Hi this is Diane Kennedy. Today is Day 12 of the 30-day Coundown to the release of my new book, The Maui Millionaires™ that I co-wrote the book with David Finkel. The book is scheduled to be released on November 3, 2006, and from now until then I’ll be checking in every day with a Wealth Tip excerpt from the book, written either by myself or by my co-author, David Finkel.
Wealth Tip 12: Build a Business
The fastest way to build your net worth is to start and build a successful business. This is the path that I first took myself. I started with less than $6,500 and an idea and with a partner built a multi-million dollar business in about 5 years. Three years after that I sold my half of the business and had my first “retirement” at age 36 (I got bored and four months later came out of retirement to build several more multimillion dollar businesses, although this time making sure to build them the right way, as Level Three businesses, which will be the subject of a later Wealth Tip!)
The best thing about businesses is that they can be started from scratch, with very little capital, and be expanded fast to generate a TON of cash flow. And any business that generates a lot of net profit also has a market value based on that cash flow. Thus not only are you building a lot of active cash flow that you can spin off into other investments (see below), but you’ve also built an asset itself (the business) that has a great deal of value in the market.