Heard a keynote speaker at the EO event today say that he was multi-millionaire when he was 28.
So, this actually pops a question – how do you define multi-millionaire.
For example, if you start valuating your business at 3 or 4 times top line or even bottom line –and that is contingent based on exit – I would then qualify to be a multi-millionaire. But, reality is, that I don’t think of myself as a multi-millionaire – I’m not. The bottom line is that 95% of profits is getting re-invested into the business. So, my question is – next time someone says they are a multi-millionaire – lets ask a simple questions – “How do you calculate that?” In fact, better question would be: please show me your balance sheet, and please show me liquidity. To me, if someone has a multi-million dollar balance sheet, AND they are ‘liquid’ – then, in my eyes, they are then ‘multi-millionaires’ – but otherwise – they are ‘potential’ multi-millionaires. Potential means that you could easily end up bankrupt as you could ‘multi-millionaire’. So, lets keep it real people. I have a multi-million dollar business BUT I’m not a multi-millionaire. Until that business is liquid – and the money is in bonds or sitting somewhere like Switzerland – you are just a guy with a dream – and payroll, and overheads and risk. Lets not spin things to sound cool.
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