5 success tips from self-made billionaires
Not all of us can be billionaires, but I believe all of us can be rich and attain our dreams by learning some success lessons from self-made billionaires.
The “Philippine SME Business Conference” recently invited me to be a guest speaker on the interesting topic of “How to grow an SME business with a billionaire’s mindset” due to my numerous firsthand interviews and encounters with billionaures here and abroad.
I wish to share some of my ideas here. I’m culling two out of seven strategies from the new book by Oxford Economics adviser Sam Wilkins entitled Wealth Secrets of the One Percent, and sharing three tips from book author and Forbes magazine writer Shaun Rein. I have added my comments to these five strategies:
1. Slice out your competition. Based on this billionaire strategy cited by Sam Wilkins, we can better appreciate the spectacular rise of John D. Rockefeller to huge wealth due to his dominance of oil in the past, Bill Gates in software, and Mark Zuckerberg with Facebook. Even for professionals or entrepreneurs not aiming to be billionaires, we can and should aspire decisively outclass our competitors to become great successes. 2. Make sure you take big risks with money
that doesn’t happen to be yours. This strategy cited by Sam Wilkins reminds me of a piece of advice given to me by my former Ateneo de Manila University accounting professor and now BDO executive Maurice Lim: he said that it is wise to grow one’s business by using other people’s money, like loans from banks.
Indeed, using OPM or “other people’s money” is one very effective strategy to pull ahead of the pack in terms of business success and wealth, whether for entrepreneurs or professionals.
If we rely purely on our business profits or salary incomes to grow our wealth, this conservative way is not wrong and is organic growth. However, a strategy for pulling ahead in multiplying our financial wealth is to use other people’s money with calculated risks, like availing of bank loan to invest in expanding one’s business or putting funds into high-yield investments. For big firms, one fancy, higher level way to use “other people’s money” is via an initial public offering (IPO), or publicly listing one’s business.
3. Never be afraid to fail. I believe the adage “No guts, no glory” applies to business, politics and other endeavors. The second century B.C. Latin playright Terence wrote: “Fortune favors the bold.” Often, the biggest obstacle to great success is just plain fear.
Rein wrote: “Most of our (billionaire) interviewees told us that at one point they had had a choice to either stick to an easy, secure route or take a calculated risk. To reach the true heights of wealth, some risk is needed. If you look for security in a job or are scared to try something different, you won’t get far in the pursuit of true wealth.”
4. Look creatively at problems to find new
revenue sources. It is not only billionaires and millionaires who benefit from being resourceful and flexible in tackling problems; most successful people are the same. Many of the top billionaires analyze and seek solutions to problems from varying perspectives, often seeking to solve problems in non-traditional and unconventional ways. Many eminently accomplished people — self-made billionaires included — view problems as opportunities.
5. Marry well. I believe this success tip applies not only to big- or small-scale entrepreneurs who want sustainable success, but to everyone. Let us heed the advice of our parents and family elders in the choice of our wife or husband, that we should not be carried away by ephemeral emotions but balance “being in love” with wise, rational choices.
Rein wrote that this success tip isn’t about the simplistic idea of marrying a rich person, it is so much more: it is about the importance of marrying a good spouse who will be supportive through good and bad times.
John Gokongwei Jr., George S.K. Ty, Andrew Tan, Henry Sy Sr., Andrew Gotianun Sr. and Manny Villar are just some examples of billionaires who married good wives. Their spouses provided support, ensured a relaxing home or family life, and some of them even actively helped build up the business.
These exemplary billionaires’ spouses are the softspoken and religious Felicidad Tan Sy of the SM Group, Mercedes Tan Gotianun, the strongwilled cofounder of the Filinvest Group/East West Bank, the diligent and humble Mary V. Ty of the Metrobank Group, the unassuming and business-minded Katherine Lim Tan of Megaworld/Global Alliance Group, the genial and well-read Elizabeth Yu Gokongwei of JG Summit Holdings, Inc., and the hardworking businesswoman Senator Cynthia Aguilar Villar.
According to Rein, “Most of the truly rich we talked to, especially the self-made ones, told us that having a good spouse had been critical to their success. Starting a company or running a conglomerate takes a lot of sacrifices. The stress can be a killer. Having a good spouse to support you and, most important, believe in you as you struggle to the top is critical.”