A internal to external approach by the owner of Maxim magazine owner – Felix Dennis on how he get his first million and the way he stay rich.
At first he ask ” What money can do for you? – you can do whatever you want, the taste of freedom. “How rich you want to be ?” – Rich enough to be happy. However rich also bring you stress, strain of protection and guilt.
when people are young, they are lack of experience and Capital, then when they are in middle-age, they start to worry about the loss of what have achieved, when they are old, the risk of security / happiness.
When we are young, we have the highest chance to success. When you are nothing to lose, there the highest chance to win. No One can tell you don’t do this / don’t do that.
When you are in middle-age, you don’t want to lose what you have, you massively hold back by fear.
When you are in senior, you are WAY too much more excuses, like mortgage, family, standard expenses.
Notice the difference of “dare not” and “cannot”. Pool people tend to stay pool in the past because of heath/ stamina issue. Making money is a drug, not the money itself. However whoever die with most toys doesn’t win. Real winner know/respect their limit.
Once you decide to begin the road of getting rich, job is half done. First step is always the most difficult. The fear of failure / avoidance of blame hold back all of us. The fear of failure is either let other/yourself down or financial calamity.
You need a mental armor to get rich, not as think as blind to well, constructive comment / criticism, but enough to fence off mocking, snogging, envy. The ability to live/embrace risk is the different between financial winner and loser.
Team spirit is an excuse for procrastination , those who ever get rich don’t want you to get rich .
Have a good idea is not enough how ideas implemented, it counts in the long run, watch your rival closely, never ashamed to emulate a winning strategy.
There are 6 ways to gain capital :Given / Inherit / Steal / Win / Earn / Borrow
Earn your Capital is the long term game plan. when you need to borrow, avoid the loan sharks. For venture capital, sometimes always look at short terms basis, like the sales of enterprise in 3/4 years, try to seek good legal consultant if really need to negotiate, one sentence can make a different. Try to create Capital by swimming with fish, friends, supplier and people around you. Obtaining capital is the hardest part, most humiliating thing to do is to walk around for money. “When going thru hell, keep going”.
Persistence is a powerful tool in hands of hungry hustle. Never give in, don’t take “no” as an answer, not giving in. If you want to be rich, you have to walk a narrow, lonely road to get whatever you need.
5 common start-up error
- Assumption is the mother of all fuck up
- Overoptimistic of cash flow : Cash-flow is the heartbeat of your company, under-capitalization is a frequent failure
- Reinforcing failure : We always too late to decide a “failure”
- Thinking small and acting big : When you are acting small, we still can remain in touch, flexible
- Skipping an talent : Talent hire and nurture others with talent. Talent people attracted to money/new opportunities / challenges. Let the talent dream up the company.
Stubbornness is not persistence. stubborn is ignore evidence that you are wrong and fears to be wrong. Persistence is the ability to acknowledge one has made a mistake, and new plan of action must be made. Don’t be afraid to change , alter course and make new plans.
Self-belief is far more important than persistence. Doubt is a warning system and play its part in reaching decision. Doubt/fear can/should be confronted.
Make more basket with eggs, wait until it grows, match investment with growth, make it pay. Doing is more important however listening is a powerful weapon.
Be ruthless about time, cut all the meaningless meeting, if you hear same idea form others, tell them upfront. always be listening and learning.
Few lesson from Dennis:
- Never make the CFO as president
- Never on vacation when a deal is about to go down
- If change account system, has the number check over and over again
- Never personally underwrite any business loan for your company, set limit if you must
- Listen to people which are good with money, always invest in good address, you can pay for cash and still not sell for a few years.
The truth about luck: Good and bad, will change by law of average.To be rich you must act like a predator.
The art of negotiation : distinguish greed vs. need, the power of greed in our mind is very strong.
Become rich you must be an OWNER. always own/control 100% if you can, forget about Salary, pension, health care, there are 2 principle in share the company – (1) who is putting into Capital (2) who is doing what work . Sharing the annual pie, give out incentives to concentrate the mind, create the sense of competition. No employee should deserve the “asset” die, employee get reward for guarantee salary. When it come to revenue / cost, revenue is much more important as everyone can cut cost
Until next time