Being an entrepreneur sucks...

especially in the early days when you see other people who are

1) Less smart and competent than you

2) Less hard-workers and

3) Less resilient

making more money than you.

I remember when I quit my corporate lawyer job. While I was starting my SAAS company some friends from the university were celebrating their first salary raise.

I was there, in this shitty office, bootstrapping that saas without a salary and paying the bills thanks to some freelancer jobs.

Most of us have struggled for years before achieving a better-than-average lifestyle. Let´s not ruin it with a bad business acquisition. Lets change our mind: from the passionate entrepreneur to the cautious investor.

Why are we choosing this path? Because it provides more upside, but, don´t forget, also more downside.

I recommend you see this video (specially min 44 to 47):

Think about it, the WORST CASE SCENARIO is:

You find a deal, become obsessed with it because you perceive it as something scarce and end up paying lawyers, accountants, “due diligence” experts, and consultants to give you advice without skin in the game and making their fee with independence whether you success or not. After a couple of months, you will be so fucking biased that you will be tempted to buy even when is not the best deal (in most cases giving your personal guarantee, sometimes, personally guaranteeing millions of dollars to acquire companies with almost no assets in their balance sheets).

We all know how a bad deal can end. A bad deal can bankrupt you or even worse... put you in a trap where you are full of hope working to maintain alive a business that you hate and that is making your life miserable because you can´t afford to quit. In some cases, making you ill and die prematurely.

How to avoid premature die due to stress and capture upside potential while doing downside protection?

Only taking asymmetric risks.

Always have a margin of safety.

Let me share with you the following example:

Last year we were about to purchase a factory so we did an appraisal.

>>> Read it full inside our FREE SELF FUNDED ROOM: