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How to be a Capitalist without any Capital [70%]

How to Be a Capitalist Without Any Capital: The Four Rules You Must Break to Get Rich Nathan Latka

Rule 1 - Don't Focus on One Thing Rule 2 - Copy your Competitors Rule 3 - Quit Setting Goals - They are Keeping you Broke Rule 4 - Sell Pickaxes to Gold Miners

Rule 1 - Don't Focus on One Thing

One thing I’m betting on is that as we move into the next four or five years, people are going to hate the idea of paying rent. They’ll much rather pay a monthly subscription fee to live anywhere they want in the world. If I want to tap into that demand, I’ll have to own hostels in multiple cities around the world. People will pay me one fee of, say, $1K per month and they can choose to stay in whichever one of my properties they want, whenever they want. They’ll have location freedom.

Rule 2 - Copy your Competitors

Facebook very publicly copied Snapchat. When Snapchat released Snapchat Stories, Facebook rolled out Facebook Stories and Instagram Stories. When Snapchat released disappearing messages, Facebook added that to its messaging app. Facebook was ruthless—it went feature by feature and copied every one

Rule 3 - Quit Setting Goals - They are Keeping you Broke

Systems can pump out goals at a higher and higher speed the more you refine them, with minimal input from you. It’s why smart people build systems to join the New Rich, and it’s why broke people stay broke as they obsess over goals

Systems thinking requires you to give up making money today in exchange for taking the time, energy, and sweat equity to set up systems that will do the work for you in the future. It’s a lot of up-front work, and that’s the problem for most people. They prefer the short-term win. They need the instant gratification. They want to have sex right now

[Outsourcing] Start/End Blindness also trips people up. A multilayered project can have several systems, but it can be hard to articulate where a system starts or stops—or where another begins

Rule 4 - Sell Pickaxes to Gold Miners

[Look in These Seven Places to Find Your Next $5K] Talk to customers but don’t actually do what they say. If customers tell you they want food delivered to their door weekly, don’t go compete with Thrive Market, HelloFresh, and Blue Apron. Rather, go figure out what those business models rely on and build that.

Look at what’s trending on Kickstarter campaigns and other crowdfunding sites. If something gets overfunded you know that’s a hot space and things are trending generally in that direction. Consumers gave Liberty+ Soundbuds more than $1.7M via Kickstarter. Combine that with Apple AirPods, and all the other companies playing in the sound/voice space like Google Home and Amazon Echo. The upward numbers are a strong signal that sound/audio is a thriving market. All of these agencies help you build Alexa Skills to deliver your audio content to consumers with Alexa devices in your home. Their consulting agency is the pickax to the voice/audio gold mine.

Scan to see which digital products are hot. Creators in everything from comics to podcasts publish how much they’re making each month. This will give you a sense of what’s working and what’s not. At the time of this writing, I could see in Patreon’s podcasting section that Chapo Trap House is making more than $100K per month. Go to their creator page and study why their patrons are donating to them. Listen to their content and figure out why it’s so popular. This will help give you ideas about things you might build to help them serve their audiences. If you want to do something in the tech space, watch which products get the most up votes.

Rule 5 - the New Rich Arsenal

[Should You Use Fear To Sell?] I’ve found seven fear principles that are most directly tied to driving sales and cash flow. This is not a definitive list of persuasion tactics. There are plenty of other things you can do to, say, convince your partner to stay with you, or your kid to do his homework. The focus here is on getting people to buy from you, or getting them to do what you want as it relates to cash in and out of your pocket. When thinking about how your business ties into these, it’s not so much about how you can blatantly use one of these fears to sell your product. Rather, if you understand which fear you’re catering to, you can make sure your messaging reflects that. So if you were selling into Fear of the Unknown, you’d use words and phrases like “hidden,” “clever,” “never before seen” versus selling into Fear of Missing Out with words like “too late,” “few left,” “regret it later,” etc

[Negotiate When you Don't Have to] Dream in Decades → Think in Years → Work in Weeks → Live in Days

[How the New Rich Get More Done in Less Time] This is why the world’s most efficient people batch time. And that alone gives the New Rich a huge advantage over others who let the distractions rule them. While everyone else is bouncing around to a thousand minor tasks a day—and not getting anything meaningful done—they don’t put up with it. Never mind those who hire assistants to do the little things for them. You’ll get there, but not soon enough if you don’t take ownership of your time so you can get the big work done. The concept of batching time is simple: dedicate blocks of time (at least three hours) to one task or project. No switching to do little things in between. If you have multiple big projects going on, it helps to batch time by days instead of hours. This is how Jack Dorsey runs both Square and Twitter. In an interview with Techonomy, he explained how he runs the two companies simultaneously: The only way to do this is to be very disciplined and very practiced. The way I found that works for me is I theme my days. Monday at both companies I focus on management and running the company. We have our directional meeting at Square and we have our OpCom meeting at Twitter. Tuesday is focused on product. Wednesday is focused on marketing and communications and growth. Thursday is focused on developers and partnerships. Friday is focused on the company and the culture and recruiting. Saturday I take off, I hike. Sunday is reflections, feedback, strategy and getting ready for the rest of the week. . . . It sets a good cadence for the rest of the company so that we are always delivering, we are always showing where we were last week and where we are going to be the following week. By batching his time Dorsey is living in days and working in weeks, always looking at the bigger picture with both companies.

7 - Live Like a King without Owning a Thing

Turn $100 into $1K Using Smart eBay Trading-Up Strategies This one’s fun, and you can go as far as you want with it. Go on eBay and look for an auction or a first sale that’s about to close. Then look up the same item on Amazon. If it’s more expensive on eBay than it is on Amazon, buy one or two on Amazon and then list them immediately on eBay. This isn’t totally hassle-free. eBay takes a cut of your earnings, and you have to deal with shipping the item. There’s also the risk of your buyer wanting to return the item. But it’s worth it if you resell big-ticket items like electronics. You can make an easy $1K or $2K in one weekend if you focus solely on flipping expensive items.

[You have to Read this Email] Go on Airbnb and find your dream property. Sort from most expensive to least expensive. Then email the owner and say you want to use the space to host a private gathering with top-level people in that city. It can be any group with a high profile—CEOs, artists, VCs, or whoever you think the owner of that property would want to meet. Say you’re inviting these people over and name a few, even if you don’t know them. Just say you plan to invite them. Once you get the place at a deep discount, use its beautiful pictures when inviting the talent whom you might not even know. They’ll feed off each other. When you do this, you’re basically becoming a broker between the Airbnb host and the guests you’re bringing in. Anyone can leverage this strategy. It just takes balls and courage to go out and actually do the negotiation.

8 - How to Invest in Real Estate: (even if you Have No Cash, No Clue, and No Time)

This scenario isn’t that unusual. The best real estate deals are found by door knocking and it’s the number one way I suggest you look for your first properties

9 - Spotting Businesses to Buy for Very Little

[The No Money, No Lawyers Way I Buy Companies] Every company has liabilities. You want to find them and leverage them to get a great deal done. In this case I asked Mail2Cloud’s CEO to introduce me to the person who owned their debt. I’d be making monthly payments to him, so this was a reasonable request. I then built a relationship with him and asked whether we could find a way to restructure the debt if I were to buy Mail2Cloud.

When reviewing their books, pay close attention to how the selling price they agreed to compares with their last twelve months’ revenue. A sale price that’s anything less than half of their last twelve months’ revenue is generally a good deal. You just need to understand why they’re willing to sell at such a cheap price and then figure out if you’re able to fix the problem.

Great questions to ask that will uncover red flags during Due Diligence include: How long do customers stay with you on average? How are you getting customers? What does the average customer pay you per month? Is there any one customer that makes up more than 10 percent of your revenue?

[How to Buy Tech Company if you Have no Tech Experience] The most revealing detail is the number of hours they spend on development. If they spend only an hour a week, then you know it’s a pretty simple tool. You can assume you’re going to hire someone about an hour a week to take over. If they say they have a team of ten people and they work full time on it every day, you don’t want to touch it. It’s going to be really expensive. So ask questions like: How much time do you spend on coding? How many bugs are there? How many support tickets do you get every week? (If they get a lot of support tickets it’s a sign that the software is buggy and that the user base is not happy.) How frequently do you push out updates to the code? (You ideally want something that doesn’t require monthly updates.)

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