Lies You Have Been Told
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How the Lies You Have Been Told are holding you back from succeeding.
The full chapter on Lies You Have Been Told will show you how to overcome limiting beliefs from your upbringing or your education that are holding you back.
In the full chapter are six common lies we have been told and how to turn them to our advantage. Here I outline just two.
It is an unfortunate truth the more often we hear something, the more likely we are to believe it. In fact we are prone to absorbing frequently-told lies and believing them. The problem is these lies rob us of opportunities and choices. This of course limits our ability to create our Perfect Lifestyle.
These are two widely believed statements that are simply not true. Like any good lie however, there is a grain of truth in them.
|Lie #1 ||There is no such thing as a free lunch. |
|Truth #1||There are a lot of cheap lunches out the|
The Lie is this:
Life is hard and you don’t get anything for nothing. You have to work really hard for everything you get. If you find an opportunity, don’t trust it because it is probably not what is seems. Do things the way they have always been done and you won’t go wrong.
The Truth is this:
Life is wonderful and it abounds with exciting opportunities. When you see an opportunity, get excited about it before someone else does. Look for the unseen angle and look for new ways to do things. It is better to work smart than to work hard.
There are a number of examples of this from my own experience. When my wife and I bought our first home it was a wreck. It had been lived in for years by two alcoholics with psychiatric problems. There were burns in the carpet, parts of the house smelled like a urinal, no maintenance had been done for decades and it was dark and ugly inside. At the back of the house was a tiny sewing room which had low windows. If you bent double you could see a fantastic view of the harbor. We paid $145,000 for the house and we very quickly pulled up all of the old carpet and for $1,000 we had all of the floors polished and polyurethaned. Next we built a twenty five square yard (meter) deck out from where the sewing room used to be. This cost $5,000. Suddenly we had a light bright home with million dollar views valued at $220,000.
Another example is when I purchased an online property business in 2004. I paid $1,750 for it. The business made more than the purchase price in the first year alone giving me more than a 100% return on my investment. It took just a few hours over the whole year to manage it.
I purchased a rental property in 2002 for $270,000. The bank loaned me all of the money so I did not have to put up any cash. I found five doctors who moved in on the very day I took possession, and they paid $500 per week. This gave me an immediate Rental Return of 9.63%. Mortgage interest rates at the time were around 7%, so even though I borrowed all of the money, after paying interest and rates and insurance, I still made $50 cash every week. Now that is a cheap lunch!
My advice is look for opportunities everywhere. Look for the unseen angle. Look for the cheap lunches. There are a lot of them out there!
|Lie #2||The small business failure rate is very high – “three out of four small businesses fail in the first five years”.|
|Truth #2 ||This failure rate is made up primarily of|
- Starry eyed dreamers.
- Unrealistic optimists.
- Naïve redundancy receivers.
- Failed musicians, artists and authors.
- Unprepared “hopers” with no plan.
The Lie is this:
So many small businesses fail you shouldn’t even consider starting a small business. Failure is a terrible thing and you should avoid getting anywhere near it.
The Truth is this:
If you are prepared it is very likely you will be successful in business. There is no such thing as failure, only learning experiences. Even if you start a business and it does not succeed you will have learned far more about yourself, about life and about business than if you had never embarked on a business adventure.
Don’t be put off by any statistic you hear about the small business failure rate. Generally the people who fail in a small business have little or no financial knowledge. If you do your homework, learn the basics of business, protect the downside and follow your passions, you are very likely to be successful.
In the last ten years I have started five companies. Four are profitable and successful. The fifth was profitable but time consuming and did not fit into my lifestyle. I dropped it to concentrate on the other businesses.
My wife has also set up a successful and profitable small business.
Further, in the last few years I purchased two companies – one made an average 20% annual return, the other made over 100% annually. Both of these companies focused on real estate which I was passionate about. I have since sold both, at an excellent profit.
Am I a small business genius? No! But there are two things that set me apart from the people who fail in business. The first advantage I have is that I understand business and accounting. I have studied and I understand the following:
- Return on investment;
- Capital requirements;
- Compliance and tax;
- Presentation of financial statements to banks.
The second advantage I have is that I only involve myself in projects I am passionate about and that help to achieve my lifestyle goals. When you are excited about getting up, getting into work and finding out all about your business and the market and your competitors, it is easy to become an expert. It is fun to look for opportunities or examine any threats.
For me there are three key requirements for businesses I own:
|Key # 1 ||They do not take up much of my valuable time;|
|Key #2||They give me freedom to be where I want to be at any time of the work day;|
|Key #3 ||They only relate to pursuits I am passionate about.|
Because all of my business and investment decisions are filtered through these three requirements, I ensure my businesses meet my lifestyle goals.