Are you an entrepreneur that believes not necessarily in the pursuit of happiness, but rather that it’s the pursuit that is happiness? Do you love the hunt and challenge of building something epic? Are you willing to sacrifice cashing in for yourself at the first opportunity because you know your cashout point will be much sweeter in five, 10, or 15 years? If this is you, you’ve stumbled across just the blog post to help fortify your vision.
Now, just because you’re the type of entrepreneur that fits the above description doesn’t mean you’re immune to potential pitfalls that would bring your long-term model to a halt. We are only human, and we are all susceptible to getting greedy from time to time. But as your business is starting to see some initial success, you must, first and foremost, delay your own gratification. Otherwise, you’re going to risk putting limitations on your business that will ultimately prevent you from growing something truly incredible.
Remember, just because you’ve finally made enough to buy that Lambo doesn’t necessarily mean you should. Instead, consider increasing the funds you’re pouring into your business to continue multiplying your growth. In a decade, you’ll potentially be able to buy 10 Lambos rather than settling for instant gratification and skimping your brand of the funds it needs to grow. You’ll get paid, you’ll just have to wait until the end. But, with a little patience and the right strategy, it’ll be well worth it.
This is precisely the strategy used by Snow Teeth Whitening founder and serial entrepreneur Josh Elizetxe. Though he’s only in his mid-20s, Josh has Snow clearing $2 million a month and on track to hit $25 million this year. The company has partnered with several high-profile celebrities, a list that includes former UFC champion Chuck Liddell, NFL star Rob Gronkowski, and reality TV star Dorothy Wang. Clearly, Josh is putting his money where his mouth is in terms of pouring money into Snow’s influencer marketing efforts. And that’s just one area he is continually emptying his own pockets to reinvest in the brand.
We recently interviewed Josh for an episode of our podcast, which you can find at the bottom of this post. Here’s an excerpt from that interview about avoiding the greed trap and sacrificing now so you won’t starve your business of what it needs.
Genghis Khan, when he took over a village or conquered an area, instead of killing all the men, he included them in the new society and made them working, contributing parts of his empire. I think about building businesses in a very similar fashion.
Think about what happened in the Dust Bowl in Oklahoma. They had new machinery and they were turning crop over so fast that they destroyed the soil and all the sudden you could never grow anything again. And then there was a layer of this fine dust that covered everything. People were getting sick and dying. That’s the result of greed. What I try to figure out is how can I delay gratification and how can I continue to grow my land exposure? Once I’m there, I can then start to pull out some profit.
Most people overestimate what they can do in one year and underestimate what they can do in 10 years. — Josh Elizetxe
What [Snow is] doing is reinvesting every single penny and then some. I believe that if an entrepreneur is building a real business, you should never have money in your bank account. If you have money in your bank account, you’re starving your business. You’re not investing in your brand. I try to make sure that every time we have money in our account, we spend it and we try to do that on brand-building elements because that attracts more retailers, more resellers, more people want our product, and it attracts more celebrities.
It’s really a snowball effect, no pun intended, of how we build a brand. It’s kind of a bifurcation of how you look at building a business. You look at your profit activities and you look at your brand-building activities and you don’t want to connect the two. You don’t want to be thinking you need a [return on investment] tonight on Floyd Mayweather’s post or Chuck Liddell’s fight. I’m looking for exposure so when people see our ads on Facebook something subconsciously is going to connect and they’ll say, “I saw that somewhere. That was on Chuck’s shorts.” That’s what I’m looking for and I’m also looking for other celebrities that are in the audience who are seeing that so when we reach out to them or they reach out to us, they already know about us.
- More from Josh: How to Know When It Is Time to Sell Your E-Commerce Business