The No. 1 easiest way to start a business.

Ever wondered about starting a business?



Or you must have heard or thought that 'to be rich you must be doing a business' haven't you?



Well, the thought is absolutely right if you want to be a rich and retired person you must be in at least one business. I never heard of any person, rich and financially free without a business.

You must be thinking that starting a business need money, space, capital, furniture, sometimes people to work, many types of government clearances, hassles of acquiring all these things, a product idea or a developed product or service ways of marketing it, marketing channels, and on top of that the risk of going the business in to LOSSES, 'what if after doing all this no one buys the product or the service???'

A lot of uncertainty is there, like everything is hanging in the air.

Too little are the things which are under control.

We don't know what we don't know.

There are also friends and colleagues who are telling that business is risky.

How do I know this? Because I was doing the same thing, exactly as I said. I am been there.

All these thoughts makes us uncomfortable. People advise us to do the job, be an employee. And then this idea of going with the heard starts appealing to us, 'there are billions of employed people, doing job for their employer, they are doing good in their life and without the tension of how to manage the business. Just doing one type of work in which they are specialised and getting paid for it. Their salaries increase as they get more experienced. What's wrong with it?'

So people leave the thought of running a business for later, but slowly they get caught in the responsibilities so deep that there is no time for entertaining the thought of starting a business. It just get added to the unfulfilled dream's  list and lie in some remote corner of the brain.

So I am taking this as a starting point and going to show you a way towards business and financial freedom.

Remember the first post in 'The Power of Compounding' series? In which I have given the example. You can read it HERE.

The No. 1 way for employed people to start a business is to NOT START IT AT ALL,

Huh!!!!! 😨

Hold on let me complete,

The No. 1 way for employed people to start a business is to NOT START IT AT ALL, BUT TO OWN A BUSINESS STARTED AND RUN BY SOMEONE ELSE.

It is easy, much better and safer way than to start our own business.

It is as easy as clicking a button on your cell phone. Technology made it easy.

What you want is just have an account with a stock broker. The broker will surely help you to open an account, no big deal about it.

But what to do after opening the account is a tricky thing. Most people fall in to the trap of listening to broker or acting on tips or watching a business channel, searching for stock guru's, which are very very dangerous things to do, these things can and most of the times will rob most of your money.

Instead stick to your goal of owning a business. Don't be in a rush, there are plenty of opportunities, and to get rich you will only need a handful of those. Now just think about which field you are working in, probably you are already having the knowledge of the working of companies of your field, may be some inside knowledge too. These are enough things to start analysing the companies in your fields. Just imagine that if you had a company in your own field of knowledge then how would it be? How will you run it? How will it sustain? How will it grow its profit? Or in simple terms how would you make your company ideal as per your thinking? And try to find out such company.

Almost 99% of the people putting money in the stock market don't  do it, so you already have an edge over them. If you do this thing, you might find a lifetime investment opportunity.

The key is to be cool, patient and confortable with whatever you are doing, if anything is making you nervous just stop doing it. Getting nervous and loosing your piece of mind is not our path to make money.

In this way if you find a wonderful business which earns high return on capital, managed by good and ethical management, have long term growth prospect, and the most importantly you understand how it works, also it should be available at a price lower than the earning of the company expected in the future. Then you can think about buying some shares of that company in the stock market and becoming a part owner.

In this way you own a business, though in part. As you own a business, you become a businessman.

Didn't I told you it is simple!!!

But as a real owner does, you have to keep watch over the operations of your company and make sure that your company is on the track you wanted it to be. Otherwise if it is on the wrong track you have to consider about selling it. But as long as it is on the right track and the company is growing your capital, you can sit back, relax and enjoy the life.

Remember a good businessman does not sells his businesses often, he does it when his business is not doing well and he can't do anything about it or he have some better opportunity and needs money to invest.

Invest very small amount of money that you can afford to lose at first, you are going to make mistakes but as you make mistakes, learn from them, take your lesson and move on, don't keep on lamenting.

Or there is another option for this who don't want to do this stuff.
Just invest in index funds of reputed firms. Index funds invests your money in the companies constituting the index. These are generally big and profitable companies which have very low chances of bankruptcy. So your money is safer than the way suggested above, but if done properly, whole heartedly, the first method gives returns far exceeding this index fund method.

But in both the cases you should only invest very small portion of your money to get the feel of the market, the markets are generally cyclical and may take a sharp dip occasionally, so when it takes a dip you should have your head cool and be there to buy your favourite businesses or the units of index funds.

Those who invests in the dips gets the most returns, but no one knows when the market is going to plunge, so better to start investing systematically.

Hope you got some useful knowledge from this post.

Do write any questions arising in your mind in the comments section. Or tell me whether you liked it..

Sumit
The POWER is when,
You use ODDS,
To get EVEN.

The power of compounding - Knowledge

The third instalment in The power of compounding series is devoted to knowledge.

I frequently recall some thoughts out of which one is-

'The human brain is the only thing which makes us the dominant species on earth.'

Therefore we must use our super brain to our benefit to get the most.

Ever read the law of 80/20??

The law states that 80% of the work is done by our 20% efforts and to get the remaining 20% work done we have to put the remaining 80% efforts.

This means that to perform efficiently you must have to concentrate on those 20% efforts which gives the 80% results. And in todays world, knowledge is the power. Knowledge is that crucial 20% which gives the 80% result. There is a huge ocean of knowledge which is expanding everyday. To do our day to day activities, we need knowledge to make them easier. For example, you can stand in a queue to pay your bills or you can simply activate auto debit facility. This is the difference the knowledge makes in our life. A lot of time spent is saved which we can use for other important activities.

Let's come back to our power of compounding, how does it apply to the knowledge?

Simply speaking the power of compounding works with almost any sort of interdependent things. If you have read my previous POST on how to use power of compounding to increase the miles per gallon of a motorbike, you will understand it quickly.

In the above example of auto pay, you are saving time, but if you have knowledge of what to do in the saved time then your efficiency will be much higher. Suppose along with the knowledge of auto debit facility, you have the knowledge of analysing businesses listed on the stock exchanges, then you may use your saved time in finding a good investment opportunity and who knows you may find an investment opportunity for a lifetime, which can further help you retire early from your job, which will further free up a lot of your precious time.

So the amount of time saved is compounded when two ways of saving time are combined.

Here in the same case knowledge also got compounded, now you also have knowledge that these two things when combined can make you financially free much early in your life. Also now you know that you have an investment opportunity and to benefit from it you must save money and the necessity of spending time in researching the stocks, the necessity of saving time etc. So the knowledge also got compounded.

First you knew A & B and from that you derived B, C & E, who knows you might find more things than I did.

This is how knowledge is compounded.

But to compound you first need to start accumulating knowledge.

This is not a difficult thing to do. Start observing things. Stop promoting yourself or proving your greatness to others, (I found most of the people doing it all the time), but I am fortunate enough to understand it in the childhood itself. Actually it was an accident. When I was 10, one day after coming home from school I was so bored and there was nothing to do, the last class of science was lingering in my mind, so I just thought to dig in to it. So I took out the textbook and read the lesson again, I found it interesting, so I read the next one too. The next day, during the science class I was answering all the questions asked by teacher and everyone was impressed by me.

What I learnt from this experience is that learning is fun and good for you, also real hard work or understanding or knowledge doesn't need any promotional efforts. You don't have to prove your greatness. Just become great and everyone will know. You don't need to be great in what others perceive to be great. You just do what you enjoy to do, but do it with full effort and whole heartedly. Others will recognise it automatically once your greatness achieves a critical mass.

Pretty big lesson for a 10 year old kid. But I understood it and started reading first my science book, (science was my favourite subject) then the next years book, then next then next, and in between when bored, some other subjects too.

That's how my knowledge building process started. Because of which I never have to study separately for the exams (pretty amazing, isn't it!!!��). During exams also I never quit my routine of watching Disney hour for 2 hours in the morning, I just loved the Duck tales, Tale spin, Quack pack etc. And later in the college too, though not cartoons, I used to watch a lot of discovery or national geographic channel. They are great source of audio visual knowledge. We can understand better when we see it or hear it or both. Just be selective about what are you reading or watching or hearing, the world is full of noise, so you have to sift the useful knowledge from it.

I just received a joke on WhatsApp related to our topic. Here it is-

During a robbery, the bank robber shouted to everyone in the bank:
"Don't move. The money belongs to the Government. Your life belongs to you."

Everyone in the bank laid down quietly.

This is called "Mind Changing Concept" Changing the conventional way of thinking.

When a lady lay on the table provocatively, the robber shouted at her:
"Please be civilised! This is a robbery and not a rape!"

This is called "Being Professional"
Focus only on what you are trained to do!

When the bank robbers returned home, the younger robber (MBA trained) told the older robber (who has only completed Year 6 in primary school):
"Big brother, let's count how much we got."

The older robber rebutted and said:
"You are very stupid. There is so much money it will take us a long time to count. Tonight, the TV news will tell us how much we robbed from the bank!"

This is called "Experience"
Nowadays, experience is more important than paper qualifications!

After the robbers had left, the bank manager told the bank supervisor to call the police quickly. But the supervisor said to him:
"Wait! Let us take out $10 million from the bank for ourselves and add it to the $70 million that we have previously embezzled from the bank".

This is called "Swim with the tide"
Converting an unfavourable situation to your advantage!

The supervisor says: "It will be good if there is a robbery every month."

This is called "Changing priority"
Personal Happiness is more important than your job".

The next day, the TV news reported that $100 million was taken from the bank. The robbers counted and counted and counted, but they could only count $20 million.

The robbers were very angry and complained:
"We risked our lives and only took $20 million. The bank manager took $80 million with a snap of his fingers. It looks like it is better to be educated than to be a thief!"

This is called "Knowledge is worth as much as gold!"

Well you do not need to do any illegal things to earn money, there are enough legal ways, trust me.

I am sure that you are also on the same journey for knowledge and wisdom like me. The proof is you are reading this post and that too this far.

Well welcome aboard. Our ships journey starts with reading any small informative article of your interest or use, or even watching a show on discovery channel or national geographic channel but not the news channel(I will tell you why not in later posts). But we just have to be sure to check the validity of knowledge by finding rational proofs or trying to disprove it just like we did in the maths theorems in the college. Don't do it by force, just read or learn what you like, slowly you will start liking the process and it will become a habit.

The pieces of information will slowly sink into your subconscious mind and will start interlinking and compounding.

The interlinking is very important to develop wisdom.

Now a days almost everyone has smartphones, so if any questions come to your mind then draw the smartphone and google it. Don't keep any doubt or question unanswered. Challenge your conceptions, get rid of your misconceptions.

You will find limitless possibilities, every barrier in your path will collapse when you start accumulating, compounding and spreading knowledge. Your view of looking towards the world and yourself will change for the good, you will get familiar with the abundance in the world, abundance of what you want.

Knowledge is one of the few things which grows and multiplies when used or shared.

So let our ship catch some wind, read at least one article of your liking, let's be a little wiser every day, let's find out how deep the rabbit hole goes, you are not alone in this journey, there are countless others on different corners of the world going on the same path, And I am here with you too.

Let's be a little wiser every day.

Have a nice day..

Sumit
The POWER is when,
You use ODDS,
To get EVEN.