July 3rd, 2008 09:45am
Stacey Derbinshire
No time in history it has been this easy for innovative 1st generation people to become millionaires. No longer has it had to be your parent’s money, Grand father’s business, Mom’s coconut state. If you are real serious of becoming wealthy you should know how fortunes are made around the world. I always have a passion to read about world’s most successful people. How they came to that position and how are they managing to keep up their fortunes. Here is a glimpse of what I gathered so far.
No 01 way to become a millionaire in the list is self-owned businesses. It is entrepreneurship of all kinds, including realest ate. 74% of self-made millionaires in world, not only in this generation and in this century, but in the last century as well, come from self-owned businesses.
How Do Wealthy People Start Out?
The great majority of wealthy people started businesses and built them from the ground up. In the 19th century, fortunes were built by people like Andrew Carnegie, Thomas Edison, J. P. Morgan and others. All the names are well known in Sri Lanka too. In the 20th century, especially in the last few years, businesses and fortunes alike have been built by people like Bill Gates, Warren buffet, Ross Perot and Sam Walton. Each of these people started with nothing and succeeded in building a business from scratch.
The second major source of self-made millionaires in world is senior executives. 10% of the self-made millionaires are men and women who have joined large corporations and worked with those corporations for many years. They rose to positions of seniority, were paid extremely well, given stock options, profit sharing and as a result of holding onto the money, they became millionaires. So it is not a must for you to start your own business in order to become a millionaire. Lee Iacoca of Chrysler Corporation was paid $26. (more…)
July 2nd, 2008 09:46am
Stacey Derbinshire
If you are planning to start up a small business in your hometown, then you should be able to apply for a small business loan, but be aware that there is not a guarantee that your request will be approved. If you have tried this route to no avail, then you may be able to apply for a grant from your local community. These grants are there just for the purpose of helping local businesses set up and run within the community.
When looking for a grant to start a small business, begin by checking with your local Chamber of Commerce. This organization will have information about any grants that are available for starting up local businesses. Helping new businesses come into the community, not only helps the individual who is opening the business, it also helps the community.
Many individuals, especially in smaller towns, have to travel out of town to find work. Opening a business in that community would mean jobs for those people, who would otherwise have to look elsewhere.
You may be thinking, “But I live in a small community, where would the grant funds come from?” The money can be funded by the Federal Government, and it is referred to as a Community Development Block Grant Loan Program. The county that you live in can apply to the Government for a grant to fund these types of programs.
The money is then used to offer low interest loans to local businesses to get them started. There is usually a stipulation that the business must hire individuals who live in the area.
When local businesses are opened up within the community, it helps the community grow and thrive. This is why the Chamber of Commerce in your area will most likely be very happy to look up information about any federal grants that are available in the area.
The interest rates that you will have to pay, if the grant is given to you in the form of a loan, a (more…)
July 1st, 2008 09:46am
Stacey Derbinshire
Some years ago, I read an interesting interview of a retired bank director in one of the national dailies in Nigeria. He was probably in his late fifties, full of zest and happiness for his new status as an entrepreneur. I will refer to him as “The Man.”
Using his connection in the bank, he secured a loan and set up a medium scale manufacturing plant in his ‘home country.’
Apparently, the business was new in the area so he was doing well. He gloated over the brisk patronage his new product was enjoying. At first, I was very happy for him, and then - PITY SET IN.
Why? In the course of the interview, The Man, though once a top banker, revealed a common poor mindset of most business owners in Nigeria. This poor mindset is like tapeworm eating the economy of our country.
He claimed that as long as he has money to source raw materials and flood the marketplace with his products, people will always buy!
In other words, The Man erroneously believed that the most important factor needed to succeed in business is the production of his products.
Now let me explain the bits and pieces of his position. First, he followed the customary thing by paying for a thorough bank-approved feasibility study. So with the document in his hands, he secured the needed loan to set up his company and procured necessary machineries.
Second, he set up the plant near the raw materials. Third, the business was hot and profitable based on 2 factors: a) it was new with few or no competition, b) the products was equally exportable.
Fourth, he was hopeful that his loan will be paid back from the proceeds of his sales.
While regaling readers of these ‘good news,’ The Man, felt he has reached the Promised Land, and therefore, no more grounds to cover.
This thinking is a major poor mindset commonly exhibited by most (more…)
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