I am involved in a project. A start-up project really. In the lending business.
The thing about this lending business is that it has a very unique niche. A niche no one wants to touch. Not that it is a bad niche, it just doesn't seem to make logical sense for big lending institutions to be in this niche.
I would say the bigger institutions avoid this lending niche because they can't handle the risk taking. They haven't solved the problem to handling the game in this niche. But I have and I will take a shot at it.
The best part of it? I have over 1000 reserved bookings from customers wanting to borrow money. No suprise is it? Who doesn't want to borrow money these days? Everyone does. But tell me this: How much can you make from 1000 potential borrowers if you charge them a handling fee (for just considering looking at their application) of $65 every time they send in an application to you? Is that something that gets you going? I hope so.
And don't tell me this is illegal. It isn't, every bank these days charge a handling fee just in order to consider you as a borrower. Though, the handling fee doesn't guarantee you are getting a loan. Your financial score card does. And your credit score.
The lending business is a great business to be in these days. Money is always sought after, especially today. Money are equally sought after just as sex is or food and water. If you always want customer demand then be in these three areas of commerce because they will never stop being important unless we become robots and don't need food, drink, sex or money to survive any more. Long fetched thought.
lördag 9 februari 2008
tisdag 5 februari 2008
Company Value
Do you know how wealthy billionaire creates all their paper wealth? It's a rather simple feat really. It is just semantics.
Say you want to sell a new kind of car to young customers around the world. Before creating your company you have been diligent enough to get a lot of reserved bookings on paper (commtiments on paper).
Whenever you have formed a company, setup bank account etc you wonder how you are going to create the car you have promised to create. You don't have the cash and you have promised your customer that they will only pay when you deliver. It would be a real gamble to ask them to deposit money and then use these deposits to create the cars. If you don't deliver you can be in big trouble. You will need to pay the money back you know.
So what the smart serial entrepreneurs in this world do is that they will form the company, deposit some kind of share capital and then they will approach a business broker and ask the business broker to sell a couple of percent of their company on a contingency basis. They will then use these funds to finance a smart and reliable project manager and the project costs. And then he will let the project manager do the magic.
Billionaires are able to start with nothing but an idea and a couple of interested customers commited to buy on paper.
As the title says, this article was formed to explain "Company Value". Let me quickly explain how the "paper wealth creation" works:
Say you created this company with the vision of selling a new, cool car to commited, young customers. Say you sold 10% of your business for $10 Million. If you sell 10% of your business for $10 Million then the entire company would instantly have a company value of $100 Million. Your paper wealth would be 90% of that $100 Million value. See paper wealth is not rocket science. With a sharp business broker you can become very rich both on paper and in pure cash sitting in your bank account. Ready to be spent on fun things. The main problem may not be too little money, but too much money. I mean it is hard stuff spending $10 Million. Even if you tried really hard and wasn't aloud to give it to charity.
This reminds me of a movie with a black actor who one day got the news that he had a rich relative that had died and he was the beneficiary. But the problem was that before he could recieve his multi million dollar heritage he was forced to spend a couple of millions in only 30 days without giving it to charity. He had to spend it all. Every red cent. If he didn't succeed he wasn't aloud to inherit the bigger cash heritage. It may sound like a simple feat, but believe me having to much money can be a hugh problem. Especially if your making more money than you are spending.
So my friends, find a demand and meet (commitments on paper) it and start a company and sell it dearly with the help of a professional on a contingency basis. If you don't, then don't be angry at others. It's your fault that you are poor and broke.
Say you want to sell a new kind of car to young customers around the world. Before creating your company you have been diligent enough to get a lot of reserved bookings on paper (commtiments on paper).
Whenever you have formed a company, setup bank account etc you wonder how you are going to create the car you have promised to create. You don't have the cash and you have promised your customer that they will only pay when you deliver. It would be a real gamble to ask them to deposit money and then use these deposits to create the cars. If you don't deliver you can be in big trouble. You will need to pay the money back you know.
So what the smart serial entrepreneurs in this world do is that they will form the company, deposit some kind of share capital and then they will approach a business broker and ask the business broker to sell a couple of percent of their company on a contingency basis. They will then use these funds to finance a smart and reliable project manager and the project costs. And then he will let the project manager do the magic.
Billionaires are able to start with nothing but an idea and a couple of interested customers commited to buy on paper.
As the title says, this article was formed to explain "Company Value". Let me quickly explain how the "paper wealth creation" works:
Say you created this company with the vision of selling a new, cool car to commited, young customers. Say you sold 10% of your business for $10 Million. If you sell 10% of your business for $10 Million then the entire company would instantly have a company value of $100 Million. Your paper wealth would be 90% of that $100 Million value. See paper wealth is not rocket science. With a sharp business broker you can become very rich both on paper and in pure cash sitting in your bank account. Ready to be spent on fun things. The main problem may not be too little money, but too much money. I mean it is hard stuff spending $10 Million. Even if you tried really hard and wasn't aloud to give it to charity.
This reminds me of a movie with a black actor who one day got the news that he had a rich relative that had died and he was the beneficiary. But the problem was that before he could recieve his multi million dollar heritage he was forced to spend a couple of millions in only 30 days without giving it to charity. He had to spend it all. Every red cent. If he didn't succeed he wasn't aloud to inherit the bigger cash heritage. It may sound like a simple feat, but believe me having to much money can be a hugh problem. Especially if your making more money than you are spending.
So my friends, find a demand and meet (commitments on paper) it and start a company and sell it dearly with the help of a professional on a contingency basis. If you don't, then don't be angry at others. It's your fault that you are poor and broke.
måndag 4 februari 2008
Give and recieve value
Everything in business is about giving and recieving value.
I am stunned to hear people say that people "owe" them money or "owe" them fame. What on earth are they talking about? The right thing to focus on is to first think of ways to contribute (giving value) and then collect. Didn't the Bible say "give and you will recieve"? Yes, it did. But even though the Bible says this people are stubborn enough to think that others are to give them value first. Give them money first, give them love first etc. It ain't gonna happen. Get real.
It is not a phenomona that people are money poor or that people hate them. The reason people hate them or that they have very little cash on hand is because they aren't worth their salt. Of course there are people that give and give and never collect a dime. They give of their time or from their expertise but collect netiher money nor fame. And there are people who give generously of their love and kindness and never recieve any love back (a lot of these people get killed by crazy people).
There is two major problems in what I've just described to you. Either people count on getting the world without giving anything in return (no equal value exchange)or they give genereously only to be counted out, without getting anything back. The true equation of a great value exchange is when someone gives and also recieves. And someone who recieves and also gives back.
A great deal is like that. Both sides win. A true value exchange has taken place. Evolutions happen that way. Great evolutions. So think about how you can help your neighbor solve his/her problem and ask for something in return. Then you will have mastered the very basic of what dealmaking is about. It is not about being macho at all. It is about helping another human being and being open to getting rewarded for it.
You get paid in equal proportion to what you give and this is not any New Age crap. This is the real deal people. Give and you shall recieve. Stop being a moron.
I am stunned to hear people say that people "owe" them money or "owe" them fame. What on earth are they talking about? The right thing to focus on is to first think of ways to contribute (giving value) and then collect. Didn't the Bible say "give and you will recieve"? Yes, it did. But even though the Bible says this people are stubborn enough to think that others are to give them value first. Give them money first, give them love first etc. It ain't gonna happen. Get real.
It is not a phenomona that people are money poor or that people hate them. The reason people hate them or that they have very little cash on hand is because they aren't worth their salt. Of course there are people that give and give and never collect a dime. They give of their time or from their expertise but collect netiher money nor fame. And there are people who give generously of their love and kindness and never recieve any love back (a lot of these people get killed by crazy people).
There is two major problems in what I've just described to you. Either people count on getting the world without giving anything in return (no equal value exchange)or they give genereously only to be counted out, without getting anything back. The true equation of a great value exchange is when someone gives and also recieves. And someone who recieves and also gives back.
A great deal is like that. Both sides win. A true value exchange has taken place. Evolutions happen that way. Great evolutions. So think about how you can help your neighbor solve his/her problem and ask for something in return. Then you will have mastered the very basic of what dealmaking is about. It is not about being macho at all. It is about helping another human being and being open to getting rewarded for it.
You get paid in equal proportion to what you give and this is not any New Age crap. This is the real deal people. Give and you shall recieve. Stop being a moron.
lördag 2 februari 2008
Starting a Company
Starting a company is rather easy. As a dealmaker I want an entrepreneur who has customers, otherwise I can do only so much to help him/her finding investor capital. Why? Because without customers there is no value for an investor you see.
So my advice to entrepreneurs starting companies from scratch is:
1) Before producing the actual service or product you want to sell I would, as entrepreneur, go out and ask customers if they would like to reserve a place as a future customer for the service you would like to offer (say you want to sell MP4 players for $5 a piece).
2) If there is an interest, then potential customers would like to reserve themselfs on a paper (on a lead form).
3) Then, when you have a lot of customers who has commited/reserved themselfs on paper, willing to buy from you when you are ready to give them the proposed service/product, you go out and start your company.
4) You then sell of some percentages of your company to investors with the help of a professional business broker. Preferably a business broker working on a contingency basis. You should never pay a business broker until they have delivered a value for you (if you make money, they make money).
5) With proceeds from the stock sale you finance a certified project manager who will develop your dreams to something really tangible. You also finance the project cost.
In short:
1) Find customers and have them reserve a spot as your customer.
2) Start a corporation/company with shares.
3) Sell part of that vehicle so you can finance the project 100%.
4) Hope everything works out and your certified project manager is good at what he does.
Starting a company is not rocket science even if many strange people say it is. You start a company around a real demand or want. No demand? Don't start the company. Make it simple or don't do it at all. Think big or don't do it at all.
As they say: Think big, start small. Start with one place and expand. But have expansion in the initial plan.
So my advice to entrepreneurs starting companies from scratch is:
1) Before producing the actual service or product you want to sell I would, as entrepreneur, go out and ask customers if they would like to reserve a place as a future customer for the service you would like to offer (say you want to sell MP4 players for $5 a piece).
2) If there is an interest, then potential customers would like to reserve themselfs on a paper (on a lead form).
3) Then, when you have a lot of customers who has commited/reserved themselfs on paper, willing to buy from you when you are ready to give them the proposed service/product, you go out and start your company.
4) You then sell of some percentages of your company to investors with the help of a professional business broker. Preferably a business broker working on a contingency basis. You should never pay a business broker until they have delivered a value for you (if you make money, they make money).
5) With proceeds from the stock sale you finance a certified project manager who will develop your dreams to something really tangible. You also finance the project cost.
In short:
1) Find customers and have them reserve a spot as your customer.
2) Start a corporation/company with shares.
3) Sell part of that vehicle so you can finance the project 100%.
4) Hope everything works out and your certified project manager is good at what he does.
Starting a company is not rocket science even if many strange people say it is. You start a company around a real demand or want. No demand? Don't start the company. Make it simple or don't do it at all. Think big or don't do it at all.
As they say: Think big, start small. Start with one place and expand. But have expansion in the initial plan.
Wealth Profiles
I am very into Roger Hamiltons Wealth Profile System. If you haven't yet seen it, please do at www.wealthdynamics.org. Please do the "Wealth Profile Test". You do yourself a great service. And no, I am not profiting from the referal.
In Roger Hamiltons Wealth Profile system you have 8 profiles to wealth. As you know people work in different ways. Some are naturally extrovert and likes being around people. Others are very introvert and likes being for themselfs. Then we have people who are a bit "crazy" or intuitive. People who likes to experiment. Then we have the other side of the coin, the ones being very sensory and cautious.
All of these 4 general ways of being as humans gives people different ways to approach wealth creation.
So the 8 Wealth Profiles I am talking about is:
1) Creators - Good at starting companies and/or creating new products. They are the innovators of our society.
2) Stars - Builds brands easilly. They are the ones you see in movies, TV-shows etc. They make money on promoting others or themselfs even. Great salespeople.
3) Supporters - They are the CEO people of our society. Often they run other peoples companies and make good money doing it.
4) Dealmakers - They make commision on connecting people.
5) Traders - They make money buying low, selling high or even by buying high and selling back low (and making money, not losing it). Great at timing things.
6) Accumulators - They buy something at a bargain and wait until they can sell higher. Often they hold forever.
7) Lords - Make money with other peoples money. They are the people who create Funds and then invest that money in interest bearing investments or in stocks that pays a divident. They make money from management fees and success fees.
8) Mechanics - They make money by giving other people a marketplace to sell their stuff. See Jeff Bezos Amazon.com where millions of people sell millions of stuff every year and pay Amazon.com a listing fee.
As you see you can make money in many different ways. Your wealth profile determines where you should focus your time. Your profile is determined by asking questions. These questions in turn determine your true passion. And your true talents and natural tendencies.
As I see it, we are all dealmakers in some way. But only one profile makes money ONLY through dealmaking. And that is the Dealmaker profile.
In Roger Hamiltons Wealth Profile system you have 8 profiles to wealth. As you know people work in different ways. Some are naturally extrovert and likes being around people. Others are very introvert and likes being for themselfs. Then we have people who are a bit "crazy" or intuitive. People who likes to experiment. Then we have the other side of the coin, the ones being very sensory and cautious.
All of these 4 general ways of being as humans gives people different ways to approach wealth creation.
So the 8 Wealth Profiles I am talking about is:
1) Creators - Good at starting companies and/or creating new products. They are the innovators of our society.
2) Stars - Builds brands easilly. They are the ones you see in movies, TV-shows etc. They make money on promoting others or themselfs even. Great salespeople.
3) Supporters - They are the CEO people of our society. Often they run other peoples companies and make good money doing it.
4) Dealmakers - They make commision on connecting people.
5) Traders - They make money buying low, selling high or even by buying high and selling back low (and making money, not losing it). Great at timing things.
6) Accumulators - They buy something at a bargain and wait until they can sell higher. Often they hold forever.
7) Lords - Make money with other peoples money. They are the people who create Funds and then invest that money in interest bearing investments or in stocks that pays a divident. They make money from management fees and success fees.
8) Mechanics - They make money by giving other people a marketplace to sell their stuff. See Jeff Bezos Amazon.com where millions of people sell millions of stuff every year and pay Amazon.com a listing fee.
As you see you can make money in many different ways. Your wealth profile determines where you should focus your time. Your profile is determined by asking questions. These questions in turn determine your true passion. And your true talents and natural tendencies.
As I see it, we are all dealmakers in some way. But only one profile makes money ONLY through dealmaking. And that is the Dealmaker profile.
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