The 17 Principles of Creating Wealth

Chapters 16-17

Focus Your Efforts in Areas Where You Excel

We've all been told a hundred times not to put all our eggs in one basket. This is a perfect example of the baloney financial losers feed to people around them. Look at any wealthy man and you will see a history of concentrated effort in one area. Sure, they may be diversified now, but when they were building their wealth, you can bet everything they had was locked into one thing. Examples include Sam Walton of Wal-Mart, Bill Gates of Microsoft, and Michael Dell of Dell Computers. These men may be diversified now (sadly, Sam Walton has passed), but when they were building their enterprises, every ounce of effort and coin in their pocket was dedicated to that business.

Andrew Carnegie once stated, “put all your eggs in one basket, then watch that basket very well.” The point is, you need to focus your efforts, and most importantly, you need to pay attention to what you are doing.

Master the fundamentals of the business or investment of your choice. Know the ins and outs of your industry like a professional, and concentrate your resources in this area. With your expertise in a given area, you can aggressively seek opportunities other people may not even be aware of. Lofty dreams may require you to step outside your comfort zone, but true opportunities are rarely easily had. Consider the founder of the Hilton hotel conglomerate.

Conrad Hilton was born and raised in a small town in New Mexico--hardly the background for an international hotel magnate you may think. Early in his career as he struggled to find himself, his mother told him: “Conrad, if you want to launch big ships, you have to go where the water is deep.” He left New Mexico and threw himself into the shark-infested waters of a Texas oil town. If he had stayed home he would probably have led a happy, somewhat successful life in New Mexico. But he chose otherwise and headed for deeper water.

Similarly, if you have big plans and lofty dreams, you'll have to put yourself in the environment capable of supporting those goals. Not too many people become millionaires selling fishing worms on the street corner, but a chain of bait shops might do the trick. Also, the idea of dealing with tenants and property management may not appeal to you, but if you want to build a real estate fortune you'll have to immerse yourself in it.

The point is, you must be aggressive and seek out opportunity. You may have to change your lifestyle and/or your habits to do this, but change is inherent to growth.

Your sixteenth step towards wealth is to master a narrow market niche and exploit it in an ethical and legal manner to maximize your wealth creation.

Choose Your Investments Carefully for Long-Term Growth

Entrepreneurs and beginning investors must be aggressive, but you don't have to be careless or foolish. Concentrate your investments in markets where you know and accept the associated risks. For example, if you invest in the futures market, you must be prepared to lose your entire nest egg in a heartbeat. However, this can also be an area of fantastic returns on your investment.

Other investments, like savings accounts, may offer safety, but offer little in the way of appreciation. Your task is to find the investments and business opportunities which offer a level of risk you can live with, while rewarding you sufficiently to reach your wealth building goals. Some investments, which offer stability and growth, include real estate, numismatic coins, and antiques.

In my opinion, however, the best investment in the world is a small business that you own and operate. Read books on small business management, attend seminars sponsored by the Small Business Administration, and talk to other small business owners. One source of information that people think is great is the college; however, I have a problem taking business advice from a teacher who teaches about business but has probably never operated his or her own profitable business. The classroom is a great place to learn about the theory of business and investing, but search for your mentors beyond the classroom. Wealth builders must learn from the school of hard knocks, and without the valuable experience gained from your daily exposure to the marketplace, and observation of other successful people, you will never learn to succeed or control your investments.

A wealth builder assumes responsibility for his wealth program and does not abdicate control of his resources to anyone. Absentee ownership is fine for the wealthy, but the wealth builder needs to be on hand. Nobody in the world cares about your future as much as you do, and nobody cares about your assets as much as you do.

If you want to get ahead, maintain control of your budding empire. Watch your assets like a mother hen watches her chicks. However, with all this effort to build wealth, don't lose sight of the big picture. In all your getting, don't lose sight of who you are, and don't forsake the love of family and friends.

Entrepreneurs are driven to succeed by an uncontrollable urge to surpass those around them. They are willing to work atrocious hours, sacrifice leisure, forego vacations, and focus every waking minute of their attention to their baby venture. This is fine for some people, but most of us need to take time to maintain relationships and rest the body and soul. Don't sweat the time spent with your family. And don't ignore your body's demands for rest.

As your wealth increase you will be bombarded by offers from friends, relatives, and strangers for help with their projects. Invariably this will entail your taking the financial risks while they enjoy the benefits of success. Shy away from other people’s projects. Focus on what got you where you are at. In his excellent book “In Search of Excellence,” Tom Peters advised business owners to “stick to their knitting.” That is, do what you are good at, and nothing else. For friends and relatives you wish to help, help them by teaching them the 17 Principles of Creating Wealth.

Therefore, the seventeenth step in your creating wealth journey is to protect your assets, focus on what you are good at, and continue to build your wealth through wise investments.

I like to take a no-holds-barred approach to business. That means when I see an opportunity, and decide it offers a low risk and high payoff potential, I jump in. I’ve been burned a few times in my over-zealousness, but an occasional failure is part of the game. Over the years I’ve learned you either play the game, and accept the risks (it helps to understand the risks going in), or you don’t play. In my opinion, life is too short to waste time on the sidelines. I rode the bench in high school football and hated every minute of it. The publication you now hold is an expression of my “play the game” business philosophy. Be a player, not a spectator.

I hold a masters degree in business administration, and have worked in public and private industry for over 25 years. Don’t let that throw you off your game plan. Most of what I’ve learned about business I learned on the streets, playing the game, getting knocked down a few times, and getting back up in time for the next play. During the past 12 years I have built and managed several successful companies using a technique of (1) educating myself about a business opportunity, (2) diving in and learning from hands-on experience, and (3) using this knowledge and new found experience to gain insight into how to play the game better, and how to adapt my behavior to find either a profit in the business, or minimize my losses.

Throughout the trials and joys of business ownership, I have learned there is one constant in life: nothing stays the same. Change is everywhere. Be flexible. Treat every circumstance as a learning opportunity, and never rest on yesterday’s successes; for tomorrow is another day.

In the end, don’t let the words “he/she had the potential to achieve great things” be a part of your epitaph. The words “had” and “potential” are clues to a life full of promise never realized. Woody Allen once said, “eighty percent of success is showing up.” You have to show up. You have to be willing to take the plunge. You have to do the things other people refuse to do. You have to persevere in the face of adversity. And, you have to believe in yourself, no matter what others may say and think about you. Fortunately, there are literally hundreds of opportunities out there, waiting for you.

You’ve taken the first step towards a brighter future for yourself and your family by reading this report. Thanks for your trust. Hold nothing back. Take no prisoners. Enter the game and remove yourself from the “gray twilight” of neither victory nor defeat. The worse that can happen is that you will learn a lot about running a business, and more about human nature. The best that can happen will depend upon you. In today’s world, you truly set the limits to your success.

It has been said that leaders are readers. I sincerely believe wealth-builders are leaders, and rightly so, as building an empire takes networking with other people. Are you a reader? How many non-fiction books have you read this year? If you have read more than 5, you are far above the average, but short of the aggressive leader level. I suggest you read at least one non-fiction book per month in your field of interest or business endeavor. Go ahead and buy the discount card from your Barnes and Noble dealer—you’re going to need it. Out of curiosity, how many of these top selling business books have you read?