Play the money honey!!!
Well I have been dealing with Money for the last
18 years as a management consultant & a start up expert. During the course,
I hav met many many entrepreneurs who were dreaming to be rich, or guys growing
to be rich or the “flinch guys” say the
money
hunters who want to become rich overnight. Understanding their thought process
is amazing how people think or react to a situation.
I am always puzzled why only some people get rich
and make money? Why not every one? What’s special with these guys who made
their money? What is the Key to make money? What are the rules these successful
guys follow? We all know at the time when Ambani / Bill gates / Steve Jobs were
in the making there were many other in
the same fields, may be more smarter, with more money more contacts or more
opportunities , how did these guys only succeed and where are others. Every
thing exactly the same for every one…
Now after 19 years in profession and with lots of personal
interest I think I have understood a little of the pattern of the money making
trick - how money is generated or say acquired by some. Right now i jus wanted to share my experience
and understanding about money and how it controlled by only some and why
millions only dream of money and never ever get it in their life….. Basically I
wanted to write the meaning of money and what rules the rich follow to become
wealthy… This is not an exhaustive theory of money making nor I am an expert..
all these small patterns of successful people I have come across I jus wanted
to share….
Money or wealth is NOT
generated - it is a myth.
Many people have
misconceptions about money. As people generally understand u don’t generate any
money with your hard work, you are NOT CREATING any money cause u are not god.
Money is already there – or every where, waiting to be acquired or grabbed,
that’s it – u don’t need to work hard and sweat for it, money only jus passes
through from one hand to another. Like the old saying money and blood always
need to be in circulation. Only one needs a have a situation or a process to
take the money for yourself that’s it … it is as simple as that. Countries, Corporations, businesses or jus
plain people like you and me apply different routs to take money for
themselves. Here
I am talking about “BIG money” not “change” sir…
Dint we take money
from dad triggering emotions ?, don’t countries jus issue crap bonds and take
money from other countries to build infrastructure and enjoy at others cost like
the US, don’t corporations sweep billions in small change from millions world
over giving them “paper equity” ?, don’t smart girls take away wealth from
greedy old men?.. It all happens every day… so the first rule in money making
is “there is cash all over” for me and how smart I am to take it for myself
that’s it. If some one has misconceptions seeing Hindi movies that the hero
runs a taxi and makes money and bungalows etc quickly it’s Bull and never happens.
Employees
never get wealthy
U never can become
wealthy if you are working for some one. That’s the rule. After I got qualified
as a Chartered Accountant I was travelling to Bombay for my first job interview
in a train I met a 18 year old rustic Rajasthan guy, he was shocked to know
being a qualified CA I was trying to go for employment.. He asked me dint I
like making money? He also asked me why
should you sweat day and night & use my knowledge to make someone else rich.
He said millions work day and night to make few thousands rich … what a
revelation!!!..After that, I dint go to the interview and looking back after 19
years I don’t regret it. If you are smart and in employment then kick it and go
into the real world of money making.
Money without
Power?
Its very very
important to have Power along when you have the money. Without power – all the money
you have will vanish overnight... Power should also increase in the same
proportion of the money generated by a person. I have seen many cases like
this… This is a unwritten rule… 3 years back I negotiated business transfer of
a small business which had mineral concessions to a MNC for 11 Mil US. The
client was middle class hard working guy and with the deal he was on the clouds
that he made money he could not even dream. Met him again last week in a restaurant.
U know what ? Out of the 11 mill he went tried to acquire a large iron ore mine
in Indonesia for US 6 mill this went into litigation with the seller, he
acquired a metal quarry in UP for US 3 Mil and has problem with locals and is
stuck , Income tax guys have raised
demand for US 2 mill, His working partners have filed suits on him claiming US
4 mill as their share, WOW so many issues in 3 years.., the point is this guys
is soo small he dint have the power to hold on to the US 11 mill he made. If he was powerful enough there would be no
litigation in Jakarta, no issues with the locals in UP, his working partners
would shut up with what ever little they were offered. He would have settled
with the IT dept. That’s it. Even he would have put his entire money in Bank
fixed deposit he could not have held it for sure. He would have lost the money
in other form. So money without power would vanish.
Money makes
many things
Yeah sure money makes
many things we all know but the funniest part would be the first ones which
would make is the illegal ones. A wealthy person who do illegal things would
never be wealthy all his life. People have misconceptions that moneyed guys
always have fun and enjoy every day, every minute just like in the movies. In
real life the wealthy would not have time even to have a good lunch too, with
money there are so many responsibilities. A guy suddenly getting money would think
making money would be soo easy and first goes and buys a Big Car, Falls in love
with his secretary and has differences with his wife and family, Starts
partying every day drinking heavily, would have concubines, try to acquire
illegal assets, Cheats the Income tax and that’s the end he looses every thing
and only those illegal things remain and eat his life away. So when you acquire
money with that you acquire more responsibilities and stay away from Illegal
things
***
Ok bro how to make Money?
People who have
potential to get wealthy are three categories, the first one is the knowledge business guy ie. A Professional
Management consultant, a journalist, a
Doctor, a Company secretary, a Software expert, a lawyer etc. The second
category are the business men or say the entrepreneurs’, people who invest
money, take risks in life and grow. The third categories are the Flinch guys i.e.
the money hunters who look for easy money thru illegal means or bribes or
whatever. We avoid talking about the third category.
The
Knowledge Guy.
Out of many
professionals only 1% would be come rich isn’t it? Why? When there are hundred
thousand CA’s only 1% classify as wealthy though every one of them have same
qualifications and similar skills? What is the difference? This is the Difference.
Choose the money
making vertical in your knowledge sphere.
To
make big money a professional needs to choose the best of the vertical in his domain.
Doing vanilla profession will yield peanuts. A CA should be in fund raising, a lawyer
should be in High Court specializing in Corporate laws, A CS in M&A deals,
a doctor as a super specialist…
Choose the best area
of operations
A
professional should be based in a large city, Big city means big business and
big clients and big contacts and big deals. See the difference of a Chartered
Accountant based in Hyderabad and who is based in Beijing.
NO
obligations
5
years back I met a night club owner in Dubai who was a friends friend. When I
was having dinner with him, his aunt’s son came in seeking favor, actually he
could have easily helped him but our man even refused to listen. You know what
he told me later…. “His father for his happiness ****** his mother and this
fellow is born ... What is my obligation
? - “stunned”. Have obligations you go empty handed.
Don’t sell Cheap
Charge
high is the mantra. I know many professionals giving away knowledge for free.
You should very well know the product you are selling is “knowledge” and if u
give it away free to show off or to please someone or to just showcase your
knowledge and intelligence you will have to starve.
Don’t fall in love with your client.
Many
professionals are in the habit of liking one particular client because he is
just good with you or caring. You have to understand that he is good only
because you are not charging him. The day you charge him he would be your worst
client.
Charge
and collect
Never
do any consulting free, Even for a small work “Charge “and collect
aggressively. Always remember your product is your knowledge did you ever see 1
cent chocolate given away free?.
Limit your partners
Partners
are pain, many of them just share without contribution. As far as possible keep
partnerships small. Let no body piggyback your efforts.
Don’t
do illegal deals
A
professional never ever should do any illegal activity, respect in the society,
status matters a lot.
Travel
Travel
at the drop of the Hat, as a professional contacts are your power and contacts
with knowledge will make you popular and rich.
Contacts
As
a successful professional you will have lot of contacts, never introduce one to
another, nor introduce them to other professionals. They are your blood and
ATM’s, don’t make your ATM - PIN CODE public domain.
Don’t stand guarantee for your clients
Clients
are gullible talkers, don’t fall for their smooth talk and go into their
business, remain a professional , if a client is offering you a share in his
business it is clear he wants free service from you. Also never guarantee his
business deals, you will be caught pants down. Never ever invest in clients
business too.
Don’t deal with suspicious characters.
You
meet a shady guy who is slimy? Avoid like plague. Don’t fall for easy money
tricks, people drag well known professionals into shady deals to easily
establish their own credentials for pulling off a fast one.
Don’t invest in Stock market If you don’t know the
business.
Now The
business man or the entrepreneur
Here is the guy - the
entrepreneur – gods for this planet, risking his money, family life, future for
just the flow of adrenalin. You cannot stop him to take a plunge into a
business idea, he loves his successes and learns from his failures, they are
ones who drive this world, this economy, make our lives more qualitative and
the best part make millions of people earn their bread every week.
What business?
The real wealth creator is Nature
which produces money or wealth in the form of Oil, gas, Diamonds, Coal, Iron
ore, Quartz, Beach Sands, Bauxite soo many others and that the start of money / wealth
creation. Dint we see wars created for control of natural resources?. Don’t we
know wat US is doing in Middle East and Africa for the last 100 years? So the
source of money or wealth is nature and if alone you want to generate BIG
money, then be in the action where the money is, in what ever form you are no
issue, don’t need to have big money to be there, be where the action is take the control of nature wealth and you
are wealthy soon – that’s a promise. I saw many small guys who made it very big
in Indonesia in just identifying mineral concessions for foreign companies, You
can never ever go bankrupt if you have natures abundance in your control. The
demand never evaporates.
15 years back I went into specialty
chemical manufacturing, it was so exciting, during that time I met a liquor
baron, when I told what I was proposing to do, he shook his head and said
always do a product which is consumed every day don’t go into green field high
tech products, in business you always enter into one where the product is a
necessity and the demand is ever
increasing. How right he was, my business went bankrupt and I lost every thing.
In a country like India any business
can make money, just need to focus on product which is a necessity to the
billion people, let the profit margins be low. The point is if your top line is
assured and ever growing you are in big business, Now to make good profits you only
need to cut corners to become lean and efficient that is all it takes, every
dime you save is your profit and when there is large top line – drops make a ocean. A management guru once
told “ Show me Cash Flow – I will show you profit”.
Know your exit.
The
most funniest thing I see in businessmen is – none of them know what is his
exit. Life is soo short and we all have a sure shot exit for this life in death.
Then in business why don’t people plan exit?. 90% of them don’t know when to
exit and they die a slow death.
Ride the wave
Have
the ears to ground and have the knack on smelling whats coming. Did you ever
see a ocean? Ride the wave and you are on the top of the world and just manage
not to go back with it. Always ride the wave.
Postpone decisions by a day
Don’t
take impulsive decisions. Always postpone decisions by a day and see, I am sure
you get up next morning nd think how silly you were yesterday.
Never ever take public deposits
Public
deposits big NO NO NO. A small hundred thousand rupee public deposit after 50
years can put you in jail for ever, if you have any doubt ask Nemish Kampani.
Don’t do business with 100% loan
When
you are coming into business, always invest your margins first, don’t try to
play on 100% loan, you will be sure to be thown out at the first taste of
success, there will be no fall back for
you and it will prove so costly in the long run. This rule applies to buying
assets too … Cannot buy a house or even a car on 100% finance. Credit cards are
100% loans. if you want to become rich then right now tear your credit card
into two.
You can renegotiate
any number of times
Yes
you can , you can renegotiate any deal any number of times, even with your wife.
I do it every time if I feel I made a mistake in negotiation. I have a
brilliant friend who is a telecom expert , he taught me this.. very very
successful theory .. try it once and you will profit for sure.
DO business which will fetch valuation
Big
money is always a valuation game. So concentrate on those things which can give
valuation in future. Today’s scrap is tomorrows money. Who thought 15 years
back Satellite rights or World rights of silly movies were gold mines? They
were given off free then, Who thought mineral concessions or just applications
for mining are money, I have seen people paying USD 25 Mil for some body to
withdraw his application for a mining concession in Karnataka. (
this costed him just Rs 2500/- or USD 50)
Don’t divert funds
You
are diverting money from your business or profession ? this means you are
draining off your own blood from circulation.
Don’t do illegal business
Illegal
deals No No , you definitely get caught
for sure. Law takes its own time but it is sure and decisive. Also pay your
taxes promptly, don’t forget you not only have a obligation to your country ,
the land has made you what you are today.
Don’t fall in love with your secretary
Some
one told if you want milk why do you want to own a cow?. Family is first and
last , never ever cheat them.
Don’t do things which are not in your control
Every
time you do a transaction or enter into a business, think for a minute, is this
transaction in my control ? if not don’t
do it… My brilliant telecom friend had invented this, aways works soo well.
Avoid litigations.
Negotiate
for ever and solve your problem. No issue is so tough not to get resolved. No
litigation please.. it will drain you out, make you negative, spoil your relations, make people suspect you and you are
only making your lawer fatter.
Money is not permanent – Know that
Its
jus matter of time how long money is there with a person or a corporation or a
Country. It has to pass on and money will never stick permanently to any one. Nature
is decisive and ever changing, Dint we see emperors falling apart? dint we see Goldmansachs, Walmarts , Enrons
going bankrupt, are we not seeing Greece, US, Europe faltering on money matters
? , that’s it - these ones have jus lost the ability to sweep money from others
that’s all, they lost their ingenuity to attract money from others any more. So
the key is know your limit, know your exit rout and exit gracefully.
