Entrepreneurs Are the Only True Exponentials

Does your career or occupation treat you as an asset that increases linearly or exponentially? Does it cause you to be a depreciating asset?  Does it open doors to allow you to experience exponential growth?

I don’t think this is an obvious set of questions.  It’s a thought experiment worth playing with when it comes to decisions.  The difference is huge. Let me make this thought a little more tangible.

Let’s take a professional athlete for instance.  If they invest heavily, and practice hard, they will increase in value.  Perhaps their salary will go up at an exponential rate.  But, ultimately, within the framework of athletics itself, the game causes them to depreciate substantially.  You can’t keep being a professional athlete for very long.  In some sports, only a few years.  Eventually, you can’t play anymore, and you can’t make a living.  Unless you can use this experience to walk through another door, you’re almost back to square one.  Some get the chance for more opportunities (especially the top tier).  A lot don’t.

There are some occupations that treat people very linearly.  For instance, some public school systems give teachers a fixed increase each year.  If you hang around long enough, you’re probably doing quite well.  However, this is fine if you assume you’re only increasing value at a constant rate (although, perhaps the overall value you receive can increase exponentially as you get better at inspiring more children to learn more important things.)

In some jobs, you can experience very high levels of salary growth (consulting, financial services).  But there is a maximum defined by the system and markets.

So what allows you to experience true exponential growth forever (in some form of value)?

Entrepreneurs have the best shot at this hands down.  In fact, that’s at the backbone of entrepreneurship.  Taking very little and turning it into a lot;  turning entropic disarray into wealth.  (Wealth of course can take many forms.) It takes value to make value.  However, it also takes agility.

It seems to me, if you’re good at building and harnessing whatever value you have, and turning a little into a lot, there is no end to the value you can gain.  You can step into new markets.  You can create new things. You can build organizations that let you eat, live, and also work on developing the next big thing. You also gain influence and networks the whole time. You’re doing something new and people notice.

Although some careers are much better for fostering entrepreneurial skills, the good news is that anyone can be an entrepreneur at almost any time.  The bad news is that very few will be good at it, and it’s very hard to get off the ground and to the point where the value created runs wild.  But, once you get off the ground, and make it to escape velocity, you have huge opportunities coming your way.

-Kevin
5.20.2010