Investments
YOURSELF.
- Living expenses i.e. Ramen profitability. You are the founder, you are the workhorse of your business. Without you there is no business. So paying for your living expenses is an investment. Food, housing, transportation, clothes, insurances, medication, working space, gym membership, internet connection, cell phone, gas, electricity, cable, Netflix (waste of time), etc.
- Learning. Spending money to improve your skills which will improve your ability to earn more money. Books, online courses (I sounds like one of those scammy online gurus who indirectly tell you to buy his stuff). S&ME 500 LOL 🙂 Coaching, mentorships, workshops. (Actually the last sentence comes from an online guru who’s trying too much!)
- Staff, outsourcing and personal assistant(s). At a certain level, your time is better used working on your business instead of doing housing chores. Outsourcing.
YOUR BUSINESS.
- Team. Building a team to scale up your business. Outsourcing, Virtual Assistants, etc.
- Marketing.
- Infrastructure. Equipment, office furniture, computers, softwares, etc.
- Yourself. Refer to the above.
- Acquisitions. Buying concurrents for growth.
- War Chest. Cash buffer offering ‘tremendous security and flexibility’ to quote Steve Jobs. To this day, Apple has a war chest so huge that it could sustain operations for over 7 years without any revenues. Great for the inevitable tax bill, a loss of income streams, staying out of debts, among many other things.
YOUR BANK.
AUM. This is your Asset$ Under Management. But first you gotta get the money first. Your Bank is for capital preservation only. Don’t expect miracle here e.g. market timing. Before investing anything, you need to first make the money.
- Stock Market (50% to 60%)
- Real Estate. Property as investment.
- Businesses. Passive businesses that you don’t operate directly (Like Shaq does).
- Bitcoin and Ethereum (5%)
- Gold and Silver. WTF?
- Cash.
- Art.
Sources and related links:
https://bettermarketing.pub/what-silicon-valley-can-learn-from-solopreneurs-and-digital-nomads-2f6b889dcf6d
http://www.paulgraham.com/ramenprofitable.html
How I’d Invest Zion Williamson’s Money | YouTube Financial Advisor
https://www.fastcapital360.com/blog/how-to-reinvest-profits-into-your-business/
https://www.fool.com/the-ascent/small-business/accounting/articles/reinvesting-profits/
https://www.hiscox.com/blog/5-best-ways-reinvest-your-businesss-profits
https://informi.co.uk/finance/turning-a-profit-how-to-reinvest-business-funds
How Shaq made $400M from Carwashes & Franchises?
https://contrarianthinking.co/shaq-400m-from-carwashes-franchises/
