The majority of business owners, when they reach some modicum of success and the money is flowing, look at where they can blow it. They buy the Mercedes, they buy the ultra expensive desk, they buy $1,000 hand bags, houses, etc.
Spending this money in this way is very dumb compared with what smart entrepreneurs do which is invest it in talent and training and research and development i.e. the goose that lays the golden eggs.
Smart business owners have been known to invest upwards of 20% of revenue towards developing forward and this is what allows them to outperform the guys who spend profits on bullshit.
In this age of knowledge workers, and any age for that matter, the business owner can’t do every function of the business at a world class level. We all aren’t skilled in the same areas nor do we have enough time in the day to perfect skills in all areas or execute them.
But we can leverage the talent of others in areas of our business where we are untalented or time challenged in.
And this is why you want pay heed to America’s first billionaire, Andrew Carnegie’s position which was, you can take all my money and companies and my possessions away and leave me with only my talented team and I’ll be back on top in short order.
Blowing all the profit you earn as a small business owner trying to look like a big shot, big time business owner will guarantee that you stay a small business owner . . . or that you get put out of business.
Carnegie knew all of the material stuff was bullshit compared with the team that allowed for him to deliver that value that made the material stuff possible to obtain in the first place.
If you aren’t continuously committed to making everything you do in your business obsolete yourself, you can rest assured your competitors and technology are committed to tag-teaming with each other to do it for you.