Paths Of Self-Made Multimillionaires

Be warned making money is NOT for the weak, takes a strong will to overcome setbacks, haters, even family members that hate like it pays the bills. In your quest for the riches you will encounter all sorts of obstacles but your WILL to see those many zeros in your account or buy whatever you want without asking the price will get you through.

First you need to understand that you no longer want to be just a millionaire but that you want to become a multimillionaire. While you may think a million rands will give you financial security, it will not. Given the volatility in economies and tax, not to mention the cost of living and financial markets around the world, it's no longer safe to assume a million rands will provide you and your family with true security. In fact, an investments study of millionaires last year found that 42 percent of them don't feel wealthy and they would need R7.5 million of investable assets to start feeling rich.

This isn't a how-to on the accumulation of wealth from a lifetime of saving and pinching pennies. This is about generating multimillion-rand wealth and enjoying it during the creation process. To get started, consider these seven secrets of multimillionaires.

No. 1: Decide to Be a Multimillionaire - You first have to decide you want to be a self-made millionaire. Decide to go from from nothing— no money, just ideas and a lot of HARD work— to create a net worth that probably cannot be destroyed in your lifetime. The first step is making the decision and setting a target. WORK FOR IT!!

No. 2: Get Rid of Poverty Thinking - There's no shortage of money on planet Earth, only a shortage of people who think correctly about it. To become a millionaire from scratch, you must end the poverty thinking. Most of us are raised by a parent that will do everything possible to put her kids through school and make ends meets. Many of the lessons parents would teach is, "Eat all your food; there are people starving," "Don't waste anything," "Money doesn't grow on trees." Real wealth and abundance aren't created from such thinking - instead if there was such talk as research on investment or unit trust then many of us would turn out different.

No. 3: Treat it Like a Duty - Self-made multimillionaires are motivated not just by money, but by a need to conquer. Multimillionaires don't lower their targets when things get tough. Rather, they raise expectations for themselves because they see the difference they can make with their families, company, community and charities.

No. 4: Surround Yourself with Multimillionaires - well you might not befriend them but study them, read their stories and see what they went through. Those should be your mentors and teachers who inspire me. You can't learn how to make money from someone who doesn't have much. Who says, "Money won't make you happy"? Oh please, it's people without money that say that and worse they will say "All rich people are greedy"? hence they have money. Wealthy people don't talk like that. You need to know what people are doing to create wealth and follow their example: What do they read? How do they invest? What drives them? How do they stay motivated and excited?

No. 5: Work Like a Millionaire - Rich people treat time differently. They buy it, while poor people sell it. The wealthy know time is more valuable than money itself, so they hire people for things they're not good at or aren't a productive use of their time, such as household chores. But don't kid yourself that those who hit it big don't work hard. Financially successful people are consumed by their hunt for success and work to the point that they feel they are winning and not just working.

No. 6: Shift Focus from Spending to Investing - The rich don't spend money; they invest. The rich, in contrast, buy an apartment building that produces cash flow, appreciates and offers write-offs year after year. You buy cars for comfort and style. The rich buy cars for their company that are deductible because they are used to produce revenue.

No. 7: Create Multiple Flows of Income - The really rich never depend on one flow of income but instead create a number of revenue streams.

You will be surprised to learn that wealthy people wish you were wealthy, too. It's a mystery to them why others don't get rich. They know they aren't special and that wealth is available to anyone who wants to focus and persist. Rich people want others to be rich for two reasons: first, so you can buy their products and services, and second, because they want to hang out with other rich people. HUSTLE - Get rich playa.

How Solid Is Your Business Idea?

Hustle is dedicated to your grind and over time we will bring business related articles. It won't be ABC easy to get whatever business started but with persistence nothing will hold you back.

If you want to start a business, how full proof is it? Do you have knowledge in the business you want to venture into - most important, how to run your business - is the most potent weapon you can have. It often means the difference between a good and a great business, as well as success and failure.

That said, one of biggest mistakes most would-be entrepreneurs make is going into business based on what they think people should buy, rather than what people really want or actually do buy.

Here are four simple and inexpensive things you can do before you get into business to make sure there is viable, sustainable and growing market for your business.

Identify your market. How big in terms of money, is the current market for your product or service? Is it a new or mature market? Are you in a new or mature category? A lot of these questions can be answered with research over the type of business you want. Or go to someone that is already in that type of business on a facts finding mission.

Another good tactic is to go to a trade show or exhibition and look at your prospects as well as your competition. What does your potential customer really want? Who are they? What is your competition selling and at what price point? Can you deliver the same at a lower price, or can you add value and charge a premium? Is the sales cycle long or short? Is the exhibitors' list growing or declining from year to year?

Answers to these types of questions will give you a big advantage in getting a handle on the opportunities within a marketplace, and if your initial assumptions about your product or service really hold true.

Because this knowledge will give you additional insight into how your own sales process should be structured. It will also help you operationally tailor your product or service offering to better fit your audience.

Test and measure demand. Big companies spend lots of resources testing ad campaigns and hiring focus groups, but you can do a lot more effective research on your own by simply starting small then testing and measuring everything you do.

Start your list of contacts. At this point in your start up and planning phase, you may have a list of vendors, suppliers or even potential customers. If so, great. Keep building that list and start to develop a communication strategy to keep in contact with that list on a consistent basis. Today's contacts may be tomorrow's customers. More importantly, they have access to entire networks of people who may want or need your product or service.

The real goal of networking is not making a sale to your direct contact. It's about creating a relationship with that contact that leads to referrals and word-of-mouth leads down the road. Whatever you do and however you keep track of your list make sure you protect it and treat it like gold. For most businesses, your contacts database often becomes the most valuable asset you own.

In the end, there is no fail-safe formula for business success, although people are always trying to find one. The best indicator is a proven market with room for growth, populated by people willing and able to pay for something unique or different that helps them make their lives better, easier or happier in some way. It's the business that does the usual in an unusual, unique or different way that wins customers and keeps them coming back for more.

We still maintain that the road isn't ABC easy as this article but its the will inside you that will determine if you succeed or go down as could have worked type of idea.

ProVerb Making Moves

Idols South Africa is back with fame chasers trying their luck in the limelight but that's not the focus here.

ProVerb is making moves and not behind the mic but behind the scenes on the singing contests. The man from the diamond city will also be calling the shots behind the scenes.

Pro has joined forces with legendary Idols director Gavin Wratten, who has directed all seven seasons of Idols to date and also produced Season 6 and 7, to form a new production company, Productions, which will oversee the eighth season.

On radio ProVerb was the technical producer of The Fresh Breakfast Show on Yfm and The Avenue 3 to 6 with Glen Lewis on MetroFM, and he can currently be heard on air on 94.7 Highveld Stereo. He has also hosted two Miss South Africa broadcasts and lectured in TV production and radio at Damelin College.

ProVerb launched his career as a rapper 1999, achieving success with albums such as The Book of ProVerb, Manuscript, and Write of Passage.

7 Things you should know before forming a startup

As you were watching fireworks explode in the night air, bringing yet another year to an end and a fresh one, you may have quietly committed to a resolution that this was finally going to be the year that you take the plunge and start your own business.

The idea has been brewing in the back of your mind for years and, for some unknown reason, the time finally seems right to take those unguided steps and break away from the security of your 8-5 job. Just knowing you are about to follow your passion makes you feel energised and reinvigorated, spurring you to hand in your notice to your boss with the hope that one day you will be driving past him in your new Ferrari and wave.

As the old saying goes “you can’t buy experience”, and without proclaiming to be an expert on your specific idea, here are my seven “insider” tips to help you on your new journey or make you think twice before you take those pioneering steps.

Cash

Cash is king! If starting your business were a chess game then this is the piece that could win or lose you the game. So keep your eye on it. No matter how much profit you make on paper it means nothing unless those profits generate cash for the business.

Your idea

Don’t be afraid to tell people what it is(even if those haters steal it, don't worry - they won't execute well as you do). Trust me, the fact that you are already working on your idea puts you ahead of the pack. People have great ideas everyday but as you will soon realise executing those ideas is where the skill lies. Everyone else either doesn’t have the skill, the time or the courage to take the plunge. What they will however do is mention someone they know who could help or is already in the space which will go a long way to building your network and understanding your product.

Investors

Sorry, but it is a sad truth, no matter how grand your idea is virtually no VC will touch it unless at the very least a product has been developed and it shows some market potential. You are going to have to either fund the early development of your idea either yourself or lean on any Angel Investor you know who can give you some of the upfront capital.

Time

Most things take twice as long as you forecast them to. Regardless of the endless hours or constant hustling things take time. You will be dealing with corporates who are not watching their bank balance as closely as you are or with suppliers to whom you are ranked as their 9 035th favourite customer. So when you sit and forecast how quickly you will be able to buy that Ferrari, in most cases double that time.

Credibility

In your previous working life you may have been top of the corporate crop and smashed every target given to you. Surely people who you deal with now will see that and give you the same sort of respect. Sorry to burst your bubble but you are the new kid at school again. You are going to have to build your reputation one success at a time before anyone will part with their hard earned cash to either invest in or buy your product. In fact, establishing your credibility is perhaps as instrumental to your success as cash is.

People

Ever wonder what the finance person actually does in your office or can’t understand why it should take so long for the IT manager to build a three page website? You are about to find out the hard way. People are one of the biggest assets you are going to miss when you go out on your own. Unfortunately, you will not have the cash to afford to pay them so you are going to largely be left to your own devices. Yes, you can do some of the admin but by identifying what the biggest “people asset” is that you need, and investing in them as much as you would invest in your product, you will dramatically increase your chances of success. This may mean giving up equity or coming to some other solution, but remember your idea is not what will win the game, it is how you execute it that will.

Marketing

Too often marketing is left as an after-thought or thought of as something that anyone can do. I mean how difficult can it be, you just make an advert right? Your product may be the greatest out there, but unless it is packaged and presented to the consumer in a way that positions it so that your target market sees it, understands it and makes them want it, you stand no chance of succeeding. Considering the marketing of your product can even tactically change what your product offering at launch is. Oh, and please don’t forget to budget for some marketing expenses. You can’t just put it on Facebook and expect everyone to “share it” with all their friends.

Fundamentals Of A Hustler

If you want to be a millionaire you have to think differently.


There's no real practical reason to ask "who wants to be a millionaire?" because the only people who won't put their hand up are the types that've taken vows of poverty and those who are already multi-millionaires. Unfortunately, there's a big gulf between those who want it and those who do the things to make it happen.

For example, an adult earning the median level of income and saving an impressive 20% of that would need almost 200 years to save R1 million. So it's pretty clear, then, that a would-be millionaire has to think outside the boundaries of "median" experience.

Start a business

By business we don't mean that sweets stand and loose cigarets around the corner in your hood, that in a long way won't make you a millionaire. There are certainly people who can become millionaires by working for other people, but this is not an especially good route to choose. The trouble with trying to become a millionaire by working for other people is that there are always other people siphoning off the value of whatever you produce.

Say you're a hotshot salesman – although you're going to get your cut, a lot of the value you create is going to get split among a broader pool of workers, managers and the owner(s) of the business.

Start your own business and you get to decide how to divide that pie. Better still, your ownership stake can become more and more valuable over time as that business becomes larger and larger. While a good employee may get raises and promotions as his or her employer grows, they'll never see the same benefits (including the appreciation in the value of the ownership interest) as the owners.

Use other people's money

By this by no means we mean that society money or stokvel your mother is inn. One of the remarkably consistent features of stories about people who go from relatively no wealth to major wealth is the role of other people's money in making it happen. Sometimes it's start-up capital from a generous relative, or maybe it's a small business loan or venture capital.

Borrowed money can be a major force multiplier. Behind virtually every property empire is borrowed money and the use of leverage in investing (whether through buying stocks on margin, buying options or buying futures) can rapidly magnify a skilful investor's success. Of course, this cuts both ways – just as borrowed money can create a large business (or portfolio) quickly, just one mistake in an over-leveraged enterprise can bring the whole thing crashing down.

It comes down, then, to risk tolerance. Those who really want to build large wealth (and do so quickly) through business or investment will have to do so in part with other people's money.

Cultivate a valued skill

Wages respond to supply and demand just like everything else, so it is very important to cultivate a skill that is not only in demand, but scarce enough to be valuable. Architecture and law, for instance, are both specialised skills, but not necessarily rare enough to make their practitioners wealthy unless they are at the high end of their profession.

Sports is an obvious example, but most people know in their teens whether they have the rare physical gifts (and perhaps the even rarer mental discipline and dedication) to open the doors to a professional sports career, and it's not really a door that can be opened in college or later. Medicine and engineering, though, are both open to college-aged people who have the requisite abilities and the willingness to put in the effort. The services of these professionals are not only almost always in demand, but the supply is small enough that professionals here can fairly expect to become millionaires on the basis of their labours.

This is also true for unconventional skills as well. Pursuing a career as a writer, actor or professional gambler is a virtual guarantee of poverty for most people. For those who actually have the skills necessary to succeed, though, it can be their best chance of building real wealth.

Out-think or out-hustle

Lazy and self-made millionaire just don't go together. Going back to that supply-demand equation, anything that's relatively easy, convenient and accessible is going to have ample supply and relatively low payouts. Since most people don't actually want to work that hard, though, there are real wealth-creation opportunities out there for those willing to think and/or work just a little harder than average.

One option for building exceptional wealth is to out-think the majority of people out there. While pursuits like writing, investing and inventing all involve a tremendous amount of effort and dedication, there is at least some aspect of out-thinking to them all. Steve Jobs of Apple, Richard Branson of Virgin and Lord Alan Sugar all clearly worked hard to achieve success, but a lot of that success was predicated on seeing things that others didn't see and figuring out how to do them even better.

Out-hustling is an undervalued aspect of wealth creation. Success in business is often about the hustle – the willingness to make one more call or work an extra hour later. The field of "hustle" is wide, rich and fertile. You can make good money visiting auctions and reselling undervalued items, just as you can make good money from a variety of multi-level marketing programs. The question is whether you want to spend the hours it takes to drive the process forward.

Rental property is a good example. It is actually not all that difficult to find rental properties, buy them and rent them out. Do this well and it's fairly easy to earn an annual return of 8-15%. The problem is that there are a myriad of small annoyances that go with it – hassles in haggling over the purchase price, hassles in getting bond, hassles in getting tenants, hassles in dealing with tenants and so on. Some people just don't want to be bothered with this, but those who don't mind the annoyances can reap the rewards.

The bottom line

Having R1 million or more in net worth is still uncommon enough to be special and significant, and it doesn't often come as a by-product of luck or chance. Hard work is a virtual requisite, but so too is a willingness to take on some risk (such as starting a business or using leverage) or cultivate a rare gift (like writing or inventing). Although simple living and sound investing will help anyone build more wealth, a special level of success requires a special person who is willing to do more and risk more than most people.

In short, spot the gap and seal it.