What is wealth and where does it come from?

By Paul Kennedy on Wednesday, June, 24th 2015 in Uncategorized

When most people think of wealth they think of a surplus of assets over liabilities, and this is one definition of wealth. But wealth is not just what you have but what you can do with it. A multi-millionaire in the 1800’s had limited wealth compared to one in 2015 because the multi-millionaire now can do so much more with their wealth. There are many more things you can spend your money on. Goods, services and experiences are all more widely available. Imagine being a multi-millionaire on a desert island where there are no shops and nothing to buy. Assuming you can’t leave, would you really be wealthy?

All work is good work as long as it contributes to my bottom line!

If you are a student of orthodox financial management theory, which, if you are reading my blog is unlikely, you will be aware of the theory of marginal costing. It goes something like this …. If a business can be marginally better off by making an incremental sale it should do so. In a competitive …

Just say “No”

Superior business performance comes from being different. You can’t stand out if you run with the herd. Sure, every business says they are different. Websites claim exceptional customer care and allude to going the extra mile but often these are just … “marketing slogans that will not withstand competition” (Michael Porter)* When it comes to …

All change

You may have heard the saying, “if you do what you have always done, you will get what you have always got!” This is not a view I subscribe to. Your circumstances are a product of both your behaviour AND your environment. Outcomes will change if either of these change.

Are we as smart as we think?

Like me, you are probably one of those people who are just too smart to be influenced by marketing or to be hoodwinked by brands. Other people may be drawn in but we’re far too smart! Unlike other people, surely we make logical decisions unclouded by emotion. Perhaps we alone make perfectly rational judgements based …

Are you a leader?

Developing and growing a business requires leadership. Successful businesses are a collaborative venture. Businesses are built through people, and the bigger the business, the bigger the team (usually). Businesses need a team to get things done and teams need leadership. Despite this most business owners do not consciously think of themselves as leaders and, more …