Max Koh Profile picture
27 Sep, 13 tweets, 3 min read
Wanna quit your job to start a business? Read this FIRST.

Not everyone is cut out to be an entrepreneur.

Over the years, I've seen many smart people quit their jobs to start a business, only to see them struggle as broke entrepreneurs.

Here's the mistakes they made:
1. Technician vs Owner

Most people quit because they are good at their craft, and think they know what it takes to run a business.

Unfortunately, they don't.

To run a business, you need a range of skills like marketing, sales, operations, among many others. The full stack.
Working IN a business vs ON a business are completely different things.

One of them only requires you be a technician, the other requires you be a manager, operator, and owner all at the same time.

Most people are not prepared to wear so many hats. So they end up struggling.
2. Entitlement

Most people quit because they're sick of working hard and want an escape.

While the agony of taking orders from someone can be a strong driver to start a business...

But doing so because you want easy money with little effort is the wrong mindset to begin.
They are coming from a place of greed instead of purpose.

They feel entitled to earn more without having to hustle hard.

They have no real skills or value to bring to the world, beyond their desire to call the shots. This sets them up for disappointment when things get tough.
3. Laziness

When most people say they wanna fire their boss, they picture themselves sitting by the beach sipping on pineapple juice...

While everyone else does all the work for them.

Sorry to burst your bubble...
A business in its early stages is like a baby.

It needs constant attention and care. It needs to be fed and nurtured.

While it may be less stressful than your full time job, it's not something that spits out cash from your laptop automatically.

You need to pay your dues.
With proper systems put in place, the business can eventually run without you.

But most people are thinking of enjoying that level of freedom since day 1.

This is lazy. And a lazy owner will never enjoy exceptional results.
4. Employee mindset

Many entrepreneurs are not entrepreneurs. They're employees suffering from entrepreneurial seizure.

They quit because they want more pay and autonomy without all the hard work.

Thus, when they start a business they go into it with an employee mindset.
They lack resilience.

They lack problem solving skills.

They lack the ability to be resourceful, to invent their way out of problems.

They have the skills of a technician, but lack the most important ingredient:

An Entrepreneur Mindset.
The best entrepreneurs think and behave differently from most 9-5 employees.

Unfortunately, most employees never learnt that.

So when they meet a wall, they don't know how to climb it because there are no ladders around.

Even though there's a forest of trees just beside them.

Most employees fail miserably at starting a business because of these mistakes from the start:

1. Technician vs Owner

2. Entitlement

3. Laziness

4. Employee mindset

I hope this has been helpful in knowing what mindsets to have and avoid before you take the plunge.
Being an entrepreneur gives you lots of control over your time.

And it's also rewarding.

But the psychology going in has to be correct.

I share my reflections on growing my wealth and achieving financial freedom as a 9-5 worker.

Follow me at @heymaxkoh for tweets like that.

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More from @heymaxkoh

28 Sep
In early 2020, I discovered Fintwit.

I had a 6 figure portfolio.

Since then, I've grown it several fold.

And attained my own version of financial freedom before age 30.

I owe a lot to the investors here.

Here's a list of my favourite tweets I've bookmarked and revisit often:
Preface before I begin:

I come from Singapore and a family with strong asian tradition.

Since young I was taught NOT to talk about myself.

It was boastful to share my achievements in public.

I spent 1 whole year on twitter with a private account, using it only to read tweets.
I only gained courage after:

• watching @david_perell interviews that inspired me to learn in public.

• hearing @AliAbdaal recommend "Share Your Work" in his youtube videos

So here's the top tweets that have influenced my investing philosophy:
Read 29 tweets
22 Sep
You don’t need to be the best. You just need to be different.

Instead of trying to be the best at one skill, aim to be decently good at several skills and combine them.

I learnt this from @ScottAdamsSays years ago and it’s fast-tracked my career and income.

Here’s why:
1/ Build your own personal monopoly

Monopoly = a niche that you can dominate.

In most companies, there will usually be somebody else who can do what you do. You're replaceable.

By mastering several skills and combining them, you become the only person who can do A+B+C.
This makes it hard to put you in a bucket.

While there are many who can do either A or B or C, you are the only one who can them all.

Because of this, there is no price anchor or comparison.

You can set your own value and it gives you leverage at the negotiation table.
Read 10 tweets
20 Sep
Best of Josh Tarasoff

@joshtarasoff is an investor who looks at businesses with a different coloured lens.

Knowing he wants to stay low key, I'm grateful he gave me the green light to write about him.

Here's my top 5 mental models from his interviews & letters over the years: Image
1. Bet on change instead of consistency

Classic Buffet: are people going to buy this product 50 years from now? Are people still gonna drink coke?

However, what I learnt from Josh is some types of changes can be predicted with more certainty.

a) Win win win

b) Dual value prop
Win Win Win

When there's a new way of doing things that benefits multiple parties, that change is more certain to endure.

Josh gives the example of Pet insurance benefiting:

• Pet owners (pay less $$)
• The vet (makes more $$)
• The pet itself

The ecosystem fluorishes.
Read 19 tweets
10 Sep
Everytime I see an interview with Fred Liu of @HaydenCapital, I grab my notepad.

The interview that Tilman from @goodinvestingc did with Fred last month had so many investing nuggets.

I took time to transcribe it personally so I wouldn't miss anything. Here's a few lessons:
1/ The importance of being a student of business models to develop pattern recognition:

"All investing is pattern recognition - you need to look at enough data points and patterns to formulate your own idea of what works and what doesn't, and how businesses/ ecosystems develop"
- Constantly deep dive on new businesses I may not have any intention of owning

- The more mental models I can accumulate, the easier it is for me to spot patterns in future

- Opportunities appear as a result of connecting the dots based on what I researched previously
Read 15 tweets

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