12 Deadly Reasons Why You Won't Get Rich In Your Lifetime - Reason #2 - Bootstrapping

***************************************************

Top Secret Report by
Nicola Cairncross

Author, Speaker, Wealth Coach &
Founder, www.TheMoneyGymClub.com
 
Acclaimed Speaker, Author, Wealth Coach, Internet Pioneer and Founder of www.TheMoneyGymClub.com, Nicola Cairncross, has been studying abundance thinking, investing, wealth creation strategies and working with clients on creating financial freedom since 1999, and now, in this explosive report, she exclusively reveals why most people won't – no matter what they do - become rich in their lifetime, no matter how hard they try, or how hard they think they are working at it.

Download the whole report for free, by subscribing at www.TheMoneyGymClub.com (look for the grey "join now" link in the top left hand side)  and clicking the link on the "All Members" homepage. 

You will also be able to view the 15 minute video "An Introduction To Wealth Creation" recorded live at our Live Webcast from Central London, featuring millionaire property investor Maria Davies.

***************************************************

Wealth Highway Lane #1:  Business

Deadly Reason # 2 - Bootstrapping

When folks start a business, somewhere in the back of their mind is the statistic that 85% of businesses fail in the first year, and 85% of those that survive that first year, fail in the next five years. So they are expecting it to fail! And because of that, they are not willing to a) invest in themselves to learn what they need to learn to make it work and b) invest the cash any new business needs to make it work. They try and do everything on a shoestring – it’s called “Bootstrapping”.

How often do you hear people saying that they want to start a business but they can’t “raise the cash”. What they mean is that nobody will give or lend them the cash.

 

Why on earth should any bank or investor give you money to create a business that is most likely to fail? Why do you think the bank asks you for security? They know the statistics too. No wonder 85% fail in the first year, because they are not set up or designed to succeed.

 

As for that old chestnut of “no business makes a profit till Year Three” well, do me a favour!

 

If you are going to start a business, for heaven’s sake find one that has miniscule overheads and thus will make a profit from the first sale, let alone the first year.

 

Make sure that profit not only covers the cost of creating the sale, but the cost of doing business, and will also PAY YOU to run the business. Your time is worth money, certainly when you become more successful, even if you don’t think so in the beginning.

 

Most business angels won’t invest unless they get a 30% return on their investment per annum plus their money back within three years. Why doesn’t anyone tell you this?

 

If you are going to invest your money and your time in any business, you are, in effect becoming the main investor in your own business, and according to Robert Kiyosaki, you are accidentally becoming one of the most “sophisticated” investors of all. He says this because investing in a business, especially a new business, is one of the most high risk investments strategies of all, so only the most sophisticated investors should get involved.

 

Yet, here you are, one of the least sophisticated investors of all, investing your time and your money, in a high risk venture. 

 

If you want to find out more about how to evaluate a business for investment, even if its an investment of your time and your money, then read “Rich Dad’s Guide To Investment” particularly the last third of the book. Dynamite stuff and builds on the previous two books mentioned brilliantly.