Why you should always work to build equity

Equity is a word that has many meanings in different contexts.

In its truest form, equity means fairness and impartiality.

In startups, equity is how much of a company you own.

In finance and accounting, equity is the difference between the value of your assets and the cost of your liabilities.

In marketing, brand equity is the value of having a well-known brand name, which allows you to beat your lesser-known competitors.

In real estate, owning a home gives you equity, as opposed to renting.

Equity is an extremely important and beneficial thing to acquire, which is why you should always look to build equity regardless of the context.

Equity requires a longer-term mindset, rather than seeking short-term wins.

In your career, your salary isn't likely going to make you rich. Ownership in a successful business will.

In marketing and business, companies who seek to maximize short-term profit instead of building long-term customer loyalty will always lose. If you take care of your customers, you will build brand equity with them, and they'll become repeat buyers as well as advocates. Zappos is a great example of this.

On the personal side, being fair with family, friends, and other people in your life will help you have lasting, more fruitful relationships.

No matter what the situation, whether it's your career or personal life, building equity will always leave you better off in the long run.

What do you think about building equity? In what ways have you sacrificed short-term wins for long-term gain?

I’d love to hear from you. Write your thoughts in the comments, tweet at me @mikewchan, or email me at mike@mikewchan.com.

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Photo courtesy of The Blue Diamond Gallery