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March 3, 2011 / innovationinitiator

Money, money, money…Its all about the money.

During my brain freeze moment earlier this week I ran a quick poll (but no content) and the intent was to understand how many of my readers are actually sure that they want to start their own business. An amazing 83% of the participants indicated that they will or are planning to become an entrepreneur.

Beyond the idealistic dream of being your own boss, what drives an individual from the relative safety of being an average dude to someone who is willing to be Rambo. Wether you are demonstrating entrepreneurial skills within an established organization or on your own, the fact is that you, my friend, are taking more chances than your other colleagues or friends.

This trigger point that drives us to put our neck out,  for some of us, could be The Economic Event.

The Economic Event™

India is a very conservative society. I’m not talking about being conservative about sexuality, language, culture, knowledge but financially conservative. While this is changing currently, most of us have grown up being told “Don’t live beyond your means“. This is so ingrained into our mindset that we feel guilty even about spending money that we have. We dream, but we dream of things that we can afford. (I’m keeping fantasies out of this).

Compare this with the Americans. An average American is living in debt by the time they are 30 years old. Credit card is a mightier economic tool than the bank note that is issued by the government. They spend more per year than they have earned in that year. And, surprisingly, the World measures itself based on the health of the US economy. Why is that?

Its the economic liberation at the individual level that drives the engine of growth. If John Doe is spending more than he makes, he is consuming more of what is being produced. This leads to the demand of more differentiated products and services to keep Mr. Doe spending all of the time. The banks work with the industry to make sure that Mr. John Doe has more money (that he’s yet to earn) that he can spend on buying things that he doesn’t know that he needs.

You look at it as irrational spending behavior, the American entrepreneur looks at it as an opportunity.  An opportunity to be innovative, an opportunity to create and sell new products and services, and build businesses that grow at phenomenal rates year on year.

Courtesy - MIT Edu

So, how does this connect back to your dream of becoming an entrepreneur?

Don’t be afraid to dream of that Porche in your driveway. Think about taking that vacation with your beautiful wife  (girlfriend/boyfriend/husband/looser friends) to the exotic location you always talked about. Plan that home that you always wanted, then upsize it.

But hang on – don’t go out and spend that money as yet.

Use these economic triggers or needs to drive you to a higher earning level.

The only way your will multiply your earning capacity is if you put your neck on the block and do something radical.

Start that company you always dreamt about. Take that opportunity at work that has the potential of changing your life.

Do it because you love the money!

PS – Make the money. Don’t take it if you don’t want it or if its not yours.

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6 Comments

Leave a Comment
  1. Ranjan Malik / Mar 4 2011 12:09 pm

    Money is the nub only for those who seek just the mundane consumption-fueled kind of fulfillment. Isn’t it Jaideep?

    • innovationinitiator / Mar 4 2011 12:15 pm

      It is Ranjan. If thats what rocks a person’s boat. For others there is the Idea Event that I spoke about earlier or the Intellectual Event that I’m covering next.

      What ever rocks your boat, don’t hold back. Become an entrepreneur and satisfy your hunger. 🙂

  2. Balaji Jagannathan / Mar 4 2011 12:28 pm

    By spending beyond our means, panic sets in and we make wrong decisions. Instead, set out to be an entrepreneur coz you want to achieve something and try to keep inventing ways to achieve it by pushing and working around your constraints. Sorry, but American story is not a great example. They are paying for their years of overspending…right now.

Trackbacks

  1. Where do I start? « Innovation Initiator – Entrepreneur for life
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