Found this book the other day .. yep at Borders. This time round though, I bought it! Yes, that’s right - I bought it. Figured, I’ve read quite a few books there that it’s high time to actually fork out for one. So when I found this book, with that title I had to buy. This book has me written all over it.
“We spend thirteen years at school and leave knowing how to do little more than survive financially. Since the majority of us become employed and have ‘jobs’, the majority of us will simply sell our time for the whole of our lives” - yep thats sounds familiar…
“Ironicallly, though, every day we wake up and dream of being rich. We observe the guy or girl in the new car that ‘costs more than our house’.” … ah me again.
The proposition that Brian Sher writes in this book (now my book :P), is that you will never get rich by selling your time (ie. working in a normal job), you need to start a business. Now, Brian acknowledges that, statistically, 90% of all businesses fail. The secret, though, is not only to start a business, but to build a valuable asset that you can sell in the future for a profit. That’s the catch. You have to start with an exit plan in mind. That is, whatever you start, it needs to be of value to someone else.
Here’s a table from the book:
| Investment | Income return | Asset growth |
| Bank | 6% | 0%p.a. |
| Property | 5-7% | 10%p.a. |
| Shares | 10-15% | 20-50%p.a. |
| Own business | 100-200% | 500-1000% |
As you can see, it’s not the income that is of much significance - it’s the ASSET GROWTH. It doesn’t matter if your business only makes $50k a year, as long as you can sell it for a lot more. Brian uses Amazon as an example. Apparently Amazon has never made a profit but is obviously still worth billions. Why? They’ve built a valuable ASSET!
Well that’s it.. that’s really all I got out of the book, and it was on page 7. Bugger. Well, I still think it’s $35 well spent. It’s pretty decent advice. That’s exactly what I’m going to try and do, actually. I need a asset that I can grow and sell off in 11 months for… ONE MILLION DOLLARS!
Until then, I hope my MYOB shares sky rocket. Latest news is that they have acquired some NZ company (payroll for SMB’s I think). That’s should be good news, right?
Popularity: 2%
1 comment so far ↓
What’s with the boring 11 month timeframe? Why not be creative, and use an unusual number like…12?
Leave a Comment