Archive | July, 2013


23 Jul

Imagine having a business where demand is so great for your product that you can just sit back and let the money roll in.  It’s not as impossible as you think.

We are all customers and everyday without noticing it we buy products that make someone else rich.  Think about your purchases today.  Before you say you haven’t been out shopping today lets look at your purchases in a different way.

Did you have a cup of coffee or tea this morning?  If you did then you would have used one, some or all of these items:- water; coffee; tea; milk; sugar; electricity; a spoon; a cup. Each item is a product for a business. For us to have our daily morning cuppa we purchased not one but several products and without realising it.

All the businesses involved in providing us with our cup of coffee or tea have a product that is so in demand that they can sit back and let the money roll in.

Imagine having a business where people will pay millions to buy it.

Make a list of all the products you have used since you got up this morning.  I’m sure you’ll soon get the picture about how big the businesses are that supplied your product.  They are worth millions but they all have one thing in common. They all started small.  They found a product that a customer needed and built their businesses around that niche.

In previous blogs we have often discuss the four types of asset classes for investing – property, shares, cash and business – and how we need to balance our investment into each area.  Keep building the investments in each asset and you will increase the income you have and increase your wealth.  Building a business is as important to your wealth creation as buying shares, property, gold or diamonds.

Imagine starting your own business with your own products and what the potential could be.  Imagine having a business where demand is so great for your product that you can just sit back and let the money roll in.  Imagine having a business where people will pay millions to buy it.

Niche ebook cover

My new book – Niche – is a guide to building niche business.  Home based businesses are a cost effective, low overhead way to start a business.

Now it’s time to stop imagining and start building your own niche business. Build a business which is capable of generating millions of pounds in income for you and your family.  Build a business which can be sold for millions of pounds.


Finding the Balance

9 Jul

The investment world moves in cycles.  While some investments are going up others are going down. By finding the balance you are ready for any movement in the cycles.  I believe there are 4 main categories – property, shares, business and cash – you can protect yourself against the ups and downs of the financial world by investing in all 4 categories. Understanding the cycles and positioning yourself in the market you can create substantial wealth in a short timeframe.

So let’s look at what is happening in each category.

Property – has been in the doldrums since 2007 when Northern Rock collapse and triggered the recession and austerity.  House prices dipped, but surprisingly for many so called experts, there wasn’t the massive drops predicted.  In my area, in 2001, I was buying houses for £35,000 the same houses went up to £110,000 before the credit crunch. Today those houses are valued around £90,000+. Over recent months property is receiving more publicity and becoming popular again. So the questions are have we seen the bottom of the housing cycle and are we on the cusp of the next growth cycle in property?

Shares – since 2009 shares have been in a growth cycle. Although it has been a choppy ride the FTSE100 has gone up from circa 3590 in 2009 to just under 6850 in May 2013.  Since then we have seen it decline to 6000 and now it’s going back up again and as I write this is sat at 6450.  Pundits are forecasting it could break 7000.  Or did it peak at 6850 and is now starting it’s downward cycle?  The share market is very nervous at the moment and could go either way. Are you ready to react to which ever way it moves.

Business – confidence is gaining in the business market.  We see record number of new start ups all looking for funding.  The demand for Angel Investing is very high.  Services Industry recently reported surprising gains. Manufacturing is rising albeit at a small rate. The building industry is receiving investment money and new developments are underway again. All in all, the business sector is looking good.  It has come through the downward cycle and is starting to move upwards. The question here is where do you see opportunities to invest? Or perhaps you think it may go down further in the cycle.

Cash – The cash market is at an all time low and likely to stay that way for some time. Banks are offering 1.99% mortgages fixed for a couple of years. They are unlikely to do that if they think interest rates are rising in the near future.  Investors who moved their money into commodities have enjoyed a good run but that cycle is in a definite downward direction. The question here is where do you see opportunities to invest so you are ready for the change in this cycle when it happens.

As you can see from the summary above all investments have their ups and downs. The trick to investing is getting in at the lowest point possible in the cycle and enjoying the profits that comes as the cycle moves upwards.

Reading the cycles takes time to learn. Investors make their money buying into investments that are out of favour (at the bottom of the cycle) and holding them until the cycle turns upwards. They read the market and take their profits as investments rise in value.

So how are your investments looking? Do you know what part of the cycle they are in? Are your investments fixed in one category or are you finding the balance?