What Rich People Know and Desperately Want to Keep a Secret-part 3
What rich people know and desperately want to keep a secret-Part 3.
www.whatrichpeopleknow.com
So how do the rich make all that money?
It's a good question. As far as I know there are only five ways to make money:
o steal it or cheat others out of theirs--which is risky and undermines your values
o inherit it
o put what you have in financial investments, which is perfect so long as you have perfect financial skills--or the right advice--and lots of patience
o work for it, which is both honest and noble--but won't make you rich without leverage (which we will discuss later)
o go into business--the most effective way if you do your homework and pick the right business
o A well-run business can generate staggering profits and will outperform any other means of gaining wealth.
For example, if you invest $40,000 in a bank or in property, you may get between four and 20 per cent growth on your money each year. If you invested well in the share market you may even see returns of 20 to 30 per cent. But investing the same amount in your own business can give you percentage returns in the hundreds or more. There is no comparison. If you want to be rich, your money should be going into your own business.
An investment of $40,000 in your own business could be worth more than $1,000,000 after three years. I see it happen frequently--it is one of the great pleasures of being a business coach. It also happened to me--and it's a lot of fun when it does.
In J. Paul Getty's book, How To Be Rich, his first rule is that you must be in business for yourself. The simple fact is that you'll never get rich working for someone else. Successful people have always known this basic rule of wealth creation.
What makes people want to give you money?
In order to get money on your way to becoming rich, somebody else must be prepared to give it to you. Unless it is a generous relative or friend, this is not likely to happen so easily.
You first need to understand the real, underlying reason why people will hand it over to you--short of your pointing a gun at them, that is. And here it is ...
People (customers) will only give you money as a means of getting whatever it is they want
So the starting point for you, on your way to being rich, is to understand what it is that people want.
Now this may sound particularly obvious and very simple. Yet not understanding this apparently obvious principle is the prime reason why most people don't make enough money.
People will only pay you or enrich you if you closely meet their needs and desires, or remove their frustrations, fears or concerns.
What successful people do is use all their energy to get to know and understand what needs people have. They do this through their research, their experience and their own understanding of people.
What we can do is to begin with a review of one of the most widely accepted theories of what motivates people--
Abraham Maslow's hierarchy of needs.
Hierarchy of needs
All human beings have basic needs that have to be satisfied-- needs such as food, shelter, clothing, relationships and so on.
Dr Abraham Maslow was a psychologist who discovered five basic levels of human need. These start from the most basic biological needs and progress to higher-level psychological needs. This progression is shown in the following diagram. Maslow suggests people start at the lowest level of need satisfaction; then, once that need is satisfied, they move on to the next level. The lowest-level need that remains unsatisfied motivates an individual's behaviour.
For example, if I am already safe, secure, well-fed and surrounded by friends, I will be motivated to seek prestige and success. But the moment my security is threatened (in war, for example), prestige will become irrelevant and I will be motivated by security. And the moment there isn't enough food, security won't motivate me any more and I'll focus on the basic biological necessities.
This view is simplified--at any time we are motivated by all five needs to different degrees. But depending on the circumstances, one will be dominant.
5. Self-actualisation
self-fulfilment
4. Ego needs
prestige, success, self-respect
3. Social needs
affection, friendship, belonging
2. Safety and security needs
protection, order, stability
1. Physiological needs
food, water, air, shelter, sex
What does all this mean? The point is that it is people's needs that motivate them to buy, and to give you money. Successful people realise this and always focus on meeting and understanding customer needs.
Because of the nature of their needs, people will pay you if you can do any of the following for them better than anyone else:
o make or save them money
o save them time
o supply them with food, shelter or clothing
o provide them with security, safety or comfort
o offer them leisure or entertainment, affection, friendship or belonging
o give them status, prestige or self-respect
o add value to their lives
There are many businesses out there doing some or all of these things. If you study the most successful people and companies, they have simply done this better than anyone else, and made a fortune in the process.
So look around you and ask yourself questions such as: can I offer a (better, fresher, quicker, cheaper, hotter, colder, tastier, safer, warmer, smarter, more durable, more comfortable, more prestigious, more enjoyable, more relaxing, less stressful, healthier, improved, higher quality, etc.) product or service than anybody else? If the answer is 'yes' to any of these questions, this is how great opportunities are spotted and successful businesses are created.
Find a better way to help satisfy people's needs ... this will be the cornerstone of your success.
business, rich, money,secret, start business, small business
Brian Sher, moved to Australia during his high school years and went on to do a degree in marketing at the University of New South Wales.Straight out of university, Brian developed and launched a new product Dispos-a-bib (a disposable bib for babies). It was a huge success gaining 90% national supermarket and pharmacy distribution, with exports developing to the United States, Canada, New Zealand and Singapore within the first 12 months.Through Brian’s extensive travel promoting this product, it was here that his interest in consulting developed. Through the Australia Trade Commission he began working for Australian companies seeking assistance in export, research and Export Market Development Grants.In 1989, on his return to Australia after spending 2 years in Los Angeles led him to form a company known as the Marketing Corporation . This gave him the unique opportunity to work with hundreds of companies large and small on their marketing and business growth strategies. Brian continues to selective consulting today and is recognised as one of Australia’s most respected and sought after business coaches now charging over $2000 per hour for his time.Through his consulting Brian founded an education business Vision Publishing to help other business people succeed in business. It was this venture that earned Brian his greatest success and recognition in the business community. Vision first started out publishing summaries of the best business and management books, making it possible for their subscribers to quickly get access to all the great business improvement ideas they need in around 12 minutes instead of weeks of reading.This quickly lead to expanding into national and international seminars, featuring some of Australia’s most successful business people. The demand for this, created a huge market for Vision.Directed by Brian Sher, Visions marketing worked incredibly well- from a standing start, with no staff, no customers and no sales. Under Brian’s direction the company, with a total capitalisation of just $80 000, grew debt free to having over 90 staff, 100 000 clients and over $13 million in annual sales. His clients including most of the Top 500 companies and the Who’s Who in business, until 1996.He currently is a director of 8 companies and actively participates in 3 in the health and wellness industry, all experiencing hypergrowth sales figures, experiencing growth rates of 100% per month. Through producing successful result time after time, Brian built an extensive network and a strong reputation as one of Australia’s most dynamic and exciting marketers recognized amongst his peers. He is constantly invited to speak at seminars and business functions, consult to other companies.He is currently the author 4 best selling books- ‘How to Get a Job in 30 Days or Less’ and ‘What Rich People Know and Desperately Want to Keep a Secret’, The Anti- Ageing Diet. And How to Make Money out of Thin Air.
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