Sunday 24 May 2009

Wealth versus value

Some people know how to create wealth, in the monetary sense, and some people know how to create value, which, can lead to making money.

Think of the value as "magic". It is about something colourful and inspired. It doesn't have to be unique but it does have to push the envelope in some special way.

The people who know how to create the wealth need the people who can create the value. And the people who can create the value need the people who can create the wealth. Of course, some people know how to create both – those are the truly gifted people, in the entrepreneurial sense.

I know how to create value, but I am not good at making, or, keeping money. There is a difference between creating things, creating value, and creating wealth. And because making money is not my strong point I need to have partners in the ventures I jump into – partners that help me balance out the equation. And this is a good thing, because doing things on your own is not that fun. A team is what makes climbing the mountain possible, and only, enjoyable.

Most people I have met in my life think that because they have a good idea and because they work hard means they are going to make money. But, negotiating with a landlord, and getting a good deal with a supplier, etc., is not as easy as it sounds. Maximizing the funds you have available in your venture requires a very special skill, and it is not something that should be taken for granted.

Making money to me is an uninteresting idea. One needs to make a difference. Add quality to the world and the quantity will sort itself out. But don’t be naive about it; get help when it comes to the numbers. An engine is made up of many parts. And they all work together to create momentum.

Posted by Ronnie Apteker