Profit Is Overrated
Ask 50 construction company owners what a perfect business would be like for them. You’ll likely get 49 different answers. But, one common focus will stand out: Business owners want to create equity and build wealth. Equity and wealth are the outcome of consistently making a profit, retaining it, and using it to seek other business opportunities, create passive income, buy real estate investment property, and grow net worth.
Are you the company CEO?
Are you creating wealth?
Wealth is created from assets that make money without you doing much hands-on work. Wealth-building assets create regular positive cash flow, rise in value over time, reduce debt, and are passive instead of needing constant attention and supervision. Owning a multi-tenant apartment or industrial building and renting it is an example of a wealth-building asset. The building creates a net income every month without much effort or work. Wealth-building real estate assets can include joint-venture projects with customers, your own building and yard, buying an old property to renovate, owning a residential duplex, or buying rental houses at great prices. Assets also can include owning stock in growing and successful public or private companies.
What business are you in?
After 20 years as a commercial general contractor, I finally realized why I was in business. Year after year, I worked hard to scrape out a 1 to 3 percent pre-tax net profit. I endured lots of stress and took extreme risks building projects for customers who made millions of dollars owning and developing real estate. I started realizing that, while our construction company did most of the work, our customers made most of the money. Why? Because I was in the profit business, and my customers were in the wealth-building business.
Get into the opportunity business
Create a wealth-building machine
A small start in low-cost residential real estate will allow you to build wealth and start buying, investing and developing more assets. When you have a few wealth building properties, you start looking at your business differently. You change your priorities and stop working so many hours building projects for others, and start working on building for your future as well. Getting started is the key. Don’t wait until it’s too late. It’s never the perfect time. Make it your goal to seek one wealth-building asset within the next three to six months.
George Hedley, HARDHAT Presentations
|Last Updated on Friday, 19 October 2012 12:51|