Bizmaker: How I Build Businesses using the Power of Accumulation!
(Originally published on Sunday, July 11, 2010)
By MARK SO
My wife and I used to live in a condo unit when we were newly married. At first, the condo was pretty spacious and needed some furniture so we got a little bit of this, and a little bit of that; then gifts would come from friends and family on special occasions; and over time, the stuff we had piled up. I remember feeling claustrophobic at one time; I literally couldn’t breathe anymore, and no matter how many times we would donate or purge items, we felt that the condo was magically getting smaller and smaller.
Now this is not because we keep buying stuff; we actually live (then and now) a very simple life. We do not buy anything we do not need and we donate and ‘purge’ regularly; the fact is everyone will eventually have more stuff over time. This is what I call “the power of accumulation” and what I wanted to share with you today is how I use this power in businesses, and how you, too, can build something small first, then slowly, over time, accumulate not just “stuff” but also wealth.
Before I start, I’m sure you are thinking right now: “I can’t start a business yet; I don’t know anything about businesses.” So I want to let you know one powerful truth:
Everyone starts at ZERO.
Every successful business owner starts by not knowing much about business. Sure, some of them might have studied starting a business, whether in college, grad school, books, and even through seminars. And I wholeheartedly believe in education, but let me tell you another powerful truth:
Experience is the best teacher of all.
Let me explain further. If I were to tell a 5-year-old child to stay away from the stove because s/he might get burned, then show the child pictures of what a burn looks like and tell him/her that it is very, very painful—then the child has been educated on how not to get burned right?
Now, the child will listen to you…for a while, that is. But when you are not looking and the stove is on, chances are, the child will still go near the stove and accidentally burn his/her hand anyway—because the child needs to satisfy his/her curiosity as to what the word “burn” means, and understand what you meant about how painful it can really be. Now, the moment s/he gets hurt and realizes that s/he never wants to get burned again, s/he has gained experience.
Likewise, the best way to learn about business is to experience doing business and find out first hand what it is like to go through the pains and gains of being in business.
So are you ready to gain experience and accumulate businesses? All right then, here’s the simple formula/plan that you must start doing now to start accumulating wealth through businesses:
S+R+A = Power of Accumulation
S = “Start small”
There are many ways to start a business, but my method is the one that you can do right now. First off, know that no one can ever be sure if a business will succeed or not. So, common sense will dictate that you start small. If you have a small business already, good! If you don’t, then start one now by starting a sideline or ‘racket’. If you need some suggestions for creating a business without adding any costs, go to my blog at www.markso.wordpress.com and search this phrase: “Money Management Simplified Part 3.” In that article are two incredibly simple ways to start a small sideline business with zero costs. I would also suggest that you read the whole series (parts 1 to 3) to learn how to manage your money for businesses.
As my readers already know, when I start businesses, I start them with zero costs: to me that is the ultimate way of starting small.
R = “Remain Small”
When I start a small business, and it becomes a success, I do not hire a lot of people; I keep it small and manageable. But I do something special inside the business to make it even more profitable. I call it multiple Streaming. It’s a technique that I teach in my 7-point formula seminar. What multiple streaming does is that it takes an ordinary sideline or ‘racket’ and it doubles the income streams of that business every year.
Now, if I increase my income stream per business and keep my staff small and manageable, the business becomes a lot more profitable even without becoming too big.
Why do I like keeping my businesses small? Well, lots of reasons but the most important reason is that small businesses can move a lot faster than bigger businesses and the relationship between the customers, the staff, and me are more direct and personal, no red tape.
A = “Accumulate”
Now, once my small business’ income stream stabilizes, I do it all over again with the same process, I start another small business, then I ‘multiple stream’ it until it is profitable, then add another when ready. I simply keep adding small, profitable businesses over time and these accumulate into true wealth. Imagine money coming in from multiple sources—when you wake up, when you are asleep, when you are eating, when you are on vacation. It’s an incredible feeling, I assure you.
The Power of Accumulation
So going back to the introduction of this column, when my wife and I started out in a small condominium, we learned that you will always accumulate more “stuff” no matter what. So I learned to apply this incredible power into businesses and instead of the awful feeling of claustrophobia, I achieve something else—freedom from financial worries. So now, you too can accumulate more wealth by just following the simple plan that I outlined for you, and of course gaining as much experience in the process. All the best! Good luck and God bless!
About the Author: Mark So is a fervent businessman, forex trader, marketer, sales consultant, and educator. He is the chairman and CEO of Businessmaker Academy—a business, finance, and corporate training center. He is also the Chief Forex Trainer of Forex Club Manila. Mr. So is slated to conduct his “7 Point Formula Seminar” this July 31, 2010. If you are interested in attending this seminar, email Mark directly at marksoATzerocapitalclub.com (replace the AT with @). To read more of Mark’s interesting and life-enriching articles, you can go to his blog at http://www.markso.wordpress.com.
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