Starting out as an Entrepreneur is always an unceremonious affair. Your first few deals are small potatoes and the decision to become an entrepreneur go's unnoticed by most. Even you don't realize how the decision will impact on your life or how you are going to go about implementing your new focus. Paul is an associate of mine and a very good friend. He started his compounding campaign with very little money indeed. In fact he was up to his neck in debt because of a bad franchise purchase that whittled away at his capital for two years until he finally needed to get commercial capital to bail him out against the value of his equity built up in his families home. Paul went back to his job as an electrician for a large retailer and thought his entrepreneurial days were over and this was his final fiscal resting place. Little did he know that not 12 months later, he would have a seed capital account of over $1 million dollars. His hobby was garage sales and he had a pretty good knowledge of the market and activity in his area. He kept it strictly nickel and dime. There was no real attempt to make money from it but he enjoyed it and used it as a therapeutic activity that he and his wife enjoyed on weekends. Paul decided to see his old hobby in a new light. It's funny how we know things, but somehow don't see them. Its often only when they are pointed out to us that we "know that we know" and only when we truly realize what we are in possession of do we act on our knowledge. This is a classic example of what happened to Paul. His existing knowledge gave him an incredible advantage, at least while he was compounding his money at this level. He had close to $10,000 within 12 weeks simply discovering intrinsic value and profetizing that value into cash. By the time he had $15,000 he was ready to go where the real leverage and compounding was. Real estate. By the middle of the year, Paul had gotten into land subdivision and unlocked excellent profits in larger blocks of land that were subdivided and resold at smaller lots for quick profits. He had achieved what we all achieved, fast and rapid compounding of capital. The last block he did was 4 acres of farm land on the outskirts of the city near an existing development of residential housing. Now these 4 acres were ear marked for subdivision and re-selling. However, the developer owning the neighbouring development made an offer on the new purchase that Paul couldn't Resist. You see that developer had tried to secure that land but the original vendor would not sell for such a low offer. When Paul paid a fair but still low price for the same parcel, the developer became motivated again to secure the adjoining land, which led to a skillful negotiation followed by a purchase. Paul was a millionaire within 12 months starting with absolutely no money. The developer paid him enough to tally the total of his seed capital account well over $1 million dollars. Martin Thomas (c)2005 |
