THE 10 FORCES OF WEALTH CREATION
What is wealth? How is it created? Why are some entrepreneurs wildly successful and many are struggling? What are the master keys to success? Can everyone be an entrepreneur? These are just a few of the questions buzzing in the minds of ‘Wanna-be- entrepreneurs’.
Wealth and the law of attraction. The 4 Market & Money Factors ALL THE MONEY FLOWS IN THE WORLD IS THE RESULT OF LEVERAGING THESE 4 The fundamental to wealth creation is Leveraging the 6 internal & 4 external forces.
2 out of 3 people Worldwide think Entrepreneurship is a good career choice!
Majority of the Billionaires today are Entrepreneurs
Are you one of these? Then you might have an Entrepreneur in you?
You are highly creative
You feel stuck in the 9 to 5 job
You are passionate about learning & exploration
You come up with unconventional ideas, which people laugh at
You want to change the World
We are at the cusp of Entrepreneurship today. With the help of digital platforms and knowledge Economy, it is easy to be an Entrepreneur today. But, jumping into it blindly might turn into a disaster!
More than 90% startups fail
There is a complex dynamics at play between the Market and your product
You need a right balance of talents in your team who can think like an Entrepreneur
Extreme level of disruption and things changing on a daily basis calls for a complex mix of resources at play
So, isn’t it good if you understand & measure these dynamics beforehand so that you can carefully plan your Entrepreneurship Career?
Entrepreneurship is an art and science with principles of success like any other discipline, vocation or profession. It is not a domain lorded over by only a few of the marquee names we have all come to know so well in the world today. Most of them began with little or no money, yet they are worth hundreds of billions of dollars today- from America to Asia to Europe. Jeff Bezos began as an online book seller and today is the world’s richest man with US$ 120 B as his net worth. Jack Ma, founder of Alibaba is China’s richest man and among the top in the world who started as a school teacher. And we all know about the founders of Google (drop out students from Stanford), Facebook (drop out from Harvard) and the recent IPO of Uber at a market cap of US$ 87 Billion whose founders started the venture as a side business.
Uber IPO: Trio Of Winners Sell Shares Worth Hundreds Of Millions
Uber Technologies Inc has 91 million users, but growth is slowing and it may never make a profit, the ride-hailing company said on Thursday in its IPO filing. The document gave the first comprehensive financial picture of the decade-old company which was started after its founders struggled to get a cab on a snowy night and has changed the way much of the world travels.
Never before in history has the lure and means to entrepreneurship come within sight of so many people in the world. Yet man/woman has always dreamed of riches and wealth.
In 1937, Napolean Hill wrote ‘Think & Grow Rich’ which has sold over 20 million copies and has become one of the most read personal development book. This is what he said ..
"When you begin to think and grow rich, you will observe that riches begin with a state of mind, with definiteness of purpose, with little or no hard work. You, and every other person, ought to be interested in knowing how to acquire that state of mind which will attract riches… Observe very closely, as soon as you master the principles of this philosophy, and begin to follow the instructions for applying those principles, your financial status will begin to improve, and everything you touch will begin to transmute itself into an asset for your benefit. Impossible? Not at all!”
Success comes to those who become success conscious.
Failure comes to those who indifferently
allow themselves to become failure conscious.
The object of this book is to help all who seek it learn the art of changing their minds from failure consciousness to success consciousness.
…that before we can accumulate riches in great abundance, we must magnetize our minds with intense desire for riches, that we must become ‘money conscious’ until the desire for money drives us to create definite plans for acquiring it. The term riches by the way could mean any form of wealth like money, happiness, healthy relationships, business success etc..”- Napolean Hill
Hill gave a long list of 35 steps to practice towards becoming rich and successful. Today almost 80 years later we have far more evolved methods, techniques and technology to quickly find out our natural entrepreneurial talent and diagnose what we should be doing, learn and master the principles and start a business- thanks to the internet.
So, what is wealth? How is it created? Why are some entrepreneurs wildly successful and many are struggling? What are the master keys to success? Can everyone be an entrepreneur? These are just a few of the questions buzzing in the minds of ‘Wanna-be- entrepreneurs’.
The secret to success can be encapsulated by any number of quotations by illumined masters through out the ages. Here is one
“I find that the harder I work, the more luck I seem to have.” ― Thomas Jefferson
Wealth and the law of attraction.
You attract wealth or poverty based on the state of your being knowingly or unknowingly. The law of attraction keeps the planets together in our solar system, the force of gravity keeps you and I and a trillion other beings on the surface of our planet without flying off into space and love is the force of attraction which keeps humanity together in spite of the huge challenges the world faces every day
“ I have enough money to last me a lifetime till I buy something” – Jackie Mason
The 6 internal forces
Wealth creation starts with 3P:
Purpose, Passion & Path
If you are planning a trip you know all the tools and maps to use to get to your destination on time and fast. Wealth creation also needs tools, maps and techniques. Except it is not taught to us in schools. It is taught by the rich to their kids and that’s how 1% owns 99% of all the assets in the world.
So how do you discover your 3P? We will answer that as we go move along. Look at any great entrepreneur and you will find that what kept them going till they made it was their unbridled passion and sense of clear purpose- the twin force which created their path thru the obstacles and hurdles which everyone must encounter in multiple ways and countless number of times before they taste success.
And builds upon KCC:
Knowledge, Connections and Character
Path = Finding and Following your natural enterprising Talent
These six attributes propel you down the path of success and are the values that are internal to you. Let’s examine each one of them.
What attributes did Mark Zuckerberg, Jack Maa, Elon Musk, Travis Kalanick use to attract the investments they needed before they could establish their businesses? Or Oscar winner Rami Malek of ‘Bohemian Rhapsody’ fame before he got the big break to play the role of Freddie Mercury?
Passion is what keeps you going when everything fails. If you are pursuing anything outside your passion, giving up is guaranteed. And quitters never win, they never make it. And passionate people never ever give up. Passion is the first turn of the tap that will start the flow of wealth towards you by attracting the means you need to carry your business forward – investments, people and resources. Investors invest in the person not just the company which is just a fictitious legal entity on paper.
Purpose is the Why? Why are you doing what you are doing? This is the greatest attractor of all. Every great entrepreneur is crystal clear on their purpose in life and business. Purpose is what you can give before you can take. The seed you must plant before you can enjoy the fruits. Yet so many of us puts the cart before the horse by dreaming about the riches even before finding what out what you can give effortlessly to get paid. Our purpose of coming to this world when realized fully will live on long after we are gone in the work we have done and the contributions we have made to the world.
When Steve Jobs passed away at the young age of 56,
consumers of Apple across the world poured out their grief
spontaneously and publicly, never before seen for a
CEO of a business.
You are born with
purpose, passion, talent, character-
four out of the 6 attributes.
You don’t need money to buy them.
You need to discover them
Character is not something you can plan and exhibit- that is what you do with personality- which can be faked. Character is how you conduct yourself day to day, your reputation in the market, your integrity. Can people trust you? Do you deliver? Your personal track record? Yes- every little action of yours leaves tracks.This is what Warren Buffet, one of the world’s greatest investors
and richest man said once about character ..
“After some mistakes, I have learnt to go into business only with people whom I like, trust and admire. We have never succeeded in making a good deal with a bad person”.
This was the topic of my presentation at a recent event in Kuala Lumpur, Malaysia.
Personality Can be faked, Character cannot be!
You can read the full article at this link
Natural Enterprising Talent: There are many ways, paths to creating your wealth. Even if we mostly read about the tech billionaires only, we should remember the Warren Buffets, the Ray Krocs of McDonald, Donald Trump- billionaire and President of the United States, The Sam Walton’s of Walmart and many more who created great wealth from nothing by following and sticking to their natural talent- their PATH.
In fact, there are 8 different paths to success in wealth creation.
And all of them are valid and successful for the ones who are meant to be on them.
Each of us has a path of least resistance/effort that is based on our natural habits and talents– the ones we were born with. If we are not on our path, life can be a struggle. When we follow our path – and begin to play the game that we most naturally play, we begin to Xcel. We also find we are doing what we love. These are the eight SXA Enterprising profiles. Go thru them and see which one feels like you and then take the SET test to know exactly which one of these eight is your natural profile
Which of these 8 enterprising talents are you?
A team LEADER or a DEALER develops people and changes processes. They became wealthy by the force of their personalities.A COMPLETER develops processes and changes people. They don’t invent new things, instead they make existing tings better and create their wealth.An INVENTOR… such as Thomas Edison, Walt Disney, Steve Jobs… has a CREATIVE nature found their path to wealth thru innovation.A project MANAGER turns a plan into a process. They are reliable and steady.A PROMOTER magnifies his / her brand thru the power of their persona.An ANALYST brings a process to the idea by studying in detail the numbers and finding the patterns others miss.A SALES(WO)MAN has a good sense of timing through his / her REACTIVE and insightful nature and that’s how they make their wealth.
Entrepreneurs don’t have to be great at everything.
In fact, they only have to be great at one thing.
Do you have that ONE thing?
Knowledge- the more you have the more attractive you become to your employer or customer or stakeholders and this increase your value and attracts wealth to you. The problem arises when your knowledge is not aligned with your passions and purpose. That kind of knowledge cannot help you to leverage. This is an attribute that you acquire, not born with.
Connections are Who you know whereas Knowledge is what you know. Every successful entrepreneur has a phenomenal network of connections that continues to expand their wealth more and more with little effort as they attract the right kind of people and resources and they are always in demand attracting even more connections to his network. As the saying goes, nothing succeeds like success.
3P + KCC are the building blocks which you use to tap into the trillions of dollars that are forever flying around the world every day, every second. All you need to do is attract a miniscule portion of that flow towards yourself by understanding the following Four Factors of Market and leveraging them systematically to unleash unimaginable wealth for yourself.
The 4 external forces
The 4 Market & Money Factors
ALL THE MONEY FLOWS IN THE WORLD IS THE RESULT OF LEVERAGING THESE 4
The Retail Factors: Need and Want
What we see and experience easily everyday are the retail factors. When we buy these 2 factors we see our money as being ‘spent’ When we buy food to eat, we lose the money and the restaurant gets it. I buy a pair of trousers and I get the trousers and the shop gets the money. Everywhere on the internet, TV, newspapers we see the retail factors in action.
Force 7 fulfills a need. Need for food, shelter, clothing, communication, education and so on. This factor is mostly a commodity which means where the money flows to them is largely on account of price- the lower the greater the flow of money.
Force 8 fulfills a want- meaning we don’t need it but we want it. In today’s world of consumerism, we spend far more on what we want than what we need. Where the money flows is not a matter of price but of desire. We may need food but want to eat at a 5 star hotel, we may need communication but we want to use the latest iPhone and so on.
As an entrepreneur as you try to find out what value you can deliver that will attract the greatest money flow, we should know that less than 5% money flow in the world is because of the retail forces. The other 95% money flows because of the wholesale forces.
In fact no one ever became a billionaire
because of the retail forces.
Everyone of them moved up the ladder
to the two wholesale forces.
The two Wholesale Factors: Component and Investment.When investing in stocks, commodities or property we expect a future capital gain which evolves simply through time.
‘Spending’ Vs ‘Investment’. In the retail factors the money flow is seen as money being spent, in wholesale it is seen as money being ‘invested’.
One may think very hard about spending $300 on a meal but may easily put $50,000 deposit on a house. The first is seen as money flows out and the other as adding value as investment. In retail we see money as the more we spend the more we lose. In wholesale we see an the more we invest, the more we make.
Force 9 is the Component factor: When your product or service is a component that goes into a bigger product and service- it is seen as helping make more money, adding value. It requires investment plus innovation to create the value which will enable the buyer to earn higher returns. The most famous example is of Bill Gates who made so much more money selling Microsoft software to PC manufacturers than directly to consumers. For his buyers the more they spent buying his software the more money they made. The other famous example is McDonald’s making far money by selling Franchisees than selling hamburgers and the Franchisees see the money they invest giving them a return by adding their own efforts in running it.
Force 10 is ‘Investment Returns’: This requires money and timing to generate a return. If Jeff Bezos had not listed Amazon, he would not be the richest man today. His wealth does not come from his salary but from the listed shares in Amazon that he owns.
The fundamental to wealth creation is
Leveraging the retail forces to wholesale forces, from component factor to investment factor. First you create a product/service which fulfills a need or a want. Then you find and leverage your product as a part/component which can add value to a bigger product/service and earn them higher returns. Finally you leverage the investment forces and attract money flow to your whole enterprise valuing it 10x , 20x and even more by investors creating wealth for you far more than you could ever generate by your profits alone.
The recent IPO of uber proves the point, where the company says they may never make a profit in the future and yet attracted a market cap of $ 87 Billion and the trio of founders made hundreds of million of dollars by selling their shares.
On13 May 2019 Uber CEO Dara Khosrowshahi told his
employees in the memo to look back at Facebook and Amazon’s IPOs,
which also had rocky starts before growing their massive market caps.
He also said the IPO raised a lot of capital for the company that will
be reinvested into improving margins and profits.
Bringing it all together: the 10 forces: Leveraging the 6 internal & 4 external forces.
The successful entrepreneur first builds a solid base by leveraging his 6 internal forces 3P + KCC:
Purpose, Passion, Path & Knowledge, Connections & Character.
Then uses them to tackle the 4 external forces of Retail & Wholesale to build his enterprise and wealth.
Knowing vs not Knowing your 3P and
your natural enterprising profile can make or break your entrepreneurial journey even before you begin.
Fortunately, you don’t have to worry about
once you take the Entrepreneurial Potential Test.
It’s a click away and within 30 minutes you can discover your Xact profile.Find your natural entrepreneur profile.