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  • Book Review Of Millionaire Fastlane

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    Book Review of Millionaire Fastlane by M.J. Demarco

    This book is one of the best books on Entrepreneurship in which the author lays out five commandments to be on the Millionaire Fastlane. According to the author, until and unless the business complies with the five commandments, they are not destined to be successful. These commandments are:

    Commandment of Need, Entry, Control, Scale and Time (NECST).

    Commandment of Need:

    Millionaires affect lives of millions of people by adding some values to their lives and hence are millionaires. If the marketplace does not care about your product or service then it is not going to add value to the marketplace and it is a failed venture before it takes off. So, every business should first figure out if there is a need for the service or product your business is going to deliver or not.

    So, we have seen test products being sold for free to test the water. All they are doing is trying to figure out if there is any demand or not.

    People often start business with wrong reasons. They are good at something and very skilled and open a business about it. But if the marketplace does not care about it, it’s going to be a failure because marketplace is a selfish place. It does not care what you want, what you have, how good you are. All it cares about it is what is it for them. If it adds some value to their lives then they will buy it otherwise not. So, it’s a big eye opener for me and could be for so many budding entrepreneurs.

    Commandment of Entry:

    This is the second commandment to successful business. If the barrier to entry is very easy it means millions will be doing the same thing and you will not have the ability to scale your business but rather will have to decrease the price and compete those millions. Usually war of price harms all the parties. For example if creating a website and writing a blog and generate income is your business then there is not enough barrier to entry unless you try to add something extra value to the marketplace which not anyone else has added yet. An example which the author gives few times is when he thought about starting Limo business. He found it failed both the first and second commandments. There was no need for one more limo business and barrier was very low to enter into this business.

    Commandment of Control:

    If you have no control over your business and you have given entire authority to another party, you are doomed to failure.

    Many entrepreneurs start a company and then hire a CEO or CFO to completely take control of operation or finance. They know nothing about what is going on and that is the recipe to failure. Especially when entrepreneurs do not have any basic financial knowledge like what is loan mortgage, how to calculate simple interest but hire an expert to help them make decisions. Since they themselves cannot take a second look at the decisions made by their advisers, chances are that they might screw up and entrepreneur will have to bear the loss.

    One of the examples given in the book about the benefit of controlling the business is given as the following. If you are a doctor working at a private-care facility it’s natural to think that you are on the fastlane because your magnitude (price/unit) is large and that will increase the net profit and hence wealth. But, the control of the private care facility is not held by the doctors but by the owner. So, it’s him who is on the fastlane not the doctor who depends on his intrinsic value to increase the wealth.

    Commandment of Scale:

    The author gives an example of a burger stall outside a supermarket. No matter how much the owner tries, he cannot scale his business and reach out to customers outside of the supermarket. So, this business violates the commandment of scale. But an e-store that sells some product in the internet has unlimited number of customers and hence has the capacity to scale his business to unlimited level. However, if the entrepreneur can create franchise of any burger store then he has the ability to scale and will be on the fastlane.

    The author gives an example of a quote by the billionaire Mark Cuban who said it only one business to be successful. So, it’s important that we undertake projects which can be scaled up. In baseball terms, take swing for home runs not singles. If you do decide to play singles, you have to replicate the effort many more times.

    The Fastlane wealth equation is:

    Wealth = Net Profit + Asset Value

    Net Profit = Units sold * Unit Profit

    The leverage is created by the units sold. If you are selling burgers on the supermarket lot, you are limiting the leverage and hence you are on the speed limit of 15 mph road. Also, you cannot increase the price of the burger so the unit profit cannot be controlled as well.

    So, either you have to be able to reach millions of people to increase the Units Sold quantity or sell at very high price to extra wealthy clients to increase the unit profit values.

    Commandment of time:

    Time is the scarcest resource we have. Most people spend money frugally and time freely. That according to the author is exactly the wrong way to the road to wealth. Time is limited and money is abundant. Only difference between successful and unsuccessful people is the way they spend their time. The former value each moment of their life and spend it to increase their self-worth. The latter waste it on fulfilling their immediate desires like watching TV series, indulging in games etc. for long period of time etc.

    As per the author, fastlane is not an easy path but sure it should be a fast way to earn wealth.

    As a fastlaner, our goal should be to automate the travel. If you have a business which requires you to dedicate each moment of your life all the time and always have to trade time for money, it’s a job masked as a business. It’s a money tree that never grows.

    It’s normal to work more than 80 hours per week in the starting phase of a business but it’s not normal to work like that for the rest of the life which is a normal for most of the people working normal life. One of the famous quotes from the book which is often used outside as well is about how most of the people define as normal. Normal is to wake up at 6 am, fight traffic, work 8 hours or slave 8 hours Monday to Friday, save 10% and repeat for 50 years. Normal is to believe that stock market will make us rich and fastest car and bigger house will make us happy. The definition of normal is corrupted by the society and we are conditioned to believe that. In short, the author believes, normal is modern day slavery and that’s why only few have the courage and the intelligence to come out of normalcy and drive on a millionaire’s fastlane.

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    Source by Manju Pradhanang

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  • Investing 20,000 Dollars – Ways to Double it in a Month

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    $20,000 is a lot of money but $40,000 would be nicer, so let’s explore what you could invest that money in and consider possible scenarios that can double it in a month or less. This type of money is quite a decent amount of capital, however, it is not enough to buy real estate without taking out a loan. To double your money at any level is quite a feat, but as you will see, not impossible.

    First, a word about risk. All investors look at the downside or the risk profile of a potential investment before they even think to consider investing, no matter what the promised returns are. Risk is an important consideration and it would do us good to define the ideal risk free investment so we can picture better what to look for.

    First, when you hand over your money to another, that is the underlying cause and underpinning issue of risk. You have to trust and you have to hope that your money will be returned with the promised interest yield. When you hand over your money in most situations all you get is the evidence that your money is with them. You get no tangible collateral in exchange for that money.

    Consider a house on the other hand. A house, or any tangible item for that matter that has an existing liquid market, is a large piece of collateral and you have direct control over that asset in exchange for the money you paid. This means you can control the value to a degree and this is an important point.

    To double $20000 in under a month, you could look at a land investment. A paper re-hab, unlike a normal re-hab where you roll your sleeves up and paint a house, a paper re-hab is one where you fill in a few forms and immediately increase the value of land. For instance you could purchase a lot that is close to an industrial area and re-zone it industrial from residential. Providing there is a distinct shortage of industrial land in the area, you have just increased the value of that land tremendously. Or you could put in the paper work to split the block to subdivide. This would mean you have 2 lots almost worth the same as the original. This type of value manipulation is crucial to your risk profile and the ultimate level of returns.

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    Source by Terry Hart

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  • If You Want to Be Rich You Don’t Need Good Grades

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    Did you parents ever give you the advice that in order to become wealthy they need to study hard, get good grades so they can get a good job? I know I have heard this advice on many occasions from my parents. But the fact is that getting good grades no longer ensures that you will become wealthy. Even many doctors, who are often the ones with the best grades, are now struggling to earn a lot of money. If you want to get rich, without needing good grades, then read on.

    Something that they don’t teach you in school is that you banker never asks for your report card. If you go to your bank and ask for a loan, either for a business, property or some other investment, then your banker is not going to ask for your school report card. Your school report card has very little relevance on whether or not you will become rich. There are many highly educated people who are poor and struggling for money. There are also some very uneducated people who a millionaires and billionaires.

    Schools are developed to train people to look for a job, but this alone will not make you rich. Often it is the educated people with the highest paying jobs that have the most debt and are in the worst spot financially. You don’t need good grades in school to become rich, but you do need a good financial education. A lot of people leave school without the slightest financial education. Many leave deeply in debt from school fees and they spend their entire lives trying to get out of debt.

    Some very simple financial education can save you a lot of time and trouble and can make you rich a lot quicker. In fact someone with a lot of financial education, but not a lot of school smarts, is much more likely to become rich than someone with school smarts but now financial education.

    In school you are more intelligent if you can make finer distinctions. Let me give you an example. If you can distinguish a car from a truck then you have some intelligence. However, if you can distinguish a 1987 Ford Laser from a 1990 Ford Laser then that is a greater distinction. You are able to understand things in finer detail and are therefore more intelligent. In school you will also be taught that there is often more than one meaning to a word. For example, the word pound means many different things. It can mean money, in the form of English currency, it can refer to weight, it can refer to a lost dogs home or it can mean to hit with a force. The one word has multiple meanings.

    In finance, some words have different meanings. Only in finance one meaning will make you poor, and another meaning will make you rich. Neither meaning is right or wrong, just different, but they have very different outcomes.

    One of the most important words you will ever understand in finance is the term asset. Now your banker will tell you an asset is anything you own that is of monetary value. This includes you old golf clubs, your suits and your car. This is one correct meaning of the word asset, but it will make you poor. A better understanding of the word asset is something that generates you an income whether you work or not. To put it simply, if you stop working today an asset will continue to put money into your pocket. A liability is something that takes money out of your pocket whether you work or not.

    A lot of people are poor because they spend their time buying assets that are liabilities. They buy things of monetary value that cost them money to own. A car costs money to own every month. So although, according to the bank’s definition of an asset, they are acquiring an asset, they are becoming poorer. Rich people focus on spending their time and money to acquire assets that generate them income. It is these assets that make them rich, and it is the ability to define the difference between an asset and a liability that makes them financially intelligent.

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    Source by Ryan Mclean

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  • Where to Invest 300 Dollars and How to Double It

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    There are many good reasons why doubling your money is a good idea, but by far, the best reason is that if you can sustain such a feat, you can make a large fortune very fast and compounding is the key and the answer to rapid wealth accumulation.

    One example is starting with just $300; you could literally have over $1 million dollars in 14 events or compoundings. If you took out a calculator now to prove it to yourself you will see how quickly $300 dollars turns into a million dollars if you double the result every time.

    The question and the whole point is however, how long will it take you to double your money the first time and how will you do it. Furthermore, the question is whether the process you came up with is scalable. It is relatively easy to double $300 dollars quickly but how will you double $500,000 dollars.

    The answers to these questions are detailed and convoluted but not difficult. Look at it this way, if you can add just 20% to your $300 dollars in one week, you can double it after four weeks. So if you can sustain that for 13 months you could indeed have your first million in just over a year.

    We are talking theory and this by far, would not be as simple as it sounds, but in actual fact it is specifiably possible. The math shows it. Putting together the circumstances that would create this situation would not be hard in the beginning. Lets consider a quick model.

    Buy a $700 dollar mountain bike you found cheap selling for $300, sell it by the end of the week for $600

    $600 buys a very very cheap little car. You clean the hub caps and vacuum the interior. You get $1250 for it in a week and a half.

    Your $1200 buys you another car worth $3000 you pick it up cheap and give it some attention and sell it for $2800 in under 2 weeks.

    Your $2800 makes a great down payment for a lot of land. A corner block that you have subdivided. You paid $30,000 now the two lots are worth $25,000 each. After sale you have $50,000 minus a loan of $27,000 leaves you with $23,000

    Repeat the above block subdivision a few times, until you get to $100,000 then possibly begin building on the lots. In a few more translations, you will be done.

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    Source by Terry Hart

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  • Where to Get a Small Business Loan? Learn About Your Options and How to Choose a Good Organization

    Where to Get a Small Business Loan? Learn About Your Options and How to Choose a Good Organization

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    When they are first starting out, small businesses usually require loans to help them get going. Depending on your type of business and industry, you might need funding for inventory, strengthening your firm’s foundation, advertising, expansion, etc. “Where to get a small business loan?” is a very common question by owners of start-ups. Your choice of a lender could either help you in your success or cause damage to your business, so it’s important that you choose wisely.

    According to estimates, over 60% of small employer businesses have some sort of debt they are dealing with. If you choose the wrong lender, you could end up in an even worse situation. While many entrepreneurs and start-ups are turning to crowdfunding sources, this approach often requires a great deal of hard work, and most campaigns fail to reach their goal. There are also “Venture Capital” and “Angel Funding” solutions, but these types of alternative funding only play a small role in overall business financing.

    For many businesses, it’s still better to go the traditional route and apply for a small business loan. How do you know which lender to trust? How do you know where to get a small business loan from a reputable organization? A free quote is always a good place to start. You’ll definitely want to check with the Better Business Bureau as well. Only consider lenders that have at least a 3-star rating. Any complaints submitted concerning that particular firm should have been resolved.

    Where to Get a Small Business Loan That Won’t Scam You

    Reputation is also another important factor. Has a company you are interested in appeared in major financial publications, websites, or even television programs? Forbes Magazine, CNN Money, Business Insider, and INC 500 are always a plus.

    If you are in need of a particular type of service, there should be an ideal financial solution for you. For instance, some small businesses require a Working Capital Loan, some require financing for equipment, and others need assistance with vendor programs. There are also businesses that require real estate loans. Whatever your need capital for a start-up or need assistance expanding your small business, there should be a solution tailored just for your needs.

    Not only should you be able to obtain a free quote, the application process itself should be simple and straightforward. You’ll be required to provide some financial statements and personal background information, which will vary depending on the lender and what kind of small business loan you are interested in.

    As to the question ” Where to get a small business loan? ” It’s a good idea to start with US Business Funding. It has an A+ rating at the BBB and has appeared in the aforementioned publications. You can get a free quote if you apply today.

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    Source by George Botwin

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