It’s a myth: Wealthy people don’t become successful alone. They get help from other people. The secret is, if you attempt to do everything yourself you’ll fail. If you use other people, you’ll succeed.
Let’s say you want to develop an investment property. The idea is to lease it out for the rental income. The D.I.Y’er will attempt to do everything.
They’d probably learn how to design the property by taking a course in architecture. They’d learn how to zone land and construct buildings. They’d educate themselves on financing, tax, property management and tenant administration. They’ll try and absorb all the million and one other details required to get the property built and leased.
How would a wealth creator tackle the job?
The goal is to get the job done correctly and on time. So this person is likely to assemble a team of individuals who know what they are doing. You’d find a qualified architect to draw up the plans, a builder, developer, financier, property manager and other experts as and when needed.
Successful people come up with the idea. They are the visionaries. As an initiator of a wealth creation business, you are directly responsible for doing the research, finding a profitable market and making sure there is a big enough opportunity to turn the idea into a viable business.
When it comes to bringing the idea to life, your task is to recruit others to help you achieve your personal dream.
One of the most common reasons why businesses fail is that entrepreneurs try and do everything themselves. They hoard control and retain power. Delegation doesn’t happen.
This is not to say that you must steer clear of self-employment as a business model. There are some highly successful sole-proprietors out there. However, you often find that a one-man/woman business plateaus very quickly.
Growth is limited. A business that solicits the help of other people and builds strong teams will usually have an edge over their competitors. As Robert Shemin said, ‘The rich idiot makes the spark; other people make the blaze’.
- This brings us to how to use other people to accelerate your success. There are three ways:
1. Use other peoples’ time
These individuals give their own time to assist you in your business. They do the things that they do best, leaving you with more time to do the things that you do best.
When it comes to my property business, I have property experts in my team that manages all my tenant-related issues. They pay the bills, deal with maintenance issues and handle all my tenants’ gripes.
As a result, I have more time to focus on growing my portfolio, i.e. buying property. Learn to use other peoples’ time. It’s powerful stuff!
2. Use other peoples’ money
Pop quiz: What’s the quickest way to make $1 million? Borrow it! Asking for money is not the easiest thing to do, but it’s the quickest way to buy assets and build wealth.
There are two important criteria though:
- You have to finance great deals so that you can make a profit. Your business return must be significantly higher than the interest rate you pay on the loan.
- Don’t lose other peoples’ money. It’s a lot costlier than losing your own. If you do, you may never be able to borrow money from a bank again. Be careful.
When it comes to real estate, banks are willing to grant mortgages. But it has been tough of late (due to the 2008 credit crisis) to convince financial institutions to loan their money.
This is why you have to be professional when asking for money. Always speak to the man or woman in charge. Show them your business proposal and indicate how they will benefit financially from your venture. It’s a strategy I’ve used to great success.
In addition, keep your options open. There are other people aside from banks that will finance your business, as long as there is benefit for them. For example, venture capitalists, successful business owners, investors, other professionals and even your friends and family may offer finance. All you have to do is look for them.
3. Use other peoples’ experience
A personal mentor for me is by far one of the most important members to have on your team. A mentor is someone who is accomplished in your field of interest.
They can share their personal experiences with you and in so doing increase your chances of success. More importantly, they are there for inspiration. Entrepreneurship is daunting and can at times be de-motivating. You need somebody to help lift your spirits when the time calls for it.
So don’t be shy. Find a mentor in your field. Speak to them. Ask them for help. Show them that you are committed to making a change. Successful people are willing to help others along their journey to financial freedom.
Getting help from other people is about building relationships. It’s not about exploiting people. By building a team of competent people around you, you can benefit from a wealth of experience, money and time.