My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Net worth is a silly metric - cash flow and liquidity matter much more than reported net worth
The Reasoning
Most net worth is illiquid and based on subjective valuations, while cash flow determines actual lifestyle and opportunities
What Needs to Be True
- Private valuations remain subjective
- Liquidity continues to be limited for most wealthy people
- Cash flow provides more predictable lifestyle
Counterargument
Net worth does translate to opportunities, access, and eventual liquidity for patient investors
What Would Change This View
Better liquidity markets for private assets or more accurate public reporting of cash flows
Implications for Builders
Focus on building cash-flowing businesses over high-valuation ones
Be skeptical of paper wealth claims
Structure deals for liquidity rather than valuation
Example Application
“Choose to own 50% of a $10M cash-flowing business rather than 10% of a $100M illiquid startup”
Related Knowledge
billionaire is a state of mind
The label 'billionaire' is more about perception and lifestyle than actual liquid wealth
Mr Beast and other top creators are building bad businesses (chocolate bars, supplements) when they
Audience value is so high it makes even bad businesses work, but the same audience could create vastly superior business
High Authority vs Delegated Authority Model
Binary leadership approach where you either operate with complete top-down authority or delegate full decision-making au
Passion Project Connection Strategy
A relationship-building approach that focuses conversations on people's current passionate interests rather than their well-known achievements, creating deeper engagement and authentic connection.
Three-Stage Currency Adoption Framework
A currency must pass through three distinct stages to become truly functional: store of value, medium of exchange, and unit of account.
Systematically improve content creation skills through deliberate practice
By video 100, your content quality has improved dramatically through conscious iteration, and you no longer need external advice because you've developed your own judgment and skills.