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February 5th , 2025

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WHY PROFITS ARE BETTER THAN SALARIES: LESSONS FROM THE RICHEST MAN IN CHINA

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Introduction

Have you ever wondered why some people remain poor despite working hard their entire lives, while others build immense wealth? The richest man in China once shared a thought-provoking analogy that explains this concept perfectly. He compared people's choices to those of monkeys:

"If you put bananas and money in front of monkeys, the monkeys will choose bananas because they don’t know that money can buy many bananas. Similarly, if you offer WORK and BUSINESS to people, they will choose to WORK because most people don’t know that a BUSINESS can generate more MONEY than a salary."

This simple yet powerful statement sheds light on the mindset that keeps people in financial struggle. Many individuals spend years in school learning how to work for a salary, but they are rarely taught how to build a business or create wealth.

In this article, we’ll explore why profits are better than salaries, how to shift your mindset from an employee to an entrepreneur, and the steps you can take to achieve financial freedom.


1. The Employee Mindset vs. The Entrepreneurial Mindset

Why Do Most People Choose a Salary Over Business?

Many people prefer working for a salary because:

  • It provides security and a predictable income.

  • They have been conditioned by the education system to seek employment.

  • Starting a business involves risk and uncertainty.

  • They fear failure and financial loss.

However, those who understand the power of business and entrepreneurship recognize that:

  • A salary can only go so far in securing financial independence.

  • Profits from a business have no income ceiling.

  • Financial freedom comes from owning assets, not just working for money.

Comparison of an employee in an office setting vs. an entrepreneur working on a laptop from a beach, symbolizing freedom.


2. Why Profits Are Better Than Salaries

A salary provides financial stability, but it comes with limitations:

  • It is fixed, meaning no matter how hard you work, you earn the same amount.

  • Your employer controls your working hours, raises, and promotions.

  • There is no wealth accumulation unless you invest or start a business.

On the other hand, profits from a business can:

  • Grow exponentially over time.

  • Give you financial independence.

  • Allow you to build generational wealth.

Example: Imagine two people:

  • Person A works a 9-to-5 job and earns $3,000 per month.

  • Person B starts a small business. In the first year, they earn little, but by the third year, they make $10,000 per month.

Who is in a better financial position? Clearly, Person B because their earnings are unlimited, while Person A is stuck in a fixed salary.

A visual representation of salary growth vs. business growth over time, showing how profits can exceed salaries.


3. How to Shift from an Employee Mindset to an Entrepreneurial Mindset

A. Start Seeing Business as an Opportunity, Not a Risk

  • The biggest risk in life is staying in the same financial position for years.

  • Every successful entrepreneur started small and took calculated risks.

B. Learn Financial and Business Skills

  • Schools teach how to work for money, but you must educate yourself on how to make money work for you.

  • Study entrepreneurship, investing, and wealth-building strategies.

C. Start Small, But Start Now

  • You don’t need a huge investment to start a business.

  • Side hustles like freelancing, e-commerce, or content creation can help you transition into entrepreneurship.

A person working on a laptop at home, symbolizing a side hustle that could grow into a business.

4. The Power of Owning a Business

Starting a business gives you:

  • Time freedom – You control your schedule.

  • Financial independence – You are not reliant on a salary.

  • Scalability – A business can grow, while a salary remains limited.

Real-Life Success Stories

  1. Elon Musk – Left a stable job to start multiple billion-dollar companies.

  2. Jeff Bezos – Quit his job to build Amazon, now one of the most valuable companies in the world.

  3. Jack Ma – The richest man in China, who started Alibaba despite facing multiple rejections.

5. Steps to Achieve Financial Freedom Through Business

  1. Develop a Business Idea – Identify a market need and a profitable niche.

  2. Start While Working – Build your business as a side hustle before quitting your job.

  3. Master Money Management – Learn to invest profits back into your business.

  4. Expand and Scale – Automate processes to grow your business without needing to work constantly.

Conclusion: Take Control of Your Financial Future

The richest man in China’s message is clear: Profits are better than salaries. If you only rely on a paycheck, your income is limited. But if you build a business, your earning potential is unlimited.

It’s time to shift your mindset, take action, and create wealth for yourself. The journey may not be easy, but the rewards are worth it. Are you ready to choose profits over salaries?







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