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The Second Way to Create Wealth

money.jpgWhen we think talk about capital for a business, we usually think about money. One timeless wealth-building secret is to use other people’s money, commonly referred to as OPM.

The idea is to use a small amount of your own money, levered with a large amount of other people’s money.

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The most obvious example is making a small down payment for your home and then borrowing the rest. Over time, you pay off the mortgage and you own the home outright. You’ve used OPM to add a significant asset to your Balance Sheet.

Of course, with our homes we have to work to pay off the mortgage. It works even better with a business or a piece of investment real estate.

All we have to invest is the small amount needed to get started. If all goes well, our customers or tenants pay off the loan for us. Now that’s a deal!

The second form of capital

We can also use human capital to create wealth. It’s kind of the Cinderella of the capital world – it doesn’t get as much focus as money as a form of capital.

But other people’s labor, or OPL, is also a way to build wealth. Of course, by “labor”, we mean time and talent. Instead of levering money, we lever time and talent.

OPL is more important going forward

OPM and OPL are the two ways people have traditionally created wealth. OPM has received more focus because we’ve relied heavily on investments in assets and infrastructure to create wealth.

But for small business owners today, the model for building wealth in the future is likely to rely more on OPL. Thanks largely to technology, we can start businesses with less money than it used to take.

Here are three guiding principles for using OPL to build wealth:

You must consider all peoples’ interests equally.

This is the principle of equal consideration of interests. It’s all for one and one for all. As the leader, you have to consider all people in your charge equally and then do what’s best for the collective whole.

So we think going forward, the people who create the most wealth will not be focused solely on their own self-interest. You have to think about what’s best for everyone who is part of your team.

Think win / win or wait.

If you’re going to work with someone, you both must win or you should wait. A win by one is a win by none in the long-term.

As bigg goal-getters, we’re always looking for ways to add value which creates opportunities to create wealth.

Your people must buy your vision.

If you have to sell your vision, the game is over before it’s even started. You want people to see how your idea benefits them. But it has to be bigger than that. It also has to serve society in a larger way – it needs to improve people’s lives. And your people must see it.

It’s a higher form of salesmanship – of leadership – that leads to bigg success today.

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Thank you so much for reading our post today.

Next time when we’ll talk about what a popular HBO show has to do with organizational structure in the years ahead. It’s related to this post so please check back in with us.

Until then, here’s to your bigg success.

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Direct link to The Bigg Success Show audio file:
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Getting Aggressively Passive: Creating A Passive Income That Sets You Free

(Image in today's post by lusi)

Lone Wolf or Lead Wolf

wolf.jpgBigg success is life on your own terms. Today, we want to focus on work, one of the five elements of bigg success.

We hear a lot of talk about passions. What do you love to do? Find that and do it.

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We don’t hear so much about preferences. Preferences are the Cinderella of success literature.

However, knowing your preferences is just as important as uncovering your passions. Your passions paint the bigg picture; your preferences are the finer points.

Picture a page of a coloring book. You see the outline that you’re supposed to color in. That outline represents your passions. The colors you use and how you use them together are your preferences. It takes both to make the drawing complete.

We have personal preferences. For example, some people prefer to live in the city. Others want to live in the suburbs or even in the country.

We also have preferences in our professional lives.
Some people prefer to work at a desk. It drives other people crazy.

Some people want to work in a large company with a lot of people. For others, small companies trip their trigger.

Some people like to work at home. Others just can’t do it. They find it too distracting or it makes others stir crazy.

One of the most important choices

Do you prefer to be the lead wolf or a lone wolf?

When we think of wolves, we often think of packs. As the lead wolf, you’re the leader of the pack. You recognize that you reach bigg success by organizing your pack to accomplish things together that couldn’t be accomplished individually.

It’s all about the pack and helping the individual members develop their talents to reach their full potential so the whole pack is a bigg success.

A lone wolf
, in nature, is usually a young adult in search of new territory. To apply this to our lives, your work is your craft. You prefer to do it alone. You want to master your craft, to push yourself beyond the boundaries that you’ve reached before. In order to do this, you don’t want to be distracted by the responsibilities of leadership.

Think about your preference – lead wolf or lone wolf – so you can live your life on your own terms. That’s bigg success!

Are you the lead wolf or a lone wolf?
Share that with us by leaving a comment below, calling us at 888.455.BIGG (2444) or e-mailing us at bigginfo@biggsuccess.com.

We’re howling at the moon because we’re so happy that you stopped in to see us today!

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Would you like more tips and tools to live your life on your own terms?
Subscribe to the Bigg Success Weekly – it’s FREE!

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And please join us next time when we discuss Picasso … on personal branding. Until then, here’s to your bigg success!

Subscribe to The Bigg Success Show in iTunes. 

Subscribe to the Bigg Success feed.

Direct link to The Bigg Success Show audio file:
http://media.libsyn.com/media/biggsuccess/00408-060309.mp3

Related posts

The Art of Knowing Yourself

The Most Important Person to Love

(Image in today's post from weirdvis)