What's Scarce?

What's Scarce?

What's scarce?

Capital is not scarce. There are trillions of dollars in the world's economies. If you get extra cash, your neighbor doesn’t have to be shorted on his paycheck. No! You can create more cash! Many people think that capital is like a cash pie and only a limited supply. Only 8 slices and then it’s finished.

That’s wrong. There’s a cash kiln oven and you can always bake more pies.

On the other hand, character is scarce.

In a new deal, the #1 question we ask ourselves is not “Can we fund this idea?”

No, rather, “Can we trust this entrepreneur?"

The idea is important, but the character of the people behind the idea is supreme.

Do you have the guts to change directions and make the hard decisions?

Do you have the courage to take investment capital, and instead of feeding your family first, plan for the future and build something that lasts? (This has the potential to feed them for a generation.)

Here are a few ways to develop your character:

  • Spend time with people you want to be like who have strong reputations and character.
  • Spend time with peers who have character (people who are honest, trustworthy, of good reputation, responsible, compassionate for others).
  • Read biographies and books about people you admire who had great character (here are a couple).
  • Read blogs and articles that hone your skills and challenge you to be a better human (good one!).
  • Develop discipline (like spiritual practice, exercise and physical activity, and regularly scheduled writing).

It all boils down to this: do one thing each day that refines and develops you as a person. Doing this each day will help develop you into who you're supposed to be.

Capital will take care of itself. And believe it or not, the best investors love people with character that they can trust.

It’s not completely about your idea. It’s about YOU behind the idea. Can YOU be trusted to do what you say you’re going to do?

(photo via chris mclennan)