The Investopreneur Journey

In this newsletter, we'll explore the investopreneur journey: the path from initial awareness and understanding of investopreneurship principles to the application and execution of these principles to achieve personal, financial, and business goals.

Roadmap 🗺️ 

Get clear on your personal WHY

In this journey of investopreneurship, the first destination you need to arrive at isn’t a tangible point of financial gain, but rather, a deep, introspective understanding of your personal “why”. Your “why” is the bedrock of your motivation, the compelling force that will sustain you throughout the journey — through the thrills of victories and the lessons of setbacks.

Your “why” isn’t about the money you will gain or the assets you will accumulate, though they are an integral part of the journey. Instead, it is about your purpose, your passion, and your ultimate goals in life. Are you driven by the desire to create a better life for your family? Is it about making a positive difference in your community, or even the world at large? Do you wish to create something unique, original, and impactful? Understanding your “why” will provide you with a sense of direction and clarity that will become your guiding light on this journey.

As an investopreneur, your “why” becomes the North Star in your decision-making process. It helps you to align your actions with your deepest values and aspirations. Remember, every successful investopreneur has a “why” that transcends the simple desire for financial success. They are driven by a deeper, more profound purpose that gives meaning to their journey and, ultimately, their life.

EXERCISE 1: Uncover Your “Why”

To help you uncover your “why”, consider the following questions:

• What motivates me to get up every morning?

• What am I passionate about, and how can I align this passion with my financial goals?

• What kind of legacy do I want to leave behind?

• How do I define success, and what will it look like for me?

Your answers to these questions will help crystallize your “why” and provide you with the motivation to persevere on your investopreneur journey. As we continue to navigate the roadmap, remember to trust the process and stay committed to your “why”. After all, the path to simple, profitable outcomes is not just about the destination, but also about the journey and the person you become along the way.

Get clear on your financial framework

Having understood your “why”, the next crucial step on your roadmap is to establish a clear financial framework. This framework will serve as your financial blueprint on your investopreneurship journey.

Financial clarity involves understanding where you are now, where you want to go, and how you intend to get there. It's about having a clear vision of your financial goals and mapping out a strategic path to achieve them.

Your financial framework will guide your investment decisions, spending habits, saving mechanisms, and risk tolerance. It's not just about how much money you want to make; it's about understanding your current financial health, identifying the financial resources at your disposal, and making strategic choices to optimize them.

As an investopreneur, your financial framework must align with your personal “why”. Remember, we’re on a journey to build simple, profitable businesses within our budgets, and your financial framework will serve as your roadmap for that journey.

EXERCISE 2: Establish Your Financial Framework

To help you establish your financial framework, consider the following:

• What is my current financial status? (Income, expenses, savings, investments, debts)

• What are my financial goals? (Income goals, savings targets, investment objectives)

• What financial resources do I have? (Personal savings, income from a job, potential investors)

• What is my risk tolerance? (How much financial risk am I willing to take?)

Your answers will lay the foundation for your financial framework, providing the structure you need to build a simple, profitable business within your budget. The journey of an investopreneur requires financial discipline, strategic planning, and execution, and your financial framework will guide you on this path.

Remember, as we journey together toward simple, profitable outcomes, your financial framework serves as your guide, so trust the process and commit to the journey.

Get clear on a vision for how you can achieve it.

Understanding your “why” and your financial framework is just the beginning. The next critical step on your roadmap as an investopreneur is to form a clear vision — your guiding light on the path toward building a simple, profitable business.

However, your vision isn't just an endpoint or a distant dream; it's your strategic blueprint. It ties together your “why”, your financial framework, and your unique strengths and passions to create a targeted course of action.

As an investopreneur, you will leverage your skills, abilities, and traits to solve problems you are passionate about. Your vision should not only encapsulate this passion but also detail how you can make a meaningful impact on your chosen audience or market.

EXERCISE 3: Articulate Your Vision

To help articulate your vision, consider these questions:

• What unique skills, abilities, or traits do I possess?

• Which problems am I passionate about solving, and how do these align with my "why"?

• Who will benefit from my solution, and why do they need it?

• How will I generate profits while making this impact?

• What timeline do I foresee for turning my vision into a profitable reality?

Your answers will serve as a guide, a vision statement that ties your "why" to an actionable strategy. The vision you articulate now will continually guide your decisions, your goals, and your strategy. It becomes your beacon as you navigate the journey of investopreneurship.

As we move further along in this journey, we'll delve deeper into each aspect of this vision, from developing your business plan to creating a strategic roadmap, to turning your vision into a profitable reality.

Always remember, our journey as investopreneurs isn't about racing to the finish line; it's about making good, timely decisions. Trust the process and commit to the journey.

Get a job to have someone else to pay you to gain experience.

For some, this sub-chapter title may feel counterintuitive. "A job? But isn't this journey about entrepreneurship?" you might be thinking. Yes, but an investopreneur understands the value of all resources, and that includes the ability to learn, grow, and gain experience on someone else's dime.

Remember, the journey of an investopreneur is one of leveraging resources efficiently to build simple, profitable businesses. It's about thinking long-term and strategically. One of the most cost-effective ways to gain experience, learn about an industry, and understand business functions and processes is to work for a company within your target field.

The job doesn't have to be a permanent fixture in your life, but it can be a platform for you to observe, learn, and absorb relevant knowledge and skills. Working in an established company gives you a first-hand look into best practices, operational efficiencies, and even the common pitfalls or challenges within the industry. These invaluable insights will significantly benefit you when you're ready to launch your own business.

Keep in mind that the goal isn't just to get a paycheck, but to learn and network actively. Use this opportunity to build relationships, find mentors, understand the needs and wants of customers, and get a better sense of the competitive landscape.

Working in a job provides not just the learning opportunities and resources for your future venture, but also an added layer of financial security. By having a steady income source, you're mitigating your personal financial risk and creating a safety net for yourself. This financial buffer allows you to pursue your entrepreneurial activities without the stress of "having to make ends meet," at least in the early stages.

It's a paradox of sorts — by taking a risk-averse path of maintaining a steady income, you are freeing yourself to take on more entrepreneurial risks. It provides you with the opportunity to experiment, innovate, and make calculated decisions in your business without the fear of immediate financial ruin. This approach aligns perfectly with the ethos of an investopreneur: to build a simple, profitable business while strategically managing risks.

In addition, this financial stability often translates into greater confidence. Knowing you have a fallback allows you to negotiate better, stand your ground on matters you believe in, and make decisions that align with your long-term vision rather than short-term financial pressures.

All of these factors contribute to creating an environment conducive to the growth and success of your entrepreneurial endeavors. This is the power of the investopreneurial mindset, where you strategically use all resources at your disposal to pave your path to success.

This is the beauty of being an investopreneur – you approach every situation, even working a job, as a learning opportunity and a stepping stone toward your ultimate goal: to build a simple, profitable business within your budget.

In later chapters, we will dive deeper into how to leverage your experiences and the skills you acquire to your advantage. Trust the process, commit to the journey, and remember: each step is bringing you closer to your vision.

EXERCISE 4: Skills Assessment Template

This template can be filled out directly, or better yet, create a copy in a digital format so you can easily update and revise it as your journey unfolds.

Step 1: Inventory Your Skills

Skill

Description

Example: Coding

Ability to write computer programs in various languages

Step 2: Rate Your Skills

Skill

Proficiency (1-10)

Example: Coding

8

Step 3: Assess Your Interest

Skill

Interest (1-10)

Example: Coding

9

Step 4: Map Skills to Industries/Roles

Skill

Potential Industries/Roles

Example: Coding

Software development, Cybersecurity, Data analysis

Step 5: Consider Your Financial Framework

Potential Role

Average Income

Aligns with Financial Goals (Yes/No)

Example: Software Developer

$100,000/year

Yes

Step 6: Align with Your WHY and Vision

Potential Role

Aligns with WHY (Yes/No)

Supports Vision (Yes/No)

Example: Software Developer

Yes

Yes

By adopting this structured format, it will help guide readers in a more organized way and will be much more helpful as they complete this assessment. They can also revisit it at any point in time and update it as they progress in their journey.

Take All Of That Experience And Some Of That Pay & Build A Simple, Profitable Asset On The Side

The next step on your journey involves leveraging your hard-earned job experience, the skills you've refined, and the financial stability you've gained to start building an asset on the side. In the investopreneur context, an asset is a simple, profitable business or investment that generates income independently of your primary job. It could be an online business, an investment in stocks or real estate, or even a side gig that capitalizes on your unique skills.

Here are some key considerations when you embark on this step:

Align with Your WHY: Your side asset should ideally be something that aligns with your personal WHY and vision. It should resonate with your passions, interests, and values, which will make the process of building and growing it not only financially rewarding but personally fulfilling as well.

Leverage the Investor’s Mindset and Entrepreneur’s Heart: As you start to build your side asset, you will need to draw upon both the strategic and disciplined mindset of an investor and the passionate and innovative heart of an entrepreneur. These two key components of the investopreneur mindset will be crucial in enabling you to create and manage your side asset effectively.

Financial Prudence: You're not quitting your day job to chase after this. You're using the financial stability and capital that your job provides to fund the start of this journey. This means taking calculated risks and ensuring that your day-to-day lifestyle is not negatively impacted by the investment in your side asset.

Mitigate Risk through Focus and Simplicity: When starting to build your side asset, it's essential to keep things simple and focused. You're not aiming to create a complex conglomerate right off the bat. Instead, you should aim for a straightforward, manageable business model that can reach profitability relatively quickly. This approach will not only make the process more manageable but also help to minimize the risk associated with your endeavor.

Leverage Your Skills: The side asset you choose to create should take advantage of the skills and knowledge you've accumulated. This doesn't mean you need to stick to what you're currently doing, but rather that you should leverage your existing skill set in a new and innovative way.

Time Management: Creating a side asset requires a time investment. You need to be ready to dedicate some of your free time to building, growing, and managing it. Time management will become a crucial skill, and you must balance this new responsibility with your existing job, personal commitments, and rest.

Goal Setting: Set specific, measurable, achievable, relevant, and time-bound (SMART) goals for your side asset. What do you hope to achieve with it in the short term and the long term? These goals will keep you focused and motivate you to push through challenges and setbacks.

Patience and Persistence: Building a side asset is not an overnight process. It requires patience, persistence, and resilience. Be prepared for challenges and setbacks, but trust the process and commit to the journey.

In later chapters, we will dive deeper into how to choose the right kind of simple, profitable business that aligns with your WHY and vision, as well as provide practical guidance on managing your time and finances effectively. But for now, the crucial thing is to start thinking about what kind of side asset might be right for you.

Your investopreneur journey has now begun in earnest. With your WHY as your guiding star, your financial framework as your safety net, and your vision pointing the way, you're well on your way to making good, timely decisions that will lead to long-term success.

Set a Goal to Get Your Asset to Match Your Income

You've made it this far. You have an asset, a simple business that you've built on the side, while still earning a living from your day job. As an emerging investopreneur, you've started to carve out your unique path, striking the delicate balance between entrepreneur and investor, all while living your "why." The seed has been planted, and you've tended to it carefully.

Now, it's time to raise the bar.

Setting your next goal — to match your day job's income with what you earn from your asset — is like aiming for the horizon. It's a goal that seems a little daunting at first. Yet, it's precisely the kind of challenge that investopreneurs live for.

Turning Dreams into Reality: This goal is the line in the sand between dreaming and doing, between imagining what could be and making it real. It's a proof of concept, a validation of your capabilities, and a testament to your commitment.

Fuel for the Journey: Just as your car needs fuel to move, your investopreneur journey needs goals to propel you forward. This goal will give you direction and momentum. It's a target to strive for, a gauge of your progress, and a milestone to celebrate once reached.

Strategy, Tenacity, and Adaptability: The path to this goal will likely not be straight or smooth. You'll need to craft a solid strategy, be tenacious in the face of obstacles, and be flexible enough to adapt when necessary. It's this blend of strategy, tenacity, and adaptability that underpins the investopreneur's mindset.

A Step toward Financial Freedom: Achieving this goal is a significant step toward financial independence. It means you're no longer solely reliant on your day job for income. The options then widen: perhaps you might choose to leave your day job to focus more on your asset, or you might decide to hold onto both and enjoy the added financial security.

Ever Onward and Upward: After hitting this goal, pause and enjoy the view, celebrate your achievement, but then set your sights on the next peak. As an investopreneur, the journey never really ends; there's always another venture to pursue, another mountain to climb.

Remember, as you embark on this part of the journey, you're not alone. The following chapters will offer valuable strategies and tips to help you on your way. However, for now, let this goal light the fire within you, ignite your passion, and drive you toward your vision. As you commit to this goal, you commit to your journey. Trust the process and stay the course, for you're well on your way to becoming a seasoned investopreneur.

Go Level Up

You've taken the leap. You've built your asset, nurtured it, and seen it grow. You've matched your day job income, and tasted the sweet fruits of your labor. But, as an investopreneur, you know that the journey doesn't stop here. It's time to push further, reach higher, and go level up.

Stepping into the Unknown: The process of leveling up can be daunting; it's venturing into uncharted territories, stretching beyond what's familiar and comfortable. Yet, it's through these leaps of faith, these steps into the unknown, that significant growth happens.

Scaling Up: As you're ready to level up, consider how you might scale your business. This could mean expanding your customer base, introducing new products or services, or enhancing operational efficiency. Scaling is about making your business bigger and better, all while maintaining - or even increasing - profitability.

Never Stop Learning: Leveling up also means honing your skills, expanding your knowledge, and becoming more versatile. It's about learning from past experiences and also proactively seeking new knowledge and insights. Remember, as an investopreneur, you're both an investor and an entrepreneur; both roles require continuous learning and growth.

Expand Your Network: To level up, you'll also need to expand your network. This could mean collaborating with other businesses, forming strategic alliances, or just broadening your circle of mentors and peers. Your network can be a powerful resource on your investopreneur journey.

Resilience and Tenacity: Lastly, remember that leveling up isn't always smooth sailing. There will be setbacks, challenges, and obstacles along the way. But as an investopreneur, you're defined not by the challenges you face, but by how you overcome them. Resilience and tenacity will be your greatest allies during this phase.

You've built your asset, nurtured it, seen it grow, and matched your income. But, as an investopreneur, you know that this is only the beginning. To truly embody the spirit of investopreneurship, you have to constantly strive for more, reach higher, and continually level up. But what does "leveling up" look like? Let's explore:

Scale, Sell, or Buy: As an investopreneur, there are several paths you could take to level up. You might choose to scale your current asset, doubling down on what's working to grow it further. Alternatively, you might decide to sell your current asset, creating liquidity that you can reinvest into new, potentially more lucrative endeavors. Or, you might choose to buy a new asset that complements your existing portfolio, providing an opportunity for synergistic growth.

Pursuing Better Opportunities: Leveling up isn't limited to just your assets. It could also mean pursuing better job opportunities that provide higher income and valuable experience. This could entail negotiating a raise at your current job or transitioning to a new job that offers better pay and more learning opportunities.

Portfolio Planning: As you level up, it becomes increasingly important to strategically plan your portfolio. This means not only diversifying your assets but also aligning them with your personal WHY. Each asset in your portfolio should serve a purpose, whether it's generating income, providing a learning experience, or contributing to your overall vision.

Embracing Challenges: Leveling up is rarely a smooth journey. There will be setbacks, challenges, and obstacles along the way. But remember, as an investopreneur, it's not about the challenges you face, but how you overcome them. It's these very challenges that build resilience and tenacity, turning you into a stronger and more effective investopreneur.

As you prepare to level up, remember that you're not just working toward financial success. You're building a life of purpose, forging your own path, and becoming a beacon for others who aspire to take the investopreneur journey. As you rise, you inspire others to do the same.

Remember, the sky isn't the limit; it's just the beginning. Onward and upward, investopreneur!

Mindset

Investor's Discipline

Standing on the edge of a precipice, the untamed wilderness of opportunities and challenges spreads out before you. This landscape represents the journey of the investopreneur. But you are not alone. Held firmly in your hand is a compass — the investor's discipline. It's the invaluable tool that guides your decisions, helps you navigate the terrain, and ultimately leads you to your destination.

In the larger scheme of this journey, this compass of discipline comprises various elements. They are all crucial in their own right, and later on, we will dive deeper into each one. Let's take a quick look at them:

Being a Capital Allocator: As the stewards of multiple forms of capital – financial, human, time, and intellectual – we must use our resources effectively to fuel growth and innovation. Remember, allocation decisions are the foundation of your investopreneurship journey.

Bootstrapping on a Budget: This involves personal financial planning, understanding your simple math, and aligning everything with your "why". You'll learn how to bootstrap your business efficiently, even on a tight budget.

Building the Wedge: As an investopreneur, the creation and use of "wedge equity" is a key part of your journey. It's about understanding business valuations and the buy/sell process, all of which we will explore in due time.

Designing Your Wedge: From simplifying and organizing to transforming and strategizing, there are many steps to effectively designing your wedge equity formula. We'll discuss how to optimize this process.

Executing: This involves setting up structures, strategies, and accountability systems to ensure everything runs smoothly and effectively.

Portfolio Planning: Understanding when to buy, sell, or hold is crucial to building multigenerational wealth.

As we go along this journey, we will explore each of these elements in-depth. But for now, let's just remember that it’s not just about having the heart of an entrepreneur; it’s also about having the discipline of an investor. And when these two forces are combined, the result is an unstoppable momentum propelling you forward.

A Deeper Dive

Often, the entrepreneur is portrayed as a daring risk-taker, a maverick charting their own path. However, successful entrepreneurship isn't about reckless bravado, but calculated courage. The willingness to take on risk is essential, but the capability to manage and mitigate it is what differentiates the successful from the unsuccessful. This is where the discipline of an investor comes in.

As investopreneurs, we are our own first investors. We invest our time, our energy, our resources, and, most importantly, our belief in the vision we have. As our own first investors, we owe it to ourselves to steward our investments wisely, which calls for discipline. Not just any discipline, but the kind forged in the crucibles of the financial markets.

Think about the best investors. They have the patience to wait for the right opportunities. They understand the power of compound interest. They are aware of the dangers of unnecessary debt. They diversify their assets and hence, their risk. They focus on cash flows as much as, if not more than, profits. They know when to hold, when to fold, and when to walk away. They don't let emotions cloud their judgment. In essence, they manage risk effectively to increase the odds of their success.

As investopreneurs, we apply these principles to our entrepreneurial journey. We understand that while we are in the business of creating and capturing value, we are also in the business of managing risk. The discipline of an investor helps us make good timely decisions — decisions that not only help us achieve our "why" but also do so in a manner that is financially sustainable.

We not only embrace this mindset, we reinforce it by creating and using financial frameworks that align with our "why". This alignment helps us stay true to our vision without straying into financial peril. It helps us see opportunities where others see obstacles, and see risks where others see only rewards. It guides us in making the kind of decisions that reflect not just what we want to achieve, but also how we want to achieve it.

We are entrepreneurs, yes, but we are also investors. This dual identity empowers us to be both creators and custodians of value. It allows us to build businesses that not only generate wealth, but also withstand the test of time. It's this investor's discipline that separates us from conventional entrepreneurs and makes us investopreneurs.

So, as you continue on your investopreneur journey, always remember this — you are your own first investor. Take pride in this role. Own it. It's your key to unlocking the immense potential that lies ahead.

Next, we will explore the equally important counterpart to the investor's discipline — the Entrepreneur's Heart. It's the fire that ignites your passion, the wind that fills your sails, and the compass that guides your ship toward your desired destination. It's the beating pulse of the investopreneur journey. Stay tuned, as the journey is about to get even more interesting!