First and most important – forget what your financial advisor is telling you.
If you want to build up wealth fast, you are not going to get there by saving 5% of your salary per month. Truth be told; there are certainly a couple of people that manage to put aside 20% of their annual income and invest it in shares wisely so that they can increase their $50,000 income to $60,000 a year. This does not mean you acquire wealth quickly.
The first questions is always, can wealth be created through starting a business?
The short answer is “yes”. Wealth creation definitely about monetary value, however it is also about creating things from inputs you have, using your brain and labour, and creating things.
I believe a start-up is the perfect way to create wealth quickly. We are running a multi-million dollar operation, as well as helping customers by offering them access to cheap tyres and fitting.
A start-up has the following proposition, instead of working on low intensity and facing several external barriers, you decide to compress your whole working life into a few years. This can result in failure, however if you and your team are passionate and determined, you will likely succeed and find both the monetary and emotional wealth you are after.
Now we know it is possible to create wealth by starting a company, below are simple ways to grow wealth through your business:
1. Put yourself in a position of measurement and leverage
This is probably the most important point to realize and then act on. If you really want to acquire wealth, you need to get in a position where your performance will get measured, if not you will not be paid more whether you are an employee or business owner.
Secondly, you need to make sure you have leverage and your decisions have potential to make a great impact. CEOs have both measurement and leverage – the performance of the company is reflected on them, they have the ability to influence things in one way or the other to influence performance.
2. Find an idea that meets a demand
The easiest way to do this is to discover an everyday problem, something missing from your life. Realise others will bear a similar need. Be open minded, walk around and look out for opportunities in your live. Sometimes people do not even know they would need a product until it is there. I checked the online tyre market in Australia long before I initially thought about founding Tyroola. I found that there was a gap in the market for an independent aggregator that compares prices online, brick and mortar stores still charge a lot more as the market was in transparent and pricing was deceiving.
3. Recruit a strong team
For a start-up to be successful and gain profits quickly, it is more than crucial to gather an A-Team. People that complete you and are experts in what they are doing and are better in what they are doing than you are. A huge mistake in the corporate world is when a manager doesn’t hire someone because they thought their position would be undermined.
Tyroola overcame this obstacle by having the positions clearly lined out between the three co-founders. There is someone responsible for growing the business, someone for the financial part and someone for the IT-development side. A strong team is the quickest way to gain clients and a credible reputation, both of which are crucial ways to build wealth quickly.
4. Have a USP
Why would someone want to invest in a company or product if it doesn’t stand out from the crowd? Having a solid USP immediately differentiates you from your competitors, and allows people to buy into your business faster. For Tyroola we want to give consumers access to the largest range of tyres on the market at the best prices. We have had to work very hard to be able to afford to have the best price on every tyre we sell online. Although coming up with a USP may be difficult at the beginning, once you have established it you’re very close to achieve significant growth and wealth.
Written by Zed Klingenberg, founder of Tyroola.com.au. Tyroola.com.au is one of the leading online tyre retailers in Australia, with average savings of up to 50%. With 5,500 different products, and over 300 independent fitters, you can keep the entire process cheap, convenient and local.
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