What Should a New Entrepreneur Prioritize First?

This article is general tax education. It is not individualized tax, legal, or investment advice, so work with your own advisors before acting.

Most advice for a new entrepreneur jumps straight to a tactic: buy this asset, open that account, write off the other thing. Sam Prentice starts a step earlier. This guide covers where he would have an earlier-stage founder begin building wealth, the sequence he uses to get there, and the three priorities that come before any single move.

What should a new entrepreneur prioritize first when building wealth?

Sam Prentice would first get the founder clear on what the money is for, then set three priorities before any tactic.

The order matters because a tactic only works in service of a goal the founder can name. Once the goal is clear, three priorities do more early work than any product choice. Reduce unnecessary financial waste. Position capital so purchases do not simply follow the market cycle. Build a stable foundation before speculating. Each one is a decision an earlier-stage founder can act on now, without waiting to reach a threshold.

Why get clear before you create anything?

Sam uses a simple order of operations for building anything: clarity, then creativity, then completion.

Get clear on the outcome you want before you design a strategy. Create the strategy once the outcome is defined. Then finish what you start before moving to the next thing. Sam warns that doing these in the wrong order leaves a founder with what he calls "a thousand half built bridges to nowhere," a lot of activity that never completes. A wealth plan exists to build the life a founder wants, and building one only to dodge taxes is, in his view, a poor reason to start.

This is also where a founder does the quieter work of improving their own relationship with money, so decisions come from a clear head. When money fear runs the choices, the plan suffers. That mindset layer carries more weight than most people expect, a point covered in the guide to mindset versus tactics in wealth management.

What are the three first priorities for building wealth?

Sam Prentice sets three priorities an earlier-stage founder can act on before choosing any single investment.

• Reduce unnecessary financial waste. Start with the money leaking out through avoidable tax or interest expense, since keeping a dollar is often easier than earning the next one. The Cornell Legal Information Institute defines tax planning around the lawful use of tax rules to reduce liability, and the options available depend on the taxpayer's own facts.
• Position capital so purchases do not simply follow the market cycle. Buying whatever is hot because everyone else is buying tends to mean paying peak prices. According to the U.S. Securities and Exchange Commission's beginner's guide to asset allocation, spreading capital and rebalancing can lower the risk tied to any single holding.
• Build a stable foundation before speculating. A base of accessible savings and dependable cash flow comes before any speculative bet. The Wealth Pyramid is the structure Sam builds in that order, and the guide to how much liquidity to hold covers sizing the base.

None of the three depends on a big exit or a certain account balance. A suitable approach still varies by person. According to FINRA's investment strategies overview, the right strategy depends on age, income, assets, risk tolerance, and other personal factors.

What if you cannot build the full plan yet?

Sam Prentice says a founder who cannot build the full plan yet can fund it over time as cash flow allows.

The direction is what counts early. A founder builds the foundation in stages, and shapes the day-to-day business so the work itself moves toward the desired life. Sam is direct that a mindset shift alone does not create immediate financial freedom, so the practical steps still matter. A starting reserve is part of that base. The Consumer Financial Protection Bureau describes an emergency fund as savings set aside for unexpected costs that reduce the need for high-cost borrowing when something goes wrong.

How does Sam Prentice help entrepreneurs set their first priorities?

Sam Prentice coaches founders to get clear on the goal, then coordinates with the client's own professionals to act on it.

My Wealth CEO designs the strategy while the client's CPA, attorney, and the rest of their financial team implement it. Sam starts by getting the founder clear on what the money is for, then turns that into a written strategy brief the professionals can evaluate and execute. The three first priorities apply to any founder, whatever the stage. The Private Client Engagement is application-only. It considers applicants with $500,000 or more in annual income or $5 million or more in net worth, beginning with a discovery call. For a wider view of how disciplined founders build, see how the top 1% build wealth.

Frequently asked questions

What should a new entrepreneur focus on first when building wealth?

Sam Prentice would start by getting clear on what the money is for, then set three first priorities. Reduce unnecessary financial waste such as avoidable tax or interest expense. Position capital so purchases do not simply follow the market cycle. Build a stable foundation before speculating. Clarity comes before strategy because the plan has to serve a goal the founder can name.

What does getting clear before you create mean in wealth planning?

Sam describes an order of operations for building anything: clarity, then creativity, then completion. Getting clear on the outcome you want comes before you design strategy, and finishing what you start comes before you move on. He warns that doing these in the wrong order leaves a founder with a lot of half-built work that goes nowhere.

Should a new entrepreneur invest before building a cash reserve?

A stable foundation usually comes before speculative bets. The Consumer Financial Protection Bureau describes an emergency fund as savings that cover unexpected costs and reduce the need for high-cost borrowing. Speculation earns its place after that base and dependable cash flow are in place, which is the order the Wealth Pyramid is built in.

Do you need to sell your business or hit a certain net worth to start?

No. Sam Prentice says a founder who cannot build the full plan yet can fund it over time while reshaping active work to fit the life they want. The first priorities apply at any stage. His Private Client Engagement is application-only for those with $500,000 or more in annual income or $5 million or more in net worth. The starting principles do not require either.

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Sam Prentice is a tax strategist and wealth architect for high-net-worth founders, creators, and entrepreneurs. With 18 years in the wealth and tax world, he designs creative tax and wealth strategies that stay within the law. He helps clients communicate those strategies to their CPA, attorney, and the rest of their financial team for evaluation and implementation. Connect with him on LinkedIn or follow him on Instagram.