Gene Simmons and KISS!
In his book, Me inc. Simmons talks about being qualified for this-or-that… I’ll paraphrase what he said about ‘being qualified.’
Gene Simmons said he can’t write music and can’t read music, but he’s sold over 100 million albums. He says, that he’s not ‘qualified’ to be in a rock band… Let that sink in.
Well, I’m not an economist and I don’t play one on T.V. However, there are some facts and information I feel everyone should know regarding the basic state of financial affairs.
It comes as no surprise that with all the information available on the internet and elsewhere, everyone seems to claim, at least, they have THE answer; and at most they claim expert status.
Just the Facts.
Global production of goods and services is 60 trillion dollars. Only 10%, 6 trillion is either on deposit or backed by tangible stuff; gold, silver, etc.
That means that 90% of that amount is backed by something else, some other currency, and it is. The problem is this mysterious backing is what most Americans, and necessarily banks, put their faith and trust in… This other currency is CREDIT. This is only backed by the TRUST that the future will be better than today. Your income will at least stay the same, or go up.
Can You? Will You?
Keep in mind the two points a lender or investor investigate before releasing money to you.
First, how much money do you make. They need to know this so they know that you can pay back the extension of credit.
Second, your credit (or trust) history. This is important because this tells that you will pay it back
Can and will. Can you pay it back. Will you pay it back. This is a familiar situation when applying for a loan.
With an investment, you have to paint a picture of a future that says, “This amount you’re investing in me or my idea is safe because the product or service will be developed and delivered (sold) at a profit.
So, the two basic points are, 1) your promise to pay the money back plus interest and, 2) show how you are going to do that. Pretty simple, but with all the working parts in play when the process starts it can get overwhelming.
Playing or Building!
Keep in mind while there is nothing barring you or anyone else from playing or building in any entrepreneurial space, this trust building includes good Opportunity Analysis and determining Opportunity Cost.
Also keep in mind that ideas are a dime a dozen, and the only thing that makes them special is that they’re yours. And that can be a good thing, but be careful…
Making a decision from an emotional position is a making a decision from a vulnerable position. And that can be very dangerous 🙂 Especially in business and potentially with other people’s money.
Be careful creating emotional attachments to ideas, whether for products or services.
There are basically two (2) areas of attachment, 1) the product and, 2) the process.
I recommend attachment to process. Build and launch a product, service or business.
Keep a super high focused interest on the development of the product or business.
I hope this helps direct your attention toward drilling deep when you’re looking for answers.
The first rule of investigation is LOOK, don’t listen.
Image courtesy of rutchapong at FreeDigitalPhotos.net