This post on twitter by an influential VC got me a little fired up because I think it is largely incorrect. In it he said:

Reasons people don’t get wealthy (a partial list):

  • 1. A lack of skills
  • 2. Lack of taking risks
  • 3. Not building a network
  • 4. Poor work ethic
  • 5. Not reading books
  • 6. Giving up after getting beat down
  • 7. Fear
  • 8. Being born at the wrong time
  • 9. Being born in the wrong country

My responses:

  1. Skills don’t build wealth. The ability to lead and motivate other skilled people builds wealth. Entrepreneurs are jacks of all trades and masters of none. Communication and resourcefulness are keys.
  2. This is what people don’t get about entrepreneurship. Its not about taking massive risk. Its about little well-calculated wins one after another that get bigger and bigger. Its not the person who takes 1 in 1 million shots over and over.
  3. You don’t build a network, you earn a network by becoming good at something and helping people with resources solve problems. My network didn’t grow at the networking events. It grew when I got really really good at one thing. Too many people put networking before doing.
  4. Wealthy people work smart. They make very good decisions on where to work and what to work on. They plan, analyze and plan some more before swinging the hammer.
  5. I learned more operating my business for 6 months than I could have learned from 100 books. Valuable yes but taking shots and mixing it up is 10x more valuable. Decision making is a skill that can only be learned through practice.
  6. Stack the odds so you are more likely to succeed and you won’t have to fail over and over again. Try something simple that other people have already proven is a path to wealth. Ignore Shark Tank, Tech Crunch, Trends and the media. Look at the world around you.
  7. Fear is an entrepreneur’s greatest asset. Its the reason why COVID won’t bankrupt me and I say NO more than I say yes. The folks with no fear will be starting over in a few months.
  8. Times always change and just because there weren’t computers in 1980 doesn’t mean it wasn’t an unbelievable time to start a new business. You just had to be an even better communicator back then and you needed to look folks in the eye to make something happen.
  9. I agree with this one. The birth lottery is the most important factor. Along with who your parents are and what kind of influences reach you at a young age.

My reasons people don’t get rich:

  • 1. Lack of resourcefulness
  • 2. Inability to delay gratification
  • 3. Horrible communication
  • 4. Fear of uncomfortable situations
  • 5. Inability to check EGO
  • 6. Selfishness (starting a business they LOVE)
  • 7. Emotional decision making