How to be rich?

Originally Posted by Unregistered

I am a competitive person and I strongly believe I have the smarts to make things work (I'm pretty self confident and arrogant in a sense).

My aspiration is to be rich with at least $10m net assets (not too ambitious eh). It's not hard to figure that the way to get there is not to work for someone - having seen too many small tow-kays who are richer and more comfortable than a slogging vp or a trader in bank.

And it's much more "scalable" to do businesses, eg you can hire people who help you make more money. Whereas if you hold a day job, you only have a pair of hands and 24 hours a day.

Taking the plunge is easy. Getting there is not though!

Good luck!

Thanks bro for sharing. I thought I was the weird one who have similar aspirations as you. The thought of slogging it out in an office trying to earn 100-200k or more a year is crap. Not my kind of life. Most of the rich pple i know are self-employed. Well-to-do ones from banks (front office), and normal guys like myself from MNCs, Stat boards etc.

I always think any industry can make good money if you are good and able to deliver your goods and services in a smarter, faster and good manner.

I think I need some time to convince my wife too...

Originally Posted by Unregistered

Thanks bro for sharing. I thought I was the weird one who have similar aspirations as you. The thought of slogging it out in an office trying to earn 100-200k or more a year is crap. Not my kind of life. Most of the rich pple i know are self-employed. Well-to-do ones from banks (front office), and normal guys like myself from MNCs, Stat boards etc.

I always think any industry can make good money if you are good and able to deliver your goods and services in a smarter, faster and good manner.

I think I need some time to convince my wife too...

Well, everyone talks about starting a cafe or an internet business (that includes me and my wife), but there's a certain learning curve involved. If you don't know how & where to start, you will be just throwing money away as "tuition fees".

I heard from my uncle in renovation that there are so many youngsters who pooled money to start pubs and cafes, and subsequently just failed within months. A few hundred K's down the drain (well, actually the money went to landlords and reno contractors.)

It's so easy to say: to make money, start a business cos it's scalable; but actually doing it and making it succeed is a whole different matter. To many people, it's much much easier to just work for someone, even if there's a risk, perceived or otherwise, of getting retrenched and unemployable in their forties.

[Hermit]

Originally Posted by Unregistered

Well, everyone talks about starting a cafe or an internet business (that includes me and my wife), but there's a certain learning curve involved. If you don't know how & where to start, you will be just throwing money away as "tuition fees".

I heard from my uncle in renovation that there are so many youngsters who pooled money to start pubs and cafes, and subsequently just failed within months. A few hundred K's down the drain (well, actually the money went to landlords and reno contractors.)

It's so easy to say: to make money, start a business cos it's scalable; but actually doing it and making it succeed is a whole different matter. To many people, it's much much easier to just work for someone, even if there's a risk, perceived or otherwise, of getting retrenched and unemployable in their forties.

F&B is one area where taking up a franchise may work. You may need to keep your day job though. The experience can set you up for your own eatery further down the road.

Originally Posted by Hermit

F&B is one area where taking up a franchise may work. You may need to keep your day job though. The experience can set you up for your own eatery further down the road.

Franchising is a risk sharing game, with the balance tilted in a certain way. Purportedly, the franchisor enlists the help of franchisees to help expand the business, seemingly a win-win arrangement. What many people fail to see is that the franchisor is also passing the cost of expansion to the franchisee. In fact, the risk of failure is also passed to the latter.

Imagine a franchise outlet fails, who bears the brunt?

One may argue that it's not in the interest for a franchisor to have an outlet closed down as this will affect the reputation. Is this true? I'm of the opinion that the franchisor benefits immensely from the additional outlet, gaining eyeballs and building its brand, with the costs passed to the franchisee. Having an outlet closed down usually does not affect its image - the general public usually don't care much about a shop closing down.

[1973]

What do you all think about construction materials? Any experience with construction materials?

The cost of producing the materials is low relative to the buildings that will be sold at.

Interesting insight from Mr Wang aka Gilbert Koh:
Mr Wang Says So: My Six O'Clock Project

He's a highly successful corporate lawyer (the last I heard is that he makes more than 300k a year), a very smart man, and he said this:

"Anyway, my point is that there is little correlation between hard work and career success. People who actually get ahead in the workplace may get ahead for a wide variety of reasons, other than old-fashioned hard work."

[Hermit]

Originally Posted by Unregistered

Franchising is a risk sharing game, with the balance tilted in a certain way. Purportedly, the franchisor enlists the help of franchisees to help expand the business, seemingly a win-win arrangement. What many people fail to see is that the franchisor is also passing the cost of expansion to the franchisee. In fact, the risk of failure is also passed to the latter.

Imagine a franchise outlet fails, who bears the brunt?

One may argue that it's not in the interest for a franchisor to have an outlet closed down as this will affect the reputation. Is this true? I'm of the opinion that the franchisor benefits immensely from the additional outlet, gaining eyeballs and building its brand, with the costs passed to the franchisee. Having an outlet closed down usually does not affect its image - the general public usually don't care much about a shop closing down.

I agree with you. But it can be a learning experience despite not making that much. Just talked to one such person who threw in the towel with the franchise after a few years and went on to create his own brand. Just in the first few months so difficult to say how well it will turn out.

[Hermit]

Originally Posted by 1973

What do you all think about construction materials? Any experience with construction materials?

The cost of producing the materials is low relative to the buildings that will be sold at.

1973, do you want to trade in or fabricate ? If fabricating, do you have any cost advantage?

[1973]

Originally Posted by Hermit

1973, do you want to trade in or fabricate ? If fabricating, do you have any cost advantage?

Is abit of luck here. I manage to partner with a low cost producer.

I've been reading this thread abit. Myself, I am working in a bank for about 5 years and earning a very decent salary.

My dad who is in his 50s have been working for a factory in the western part of SG for 30years, currently a Director and head of production. The factory hires about 200 staff and is one of the major production plant for the group's business in Asia. Won't reveal exactly the products manufactured but it is in the food line. Very high up in the value chain. Very basic products.

80% output goes out back to home country for further production. 20% is sold locally in SG.

5 years ago, a couple of local firms approached my Dad to ask for a larger share of supply. Also asked my Dad to start a separate company to help supply the basic goods to help some of the local firms in their expanding Asia food business.

Dad was worried that he will lose his job as starting another company may clash with his director responsibilities. Parent company also did not want SG company to be supplying too much to companies outside the group. This stance has been relaxed recently. I asked my dad if I could setup a company to buy output and sell to his network of clients. He felt uncomfortable as his staff may find out. So in the end, he gave the business to a long time friend of his. Understand that the business took off so rapidly and friend is earning even more than my dad by multiples.

A few months ago, Dad also got put in charge of hiring production line workers from MY and CN. The CN agent offered my Dad a % profit and share of the sourcing firm. Dad turned it down, again fearing his directorship will get in the way. In the end, another of my Dad's friend did a HR sourcing setup. Dad also provided contacts for other factories who need line workers. HR firm now is doing very well.

I am very unhappy with my Dad for being a coward and constantly giving business opportunities to his friends. Have several quarrels as Dad wants me to keep my job (due to high pay) and does not encourage me going into any form of business venture. But I've seen the enormous profit potential of start-ups.

Any advice?