My Investment Approach: Why I Invest Differently as a Business Owner

For a long time, I thought “investing” meant buying stocks, putting money into crypto, or maybe saving up for a rental property. But after studying and following some of the smartest entrepreneurs in the game — people like Alex Hormozi, Codie Sanchez, and others who’ve built serious wealth — I’ve realized business owners play an entirely different investment game.

Traditional investing advice isn’t wrong… it’s just not optimized for entrepreneurs. And if I want to build real financial freedom, I need to think like a business owner — not an employee.

So, in this blog, I’m going to share exactly how I now think about investing and where I plan to put my extra profit at each stage of growth. This is the framework I’m following myself — based on what I’ve learned from other entrepreneurs.

1. The First $1K – $10K: I Invest in Myself

When I started generating extra profit, the biggest shift in my mindset was realizing the highest return on investment doesn’t come from the stock market — it comes from me.

If I invest my first few thousand dollars into learning high-value skills, that knowledge compounds in a way no index fund ever could. A $5,000 course that helps me close more deals or deliver better results could easily bring me $50,000+ in new revenue every year for the rest of my career.

So at this stage, I focus on:

✅ Courses, mentorship, or coaching that make me a better operator.

✅ Workshops, certifications, or training that improve the quality of my product or service.

✅ Masterminds, books, or conferences that expand how I think and connect me with new opportunities.

This phase is all about removing the “skill bottleneck.” Before I try to make my money work for me — I make myself more valuable.

2. The Next $10K – $100K: I buy back my time and improve my offer

Once I’ve leveled up my skills, the next challenge isn’t me — it’s my capacity. My time becomes the ceiling, and the business can’t grow any faster unless I start investing in the infrastructure around me.

Here’s how I approach that stage:

🔧 Team: I use extra profit to bring on support — contractors, virtual assistants, or employees — to free myself from repetitive, low-value tasks and bring on people who are better than me at the high value tasks. This lets me focus on what I do best. I also need to outsource household chores like groceries, cooking, cleaning, errands, even making reservations and travel plans, so I have more time not only for business, but my health and relationships.

🚀 Offer: I put money back into improving my product or service. Better results mean happier clients, higher retention, and the ability to charge higher prices.

3. The Next $100K – $500k of Extra Profit: Pour the gas on sales and marketing

📣 Sales & Marketing: Once I've built up my skills, my offer, and am confident I can deliver results for my clients, I reinvest into content, paid ads, outreach, and systems that consistently bring in new business and juice the revenue from my business’ online brand to dramatically scale revenue.

This is where I stop thinking like a solo operator and start building a machine. Every dollar I invest here doesn’t just grow revenue — it buys back my time and scales my impact.

4. The Next $500K+ of Extra Profit: I Plan to Buy Other Businesses

Here’s the biggest lesson I’ve learned from entrepreneurs like Alex Hormozi and Codie Sanchez: the fastest path to real wealth is through private equity — buying and owning businesses.

Once I’m generating significant profit and my core business is stable, the smartest move isn’t to stash that money in the market. It’s to acquire more businesses that align with what I’m already doing.

Why? Because buying another business can:

• Instantly grow my market share by eliminating competitors.

• Help me cross-sell my services to a new customer base.

• Increase profit margins by acquiring suppliers, vendors, or complementary services. And consolidating all the business functions together to boost the combined bottom line of the new rolled up enterprise.

This is the stage where wealth creation really compounds. Instead of growing 10% per year, I can grow 2x, 5x, even 10x by acquiring existing revenue streams and folding them into my ecosystem. Imagine how much that also multiplies the enterprise value of my entire business.

🏦 After That: I Diversify the Residual

Only after I’ve invested in myself, scaled my business, and acquired other businesses would I start thinking about traditional investments. And even then, I treat them as a place to store and diversify wealth — not necessarily the main generator of wealth.

At that point, I plan to allocate extra cash into:

• Tax-advantaged savings accounts 

• Index funds, stocks, or crypto — for long-term passive growth

• Real estate — for tax benefits, appreciation, and another income stream

By this stage, these investments make sense because they’re no longer competing with my business for the best ROI. They’re simply adding stability and diversification on top of an already strong wealth engine.

💡 Why I Put Traditional Investing Last

I’ve realized that as a business owner, I have something far more powerful than any stock or mutual fund — I have control.

I control how my business grows. I control the revenue it generates. And I control the outcomes based on the effort and strategy I put in.

No public investment can match that level of influence or potential return.

That’s why I now follow a simple rule I’ve heard from every great entrepreneur:👉 Earn active income before chasing passive income.

✍️ Final Thoughts

Here’s the investment path I’m building my entire wealth strategy around:

1. Invest in myself — skills, knowledge, and mindset.

2. Invest in my business — team, offer, and marketing.

3. Invest in other businesses — acquisitions and expansion.

4. Then diversify — stocks, real estate, and passive income.

This is how I plan to scale beyond being a “small business” and build a true enterprise. It’s not about chasing the next hot stock tip — it’s about doubling down on the one investment I understand and control better than anything else: me and my business.