Receiving an investment requires assuming additional responsibilities.
By: Mauricio Uro
If I give you 10 million dollars to spend on whatever you want, I think you would have no problem finishing that money within a year, indeed, some of you could do it in up to 30 days.
But if I give you 10 million dollars and you had to return 11 million in a period of 12 months, statistically, only 1% of those who read this article could do it, without investing in financial instruments (stocks, bonds, cetes, etc. ), very few would have the ability to directly produce a 10% return the first year with an amount like that.
We tend to believe that large capital investments in a company is the solution to all its problems because we approach money as consumption, which is irresponsible spending, and not as investment that entails productive responsibility.
If I buy a TV for myself, the only thing I expect from it is that it projects a clear image and good sound; if I buy a car, I hope it will take me from one place to another, in the most comfortable way possible, anywhere. In both cases, it doesn’t take much effort on my part to enjoy the benefits they bring me.
But, if I turn those goods into productive assets, then the work skyrockets because now I must rent the TV, transport it, install it, uninstall it, maintain it, store it, clean it, record it, manage it, etc. and the same with the car.
A common mistake among entrepreneurs is to believe that money decreases work and it is not, money magnifies the scope of your productivity and at the same time generates more work for you.
The asset pays what the money costs and behind an asset, there is a productive agent… there is a job.
If you believe that raising capital reduces operational friction, that is, that it takes away the fights you bring, I’m sorry to tell you that this is not the case.
If you don’t enjoy the reality of your job, which includes constant problem solving, then the path of entrepreneurship is not for you.
TO REFLECT
“…regulation is necessary precisely because we are not smart or well-intentioned enough”. Ha Joon Chang
“The description of a thing is not the thing itself.” Alfred Korzybsky
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