3 Loops of Entrepreneurs life
Transform yourself from Kitchen Mindset to Asset Building mindset and finally from Asset building Mindset to Investment Mindset. This is how you grow your wealth.
The next most important thing in this video is about understanding 3 loops of an entrepreneur’s life.
- Earning Kitchen
90% of world’s population is busy in the first loop. People are born, Graduate, Get into workforce, Earn, Retire and Die. Fewer of them get chance to enter the 2nd loop which is called “Investment”. They save some money, borrow some money and invest. They make mistakes and loose investment like 90% businesses and end up with debt. Now, they enter 3rd loop of life called “Repayments”. They will keep repaying for their remaining life to Mamoun and Chachou or all the lenders.
Where exactly is the mistake?
Common mistakes made by our young Pakistani entrepreneurs is borrowing money from relatives without contract of Profit/Loss/Risk/Equity sharing. They only have verbal agreements. If we make profit, we share. No one talk about loss/risk. All assumptions. Once there is a loss which is likely for 90% cases, you end up with all the debt because you never talked about loss/risk with Mamoun. Who want to talk about loss with Mamoun?
The second mistake people make, jumping in business without mentor. Why do you want to take risk of your investment? You willing to take risk of your huge investment? Just because you want to save fee to pay the mentor? This was the single biggest mistake I made myself and I lost $1M on stupid ventures and non-stop experiments all my life before I finally succeeded.
So either you learn from Experience or learn from Experienced.
So it’s extremely important to understand that if you get a chance to come out of first loop of earning, you invest wisely because you only create wealth by investment. Without investment we cannot grow and create wealth. And if you fail in this second stage of investment, then repay wisely. Don’t rush into repayments otherwise you will loose many years of your life again before you get second opportunity to invest again. So always set aside a portion that you will spend on repayments. And portion for Investments must be always higher. This is the only way to speedy wealth creation and then repayments.