Category Archives: Business

The Virtue Of Profits

Coming Out Ahead Is The Prime Directive of Life

Always Come Out Ahead

One way to control people is by changing the meaning of the words they use.

This was one of the central ideas in “1984” by Orwell. Slavery is freedom, war is peace, etc.

Governments have even tried to do this in recent times. Taxes are really membership fees. Political parties are families.

There’s a common metaphor of a bunch of crabs in a box. Most of them are too lazy to do anything about it, even though they know they’re probably going to be eaten at some point.

One crab decides to escape, but instead of helping him, or copying him, they all climb on and pull him back down.

Now, they’re probably not trying to pull him down. Rather, they’re too scared to try on their own, but they don’t to get left behind, so they just grab on and hope he pulls them ALL to safety.

As you can imagine, this happens in society ALL the time. If you’ve ever tried to break out of your financial rut for example, you’ve realized you need to do things differently.

Maybe save your money instead of blowing it every weekend with your buddies. Maybe you’ve made the “mistake” of telling them your plans. 

And instead of supporting you, like you’d hoped, they may have said things like, “What? Are you crazy? It’ll never work! Just come hang out with us and forget about starting your own business!”

Just like the crabs, they’re not hoping you’ll fail. But they’re terrified of being left behind.

After all, if you try, and succeed, what does it say about them?

They’d rather pretend it’s impossible, rather than try, take a risk, and succeed.

One of the most “changed” words is “profit.” Governments tell us it’s evil. People tell us companies are evil because they “chase profits.”

But consider this. Every single living organism MUST live profitably.

Consider a “biological balance sheet.” If any organism “spends” 1000 calories a day, but only consumes 800 calories, they are running at a net loss of 200 calories per day.

Which means they’ll be dead soon.

On the other hand, any organism that spends only 500 calories, but eats 1000 calories has a surplus. One that allows it to lounge around and relax in the sun. Find some other sexy organisms and use that surplus to make baby organisms.

Organisms, people, societies, all work the same way.

Profits are simply essential to survival. You can’t eat more than you produce. It’s mathematically impossible.

But the idea that “chasing profits” is bad is also impossible.

That’s basically the same as saying “staying alive and building a surplus” is bad.

Who says nonsense like this?

Those crabs who are too scared to be left behind, and power hungry types that want to keep you stuck.

If you’re ready to give those guys the finger, check this out:

You Are An Entrepreneur

Embrace Your Inherent Risk Taker

Risk Is Your Middle Name

A common misconception is that an “entrepreneur” is a special kind of person.

Meaning most would rather get a job they like, a safe salary, and not take too much risk.

Being an “entrepreneur” is something only those risk-loving swashbucklers do, right?

Not really.

The truth is that EVERYBODY is an entrepreneur.

But we don’t tend to see it that way.

Consider any action you could take, from going on a trip to a foreign land to getting up to make something to eat.

We NEVER know the future, so there’s ALWAYS some kind of uncertainty.

Sure, making a sandwich isn’t risky, it’s not like you’re going to open up the fridge and find yourself in the center of a mythical journey.

But every single action we take, both conscious and unconscious, requires a bit of uncertainty, and some imagination.

We imagine our current state, and we imagine a potential future state.

Then we quickly measure the risk between our current state and our imagined future state.

If, all things considered, our future state has a high probability of being BETTER than our current state, we’ll take action.

It doesn’t matter of you’re putting a frozen burrito in the microwave, or setting out to build a billion dollar business, this model is EXACTLY the same process.

It only differs by degree.

And the more complex the outcome, the more steps are involved, and the more dependent we are to feedback.

Take somebody who starts several businesses, has a few failures, before hitting it big.

She starts, gets feedback, tries again, gets more feedback, and finally strikes it rich.

Compare this to somebody fumbling for a light switch in the middle of the night.

Same exact process.

Action, feedback, action, feedback, success.

Being an entrepreneur, taking risk, measuring feedback, and taking another risk, is built in to your DNA.

In fact, it is impossible to be a living, breathing human and NOT be an entrepreneur.

Since you already ARE an entrepreneur, you may as well get paid!