It’s likely that, as an entrepreneur, you operate with a growth mindset. You solve problems, manage people, refine products and stay in the trenches. However, if you’re serious about long-term wealth, you have to change your thinking.

In particular, to succeed, you must learn to think like an investor.

Why? Building wealth is more than scaling a business. It’s about how you allocate your time, money and resources to maximize your return. Eventually, the best entrepreneurs learn how to play both games. Those who don’t often burn out, sell too soon or miss opportunities to build generational wealth.

So, let’s unpack when and how you should think like both.

Understanding the two mindsets

Despite their similarities, the two mindsets operate on different principles.

The entrepreneur mindset

• Focus: Solving problems, creating value and building something from nothing.
• Mental model: “How do I make this business work and grow?”
• Traits: An ability to take risks, be creative, hustle and adapt to new situations.
• Key metrics: Customer acquisition, revenue growth and market share.

The investor mindset

• Focus: Think, capital preservation and multiplication.
• Mental model: “What’s the optimal return on my time and money?”
• Traits: You need to be patient, think critically, manage risk and diversify.
• Key metrics: Key financial metrics include risk exposure, return on investment (ROI), cash flow and equity appreciation.

Despite being complementary, these two mindsets often work in different directions. Entrepreneurs want to go all-in; investors want to mitigate risk and diversify. Entrepreneurs pour their energy into their business; investors ask, “Is this the best use of my money?”

Related: Most Entrepreneurs Rely on a Big Exit to Retire — Here’s a Safer Way to Fund Your Future

The Problem: Staying in entrepreneur mode too long

Founders often get too caught up in their daily operations that they forget to zoom out. Their focus is on the “next hire” and “next quarter,” not the bigger picture.

• Does my equity grow in value, or am I just busy?
• Is this business building wealth for me, or is it just a high-paying job?
• What are my long-term goals: a lucrative exit, passive income or a lasting legacy?

In the absence of a transition into investor thinking, you will be at risk of making several critical mistakes:

• Committing too much time to a venture that is not scaling.
• Profits are not being reinvested in scalable assets.
• Maintaining control when smart delegation or an exit is a better option.

When to start thinking like an investor

It doesn’t take a multimillion-dollar business to think like an investor. As a matter of fact, you’ll gain more leverage the earlier you shift your mindset, even partially. The following are key indicators that it’s time:

Your business is consistently profitable

When your business is profitable, it’s time to consider what you will do with the money. Reinvest it in growth? Take some money out and diversify? Pay yourself a salary or dividends?

When you think like an investor, you can:

• Invest in other opportunities with your cash.
• Analyze the return on investment from the reinvestment in the business.
• Separate your personal and business finances.

You’re no longer a bottleneck

When your business can run without you (at least partially), you have leverage. At this point, you can start looking at the company from the investor’s perspective.

• Is this a business I would buy right now?
• What can I do to increase its value?
• Is this the best use of my capital and my time?

It’s time to exit (or not)

Even if you never sell, every founder should build with an exit in mind. Why? Sellable businesses are well-structured, well-documented and profitable. An investor-minded founder asks:

• What is the best way to increase the multiple?
• Is there anything acquirers want?
• If I keep my business, how can I make it attractive to others?

Related: The Role of the Investing Mindset Is to Ask, ‘How Can I Take My Business to the Next Level?’

How to start thinking like both

To think like an investor, you don’t have to stop being an entrepreneur. However, you need to instill new habits, frameworks, and questions into your decision-making process. To blend both mindsets effectively, follow these steps:

Track true ROI, not just revenue

There is a tendency for entrepreneurs to become obsessed with top-line growth. Investors, however, know that it’s the bottom line that counts. As such, start asking critical questions, such as:

• What is the ROI of this new marketing channel?
• Do new hires or new equipment have a payback period?
• How long will it take for me to see a return on a $50,000 investment in a new product line?

Build business value, not just busywork

An investor-minded founder aims to create assets that enhance the business’s resale value. Examples include:

• Financials that are clean and verifiable.
• Revenue models that are recurring.
• Clear systems and Standard Operating Procedures (SOPs).
• Businesses with a low reliance on their founders.
• Customers with strong retention metrics.

In the end, the goal is to create a valuable asset, not just a demanding job.

Allocate capital like an investor

Treat capital like any other resource in your business. In other words, each dollar you reinvest should compete with other investment opportunities.

• Is it time to invest in automation or hire another person?
• Should you focus on paid ads or build long-term partnerships?
• Can you use that cash to acquire a competitor, or should you fund a new product expansion?

Once your business is generating a stable cash flow, consider diversifying into other assets, such as real estate, index funds, or angel investments. As a result, your business becomes the engine, not the endgame.

Set personal wealth goals

Entrepreneurs often allow their businesses to consume their lives. A successful investor, however, defines their personal goals first and then uses their assets to accomplish them. Ask yourself:

• In retirement, what would be my ideal lifestyle and income?
• To achieve that goal, how much passive income do I need to generate?

Learn to let go

An investor is not emotionally attached to their assets — they optimize or divest. Founders should follow the same principle. An investor-minded founder may need to:

• Make a conscious effort to step back from day-to-day operations.
• Find a new CEO to lead the business forward.
• If your business has plateaued or is draining you, sell it.
• Invest your capital in a better, more promising opportunity.

Ultimately, it’s easier to make sound, less emotional decisions if you think like an investor.

Related: 5 Signs You’re Too Emotional to Decide What’s Best for Your Business

Real-world examples

In many cases, entrepreneurs will eventually transition from building businesses to investing capital. Those who made that transition include:

• Sara Blakely started Spanx with $5,000 and turned it into a billion-dollar brand. Having sold her majority stake to Blackstone, she diversified into philanthropy and women-led startups.
• Naval Ravikant, co-founder of AngelList, became a prominent angel investor who backed Twitter and Uber. Instead of running companies, he now focuses on compounding capital.
• With capital and creative strategy, Shaun Neff built Neff Headwear, exited, and now backs consumer brands such as Sunbum.
• From his basement, Daymond John launched FUBU. His success led him to become a Shark Tank investor, using money and mentorship to grow other businesses.
• By using her capital and brand power, Jessica Alba pivoted from the Honest Company to backing mission-aligned startups.
• Having expanded Virgin into multiple industries, Richard Branson began licensing the brand and investing through strategic partnerships, earning returns without direct management.
• After establishing a personal development empire, Tony Robbins shifted to private equity and became a strategic advisor in wellness, finance, and hospitality.

By thinking like investors, these entrepreneurs demonstrated that entrepreneurial success can generate wealth beyond the scope of a single venture.

Final thought: Think in layers

Investors and entrepreneurs aren’t mutually exclusive; they’re layers of a powerful strategy.

In the early stages, you must grind relentlessly. After you’ve gained some traction, layer investor thinking on top, consider the long-term ROI of the business. And, just as important, ask: What’s my time, effort and stress worth?

When it comes to building wealth, entrepreneurs generate income by starting businesses, while investors earn money through discipline and strategic investment allocation. Building something valuable isn’t enough. You have to own it wisely as well.