You know why some people are able to make millions and you aren’t? At the end of the day, it comes down to brand equity. Successful entities be it businesses or people created a brand that at least some people/organizations are willing to pay for. Why is your favorite athlete able to sign hundred million dollar plus contracts to sell shoes at significant premium prices? Why banks and financial markets allow certain people and organizations to take get financed relatively easily when the regular person could never be able to do that? Why are certain people/organizations are able to obtain guarantees or co-signings and successfully receive finance while others can’t? Why certain brands can make huge profit margins on luxury goods that only cost pennies on the dollar to make?
Why do successful tech entrepreneurs who have completed successfully exit(s) frequently get fundings for future projects with relative ease? The thing about money is the money or wealth itself is not what people actually desire, it’s their high purchasing power that allows people to achieve a higher standard of living that people want. This is precisely why when crises occur, money or resource are either illiquid, becomes relatively worthless or become liabilities which defeat the purpose of investing in the first place. I still think 401(k) is absolutely the best investment vehicle for the common person in time of peace and when the full faith in the government is strong. We all need specific types of resources to survive everyday. Money just made buying/paying for everything streamlined. What happens when specific resources are no longer available for sale or no longer affordable with money? Cash flow is extremely important for everyone in peace time.
Cash flow issues become an exponential issue for those who have vast amounts of wealth in times of turbulence due to the liquidity crunch and national/global turmoil. We are now living in a time where anyone can go anywhere with some exceptions with relative ease. Due to technological advances and people’s openness to technology adoption, commerce can literally be done anywhere and at anytime. When you have a reputation that is standardized through an identifiable brand with its own brand equity, people are willing to pay a premium for to be associated with that brand. It’s mostly a function of trust in a particular result that can be quantified. Yes, getting an IP in your local jurisdiction for these might be wise or possibly with somewhat of a global protection via Madrid Protocol or Paris Convention whatever but the crux of the issue is building that identifiable brand equity with meaning. Of course, bigger opponent will always have leverage over little guys even if they infringe. However, brand equity is not just about legal IP protection, it’s not even about the IP mostly, it’s about your brand conjure up a set of attributes so unique that no one else is able to replicate it exactly.
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Why it is critical to create your own brand equity.
Yes, there are lot of people/organizations who can make me too products or even create a doppelgängers, but you know many people and the influencers can and know the distinction between the original and the copycat trying to be associated with someone else’s brand. No one will likely knowingly pay the same brand premium of the original for a fake. Just think about it, is brand premium always about the product being exponentially superior in functionality or is it a mix of everything including reliability, perception and how it makes a person who is somewhat associated with the brand feels? Does it feel good to wear a fake premium brand article of clothing when you know it’s a fake? A brand usually needs to have certain baseline characteristics just like a human does. Of course people evolve and grow, however, characteristics that shape who we are tend to be anchored like our DNA that may somewhat change with the environment, but with adequate management of various condition this process can change very gradually. Since brands have identities that probably should come from authenticity and passion, the best way to build that is by identify the inspiration(s) of that brand and model after it with whatever genuine modification that is required when legally compliant to do so. Significant brand equity that can generate a brand premium pricing is not built in the short-term. It takes years of building up desirable attributes etched into the brand DNA that people can relate to and taken a liking to. I still think getting FU money first through achievable methods like 401(k) is relatively wise to do.
At the same time, get the education and experience to succeed in future endeavors. Regular people aren’t too big to fail and don’t have the cushion on the cash flow end for them to take their times to figure things about. One or two wrong moves could mean disaster for the common person and likely no one will bail them out. In those scenarios, their situations will likely turn into a vicious cycle of possible unfortunate events. This is why I believe it’s important to have enough stability to do things on the side when legally compliant to do so while you have the cash flow from a job to decrease survival press and the motivation to eventually make money yourself and keep the brand premium piece of the piece for yourself.