applicable or just some philosophical mumbo-jumbo?
2. Is there something tangible we, as start-ups, can take from this? Something that can be merged with our short/long term goals?
Please feel free to add your thoughts and opinions. If you know of any good book/article/blog on this subject (for OR against, both are fine) I would be glad if you could point me to it.
Yes - money is a lifestyle thing. Wealth is much BIGGER. It's a chain reaction.
One way of thinking about this could be
money is what money can buy. If you have a million USD and are in a desert, all you want is a bottle of water. But there is no water to buy. the money is worthless.
wealth is money in various other forms. Wealth generates more money, helps make more people make more money.
money is what you get as salary or revenue. If you deliver value to a customer, you will get an order and in turn the valuation of your company will increase. So you become wealthy as the value of your share will increase. If you want money you can pledge the shares or sell them, use the money to make more money.
Money is usable once. If you spend it it goes out of your hand. You can use your wealth again and again to make more money. A simple example is a cow which gives milk. The cow is wealth. What it generates is money. In the modern day world, you can replace the cow with a website which provides a service. :)
Well its something real for sure. Its not a mumbo-jumbo. But i think its over hyped these days.
IMHO, entrepreneurship is all about
following a calling-out & not about minting a Million $ in 'X' years.! And in turn what people say is you end up making money and create wealth for your self.
To an extent this is also a personal choice or a group's decision. The best example I would like to quote is Matt Mullenweg - Wordpress creator and Mark Zuckerberg - FB guy.
In a way Matt Mullenweg created an eco-system and wealth for a large section of people. Wordpress based websites/blogs earn and live from ad based models and have generated wealth across the globe. While Matt Mullenweg is not a billionaire.
On the other Mark Zuckerberg made a fortune for himself, no doubt many employees are also millionaires. The wealth creation of FB is no way comparable to wordpress.
The open source based economy Vs proprietary based economy is a live example in this regards.
But they belong to different school of thought. Sometimes it is wealth is created and then distributed, sometime creation opportunity is shared and sometimes it is simply you, your goals and your bank balance.
The choice lie with the entrepreneur to where to lead his institution.
- The decision to whose money or wealth lies with the entrepreneur.
Tangible Steps to wealth creation:
1) If there is way you can give incentive for contribution to your eco-system then please do so. It makes both business sense as well as brings in wealth creation into the system (squidoo)
2) If you can create opportunities technically for extension of your system, please do so. (white label programs, even affiliates to an extent)
3) If you can share profits with team or contributors or indulge in social entrepreneurship at any level please do. (A handicraft selling website can contribute to the handicraft maker or its family, considering you are getting it from the real makers who are considerably poor rather than middleman)
4) Make knowledge sharing free (whatever niche you are working) - Giving lectures or talks to upcoming graduates or getting involved with them should not be a no no (lack of time).
I hope I might have helped with my personal thoughts.
From our ad based revenues were planning to sponsor a science project in a school, it is wealth creation but certainly some value addition to the system.
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