“If $10,000 would solve all of your problems, you don’t have any problems.”
A very successful insurance salesman at a company I worked at said this to me many years ago. I understood the truth in it, but not how to act on it.
It is like understanding that airplanes fly because of pressure differential across the wings, but not knowing how to build a wing that creates the differential.
For many years, I understood the general principle that money was relatively easy to get if you knew how to get it.
This is how millionaires who go broke go back to being millionaires to quickly.
There are many places in the business world where $10,000 could be turned readily into $100,000.
For most of us, there are two challenges:
- Identifying legitimate opportunities among the fake ones.
- Getting $10,000
Solving the first one makes the second one easier, and the answer to both is the same: networking.
Identifying Legitimate Opportunities
How do wealthy people find opportunities to turn $10,000 into $100,000? Their friends tell them.
It’s that simple. When you find an “opportunity” online, it is very difficult to vet it. You don’t know the person presenting it. You don’t know their company. Any reviews you find may or may not be real.
Wealthy people don’t find opportunities from cold approaches. They find opportunities through their network. A friend has a project they are working on and approaches their friends for funding. Because there is an existing relationship, there is trust.
They rarely fall for scams because they work with people who are known by other people in their network even if they do not personally know them.
I spoke to someone recently who spent $127,000 of coaching and education in the past year.
When he did that, he had the full realization that not every one of those programs would create value, but he invested in a variety of them with the knowledge that enough would pay off to make it valuable for him.
In poker, winning. Winning a tournament is skill.
This is because a skilled player will manage their risk, and place a variety of bets, winning enough on the occasional winning hand to counter all of the losing hands.
In business, if a successful investment returns 10x on the money put in, then an investor put their money into a variety of projects with a 1 in 9 success rate and make a profit. If an investment has a 50/50 shot of returning the original investment and a 1 in 10 shot of 10x returns, then it’s a great investment.
For someone who only has $10,000, that may seem like a huge risk, and it is. If you are on the wrong side of that 50/50, you lose everything. On the other hand, if you have $100,000 to invest and you invest in 10 such opportunities, then you are very highly likely to get excellent returns.
What does this mean for you?
This means that there are plenty of people out there who have money. If you have a credible idea, not a guaranteed sure fire idea, but a credible idea, then there are people out there with money to invest.
In my interview with him, David Haberfeld explains that everyone knows someone with money.
You need to find these people and present your idea in a way that they will find engaging. Of course, first, you have to actually have a credible idea.
All of this comes down to networking.
Building your network will allow you to discover credible ideas to be a part of it.
Your network will give you experience working with successful people.
Your network will give you credibility when you launch or partner with an idea.
Your network will give you connections with people who have money to invest.
It’s not as simple as just going out and getting a network. It takes time. It takes integrity. It takes effort. It takes integrity. I takes commitment. You also have to have integrity.
The good news, however, is that your network does not depend on who you were born, where you went to school, where you grew up, or any other factor beyond your control. If you can read this article, you can build a network of the people who can change your life.
You have an advantage that I did not when I first heard the idea I started this article with. You have a guide in the process. You have me. If you find this idea compelling, but you aren’t sure where to start, let’s talk. Click here to schedule a call.