Saturday, 29 April 2017

The ultimate formula for riches and wealth the secrets of the world’s richest people

When many of us look at the worlds richest, we admire them and most of us just wish their wealth just be transferred to us. Some of us wish we can just know the things they do to get their money. Well congratulations every rich/wealthy man alive today practices just 3 main principles either consciously or unconsciously over and over again until his wealth keeps growing continually. Although it is not the only principle they follow.

The secret of the worlds richest is based on 3 simple formula (principle) which are correlated. Each one formula cannot stand alone but any one of the formula can be applied much more than the others. The formula is;

The amount of money you will ever receive in your life is directly proportional to

1) The demand for what you do that is the product or service you offer.

2) Your ability to do what you do. That is how skillful you are at what you do.

3) The difficulty in replacing you.

It is too easy right. Well most of us think the formula is supposed to be a difficult rocket science kind of thing. Now let’s examine each principle closely and then compare them to the some of the world’s richest.

1) The demand for what you do. That is the product or service you offer.

One time a friend of mine, started to sell popcorn in the city’s central market, while it might look like a good idea the problem with it is that. Popcorn is mostly associated with children and teenagers. Adults can easily overcome the urge to eat popcorn. Which means the demand for popcorn is low at the city’s central market. The only way to make more sales is to change the location of the business to a place with higher demand for example to a school. So doing the sales might double or even triple due to the fact that children like popcorn.

Demand for your product or service is how much or how badly your product or service is needed. The demand for the product or service you render goes a long way in determining your wealth index and also how long and how far you will be relevant in a particular business. Never produce or render a service that the demand is very low or there is no demand at all. For example in a desert region guess what will be on high demand? Water of course! For as long as it is a desert there will always be a demand for water and anyone involved in the sale or packaging of water in that region will be rich because there is a high demand for water due to the condition of the place. Now take for instance, selling popcorn close to a hospital environment. The demand at this point is very low and the seller might likely not have many sales per day. The problem is that most of us go into business without really determining the condition and demand for what we are trying to offer. At times we go into a certain business because we heard that others make money from it and so we to want to make that quick cash also not knowing that there are different climates for different businesses.

Take bill gates for instance, he is a software engineer; he was the founder of Microsoft corporation. Being a software engineer he writes programs for computers in other words giving life to the computer. Now let’s look at this, computers have been so integrated in our lives that many of us cannot imagine a life without them. Even the gadget you are using to access this information is a computer. According to Moore’s Law in computers, information processing capacity doubles every eighteen months. At the same time, the cost of information processing drops by 50%. This is a staggering increase in efficiency! In fact, a new Lexus automobile today has more computer systems in it than the Apollo 13, which was the most advanced moon rocket of its time. That was just an example to show the importance of computers in our daily lives. Back then, when computers were still being developed bill gates was one of the first and best software engineer and programmer. A computer is useless without software/operating system. Seeing how important computers were going to be he started to program them to do various tasks. At his time he had monopoly on software and with the millions of computers being produced there was a need for them to have an operating system/software. Due to the ability of the computer to process information faster than the human being and due to the fact that computers will be needed all over the world and not only in one country the demand sky rocketed and In almost every office and any corner a computer system was needed in order to make work easier and faster. Now due to the rise in demand for computer systems bill gates rose to become a billionaire at age 31 because of his ability to program the computers.

In simple words the demand for computers was a worldwide thing. Consider 7 billion people in need of a computer and computers were useless without software and bill gates was one the first and the best programmers at his time. So this was what was responsible for his wealth.

2) Your ability to do what you do. That is how skillful you are at what you do.

Skill/experience is also an important factor in wealth creation. Your skill is also what you use to provide value. When government official want to carry out a building construction work they look for the best and the most experienced construction company. To get the job done, when you become very good at what you do you build a reputation of excellence and proficiency. When people see you, they know you are good at what you do and due to the reputation you have built it will be difficult for a new company or person in the same field to beat you at what you do because is has become difficult to replace you. Also when you gain a lot of experience in your field, with time if there is an important task related to your field that is about to be carried out it is likely you are the one to be sort for. For advice also this way it becomes difficult to replace you due to your years of hard work, learning from your mistakes and self improvement.

For example when you hear any of the following names their job or skill immediately comes to your mind. Michael Jordan, tiger woods, cristiano ronaldo, Donald trump. Etc when you become very good at what you do it is likely you will attract more customers than others making your wealth index increase.

3) The difficulty in replacing you.

This could come in many ways for example. When you become very efficient and excellent at what you do it will be difficult to replace you because your competitors now have a bench mark set for them by you. Until they are able to cross that bench mark they cannot beat you at what you do (could be your skill, your job etc.) the apple company is so influential because of their excellence and product differentiation in customer service delivery another company cannot beat apple until they are able to surpass this bench mark.

Another way is that you could be so diversified that your product or service covers all aspect of the market, take a look at Ebay, Amazon and other popular online market. They are so divers in sales that you will always find what you need from them no matter what it is.

Also you could make frequent updated versions of your product this is due to the fact that the human nature likes new things always. This will keep your customers focus on you always. Companies like Samsung and apple are so good at that.

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