You skipped a couple of steps. The full process goes like this:
1. Hire someone to produce something. Pay then $X.
2. Sell the the thing they produced back to them for $Y where Y>X.
3. Pocket $(Y-X)
4. Use some of the proceeds to pay lobbyists to pressure legislators to pass laws that make it illegal for anyone else to enter your market
5. Buy yacht
You skipped a couple of steps. The full process goes like this:
1. Hire someone to produce something. Pay then $X.
2. Sell the the thing they produced back to them for $Y where Y>X.
3. Pocket $(Y-X)
4. Use some of the proceeds to pay lobbyists to pressure legislators to pass laws that make it illegal for anyone else to enter your market
5. Buy yacht