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Posts Tagged ‘How to Get Rich’

How to get rich: Lessons from Africa

This post is part of our long-running “How to get rich” series. Click see all the posts.

There’s this tendency to believe we need a revolutionary idea in order to get rich. The fact is, most of the world’s millionaires (and billionaires) got rich off of industries we probably thumb our noses at: fertilizer companies, trailer parks, and lawncare franchises work just as well as founding the next Zynga, Twitter or Facebook.

A recent article in Forbes drove home this fact when they profiled the Top 3 richest people in Africa. All three of them made their cash off industrial businesses:

1) Aliko Dangote, $10.1 billion in market cap in his cement company Dangote Cement. Also mills flour and refines sugar.

2) Nicky Oppenheimer, $6.5 billion from selling his stake in diamond company DeBeers. Also owns 2 percent of mining giant Anglo American.

3) Nassef Sawiris, $4.75 billion as head of Egypt’s biggest public company, Orascom Construction. Also building a fertilizer plant in Brazil.

There’s no shame in founding a company that does the sort of work no one else wants to do. Commercial cleaning franchises, for instance, often make Entrepreneur magazine’s list of the top franchising companies in the country. Copying an idea that’s proven to work and steadily growing your earnings year after year is the surest way to getting rich. And starting a franchise (rather than going off on your own) should help you avoid the pitfalls most rookies make (see our list of the Top Five Cheap Franchises to start $10,000 or less for some ideas).

One other thing to note: the richest men in Africa (and I can say men because there are no women who made the “top 40″ list) are old. They have an average age of 61, according to Forbes. That’s another aspect to getting rich that a lot of people don’t want to admit: it takes a hell of a lot of work and a hell of a lot of time.

One of my high school friends recently left his cozy corporate job to start a software company. It’s doing well, but he’s hardly sleeping. I get emails from his at 4 a.m. He thinks he’s getting an ulcer and his back hurts from “sitting all the time.”

Some weeks, he bills his clients more than 100 hours. That’s 14 hours a day, seven days a week. I ask him why he’s doing it, and he says “I have a plan. I’m going to trash my body for six months and make this work.”

“What if it doesn’t?” I ask.

“Then, I’m going to close down the business and go back to corporate America.”

At least, he’s trying, and that’s what separates him from almost everyone else I know. He’s willing to put in the hours that it takes to reach a goal – even at the expense of a social life and perhaps his health! It’s a tough trade-off, and it’s probably a pretty extreme example, but I think it’s the key to making lots of money.

It’s hard work, and it’s doing the things no one else can or wants to do.

Photo Credit: Nbauer.

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How to get rich: Move to Bismarck, ND, and work in the Bakken oil reserve

This post is part of our long-running “How to get rich” series. Click see all the posts.

Hindsight is 20/20. I could have went to college and studied programming for mobile phones. I could have been a mid- to senior-level programmer by 2007 when the first-generation iPhone came out. I could have founded a mobile game development company and, well, started driving a Bentley.

No such luck. But I tell that what-if story to illustrate the point that we often identify trends in business long before that trend goes worldwide. But most of us don’t do a damn thing about it. A prime example of this is the newspaper industry. They reported on the Internet every day, while at the same time clinging to a print-first mentality that let younger, more nimble news start-ups steal eyeballs from them on the Web.

Like Wayne Gretzky skating to where the puck is going, we need to identify trends and get on the leading edge of them. This doesn’t mean we need to go to college and learn how to program applications for iPads. Getting on the leading edge of a trend could be as simple as an unemployed person in a town with high unemployment moving to a city where there are lots of high-paying jobs to be had.

Let’s take Bismarck, N.D. for instance. Forbes columnist Rich Karlgaard points out that the discovery of a major oilfield (the Bakken reserve) has lead to a surging job market where “unskilled laborers can make up to $120,000 a year.” The work’s 12 hours a day, seven days a week, two weeks on, two weeks off (and you might have to live in a barracks-like “man camp”), but there’s money to be had. Even a McDonald’s in the town of Williston is paying $20 an hour for counter help.

The whole thing sounds too good to be true. So I got on some job boards and starting looking for oilfield jobs in North Dakota. Lo and behold, I found at least one that’s willing to pay people with no experience up to $80,000 a year. You just have to be able to lift 50 pounds and stay alert for 12 hours in a row. Here’s the posting (and here’s a PDF screenshot of the posting for posterity in case the posting is ever taken down). The pay range is listed in the right-hand column at $50,000-$80,000 a year.

The world belongs to those who see opportunities and find ways to exploit them. It doesn’t matter if those opportunities are in our backyards or 2,000 miles away.

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