Many years ago, I was on the brink of bankruptcy. It’s a very scary feeling, unless you’re a dyed in the wool sociopath. I will never forget the sleepless nights, having to plead with bankers whose arrogance was exceeded only by their ignorance, and how the only way out was hard, 24/7 WORK.
Why did I totter on the brink of a flaming financial furnace?
High overhead, all my eggs in one basket, relying on other people, and refusing to confront reality; we all like to hide our heads in the sand at times. And when you extract your head from the sand, you find that the house has burned down around you. Fortunately, I managed to escape the jaws of bankruptcy, and I swore that I would never put myself in that position again.
Falling Hard with a “Successful” MLM
It’s interesting that pride always comes before the fall.
We knew a fellow in Edmonton a few years back who was making big money selling a magic health juice through an MLM company. Naturally, they made wild, silly claims about their juice, which was soon replaced by another juice from another company. Different packaging, same snake oil.
Well, as with most products and services, the juice ended up in Wal-Mart for a fraction of the price, and that was the end of this fellow’s arrogance and swollen head.
He lost pretty much everything, because, typical of the nouveau riche, he felt he had to lease expensive cars and buy the bling to convince other dumb people that he was making money.
It Happens in Traditional Business Too
I know someone in the UK who put every ounce of his energy and every penny he had saved into building a business. He had a great reputation, delivered excellent service, and was admired by many.
One day, a big customer showed up and started giving him large orders that required that he expand his premises and increase his production and overhead in order to cope.
Soon, the new customer brought him 85% of his business.
Slowly, this powerful customer insisted paying on him after 60 days instead of 30 days, then 90 days, thereby putting the squeeze on his cash flow.
One winter day, the customer showed up with an offer to buy the business for a mere pittance.
He was offered two options: “Sell me your business for pennies on the pound, or I will take all my business away and bankrupt you.”
This is not an unheard of story. He ended up in debt and despondency after selling his business, having to start all over again at the age of 63.
Job: Selling Your Life for “Security”
Having a boss is the same thing – handing over the control of your life, income, security, and dreams to one or a few people is crazy.
Many entrepreneurs are glad to sell themselves into slavery and bondage for the promise of enough money, and they forget that while power corrupts, absolute power corrupts absolutely.
Don’t buy a golden leash – it might look impressive to your cranky old mother-in-law, but there’s a slip knot on it, and it can end up choking the life out of your finances.
Be Willing to Work for It… And Then Work SMARTLY.
It amazes me how easily vulnerable people will commit themselves to large amounts of money, debt, and suicidal indenture for the sake of a free trip, accolades, and false hope. I think the main reason why people will gamble their future financial freedom is the idea of a quick buck – greed and indolence at work.
Hard work is not something most people are comfortable with, even when they know that working hard for a year can allow you financial freedom for the rest of your life, if you’re moving in the right direction.
What It Takes to Weather the Storm
The combination of arrogance and greed with having all your eggs in one proverbial basket is a recipe for failure. Today’s expensive fad is mass produced and sold in malls tomorrow.
Companies, competition, and economies come and go, and people come and go. Floods, fires, changes in laws and governments, offshore competition, new technology, and the blatant disregard of patents by certain nations means we live in a changing, dangerous world. Nothing lasts forever, and business is a series of cycles, like the seasons.
Those who spread their income and risk and maintain a low overhead can weather storms; when one section or area of business suffers, another prospers. That means no feast or famine, chicken or feathers, rollercoaster cash flow.
Why Joint Venture Brokers Have It Made
Joint Venture Brokers can participate in multiple different markets, products, services, and cultures simultaneously, with no cost, risk, overhead, or limitations except their understanding of profit, value, and business. Typically, they are very selective, and they maintain a mature, objective approach to business.
Everything they earn is 100% profit, and they don’t have to allow themselves to be manipulated or ripped off, since they always have other options due to the nature of their business. They have the money as well as the time to enjoy it.
Savvy Businesses Use Joint Venture to Explode Their Bottom Line
Business owners who understand how Joint Ventures can be used to leverage existing resources can significantly lower their overheads and advertising and marketing budgets, while at the same time building multiple additional income flows at 100% profit. The more sophisticated operators use their front / primary businesses as “feeders” for their lucrative Joint Ventures.
Your Most Valuable Asset
The most valuable assets you have in business are your relationships, and those who understand the power of synergy, leverage, and Joint Ventures seldom walk away from good relationships or allow greed and ego to steal their futures. Together, we can do amazing things, and it’s always better to have 5% of millions than 100% of $1,000 with no support or leverage.
Keeping all your eggs in one basket is tantamount to Russian roulette.
