You may have noticed that people with wealth are all around us, there are millionaires being added to the population all of the time. Some businesses are more profitable than others. You can even compare identical businesses that are managed by individuals and get two answers about how good that business is – with one complaining it’s never been good and the other stating that business has never been as good as it is today.
There are a couple of things you’ll notice about this. If others have managed to become wealthy, become financially independent, why can’t you? And, the information a business needs in order to become profitable and easy is out there, either in books or on the internet, possibly even on TV programmes like the Apprentice and Dragons Den all of which provide a fairly high level of guidance and help, provided you listen.
On an individual basis people like Warren Buffett, born into pretty humble life, certainly not what you and I would call wealthy. The likes of Duncan Bannantyne (love him or loathe him) from the streets of Glasgow shortly after the war. Both are examples of ordinary people becoming wealthy beyond their own wildest dreams simply by following a handful of processes – what I call principles.
These processes can be followed by anyone. Of course, I couldn’t promise you riches beyond your wildest dreams just buy following the processes but I can assure you if you follow the rules you’ll be much better off than by not following them. Those of you lucky enough to continue learning, adding to your own skills will find the same principles one of the best places to start. The rest is up to you.
There are no get rich quick schemes that work, sure you may bump into a few people who’ll explain there are – snake-oil salespeople have been around since the time of Jesus – a bit like the Bitcoin resellers of today. There are few if any of these schemes that ever work – because they don’t use the money principles that rule in the game of wealth.
So what is it that successful businesses (people) do that makes the difference in the end?
- Keep an eye on profit. Spend less than you earn, focus on cashflow.
- Look after what you have. Customers, existing investments, relationships.
- Always focus on the 20% of things that work best for you and avoid spending any time on the 80% of things that don’t make a difference.
- Always invest for income, if your business is buying in stock for resale, make sure they are priced for profit. If you are investing your own money in stocks and shares, make sure they are income producing. Capital growth means that you are hoping to sell that share, at some stage in the future, at a higher price than you have just paid for it.
Becoming wealthy, having a great business is as simple as following a few principles – the Golden Rules as I call them. Provided you do, then some form of financial success is guaranteed, sure you may not end up ‘richer than God’ but you will end up in a position that is far better than the one you are now.
By the way, I’ve met God, he’s a divorce lawyer in London.
When you are ready to get a shimmy on with some of this money stuff, get in touch. Or at least get access to the ‘free money training’ in the link below.