Build Value, Get Rich Faster

If you want to get rich, most people will tell you to build your cash flow, but that is not the fastest way to get rich. The fastest way to get rich is to build enterprise value, and enterprise value is the amount of money that your business can sell for. The problem with that is that most people are not willing to sacrifice cash flow or their investments to put their capital into enterprise value. But it is the fastest way that they will get to a 7 or even an 8-figure amount of net worth. If you build a million-dollar business, which you can do in about 12 months, that business might produce $100,000 $100,000 in cash flow. Great. If you take that $100,000 and you invest it into stocks and real estate and other businesses, you may grow your net worth over many years. But if you sell that business for a million to $2 million, that's the enterprise value. That is ultimately what is going to make you the most amount of money. Most people would rather take a 25% pay increase so that their cash flow goes up modestly, so they have a short-term win, rather than take 3 to 5 years into building something that is going to have 7 figures worth of enterprise value. But the crazy few who are willing to make that trade of building something with the potential that can sell for $5 or $10 million tend to be the ones who create the most amount of wealth, and they do it the fastest. It's not by increasing cash flow, it's by building enterprise value so that when you sell your company, you can invest it for wealth and cash flow and never have to worry about it ever again.