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You Don’t See The Value

Oct 9, 2024

I was on my way to the barbershop to get a shape-up because the next few days are dedicated to creating content. My barber texted me, saying he’d be a little late, so I decided to sit down on a busy corner in downtown Los Angeles and write about this thought that’s been on my mind: Why can’t they see the value?

The value of what, you may ask? Well, let’s get into it.

It’s clear that many people don’t fully grasp the value of investing in assets like e-commerce websites, intellectual property like trademarks, logos, and graphic design. This might be because they haven’t yet understood the potential return on investment these assets can provide. I’ve spent a lot of money carelessly in my life on things that ultimately didn’t offer any long-term value.

I think I am qualified to speak on this because I, too, was one of those people who valued liabilities over assets. I used to love experiences and eating out, especially spending $100 easily on something amazing like seafood. You know how expensive a great steak at a top-notch restaurant can be. Back then, I didn’t think twice about it. But now, I realize the importance of building a business where those dinners can become write-offs—well, 50% to be exact, but you get the picture. We have to change our mindset when it comes to what an asset is.

For instance, when we purchase a car, it loses approximately 20% of its value the moment we drive it off the lot, and within the first year, it can depreciate by as much as 30% or more. Despite this, our culture often celebrates buying a car over starting a business. It seems a bit backwards if you ask me.

Similarly, when we buy shoes, most of them have a low resale value. While they might serve as good keepsakes, they won’t provide any financial return. On the other hand, logos are the cornerstone of a brand’s identity. It’s surprising that some people don’t see the importance of getting their logo done right the first time, considering it will represent their brand indefinitely. And we’re not even getting into the potential of licensing your logo once it’s trademarked. Imagine one day selling your company and leasing the trademark—getting paid indefinitely. Indefinitely means without any end in sight, providing a continuous stream of income.

If you see the value in brands like Louis Vuitton, Rolls-Royce, Gucci, or Nike, then you understand the importance of investing in quality and brand identity. Yet, some people fail to see the value when creating their own company. This disconnect is particularly striking when you consider that these major brands have built their reputations on strong, recognizable branding and strategic investment in their assets.

E-commerce websites are perhaps the most undervalued asset. A well-designed e-commerce website can generate revenue for a business indefinitely. Even if you were to spend $10,000 on a website—though I’m not necessarily suggesting that—it would be a one-time investment that could continue to produce returns over and over again. Similarly, with graphic design, once you have the proper release forms and have it protected, that design is yours to reproduce repeatedly, adding lasting value to your brand.

We need to shift our mindset on how we perceive value and where we choose to invest our resources.

God Bless The Entrepreneur.