How to build wealth with simplicity
Checking out the many free Webinars and Seminars offered by wealth making gurus, it sometimes seem that they always present having a normal job is a major sin. I disagree with that view 100%. Bottom line, it depends on what you want. You could work hard and smart then get promoted and make good money as an employee anyway. The real approach again, is to know what you want then work towards it. Now I agree with them that if you approach this in a naive way, you will not achieve that ultimate goal. Here are some pointers I have in mind for the average or any person.
1. The Employee – This means you don’t have a problem working for someone since you probably like the job of executing in specific field such as Art, Engineering, Software, accounting etc. The basic motto in this role is to focus on saving and investment. Notice I used the word investment. This will be the key to giving you some security long term. Saving is not enough as inflation and other factors will wipe it out. The other issue with employment is that you could seek out ventures or employers that provides reasonable equity in the business. This would allow you to see the fruits of your labor over time.
2. The Investor – This person is someone that focuses on funding projects by whatever means. This could be indirect as in using the stock market or directly into a known venture. Typically with this approach, you would need cash or access to cash from other people. It may not be wise to depend too much on bank money to achieve this. A way get money for this would be investing in Shelf Corporations with funding then use that funding to participate in high returns programs (won’t say much on that here yet). The proceeds could then fund your venture of choice. Bear in mind that investing could just mean you own a couple properties with good income generation and stability. Especially with an interest in leisure traveling, you may not want something that constantly need your attention.
3. The Business Person- This person is literally a combination of the Employee and Investor. In other words, they are using their skills and investment interest to create one or more businesses. Most times a business person need to be fully involved upfront to get things going then as time passes they can move into more of an investor role in that venture. The key to being a good business person is to test your ideas at all times and focus on the big picture. Where do you want to go with this? Always get help in as many aspects as you can early. This means having a successful business person as a mentor is very good idea. One simple way to start is to look into acquiring a franchise as this has some leg work already done. All you need in that case is the capital and proper location for the business. The same approach would be recommended as those of the investor. Use Shelf Corporation credit to generate cash then you would have more leverage to accelerate your business.
In all of this, there is one thing I agree with the seminar producers and wealth coaches, you want to achieve your freedom day. Now this freedom could be different for everyone. One option is to have less liability while having a job where you can get some good vacation. If you look at this in terms of freedom day, then you will not be too greedy while confident enough to achieve your goals.
More to Come, next time
The 4 Most Valuable Things I Learned in Business School
Great post – thanks! I’d like to add a comment on two of the points you raised:
1 – The reminder to consider opportunity costs is something I’ll take to heart. A lot of opportunities come my way, and I tend to jump on them without thinking through what else I could do with my time. Opportunity being the topic, I’ll throw in a favourite quote from that well-known management theorist, Ann Landers – “Opportunities are usually disguised as hard work, so most people don’t recognize them.”
2 – I couldn’t agree more with your observation about the value of experience over credentials, and I’d add that you can (and should) invest in creating your own credentials, even if you have a good degree. When I was in university I had a co-op term and never went back to finish my degree – I just liked the world of work too much. (Funny, given that your post also talked about the value of a co-op program.) That was over 30 years ago, and in all the time since, no one (other than immigration authorities granting work visas) ever asked for my credentials, or even a resume, at least until a request came out of the blue this year. What’s key is to (a) regularly take the time to reflect on your experience and capture it (not just think about it!) and (b) find ways to demonstrate/share your growing experience and knowledge. Even in that first job, I didn’t hesitate to share what I’d learned through presentations within the company and to relevant groups around town. Later, I built courses to teach it to other people, and started getting asked to travel to conferences to speak. I did a lot of that, and eventually wrote a book that is widely used as a text in MBA programs. (Ironic, given that I don’t have a degree.) The point – lots of people are smarter, more articulate, or have richer experience than me, but even in the age of blogging and social media, a surprisingly small percentage of professionals take their *own* experience, distill an asset from it, and then do something with it.
I’m still glad that all four of my kids have, or are working on, their university degrees – I don’t want to sound like I’m saying that isn’t important, because it is, and increasingly so. But experience, and demonstrating that you’ve learned from it, counts for more than some might think.
This comment is already too long, so I’ll resist the urge to go on about the apparent conundrum of “you need the credentials before you can get the experience.” In short, it’s more cliché than fact.
Thanks again for the excellent post – I’ll be sharing it.
This a great experienced shared by this writer on business school experience. This will give you some insights on what is important to move forward
Dare to Dream Again
–>“Far better it is to dare mighty things, to win glorious triumphs, even though checkered by failure, than to take rank with those poor spirits who neither enjoy nor suffer much, because they live in the gray twilight that knows neither victory nor defeat.” —Teddy Roosevelt
Do you remember when you were a child and no dream seemed too big? Some of us thought we would walk on the moon; some dreamed of riding with Roy Rogers; others imagined stepping to the plate in a big-league game. Every one of us, when we were young, had a common trait—we were dreamers. The world hadn’t gotten to us yet to show us that we couldn’t possibly achieve what our hearts longed for. And we were still years from realizing that, in some cases, we weren’t built for achieving our dream.
Eventually, we started to let our dreams die. People began to tell us that we couldn’t do the things we wanted. It was impossible. Responsible people don’t pursue their dreams. Settle down, get a job, be dependable. Take care of business, live the mundane, be content.
Do you know what I say to that? Hooey!
It is time to dream again!
Why? Here are just a few reasons:
- Avoiding regret. The facts are in, and someday we will all lie on our deathbed, looking back through our lives. We will undoubtedly think about what we wished we had done or accomplished. I for one don’t want to regret what could have been, what should have been. So I am deciding today to pursue my dreams.
- Making the world a better place. All of the great accomplishments that have ever happened began with a person who had a dream. Somebody rebuffed the naysayers and said to himself or herself, “This can be done, and I am the one who will do it.” And in many instances they changed the world for the better.
- Personal and family fulfillment. Stepping up and pursuing your dream rekindles that passion and zeal that everyone has the capacity for and lets us experience fulfillment. Having a purpose puts the zip in our step and the zing in our emotions!
- Leaving a legacy. How will your children remember you? As one who sought all that life had to offer, using your gifts and talents to their fullest extent, leading the family with a zest for life, or as an overweight couch potato who could have been? Our children need to see that we dream; that we search for something better. They in turn will do the same!
So where do we start? Here are some ideas:
- Reconnect with your dream. Set aside some time to let yourself dream. What have you placed on the backburner in order to live the status quo?
- Decide that you will do it. This may seem elementary, but many people never decide and commit fully to their dream. They simply keep “thinking” about it.
- Tell others that you are going to do it. This puts you on record as to what you are dreaming about. It makes you accountable.
- Develop a step-by-step plan. This is absolutely essential. You must sit down and write out a few things:
- A timeline. How long will it take to the end?
- Action steps. Point-by-point what you will do and when you will do them.
- Resources you will need to draw from. What will it take? Who will need to be involved for help or advice?
- An evaluation tool. You need to evaluate from time to time whether you are progressing or not.
- A celebration. Yep, when you are done you should already have planned what you will do to celebrate. Make it big!
I have found that there is no better time than now. So, set aside some time today to get started on your dream. Follow the action plan and set your sights for the top of the mountain! You will be glad you did!
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This is a great article about dreaming and success.
Some notes on Success Techniques
This is probably just going to be a ramble on something that came to mind about success recently. The thrust of this article will be short.
Here are the pointers
1. Strive to have clarity about what you want in life or for a specific area. When you really don’t have a specific goal in mind you will waste a lot of time in general. Strategic clarity is powerful to really achieving long term success.
2. Put yourself in the situation that you want to be mentally as often as you can. Imagine yourself reaching the goal before you even started but make it as real as you can. Spend some time daily to think about it. If your goal is spiritual, think about what it would be like to be in that ultimate spiritual state of mind.
3. Break things down in steps. As I always say, you take a GAP analysis of where you are and want to be. Then look at the little steps you need to achieve the ultimate goal. This is an important discipline to achieving that end game.
4. Let go of negative emotions. Try to be a good person and be honest with yourself and others. In fact you would be surprise how this can help to channel energy towards your ultimate goal or aspiration.
5. Adding a bonus. You need to focus. To break it down, focus is based on you really wanting that end game. If you find yourself not focusing then maybe you are not really convicted of your goal in the first place or maybe you don’t believe its possible. Remember that once you remove negative emotions , you will have sharper interest in that goal.
6. Another Bonus – This one is Leverage – This is the operative word to move forward once you have a clear goal. This leverage could be skills, money or people. An important one is people. Don’t be afraid to approach people and ask them how they did it. Don’t be afraid to ask for help but this is critical to moving fast in your journey forward.
7. Seven must be a magical number since I have one more pointer. This one is simple, as of now the word failure does not exist in your vocabulary. What I mean is that when you are locked into your goals, the steps may have setbacks along the way. The key here is to consider these setbacks as learning opportunities not failure as in time to give up.
That’s basically it, lots more than I had in mind to write today. While we tend to use money as targets for success this to me is wrong. Anything can be seen as success. I hate when people go to some developing country and loosely use the word proverty because people don’t have 2 cars in a garage or maybe living in a hut or something. Most times people with less material possessions have better spiritual outlook than those with the bank account flowing over. Our current economic situation speaks to that clearly. It was bankers who already had lots of money that created this crisis as we know it. So take note on that.
Small Business Financing Update
I have made several posting on creative ways to obtain funding for your business. This is a quick update based on my own experience on this matter so far.
All of what I have said in the past in regards to buying an existing corporation with credit line is still true but whats important is that you have to be very careful in what you go after. Once something is non-traditional, anyone can offer this type of product but the issue is whether they are real or just trying something. Here are some very basic pointers to look at.
1. Ask for full disclosure on who they are and why their business would deliver the intended product. Who are the principals involved, any referrals available to validate their claims ( this one is tricky of course).
2. Full protection of your money. Even if a company is incorporated and has a bank account, it does not mean they will be legitimate. Let them agree to accept credit card or an escrow service. If they can’t afford to wait on escrow process then move on. sometimes some of these guys are arrogant and claim they are serious. Move on, as they should cater for your concerns not themselves.
3. Do not accept the arguement that if you were serious and have the money, you would not ask question. Note, its your money and you do not have any need for them to take it away without proving how its protected.
4. Make sure the contract is specific. Some could get you funding but that could just be lease equipment and not cash. Make sure it spelt out the minimum amount in cash credit and the latest dates for funding. Of course also make sure they agree to full refund if those conditions are not met. They cannot guarantee funding but they can guarantee the service are performed or refund your money. Always get a lawyer to look over the contract and if possible put in penalties for delays in the process. For example reduce the amount on the back-end etc.
There are also reliable ways to get you a high limit credit card on your personal profile without any checks. Same rules apply with these.
Its still a lucrative area to pursue and I have more information to share on the next step when you get funding. This step could blow your mind in terms of money you could access with this facility. Did I say leverage?
Business uses for Mind Mapping?
Found this great article on 45 Ways to use mind mapping tools. Most of these can make your business a lot more efficient in the process.
Check out the Article – 45 Ways to use Mind Map
Try these out now on your business or new ideas
What about Innovation?
Here is a great video on Innovation
This great and straight to the point on the subject.
From Lay-off to Business Owner
Here is a great example that I believe in so much. Don’t get me wrong there are risk but then in today’s economy there is a risk in finding and keeping a job too.
Read now – Former Nortel Employee
Funding your Startup Business
Haven’t posted anything for some time now, but this is an area that I have been researching a lot almost a year now.
I decided to check a few of those government funded groups to provide new business help and what I realize is that most times what they throw at you is the textbook. This is very much the case in terms of financing. They basically say go and talk to the bank. No creativity at all.
First of all even if you can get a good loan from the bank personally, its a not a good idea long term to do this. In general, its best to form a corporation and get business funding through that corporation.
Now to get to the point about Corporations and funding, one simple approach is to purchase an existing company. Now, I am sure your question is; where should I get money to purchase a company since my goal in the first place is to get funding?
The company you will purchase will not have an established business as such but would have a developed credit profile generated by the existing owners. These companies are called Shelf Corporations. The pricing could be based on the age and other factors like how much funding you can get right off the bat.
I am sure the nagging question. Whats the cost like for something like this? The price range from what I have seen is about $10K to $20K and that gets you a company with about $200K to $500K in funding which is most times a line of credit. Now you could get those numbers with personal credit but this is just the start for these guys, one group I know, provides a Shelf Corporation that gets you about $2M in funding within a 2 year period with not much additional cost. They also help you develop a business plan geared towards funding sources.
In the end, your focus would be generating the maximum $20K to purchase the corporation and then its smooth sailing from there. You may not have to use the money but with funding you have credibility to raise other funds to put your business in Top Gear.
I am thinking of people that lost their jobs recently in this economy, you could use this to fund a franchise business, services, software development or any business type that fits your fancy.
Check out this little write up I did on the topic – Business Funding Guide.
If you want more direct details on sources, let me know.
Wasting your time with Business Plan?
I had a shock tonight when I ran into a study that says that most times business plans are no use to getting funding from venture capitalist. Wow, this is earth shattering.
Why is this the case? It seem from what the study is saying that knowing the funders actually helps more with ultimately getting funding.
Here is what I summarize from this.
1. Focus on networking to launch your new business. Find out where VCs hang out and make effort to meet them and make bounds.
2. Still do your business plan as that would help you organize your business and convince you that the end game will be good. The exercise is necessary to have a viable business anyway.
You can read more about the study here.
