’ve been thinking a lot recently about the concept of a business builder versus a business investor. The more I get into business, the more I realize that they are two very different identities.
The more successful entrepreneurs I meet and interact with — online or in-real-life — the more I realize that there are two different types on people: you’re either really good at making cash, or you’re really good at investing it.
Youcanbe both, but it’s really tough toexcelat both.
An example of classic investor mentality isChris Munn, who I’ve had on the pod (hereandhere). He buys local businesses and then puts management teams in place — he buys them as an investment. An example of a builder is my co-host,Johnny Robinson, A.KA. SqueegeeGod, a remote local business owner who I respect and admire (listen to his interviewhere).
The more I think about it, you’re better off not trying to be both. I’ve also realized that’s exactly what I’ve been trying to do for a really long time. Taking $$ from my buisness endeavors and then trying to find some really sharp investment.
I’ve been spending half my time building and half investing. But, the reality is that I need to ask myself honestly:Do you want to be an investor or a builder?
It’s better focus all of my energies on one thing and then try to automate the other as much as possible to build a flywheel of wealth. If I don’t pick one, I’ll only do half as well in each field. It makes a lot more sense to pick one and make the other more passive.
My hope is that this will help me devote more time to what I’m actually passionate about (for me, it’s building) so that I can allot more time into that thing.
Let me give you an example: I was considering buying a property and turning it into an Airbnb to run on the side. It’s a very active investment, so I decided I’m not going to do that. Instead, I’m going to invest in things like mutual funds of passive real estate (properties that come with a manager) so that I can focus all my time and effort into building.
You may be thinking,“Man, Neel, this is great, but how do I kow if I’m a builder or an investor?”
One is not better than the other. It comes down to personal preference.
If you love deals, putting deals together, analyzing the risk and execute the same process over and over, you’re probably better off focusing on investing.
If you have a lot of business ideas, enjoy the process of building a team, and coming up with systems, lean into building.
It’s taken me more than 10 years of my entrepreneurial journey to figure out which one I am, so don’t stress if you dont have the anwer just yet. But know this: once you do, you’ll be able to stop straddling both sides and can really devote all of your time and energy into one.
The moral of my story? Pick your lane and stay in it — so that you can excel in it.
Photo byJavier Allegue BarrosonUnsplash
This article was written by Neel from MaidThis Franchise, a remote-local franchise opportunity for people looking to escape the rate race and reach financial freedom. Learn morehere.