Making Your First Million.pdf - Association of Net Entrepreneurs and ...

Making Your First Million
Chapter 23 - How Do I Get Filthy
Rich?
It may not be enough for you to get the house on the hill with servants, the two hundred
and fifty acre country estate, the limousines, the helicopter. You may well be looking to
go the full monty. Let me show you how. Life, after all, is short.
Most business owners reach the point where their businesses are mature and the growth
curve starts to slow down. They reason that you can't expect the company to continue to
grow by 40 to 100% every year and they content themselves with single-digit growth or
just not going backward. After fine-tuning the business they get it performing at
maximum efficiency and they stay at the wheel. Year after year. If you've now reached
this point you need to take stock again and make the next quantum leap.
Life is like a blank sheet of paper. There is an infinite number of choices we can make,
but only a limited number of best choice possibilities. What are your best choices? With a
strong income stream coming in you could buy shares or real estate, and this would be an
eminently praiseworthy choice, but you're already allocating 10% of your income to safe
investments. Safe choices are not going to double your net worth each year unless we're
going to see a Telstra or Commonwealth Bank float each year. Passive investments in the
share market or real estate will give you a 5% to 15% return. Even highly speculative
investment in the share market will rarely better 40% return. The only way you'll double
your net worth in the share market is by taking big risks.
There is a better way. Passive investment is speculation on future capital gain and this is
to a large extent manipulated by forces outside your control. To make real, risk-free
capital gains now, regardless of bull or bear markets, you'll need to take control of your
market. Why be a victim? You've taken control of the market in your business. Take
control in your investments. Think. Look at the environment in which you live. Is there a
need? Can you employ the power of synergy to create something significant out of
something which is undervalued? Resist the temptation to think small. Life is short. If
you engage in passive speculation you play someone else's game. If you take charge and
engage in development you're playing your own game and will reap serious rewards.
Your business is your cash cow. Once it reaches its peak and any further investments in
time or energy produce diminishing returns, it's time to look at expanding outside of the
business. At this point many business people look at acquiring their competitors or
suppliers, and while this is potentially synergistic, it can also have the effect of tying you
to less profitable offshoots as well as tying you deeper into that industry, and therefore
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