“A Study on Delayed Gratification”
The Stanford marshmallow experiment was a study of delayed gratification.
A child was offered two options, eat a marshmallow now or wait, and receive 2 marshmallows later. The child was then left alone for 15 minutes, and their decision was recorded. The children who waited, and chose delayed gratification, tended to have better life outcomes (SAT scores, BMI index, and others).
I am not a scientist and will not delve into the merits of the Stanford marshmallow experiment. I do believe delayed gratification is not celebrated enough.
The ability to build slowly, correctly, and with quality. To find pleasure in the creation of something and not only the reward, the output. Some examples of this are the people I most enjoy reading on 𝕏, guys like @STLChrisH and @WilsonCompanies, who forgo large salaries and big distributions to continue reinvesting in their businesses. Or @MatznerJon who exposes the now all too popular “this is easy gurus” for what they are, modern-day get-rich-quick snake oil salesmen. I read their stories and identify with them.
My partner and my combined salaries are less than .5% of our sales. In 13 years, we have never paid a dividend. Delayed gratification.
Today, people look at what we have built and are amazed. What was more amazing was how we grinded those initial years literally drawing nothing from the business. Along the way many have said we are crazy for not taking a dividend, not taking chips off the table. What we enjoy more is watching this thing we have built grow and grow in a responsible way.
Delayed gratification is not only about what you pay yourself but also how you build your business. Wanting to roll up every company in the sector in two years is a fool’s game. There is no need to rush this. I have yet to see someone building for the long term follow that path. It is always the guys looking for the quick flip. Taking on a ton of leverage is a recipe for disaster. Why the need to have so much more than you can afford? So what if it takes a bit longer to get where you want to go?
Trust me, if you build this the right way, methodically, with care, ensuring quality at each step, your stress levels will be so much lower. The process will be so much more rewarding. Hard choices easy life, easy choices hard life.