I recently attended a meeting organized by Fountain Enterprises Program headed by one Mr. John Githaka who is the founder & CEO. After becomong an architect (the only job he knows he could make money without struggling) he realized that still, he didn’t have the clout & clamor of a billionaire. He wanted to make more money. So he listed down 10 billionaires in Kenya. The likes of Njenga Karume, Chris Kirubi, and embarked on a study about these people. His main aim was to discover what happened with them. When was their turning point? What did they discover? What do they do? What don’t they do? Obviously, these are normal men, with normal upbringing and faced the same challenges as their peers but there came a time when they broke loose from their peers and ended up where they are.
So in 3 years, he tried & met 9 out of the 10 billionaires, just to try & discover them. After interacting with them, he found 5 things about them and what they hv in common that made them be where & what they are.
The five things are:
1. They Understand The Power Of Many (Numbers.)
The richer you are, the further u go away from ua business (you disassociate self from the business), but the poorer you are, the more you want to identify with your business.
Successful business people do not have “my business”, instead they have “our business idea”. That’s why when you go to a place like Sarova Stanley Hotel, chances are some employees there do not know who owns the place & have never seen him/her. But when you go to a poor person’s business, that person is always there, worse even acting as the cashier, accountant, attendant. The trick of business success is in numbers not in self. As long as u have a personal business called “mine” then be sure you are headed to poverty. People die but companies don’t die.
2. They Are Serious Borrowers.
Borrowing money is their cup of tea & signature. If you have never borrowed money, you will never lend money; & cant lend it if you don’t have it. A bank is a broker between the poor & the rich. The only place where the two meet is in a bank. The poor bring the money and the rich take it. A poor person saves the money because they have more money than their thinking capacity. So they keep the money there so they can go & think what to do with it. Rich people come to pick that money bcos they have many ideas than the money they have. So they come to pick that money to go and implement those great ideas. Only poor people operate savings & fixed deposit accounts. Fixed deposit accounts are for the living dead. People who undertake & commit that they will not think about any idea for that money until the expiry of that period of time, otherwise they will be penalized. Rich people operate current accounts. Therefore, a bank exists purposely for two reasons:
A) For the poor to bring in the money
B) For the rich to come & take it away.
Banks make more money from borrowers than savers. Hence they respect the latter more
3. They have High Level NETWORKS!
These people as explained in the 1st point believe in the power of many. As a result, they have many likeminded friends who can be of benefit to them. They have friends all over. Rich people have no age, tribal, geographical or gender boundaries. It doesn’t matter who or what u are as long as you are of value to their ventures. Building such networks need a lot of travelling & interacting with people. People never get rich in their hometown. Somebody who dreams of being rich, regardless of their age or status, must have; a Driving license (because they will own a Luxury car not just any car – its criminal to be seen in cars everyday but never own one.), a Passport (because you must travel widely to expand your networks and sharpen your mindset.
4. They Are Great Risk Takers!
As long as you avoid taking risks, you are headed to the grave poor. Taking risks is like walking in the dark. You know where you are going but can’t see it. Better still, you are more confident & secure when you are accompanied than when alone. The more people you are, the more secure, hence the 1st point. Risk taking is about numbers.
5. They Have Read The BIBLE!
They understand & make use of the parable of the sower. The seed is the shilling. They put the shilling on fertile land. They simply know where to put their money & where not to put.
They understand the current business trends & make business decisions with this in mind. If u bought a plot 5 years ago at Ksh. 500,000, u are worth nothing 5 years later except that plot even if it will be worth 2M. A rich person will invest that same money somewhere where it will be worth 2B within the same period of time. That’s why u find a 2-bedroom hse varying from Ksh. 2,000 to Sh. 80,00 or even more from one place to another. Or a cup of tea ranging from 5 bob to Ksh. 1,000. Yet when u ask all these business people, u will discover that each one of them decided the price. Why the variance? They know the value chain. In business the “Higher u go, the cooler it becomes….. & the lesser the pressure”. A landlord collecting 2,000 for a 2-bedroom house has more problems than his colleague collecting 80,000 for the same house elsewhere. While one has to literally come collecting payments at 4am every 1st day of the month (lest the tenant escapes), the other’s money is safely banked in his account even before the month ends. While one can even bargain with the tenant about the rent, the other is fixed, & you either take or leave it. While one, regardless of the cheap rent has few tenants, the other has a problem of to many tenants coming to look for housing. Same with the tea business. The one for 5 bob, the cup is bigger than the 1,000. Yet the 5 bob one can even “choma” you if u are not careful & you can even pay later if you don’t hv cash unlike the 1,000 one. Chances are the 5 bob businessman doesn’t even have a bank acct or goes to save, & he does everything in his business.
You should know where to put your money. Create value for your cash, don’t battle with market prices. They are not your limit. It’s better to be the last among the rich than to be the 1st among the poor.