How to position yourself to be at an advantage when working to accumulate wealth.
N.B: Everything that I write in this series is a collection of personal research. The idea of studying wealth and why some people can amass it easily and for others, it seems difficult and how to turn the situation around and play a winning game instead began with my study of the content of the book ‘Outliers’ by Malcolm Gladwell. These cannot be said to be sure-fire ways of hitting it big straight away but positioning yourself right with these truths at the back of your mind can get you well on your way.
It is an indisputable fact that business is the single biggest creator of wealth. No other form of human endeavor expands our economy and spreads goodness around as business does.
In the history of the world’s economic growth, as humans found ingenious ways to eliminate the bottlenecks that hindered the flow of business, the entire economy witnessed a boom.
Whether it is the replacement of the barter system with the currency system or the improvement of delivery channels or the development of global brands that transcend borders, each time business got better, global wealth spurred forward. So it is a smart move if you are looking at doing business to grow wealth.
And it keeps growing and getting better as we keep discovering innovations that open up whole new markets and systems that reach new heights of efficiency.
But as good as business is, its fate is determined by the market.
The market determines if your endeavor is worth it or if it is not. Business is the only exercise where people truly have to vote with their hard-earned money, so it is essential to know your place in the market.
The very first secret I uncovered in my study which precedes everything else is this:
Making good money in business depends on 2 factors:
1. The size of your market
2. How saturated the market you play in is.
The other day, I was looking at the daily report of the Nigerian stock exchange and I noticed something that was striking. Some businesses on the stock exchange were less than 20 years since incorporation and they were worth many trillion nairas while others have been around for more than 50 years, but they had not achieved the billion-naira mark.
The entire sum of the company valuations in some categories was less than half of the leading company in other categories.
Why was that?
It was the size of the market those companies were playing in.
The size of your market can put a cap on how big you can become.
Let me illustrate.
Let’s say you have the fingerlings of two whale sharks
You put one in the Pacific Ocean and the other in the pond behind your house, how do you think their growth trajectories will be?
Even though the one behind your house has the innate capacity to grow very big, it can never grow beyond its water. But for the one in the Pacific Ocean, it will be well on its way to become the biggest fish in the world.
That’s how much impact the market size of your product or service can have on your business.
So, you want to take a critical look at the size of the market you play in if it can support your dreams of becoming a billionaire (in dollars).
Second, and just as important is how saturated that market is.
How many players are there in your market? What are your chances of becoming number 1 or number 2 or at least among the top 10?
Clearly, in every market where there is opportunity, there are always multiple players, and this is not an entirely bad thing because your competitors are validators in your market place. The fact that they are willing to vie for a share of the market shows that there is opportunity there.
But you don’t want to play in a flooded market. A market in which every dick, tom and harry can wake up the next morning and decide to jump into, especially if you are the tom squeezed between the dick and the harry.
You need breathing space.
Most times, for you to find a marketplace that is both large and there is sufficient breathing space for its players, the barriers of entry are always quite high, but they exist.
So, the first lesson in wealth is to find a market that is both large and offers you breathing space. And pick your sweet spot within that market.
Russell Brunson tells a story that illustrates this first lesson in wealth very well.
He had a friend, someone he looked up to who was so intelligent. He was so intelligent and well-read that his home was the largest library Russell had seen in a living space. Every room was well stocked with books arranged so well around the walls.
One day, while on a trip, this friend said to him ‘I have a friend who just sold his company which he just started recently for a billion dollars and here I am struggling for 10 years with all my knowledge and marketing savvy and I’ve not hit a 100 million.
Russell said, ‘that friend of yours must be really smart’
His friend answered, ‘No, in fact, I think he is a dumb ass’
Russell was astounded. Then his friend said ‘it’s because he got into a level 10 opportunity.’
Being intelligent is good, having marketing savvy is great, these are important factors if you will lead the transformation of any industry. But are you swimming in the Pacific?
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