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What Are the 6 Different Wealth-Building Concepts?

What Are the 6 Different Wealth-Building Concepts?

Today, we’ll talk about the flight of the eagle. There are six different ideas. We need to recognize six different mindsets and wealth-building concepts in this kind of market, a down market. They’re not new. They’re all age-old, millions of years old concepts with little flavors given to the new age.  The deep-down concepts and the baseline concepts of wealth-building don’t change. We have to be adapted to the new scenarios.

Now I’m going to walk you through some of these concepts. And then, towards the end, see if these concepts resonate with you and if you want to utilize them to reinvent yourself. I’m also going to talk about the story of the eagle.

The First Concept

The first concept or the original concept of capitalism, which is called ownership. The fruits of your labor, the ownership of the fruits of your labor, needs to be with you. If you’re working in a job, the fruits of your labor legally are owned by a company. If you are an independent professional like a doctor, lawyer, etc., the fruits of your labor are owned by a client because they pay you for your time. This lesson is meant for independent professionals, cooperate professionals, small business owners, homemakers, and students.

So, lesson number one of prosperity and wealth is you need to own the ownership. You need to have ownership of the fruits of your labor. Mark Cuban says, “It doesn’t matter if the glass is half empty or half full. You should be the one pouring the water.”

Now, what happens is, when the market is up, and life is good, people forget this because life is good,  even the salary is good enough, probably many people in corporate make better salaries than actual business owners.

It’s only when the flux or contraction happens that you suddenly realize that you’re missing out. So what you want to do is, first of all, you must own the fruits of your labor, which means till now if you haven’t got into the business, this is the time to get into the business. A recession is the best time to get into the business because once the market goes down, the only way it can go is up.

The Second Concept

Lesson Number two is to never take a knife to a gunfight. Most people are dependent on one source of income or one product line. If you have one line of business, then that’s a problem. This is a gunfight, and you need heavy artillery. You need an air cover. You need automatic artillery.

So the secret number two of prospering in a down Market is you need three layers of income. One of which has to do with the traditional market, which is physical goods and services. The second layer is something that has to do with the future, which is information products and things that can sell off the internet. The third thing is something that is very important to the post-covid time. Your business needs to have a community or a consultation-based edge where you and your clients can work together to achieve some goal. So you must have to build that community edge.

So, this is the market of the present. Physical goods and services are markets of the past, but they will always remain relevant. And then there’s a market of the future, which is you need to have a digital product where people buy from you online. You need to have these three minimum layers of income. If you’re missing any of these three legs of the stool, your stool is not going to be stable.

The Third Concept

The secret number three is to ascend vertically. Most people who are into business are making huge mistakes. Most independent professionals are also making a huge mistake that they are stuck with their product or what they offer. They don’t realize that there are layers and layers and layers above this. These are people who run the market, which is 80% of the game. The people who figure out where the market is and position themselves to the market and then utilize your products and services to bring it to that market. These people are called aggregators and market creators. They primarily deal in the mindset and motivation and figuring out who are the motivated clients.

They want to achieve a certain result, and then they use your product. They use your product to deliver that result while you as the producer only command 5% of the market.

The actual producer makes nothing. The farmer will always remain poor. The people into the tools and techniques and the people who are into the mindset and motivation and market exploration and market allocation are the ones who make all the money.

So what you need to do is vertically ascend. People who operate in all three layers have a hold on the industry because they have a hold on the supply. They hold the demand, which is the top layer, called the mindset motivation or market exploration. The people who figure out what we want to achieve in the market are the ones who are providing the solution, which currently is your product. These market aggregators are in a unique position.

Amazon doesn’t produce anything of its own, but it’s the algorithm that is finding out what people want to buy. And then it has people like you who are at the bottom level, which is the 5% of the game. You’re an Amazon supplier. You’re plugged into Amazon. Amazon gets you the orders. You deliver your product, and the markets are great, and they’re expanding. Life is good because your business is expanding in the market. Suddenly, the market tanks and you realize that Amazon has created all these 10,000 different competitors. They are all on the same platform as you. They are all priced competing using Amazon’s algorithm. And then, you found yourself in a dead spot. So Amazon, in this case, is something that we call a linchpin

The next point is, there are six types.

  • Manufacturing
  • Distribution
  • Retail
  • Services
  • Aggregators
  • Market Creators

There are six types of business models and what you have to do is in every type of business model; it’s not dependent on the product. It’s dependent on four different items, which is how much of the capital is required to start this business? What is the return on investment on that capital? What is the risk of losing that capital? And then, what is the scalability of that business?

For example, in manufacturing, you have huge amounts of capital required. You can make medium to large profits or fifteen to thirty percent profits on it. The risk of losing that capital is broadly known unless a major watershed event happens like a world war. The risk of losing capital is generally low. The scalability of the business is very high.

Then you have distribution where the cost of starting the business is relatively low to medium. The return on investment is slim. You have 5, 10 percent, 15 percent margins unless you are a linchpin in that business. The risks are high because you’re moving stuff on the road, and every legal, political issue will affect you.

And then you have retail which is big thicket retail. The cost to enter is high. The ROI is low to medium because retail companies basically make up to 15% of the profit. And then the risk of losing is also minimal, but then you have a risk of perishables. So if the market slows down, then your perishable start deteriorating. And then, the scalability is also low because large companies are every time there to set up a new store that the new capital has to be tested.

Then you have Services, you have aggregators, and you have Market Creator. All of these different business models have different business dynamics, which is all of the money profitability.

What is the risk of losing the money that I put in? And what is scalability? How much money can I make on the initial investment before I have to reinvest another big chunk of cash?

But these are some of the areas you need to be thinking about. What is your horizontal footprint, how many layers of products do you have in the market? What is your vertical footprint? How many layers are you playing in? And then, which type of business model it is you’re playing? If you don’t have an idea of this, you may be in business, and you may even be making money; you don’t know what’s going on. We have no clue what’s going on, and life may be good when markets are good.  The moment the markets go down, you realize that you’ve been made a fool of.

Warren Buffett says, “it’s only when the tide goes out that you realize we all were swimming naked.”

There are three steps involved, message, Outreach, and business house. These steps are involved in repositioning yourself in the New Age. All of these three can be learned and mastered in 60 to 90 days.

If you learn and master this in 60 to 90 days, you will be reinventing your own business for the slow downtime, and you will be able to become a master of your destiny all over again.

You need to redo your message. You need to get your message right and tight. You need to get your message out, which is to go out and connect with your potential customers, thousands of them. And then what you do is you bring them back to your business house or your back office, which has that 3-product combination we talked about above, which is consulting and community-based offer, hard product and service, and digital product or service.

The Flight of the Eagle

The eagle has two lives. Eagle lives twice. Do you want to learn about the second life? The eagle dies then the Eagle is Reborn.

This is a story of an eagle. It can live up to 70 years. But to reach this age, the eagle must make a hard decision. In its 40th year, its long and flexible talons can no longer grab prey that serves as food. Its long and sharp beak becomes bent. The feathers become old, thick, and heavy. The thick and heavy feathers stick to its chest and make it difficult to fly. Then the eagle is left with only two options; die or go through a painful change process.

The process requires that the eagle fly to a mountain-top and sit on its nest. Then the eagle knocks its beak against a rock until it plucks it out. Then the eagle will wait for a new beak to grow back, and then it will pluck out its talons. When its new talons grow back, the eagle starts plucking its old-aged feathers. Change that’s worth sustaining the pain. And after this, the eagle takes its famous flight to rebirth and lives for 30 more years.

Why is change needed? To survive and live. We have to start the change process. We also have to pluck out our unpleasant memories, negative habits, and fixed mindset like the eagle. Only freed from past burdens can we take advantage of the present. In order to take a new journey ahead in the future, let go of your negative old limiting beliefs. Open up your fixed mindset and let yourself fly again like an eagle.

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