Logo
  • Research
  • Teaching
  • Industry Cooperations
  • News
  • Team
  • Open Positions
  • Contact

© Chair for Strategy and Organization, Technical University of Munich

FacebookXLinkedIn
Entrepreneurship
🏗️

Entrepreneurship

📝
The “Game Plan”

Wealth Equation 📖

  • Wealth Accelerator: Asset Value (of company)
  • Wealth creation is driven by:
    • Net Profit = Units Sold x Unit Profit
    • Asset Value = Net Profit x Multiple

Create Wealth by... 🏗️

  • Building successful and/or high growth companies.
  • Doing so enables you to achieve 1.) a high net profit potential and/or 2.) a high multiple.
  • Both of which drive the valuation of your company, and in turn your personal wealth as an owner of the company 💰
💡
Key Ideas
  • Entrepreneurship is THE road to becoming “rich”, i.e. achieving “financial freedom”.
  • Most of the world’s richest people built their wealth via entrepreneurship either directly or indirectly (have a look).
‣
Building companies has unlimited potential for wealth creation 🧗🏼
  • It allows you to base your wealth creation on unlimited factors (net profit/asset value).
  • It allows you to profit from taking business risks, by providing you with accountability via ownership of the business.
  • It allows you to apply leverage to your entrepreneurial ideas via people, capital, and products.
  • That’s why you’re able to disconnect your inputs from your outputs via successful entrepreneurship (why?).
‣
We live in times of huge technological change, providing plentiful entrepreneurial opportunity 🚀
image
ARK Invest_052919_whitepaper_DI-Why-Now.pdf3306.5KB
‣
However, some words of caution are needed 🚧
  • Pursuing entrepreneurship for monetary reasons is usually a bad idea!
  • Building a successful company is very hard. Only a few people achieve it.
‣
It’s not for everyone. You need a high pain threshold to work through the difficult process of building a successful company.
  • Solely relying on monetary motivation when building a company might not be a big enough “why?” to push through all the hardship involved.
  • You need to be passionate about solving a problem. This passion should fuel your entrepreneurial journey.
‣
Here’s what passion about a problem looks like.
  • You don’t need to look for your passions, they usually choose you.
  • If you’re passionate about solving a problem, GO FOR IT 🎯!
“One of the huge mistakes people make is that they try to force an interest on themselves. You don't choose your passions, your passions choose you.” - Jeff Bezos
“Don’t start a company unless it’s an obsession and something you love. If you have an exit strategy, it’s not an obsession.” - Mark Cuban