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Are You Using Monopoly Money In Your Business?
During the depths of the Great Depression, the Monopoly game appeared in the marketplace. For many children, Monopoly is the first introduction to using money for business decisions.
During the depths of the Great Depression, the Monopoly game appeared in the marketplace. For many children, Monopoly is the first introduction to using money for business decisions.
Monopoly teaches players to buy and sell property, collect and pay rents. The game is fun, especially for the winners.
My question is: Are the lessons you learned playing Monopoly killing your capacity to make real money in your business? Monopoly teaches money myths that can keep you struggling with money in your business.
A Monopoly game begins with a fixed amount of money. The game ends with the same amount of money. By the end of the game, the winner has most of the money. This leads to the first Monopoly Money Myth: The amount of money available is limited.
The critical point is that no one MAKES money in Monopoly. Monopoly is a zero sum game. Compare the zero sum Monopoly game to what happens to money in business. In business, you create a product or offer a service that actually MAKES more money.
What is the process in business? It costs money to produce, market, and sell a product. If you can sell the product for more than it cost you to produce and sell it, you make a profit. A profit is money that didn’t exist when you started.
In other words, you actually create money. You have not only added money to your bottom line, you have added more money to the money supply. This is the critical money difference between Monopoly and business. Profitable businesses make money. No one makes money in Monopoly.
Monopoly teaches players that money is a commodity in limited supply. Monopoly cannot teach the fundamental truth that the amount of available money is potentially unlimited because money is created in transactions. The more transactions occur, the more money is created.