Business is an ongoing investment. It’s like a house, you must constantly reinvest.

Constantly reinvest. In order for that house, that business, to grow in value.

The businesses that reinvest constantly into their business i.e. talent, marketing and other systems, grow at a rate exponential to their peers that don’t. I know it’s tempting to take money out and invest it into things like clothes and cars and everything else.

But here’s the thing, if you can just hold off for ten years… “What?”

The truth is, you can work your ass off to build a $150,000 dollar business and if you pull all the money out of that to live a lifestyle, you’ll be working for the rest of your life.

However, if you work and you build a $150,000 or  $200 000 dollar business and you are constantly reinvesting almost everything above the cost of living back into that business, in 10 years from now, you will have a level of freedom that most people dream about.

Business is an ongoing investment. You have to reinvest.

Business is an ongoing investment. You have to reinvest.

Who knows Gary Vaynerchuk?

He built his business, his family business, from $3 million to $50 million after six years. Guess how much he paid himself during that entire growth phase? $40,000 a year.

The biggest mistake that people make is they start a business to take money out to do things they can’t afford to do. His advice was learn the importance of reinvesting in your business. So every cent that you make above covering your basic needs should be reinvested back into things such as getting people to do the things that you hate doing so you can focus on what you love.

I am shocked at the effort and the lengths that people will go to scrimp and save and get money and invest in a property every single month that if they’re lucky will invest at 2,3,4,5 maybe 10%.

Do you know what the number one asset class is for creating wealth in the world?

Business

It is the number one asset class in the world based on the history of time, and if you want to grow that asset, you’ve got to be willing to put cash in.

Growth comes from reinvestment.

Growth comes from reinvestment.

People who build get to the point where they’ve got 2,3,4,5, you know 10 million dollar businesses, it doesn’t happen because they kept pulling money out. They understand that business is an investment strategy.

Guess what, rich people do invest in property but that’s where rich people hold their money. Property is the bank account of the wealthy.

“But hang on, Kerwin, this is why I’m in business.”

If you’re in business to make money, you’re in the wrong fucking business. You should be in business to live your purpose. If you’re in business to live your purpose, all you need to do is cover your basic needs and you should be happy.

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Kerwin Rae

Kerwin Rae

Fast Growth Business Specialist and Educator at Business Mastery Pty Ltd
Kerwin Rae is a businessman, investor, strategic advisor, author and international speaker. He has studied and observed the psychology of influence for well over a decade now and is considered an expert on influencing human behaviour and how it relates to sales, marketing, fast growth business principles, leadership and personal transformation.
Snapchat: @KerwinRae
Kerwin Rae

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