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Old August 5, 2008, 04:42 PM
MichaelRoss
 
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Default The Solution is the Easy part...

TW,

Thanks for thinking some more.

Remember how I said Aiming for the big time is Limited thinking?

Let me babble on for a bit and see if you can deduce it yourself...

Ok. First. You think there's no link between low-level and big time. Besides being limiting right off the bat - look at my tag line for the answer. It shuts your brain down. Might as well give up because I've resigned myself to there being no link.

Now. Granted, I could be Interpreting your words wrongly. Still not Getting It. But only you can know if that's the case as you read further...

Trumps father built low-income property. Trump build's high income property, right?

No. He doesn't. He doesn't build a thing. He Leverages - or outsources if your prefer. He Hires someone else to build it for him. No Different than some bloke who buys a Reno property, outsources to have it pulled down (or taken away on a truck and and sold) and then hires another builder (who himself hires all kinds of Sub Contractors) to build a Duplex or Fourplex on the land. The PRINCIPLES are the Same. It's only the degree which varies.

Lindsey Fox is a wealthy Australian trucking magnate. He started with... one truck and four 5 years that's all he had - until - he landed a contract where the client was Concerned about reliability of delivery. The deal was... get yourself a Backup truck or you don't get the deal. So he did. Now he had two trucks. Seeing as that kind of investment will drain your finances real quick, he needed to find additional work, which he did. And hired a driver to drive his second truck.

For the next five years he plugged away and bought a truck a year roughly. Taking his fleet to 6 trucks and ten years in the business solo (his father had been a truckie).

Understand. There are Plenty of truck companies with 5, 6 10 or even 20 in their fleet. And with a fleet like that they are doing Bloody Good. They have made the Big Time compared to... a guy with just one truck, right?

And it is quite apparant Fox would have continued Building his fleet. But something happened. A Change in Social Thinking. Where companies now decided it was better to Outsource their deliveries instead of owning their own fleets. And so one of Australia's largest supermarkets Offered their 50 strong fleet to Fox. Who, of course, accepted.

So now he had a fleet of 56 trucks, with drivers - and more importantly - with work.

He won the Big Time lottery. But in so doing, did what he had previously been doing. Only the scale was bigger. He was still following the same PRINCIPLES.

There is a drink down here called Nudie. That was started Small. And each outlet which now sells it was approached one at a time, in person, face to face. Sure, they don't have the success of Coke. But they are doing quite alright thank you very much.

Tempo is a cleaning company. The owner Bought a Small cleaning business that had several contracts of a small nature plus the contract to Polish Floors of one single outlet of a Supermarket Chain.

After a while the owner examined the business and decided... the Big Clients is where his money was really coming from. And so set about to acquire more such Polishing jobs while getting rid of the smaller stuff.

Armed with an existing well known client it wasn't hard to get further work one outlet at a time. And now the company is Huge. Does multi-story office blocks, shopping centers, etc.

It's still cleaning. The principles are the same. The degree varies.

Check out CleanEvent. Started by one guy landing the contract to clean one sports field.

In all cases of Big Time, you see the person entering lands big clients at some stage. But it doesn't need to be that way, always.

Guy works for a crane company. In dispatch. On a salary. And he gets the annoyances and leaves. Buys 1 crane and starts his own one man crane business. Is doing well then buys another crane - once you have proven yourself for one, banks Throw money at you for other acquisitions. And then another. And another. And another. He's now one of the five biggest crane companies in the city. And with crane hire rates anywhere from $170 with min 2 hours to $1,000 an hour with min 8 hours, he can be pulling in around $40k a day.

In 1985 a fellow buys one concrete pump truck. Now, just some 20 years later his is the biggest concrete pumping business in the state. Even buying out his competition along the way, as he deemed it viable and a quicker way to acquire more machines. At $350 an hour + $ per volume pumped, he's doing pretty darn well.

How many Millions do you want to make a year?

These Examples started Low Level and are now, Big Time by most people's understanding. All they did was follow the same principles... but on a larger scale.

I don't know what you true goal is. Is it just money? Is it to leave a legacy that will continue to make money after you're gone. It is to just be famous - Paul Hogan, the Croc Dundee guy, said about his Fame when he first had his TV show... that it sucked to be so famous and not really have much money.

The simple answer to the more money thing is...

Follow a sound money making principle and increase its scale.

And understand... what you cannot do yourself you can hire others to do.

And... machinery and premises can be leased or hired. Short or long term.

For example... the crane guy I spoke of. All cranes are bought via some form of lease. The Yard he operates from is leased. The buildings in it are Portable and leased.

All money comes from other people.

Michael Ross
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