Before I get right into the reasons why entrepreneurs generally shun the luxury goods market, I feel it pertinent to make the distinction between what I mean by ‘entrepreneur’ in the true sense of the word and the various different types of enterprising individuals who could be misconstrued to be entrepreneurs.
So for some clarity, an entrepreneur is an individual who identifies avenues through which they can exploit opportunities to make money by solving problems, the most common of which problem-solving avenues is that of providing value to some kind of end client, whether that value is real value or indeed if it’s perceived value. This type of enterprising individual is different to the other types of enterprising individuals in their own right, i.e. businesspersons and self-employed individuals. I suppose we can throw investors into the mix as well, but either way it must be made clear that if one is an entrepreneur, a businessperson, a self-employed individual or an investor, this doesn’t necessarily mean they fall strictly within those defined borders. It is indeed possible to be employed at an eight-to-four job and run a side-hustle as an entrepreneur, which you would naturally hope is going to grow into your main hustle and take over your corporate job.
So when someone points to the likes of Floyd Mayweather as perhaps one of the greatest entrepreneurs of our time, they wouldn’t be completely wrong, particularly with regards to pointing out that this particular entrepreneur fully embraces the luxury goods market. What I’m specifically talking about though are those hard-grafting entrepreneurs whose enterprise covers multiple disciplines, with a lot of the profits they make coming down to their application of their entrepreneurial spirit time and time again.
I’m talking about those entrepreneurs who can legitimately lay claim to being pure entrepreneurs, starting up multiple operations and then perhaps automating them so that they can create jobs for and employ others and then move on to the next venture and the next idea!
These guys shun the luxury goods market very hard, simply because they’ve become accustomed to understanding and staying true to what true value is. This is not to say they don’t spoil themselves once in a while, deservedly so too, because in addition to working incredibly hard, these real entrepreneurs are also serious risk-takers who have often risked so much just to be able to provide for themselves and for others who depend on them.
Considering something like a Rolex watch, which a connoisseur would probably refer to as a timepiece instead of just a regular watch, to the true entrepreneur who understands true value, spending $20,000 on a watch that tells time just like their mobile phone does will never make sense, no matter how you present the argument.
So it’s all about the underlying, true value, but then again we can always go back to the likes of Mayweather and say that he is an entrepreneur who is targeting a different market, i.e. the luxury goods market, so he would be happy to buy one or two Rolexes in addition to the ones he’d receive for free, as a sponsorship which forms part of a big money endorsement deal!
Welcome to Motivational’s. This is Elliot Grant, fitness fanatic, and your go to advisor and blog post writer, putting your fitness first.