Five Powerful Wealth Creating Principles
Creating wealth does not happen by accident.
by Charles Kangethe
1. Process Comes Before Outcomes
No field of human endeavour is completely isolated from all others. Parallels arise in sports from which wealth creators can learn interesting things.
Take this principle of focussing on process before outcome to build your financial freedom.
Whilst not wishing to compare boxers of different eras or weight divisions, it is true to say that over the years a few proud men stand far above their peers as successful boxers.
What such men have is a true gladiatorial spirit. They are all possessed of a passion for what they call ring craft – The art of the ring.
These sportsmen become very wealthy, not because of focussing on the money but rather by concentrating on the process of perfecting their ring craft and survival skills inside the ropes. In return, they reap the rewards of huge pay days and corresponding wealth.
2. Prove Your Business Idea Early On
Entrepreneurs, who want a proven and successful wealth creating process, need to follow a critical sequence of events.
- Proof of concept starts when you identify a market opportunity, gap or niche.
- Design the products and services with which to fill the identified market gap.
- Test drive the products to ensure they are “fit for market purpose.”
The proof stage should be a small scale preview of the main show. This is where you test ideas before spending a fortune and then finding out it does not fly.
3. Expand Your Business
If your idea fails even one of the proof of concept phases ditch the idea. If however, it passes all three stages then you are ready to expand your wealth creating machine.
Business expansion is not the same as overstretching your resources. It is a planned process.
You can expand your business vertically or horizontally. The former involves growing the business in its “core” sector. The latter involves growing your wealth creating machine by diversification into other sectors.
Within each of these growth models, two critical sub processes are at work. Both rely on building effective human relationships. On the one hand, you must build and maintain harmonious customer service and customer relationships. On the other hand, you must engage effectively with your employees.
4. Give The Customer What The Customer Wants
Trying to lead the market carries the huge danger that your products and services may have no market credibility and worse no commercial viability. The marketplace simply ignores your solutions.
The issue here is, “Do you invent first and market second, or do you find the market need first and then develop a solution?”
You should find the market need or gap first and then plug the gap with your product or service.
Your wealth creating machine must adapt and be alive to changing market conditions and needs. “Inventing a wheel” is a once in a lifetime affair best left to a few very creative individuals.
Wealth creators and people who become financially independent prefer to find and do business in existing and niche markets with clearly defined needs that they can satisfy.
5. “Earning By The Hour” Does Not Cut It
With relatively few and very exceptional examples, the statement above is true for anyone seeking to become financially independent.
Successful wealth creators work with business models that multiply their time.
A good plumber or electrician can only attend to so many jobs in a given work period. A wealth creating plumber or electrician would take apprentices on once the business started to expand. This would free him or her up to concentrate on adding new customers to those already on the programs.
Eliminating the “earn by the hour” limitation on creating wealth requires that you do one or more of the following:
- Hire appropriately skilled people to service the added business.
- Automate or digitise your processes.
- Form partnerships and or joint ventures.
- Create a franchise.
- Sell “value” not a product or service.
And one last one – This is for ambitious employees!
You Will Never Become Financially Independent Working For A Wage Or Salary.
Working for a salary or wage will continue to be the way most people on planet Earth make ends meet.
They will rise up in the morning, go to work and talk all day about how different it would be if they were rich. At the end of the week or month, the owner of the business will pay them what he thinks they are worth which in fact is not very much at all.
To become financially independent you must do a few things:
- Take responsibility for your own financial freedom.
- Understand that creating wealth does not happen by accident. It takes passion, drive and knowledge.
- Find the knowledge you need to build your wealth creating machine.
- Find support for when times get tough.
- Then “Do It!”
The Wealth Creating Program teaches entrepreneurs all they need to know to create great wealth and build true, financial freedom.