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Eric Siu discusses what separates business owners from employees: owners absorb downside risk and volatility that most people won't tolerate. Building wealth requires accepting the losses and uncertainty that come with the territory.
Eric Siu discusses what separates business owners from employees: owners absorb downside risk and volatility that most people won't tolerate. Building wealth requires accepting the losses and uncertainty that come with the territory.
When I meet a lot of potential employees and entrepreneurs, a lot of them want the gains, but they want to mitigate the downside. And in essence, they understand that there's downside, but they all say like, oh yeah, they're just trying to protect themselves and structure a deal where there's no downside for them. And it's just like, cool, so I take all the risks, you make all the money, whether I do bad or good. And if I do really good, you want even more money. But when I'm doing really bad, you still want to get paid market rate or above market rate. Yeah.
What's in it for me? Exactly. And think about it this way. The time, the years, the decades we put into business, the millions of dollars when times don't go well in the business that we have to put back into the business. When it's time when you might even have to bankrupt the business or whatever, right? When like people don't see that type of stuff. No. And they— and I just, I don't understand. And this is why most people, they want to be rich, but they will never get rich because you can't handle volatility. I'm just telling you, we talked about this a couple of weeks ago. We just talked about in business, you're getting used to getting kicked in the nuts or punched in the face all the time, right? That is the volatility. And if you can handle that, if you can be resilient, for sure you will become rich.
