We read their books and idolize them and hang on their every word.
So the brightest among us think they need a moat. A new idea. Something revolutionary.
Were setting them up for FAILURE.
Entrepreneurship culture in America is all messed up and it’s a shame.
TechCrunch. Product Hunt. Shark Tank.
It’s all about new ideas. Changing the world. Innovation. 0 to 1. Blue ocean. Venture capital and exits and scalability.
And ITS ALL A LIE.
We read their books and idolize them and hang on their every word.
So the brightest among us think they need a moat. A new idea. Something revolutionary.
Were setting them up for FAILURE.
I was #25 with a regular old-fashioned business.
When professors asked me what my differentiator was I didn’t have an answer.
I started by trading my time for money. Bought a $1500 cargo van. Used the things I had in my life to make some profit.
I wasn’t following my passion.
I didn’t need funding or a network.
I wasn’t competing against brilliant folks from Stanford.
I want trying to prove a concept.
I wasn’t emotionally attached to anything except adding value.
I made decisions with my brain, not my heart.
I was competing against folks with fax machines, clipboards and paper ledgers.
And the best part... WE WERE PROFITABLE FROM DAY ONE.
They all had dreams of millions of users and an exit.
Scalable models that could work anywhere from a computer.
But 90% failed to make a single dollar.
Who are the wealthiest people you know?
I’m not talking about money.
I’m talking about the people who do what they want to do when they want to do it.
Who are they?
I know a lot of wealthy emtrepreneurs.
None of them had new ideas. None of them raised VC money. None of them were on shark tank.
They all did common things uncommonly well.
Regular old businesses just a little better.
They worked really hard doing something not fun for 5+ years. Many times 20+ yrs.
They started out trading their time for money.
They did things that weren’t scalable.
Many of them offered services.
They had to sell themselves and their ideas.
They didn’t take a lot of risk.
Most of them hired coders but few of them were coders.
Entrepreneurship isn’t that complicated.
Do something with good odds, low risk and moderate rewards.
Don’t master your craft, master leading other people.
It’s not about you and what YOU love or what YOU want to be doing.
And lastly..
Start SMALL.
Biz is about momentum.
It was a stepping stone to bigger and better things.
We learned operations and communication and resourcefulness.
And it served us well.
When you’re successful, experienced, wealthy and you have a killer network...
It’s time to change the world with something BIG.
Luckily there are thousands of ways to win at this game.
Feel free to disregard, challenge me or move right along!
https://t.co/xjB9BEIoC5
The sweatier the better!
More from Nick Huber
Don’t have much cash but want to invest in real estate?
Want to get SBA loans and special loan programs so you can buy real estate investments with only 5-10% down?
One word for you:
Don’t.
Here’s why
👇👇👇
Leverage can be a beautiful thing.
Appreciation takes over and all that value you bought with debt grows and you amplify your returns.
But there is another, darker side of debt.
Values drop 5 or 10% and you’re underwater. You have zero equity or negative equity.
Ask the folks who were over-levered in 2007 what happened on 2011?
Real estate is a frothy space right now. Money flying everywhere and values higher than they’ve ever been.
Debt is cheaper and easier to get than ever.
Will it continue?
Probably.
Money could stay cheap for a long time. There is a ton of negative yielding debt abroad and liquidity ready to flood our market at the drop of a hat.
Rates will likely stay low. Gov will probably keep subsidizing these loans. You’ll probably be okay.
Want to get SBA loans and special loan programs so you can buy real estate investments with only 5-10% down?
One word for you:
Don’t.
Here’s why
👇👇👇
Leverage can be a beautiful thing.
Appreciation takes over and all that value you bought with debt grows and you amplify your returns.
But there is another, darker side of debt.
Everybody I know loves LEVERAGE when it comes to real estate.
— Nick Huber (@sweatystartup) October 18, 2020
It\u2019s a beautiful and scary tool, kicking appreciation, depreciation, and cashflow into overdrive.
It amplifies everything. You can make a lot of money really fast and go broke in months.
Here\u2019s how it works\U0001f447\U0001f447\U0001f447
Values drop 5 or 10% and you’re underwater. You have zero equity or negative equity.
Ask the folks who were over-levered in 2007 what happened on 2011?
Real estate is a frothy space right now. Money flying everywhere and values higher than they’ve ever been.
Debt is cheaper and easier to get than ever.
Will it continue?
Probably.
Money could stay cheap for a long time. There is a ton of negative yielding debt abroad and liquidity ready to flood our market at the drop of a hat.
Rates will likely stay low. Gov will probably keep subsidizing these loans. You’ll probably be okay.
