The way you do this is by balancing your four most important assets. Every decision you make will be a balance of these:
People, Time, Knowledge, and Money
The number one most important thing is people. Next is time, then knowledge, then money. They all matter, but they have varying levels of importance.
When you make a business decision, you look at these resources and see what ones you can spend the most of. It’s a constant balancing act. You could have more time and less money. Therefore, you need to use more of your time so you can make more money. You can invest in knowledge, which costs money and time. But that knowledge can connect you to more people, make you more money, and ultimately give you more time.
When you make a decision, find out what resources you have the least of. Save that one. Spend more time on the others. You’re always working upwards: to make more money, to gain more knowledge, so you can have more time, so you can invest in yourself and other people. Let’s go over each of these more in depth.
People involves investing in yourself and investing in others. This is your quality of life, including your body and physical health. What good is it to have a ton of money but then die at age 50 of a heart attack?
To eat the right foods, you need knowledge. You also need time to prepare them and money to buy the right food.
You can’t put a price tag on a human; I believe they are the most valuable thing on earth. Invest in your body and your spiritual wholeness and your mental health. Find ways to improve yourself and those you love, because those are the most rewarding things.
You’ll never hear someone on their deathbed say “I wish I had more money”with maybe the exception of Kevin O’Leary from Shark Tank. People always wish they had more time with their loved ones or invested in their kids. What is the point of being an entrepreneur if you can’t invest in yourself and in people? There is nothing more valuable on earth than people.
That’s why, for me, the coaching program we run is not about selling a program. It’s about raising up warriors you can impact themselves, others, and ultimately make the world a better place.
Time is super important because you can never get a refund on it. You can never get it back. The time I’m spending right now, teaching you this, is time I’ll never get back. That’s almost a scary thought. But it’s worth it for me, because I’m investing in people.
Time is very precious. One of the biggest mistakes entrepreneurs make is they don’t value time. They value money too much, so they never spend it, and always work, work, work, and their business doesn’t grow.
With some mid-level entrepreneurs, they value their time and knowledge and money, but they sacrifice their husband, wife, kids, or family. They end up lonely and have broken relationships because they put their business above people.
If your real end goal is money, then the other three assets won’t be as important to you. You can’t live like that. A huge part of people is networking: learning from other people, benefiting from each other. That will make you money in the end.
I love the book “Rich Dad, Poor Dad,” which emphasizes the importance of knowledge, though to a fault. You need knowledge and you need to learn. It is incredibly valuable: when you have knowledge, you can make money.
Employers have more knowledge than employees. That’s why they make more money. There’s nothing wrong with this, but if you want to run your own business, gain knowledge. Become an employer on your own, so you can be the person providing other people jobs.
One of the coolest things we get to do as we run this business is hire people and pay them well. I love that. The first time I got to hire someone to clean our condos, I felt so good that we were helping this person take care of their needs and bills by providing them work. I could not have done that if I didn’t set out to try something different and start a business.
Money matters. I’m not someone who goes, “Oh, if you want riches, you’re a really ungodly, evil, horrible person.” A lot of people have the idea that rich people are greedy and filthy. In reality, most rich are very disciplined. That’s why they’re rich. The smart ones are wise and don’t want attention. There are very few people who are very public and wealthy. Most wealthy people like to be introverts: they don’t want people liking them for the wrong reason. When you’re rich, people will be drawn towards you, many for the wrong reason. They just want to use you or get something from you.
I’ll never forget a very rich man said, “People are constantly coming after me and wanting something from me. They ask for one of three things. Most of them either want a job or a favor. Very few ask “Teach me so I can do what you do.””
Money matters, because if you don’t have money, you can’t buy the things you love and you have to worry about your needs. When you do have money, you don’t have to worry about how you’ll live, and you can employ people so you have more time to spend with your loved ones and increase your knowledge. All the assets work together.
I’m going to give you five examples of how to balance these assets as you go through the process of building a business on Amazon. These are the exact stages we teach in our Amazon Coaching program.
1 - Start
The start stage includes setting up your business, deciding what kind of company you’ll be, and how you’ll do taxes. If you’re trying to decide between being a sole proprietor or an LLC, you can use your assets to help. If you’re limited on funds, go for sole proprietor. It’s less expensive. Save your money because you’re low on it: you’ll have more time.
Your goal is ultimately to have enough money that you can save more time, because time is a greater asset than money. Money serves to build more time.
2 - Find
This is the stage where you research products to source and sell. Let’s say you find a product that has massive demand, but the competition is fierce. You realize it’s going to cost a lot of money and take a lot of knowledge to beat the competition. But your money and knowledge is low. Instead, go with a product that has less demand, but also less competition, and is safer. It will take more time for you to make the same amount of money, but it’s worth it, because you don’t have as much knowledge. You don’t want to go against top competitors when you don’t know as much and your money to promote your product is low.
3 - Build
The build stage is when you’re building your product and your listing. Here’s the big question: should I ship my product door-to-door (by air), which is more expensive, or by sea, which will save me $500, but cost me three weeks?
Notice that I said cost. Usually people think of cost as a money term. That’s a big error. I can cost myself time as well by waiting three weeks for my product. If my money and knowledge have grown significantly, I should spend those extra $500. In those three weeks, you can probably make a lot more than $500. That’s an example of where you save time by spending money.
4 - Launch
You’re ready to launch your product, and you’re running ads on Amazon to promote it. How do you decide if you should spend $5 a day or $150 a day on ads? You can spend less money, but if you spend more, you can find out what keywords work and will rank more quickly.
If your knowledge is strong, you understand ad campaigns, and your money is decent, I’d opt for the $150 a day for several weeks. Find out what the best keywords are for your product really quickly so you can optimize your listing, sell it faster, get it to the front page, and in the end, you’ll save time and make more money. You’re spending money upfront to make more later.
5 - Grow
Let me give you one last example. You’re at the point where you’re making really good money. You’re making $50,000 a month in revenue, taking home $30,000 in profit, and growing a legitimate business. But the problem is, you’re spending all your time optimizing listings, running ads, talking to suppliers, and dealing with difficult customers. You don’t have time to go out and find another product because you’re so busy maintaining the ones you have.
A mistake many entrepreneurs make is being so in love with that $50,000 that they protect it too fiercely and won’t spend money to hire someone to help them. At this point, you might need to give up $10,000 a month to hire and train someone to do these tasks for you so you have time to find more products. You’ll give yourself more time, and you’re investing in a person. Give up that $10,000 now to make another $30,000 a month later because you’re balancing your resources.
People who don’t balance their four assets end up one of two ways: with an unhealthy business or with one that doesn’t grow. Here’s what you do. Look at these resources before you make any major decisions. Ask this question: What resource am I lacking the most?
Do I need to invest in more people? Do I need to network? Is my health deteriorating? Do I need to learn more knowledge? Am I scraping by on money?
Maybe your knowledge is limited, so you need to focus on training yourself. Or maybe your money is limited, so you need to spend more time working on the business yourself instead of hiring people. Whatever your weakest asset is, protect it. Then you can gain more money, to gain more knowledge, to gain more time, to spend it with the people you love doing the things you love. That’s the whole point behind it.