What do you truly earn from a new venture

[rogercbryan]

I've been doing a look of self reflection do to the fact that I have a project that I can't seem to get going in the right direction. As I was sitting trying to map out a new plan for this project I had to take into account what I had already invested and what I had earned. In doing so the numbers looked horrible so I started to look at some of the other things that had happened while working on this project. I came up with this little chart that I wanted to see what you all thought of.

When launching a new venture you typically invest two things:
Time
Money

While the goal is of course to make money you also gain:
Education
Experience

When thinking only about the time and money that I had invested and then calculating my current negative ROI I was appalled by the waste. Yet when I added the education and experience that I have taken from all this I was a little more comfortable with the situation. In fact I was motivated to invest more time in educating myself so that I can use that education to gain new experience.

If I take the time to learn the tools that I need to complete this project then the next project will only be easier. I've made a few posts about how I'm having trouble with developers based on the fact that I'm nor concise about what I need. The reality is that I don't know what I need. Learning the missing pieces should allow me to do even larger projects in the future.

So when you launch a new venture and begin to measure its success do you solely look at the money or do you equate the other aspects of what you have gained?

Feedback???.......

[Silverion]

In matters of new ventures, it depends on what you have to back you. Somebody who mortgages his house to pay for the development of his dream but fails in accomplishing it, will have a lot of more experience on the fine, yet important details of developing a start up. Of course that will be a limited gain if he has to move his family to a much smaller and less adequate place to live.

On the other hand if you already have an estabished income that provides you with the resources to develop multiple business entrepreneurships, you must determine your real focus of the investments you make. Beyond money and experience the real questions to set are, where do you want to get with the business (&#180 you are building or financing? Is it a money amount, a learning experience or is it simply the desire to expand beyond what you have already achieved? When you determine where the horizon sets you will have a lot better notion of where you are heading and how can you focus your resources to produce in great quantities the "thing" you really are after.

Once you do this, then you can determine the success of winning or loosing on the project you are investing your time or money in. And added to that, whatever education or experience you achieve (independently of the result) will be twice as valuable than if you hand´t made the analysis because it will linked directly to the "thing" you are working for.

[pboychuk]

I started my first business at 16, by 18 when I went to college, I basically broke even, maybe made 5-10k$, but it wasn't much. I have since started another business which is basically founded on the knowledge of my younger years, it's main purpose is to create a steady income to pay all my expenses while in college, and begin saving for new ventures.

Maybe I am not doing what I want to do all my life, but I am starting to earn the money that can help me eventually invest in something long lasting.

[Gaulkin]

The real question is, are you having fun? Every venture ive done was because i loved doing it. If its a downer then scrap it and move to something that you love. Cash is just the icing on the cake but actually getting there is the reality of why we do what we do.

[rogercbryan]

The real question is, are you having fun? Every venture ive done was because i loved doing it. If its a downer then scrap it and move to something that you love. Cash is just the icing on the cake but actually getting there is the reality of why we do what we do.

I love my primary company... it really is the culmination of the my dreams. I get to raise money for charity and I make a great living. I realize that if I'm going to expand in to running multiple businesses that I'm not going to love every single one of them. In reality I shouldn't, what I should do is to find a partner that loves that business and then let them run it with my backing.

Good management is extremely hard to find these days....

[rogercbryan]

In matters of new ventures, it depends on what you have to back you. Somebody who mortgages his house to pay for the development of his dream but fails in accomplishing it, will have a lot of more experience on the fine, yet important details of developing a start up. Of course that will be a limited gain if he has to move his family to a much smaller and less adequate place to live.

On the other hand if you already have an established income that provides you with the resources to develop multiple business entrepreneurship's, you must determine your real focus of the investments you make. Beyond money and experience the real questions to set are, where do you want to get with the business (´) you are building or financing? Is it a money amount, a learning experience or is it simply the desire to expand beyond what you have already achieved? When you determine where the horizon sets you will have a lot better notion of where you are heading and how can you focus your resources to produce in great quantities the "thing" you really are after.

Once you do this, then you can determine the success of winning or loosing on the project you are investing your time or money in. And added to that, whatever education or experience you achieve (independently of the result) will be twice as valuable than if you hand´t made the analysis because it will linked directly to the "thing" you are working for.

Good points... I guess from my prospective I'm running zero credit and I'm investing 100% of my own money. This is the money I've earned from my primary company. I have nothing against going into debt for a new venture but I reserve that option for industries I'm more experienced in.

I have to note too that these ventures I'm talking about are very small ($5K to $25K) in start-up money. I am working on a $1M thrift store operation but that is through my primary company as is backed by business partners with much deeper wallets then mine.

I guess the question is that if I invest $10K into a project that takes 2-5 years (if ever to recoup) can I justify the time value or loss of money as an education experience? Would I be better justified investing the money into a guaranteed return thus sacrificing a learning experience and potentially profitable outcome?

[rogercbryan]

I started my first business at 16, by 18 when I went to college, I basically broke even, maybe made 5-10k$, but it wasn't much. I have since started another business which is basically founded on the knowledge of my younger years, it's main purpose is to create a steady income to pay all my expenses while in college, and begin saving for new ventures.

Maybe I am not doing what I want to do all my life, but I am starting to earn the money that can help me eventually invest in something long lasting.

I envy you... While I did start a ton of businesses when I was your age I never really made any money. I started working in my current industry when I was 23 and I started my company when I was 26. I'm 30 now and I'm just beginning to see my returns. If you keep up with what you have going you will be years ahead of me in no time...

[Lambo]

i learn from what experience teaches...that is primarily what i look into when starting new ventures, just the amount of new things that i learn, new people that i meet...etc.

[rogercbryan]

i learn from what experience teaches...that is primarily what i look into when starting new ventures, just the amount of new things that i learn, new people that i meet...etc.

HUH??? Not sure what that means.... I understand the rest

[pboychuk]

I envy you... While I did start a ton of businesses when I was your age I never really made any money. I started working in my current industry when I was 23 and I started my company when I was 26. I'm 30 now and I'm just beginning to see my returns. If you keep up with what you have going you will be years ahead of me in no time...

I try to tell myself this also, but when I read these books talking about people becoming millionaires right out of college i start to get discouraged, I am making more money now then most people will when they graduate from college, however, I feel a bit of greed and want to make even more.

Another thing I want to mention, is It seems all the previous posts mention doing what you really want to do.. I feel this is a serious flaw. My first business was selling womens wallets and apparel, Do you think I enjoyed that? No, but I was making extremely good money, the only reason I only netted 5-10k is because my supplier ducked out on me for a huge order, so I basically lost everything I had worked for.. But, I learned soo much from that experience, The fact that I am not in debt, has made it all very rewarding...

But as I was saying, doing something that isnt my true love is going to earn me the income to start businesses that I want to run and own. Basically my goal is to start businesses which are long term investments, in a sense that they are worth more than the inventory they contain, be it customer contracts or facilities. This will bring me security.

[RLorenzen]

I've been doing a look of self reflection do to the fact that I have a project that I can't seem to get going in the right direction. As I was sitting trying to map out a new plan for this project I had to take into account what I had already invested and what I had earned. In doing so the numbers looked horrible so I started to look at some of the other things that had happened while working on this project. I came up with this little chart that I wanted to see what you all thought of.

When launching a new venture you typically invest two things:
Time
Money

While the goal is of course to make money you also gain:
Education
Experience

When thinking only about the time and money that I had invested and then calculating my current negative ROI I was appalled by the waste. Yet when I added the education and experience that I have taken from all this I was a little more comfortable with the situation. In fact I was motivated to invest more time in educating myself so that I can use that education to gain new experience.

If I take the time to learn the tools that I need to complete this project then the next project will only be easier. I've made a few posts about how I'm having trouble with developers based on the fact that I'm nor concise about what I need. The reality is that I don't know what I need. Learning the missing pieces should allow me to do even larger projects in the future.

So when you launch a new venture and begin to measure its success do you solely look at the money or do you equate the other aspects of what you have gained?

Feedback???.......

I definitely look at the experience I have gained and the many new things I have learned when I start a new business. Sure, I've made good money too, but I take more pride in the knowledge and experience I have gained. I make sure to learn at least one new thing everyday, it makes me feel energized and passionate about what I am doing.

[Silverion]

Good points... I guess from my prospective I'm running zero credit and I'm investing 100% of my own money. This is the money I've earned from my primary company. I have nothing against going into debt for a new venture but I reserve that option for industries I'm more experienced in.

I have to note too that these ventures I'm talking about are very small ($5K to $25K) in start-up money. I am working on a $1M thrift store operation but that is through my primary company as is backed by business partners with much deeper wallets then mine.

I guess the question is that if I invest $10K into a project that takes 2-5 years (if ever to recoup) can I justify the time value or loss of money as an education experience? Would I be better justified investing the money into a guaranteed return thus sacrificing a learning experience and potentially profitable outcome?

Okay. Lets start with your first question. I think the only way you can justify such a feeble amount as a $10k dollar investment into such a long-term project is if you can use the knowledge and experience you receive from that period of time in an angled panoram. If you are not sure what I mean with angled panoram, imagine a 90 degree angle or any angle you want. Independently of how large or big the angle´s shape is, the angle itself will always be the same. Basically what I mean is that if you can use the knowledge and experience acquired into such a small project throughout your continuosly growing career as a business man, then the time and money is worth it. But don´t forget the point of this lessons is to help you make better decisions in your future. So if you can´t picture how such an insignificant investment of time and money will help you develop better (based on the idea that you will only continue to grow in the future), then it was pretty much a total waste. Its just like a teen who goes to school and learns about algebraic formulas when he already signed a contract to play for the NBA (just an example).

As for your second question, the answer goes back to my first reply to this thread. All you have to ask yourself is this: Where does your horizon set? When you are able to define that, you will know if the investment matches what you really are after and consequently if it is a waste of your time or not.

[Silverion]

I try to tell myself this also, but when I read these books talking about people becoming millionaires right out of college i start to get discouraged, I am making more money now then most people will when they graduate from college, however, I feel a bit of greed and want to make even more.

Another thing I want to mention, is It seems all the previous posts mention doing what you really want to do.. I feel this is a serious flaw. My first business was selling womens wallets and apparel, Do you think I enjoyed that? No, but I was making extremely good money, the only reason I only netted 5-10k is because my supplier ducked out on me for a huge order, so I basically lost everything I had worked for.. But, I learned soo much from that experience, The fact that I am not in debt, has made it all very rewarding...

But as I was saying, doing something that isnt my true love is going to earn me the income to start businesses that I want to run and own. Basically my goal is to start businesses which are long term investments, in a sense that they are worth more than the inventory they contain, be it customer contracts or facilities. This will bring me security.

Hey Chuck,

I think you are missing the core of what we all meant (at least in our majority), when some of us said what he really should do is what he wants to do (in advice to roger). Thats the wrong focus. The right one, is why we really want to do it. And the answer is money. From there, there are a million and one reasons why we want the money. But why is the right focus, not what. Just wanted to leave that clear.