Two years ago, I met a man who completely changed my life. I had gone to interview him for a magazine I was writing for at the time, hoping to unearth the secrets behind his massive success in business.
The man is a tycoon based in Nairobi. His business interests range from real estate, transport logistics, hospitality to manufacturing. He never gave me a single coin instead, he shared with me 10 principles to creating wealth. I have carried these principles with me ever since. It is time to share them with you.
1) Money is in numbers. If you are an artisan who makes say three gates a day, hire ten other welders, supervise them to ensure the quality is maintained so you can make 30 products a day, which translates to more money.
2) Don’t invest on what’s current instead, study the market trends and put your money in an industry that will boom in the next 5-10 years. You make highest profits if you are one of the pioneers of an industry as opposed to joining it when it’s already flooded.
3) Don’t try to be a jack of all trades. Hire experts for every job as it will save you time and money. Most professionals would rather have a regular income and security of tenure than to lead the uncertain life of an entrepreneur. Bear the risk and use their knowledge to make for yourself billions.
4) Failure is part of success. You cannot always avoid failing thus embrace and learn from it.
5) Make it simpler to use & understand. Most innovators develop complex products imagining it is what clients want. However, people will always pick products & services that are simpler to use over complicated ones.
6) Live on less than you make. To get rich all you need is to make more money but if you want to be wealthy you need to reign on your wants, cut down unnecessary expenses, save and invest. This requires great self-control.
7) Start now and learn to be patient. Sometimes it takes years before your business becomes profitable. Many young entrepreneurs give up if money isn’t coming in fast. Enjoy the struggles for one day it will all be worth it.
8) Being an entrepreneur is a lifetime commitment. People think once you make a few billions you don’t have to work hard anymore unaware that it is a lifestyle. The worries, uncertainty, losses, going broke and failing are things you will always have to deal with.
9) Don’t go beyond the Minimum Effective Dose (MED). MED is the smallest dose that gives maximum output. Say if you work on something for 8 hours/day it earns you $50. If you do it for 12 hours/day and it still gives you $50 then MED is 8 hours. Any additional time spent on it is a waste and should be channeled to more productive work.
10) Don’t put your money into what you don’t fully understand. The quickest way to losing money is investing in something you’ve heard is profitable without doing an intensive research on the challenges that come with it.
Mark, most people think we billionaires are either super-intelligent, extremely lucky or must be engaged in illegal businesses. Billionaires are simply ordinary people who fully understand their strengths, weaknesses and use them to their advantage. We are driven by the courage to actualize our dreams and make a difference to this world, refusing to be held back by our fears.
Kindly, share these principles with other upcoming entrepreneurs.
Written By Mark Maish