Steps To Financial Freedom
Study the billionaires of the world and you will discover they all followed a pathway to financial freedom. It is a proven route that anyone can follow including you.
Let’s look at four of the richest people in the world.
Table of Contents
- Step 1 – Start at the Beginning
- Step 2 – Invest the Profits
- Step 3 – IPO
- Step 4 – Diversify
- Are You the Next Billionaire?
Step 1 – Start at the Beginning
It is no secret, that the wealthiest people in the world followed a pathway for building their wealth. But everyone of them enjoyed successes and failures along the way.
The failures were an important part of their learning what could or couldn’t be done. It allowed them to enjoy the successes even more.
The first step they all took was to start a business.
Jeff Bezos – founder of Amazon started selling books online. As his business grew, he reinvested the money into buying other businesses which he believed would enhance the products and services he could offer his clients.
Richard Branson – founder of Virgin started by selling back catalogues of artists. His business philosophy was if someone complained about something he would find a way to improve it. This built the Virgin brand which expanded into mobile phones, internet and streaming services. International travel through a fleet of planes and more recently cruise ships. Banking services, personal products, food and drink.
Bernard Arnault – liked luxury products. He used his money from his job to start buying companies such as Christian Dior today LVMH boast the best companies in the world as part of their brand including Louis Vitton, Fendi, Bulgari, Princess Yachts, Tag Heuer in total there are now 75 famous luxury brands under his umbrella.
Armancio Ortega – started work as a shirt taylor. Setting up his first business and using consortiums of seamstresses to add more products to his range eventually creating Inditex which consists of 8 well known brands – Zara; Pull and Bear; Massimo Dutti; Bershka; Stradivarius; Oysho; Zara Home and Uterque.
Each of these billionaires knew there was a pathway to success and they followed it.
Step 2 – Invest the Profits
Profits from their initial business were invested back into the business to help it grow. But profits were also invested to buy or create more businesses.
Once the formula for building a successful business was established, they set about creating more businesses under their brand. Increasing the overall value of the brand.
Start-up – some businesses were created from scratch as off shoots of an existing business. Often, in business a person will identify something that would help their business brand grow but for which their are no other businesses around offering the service to the standed required. This allows the billionaire to create new businesses under their umbrella to enhance the services or products they provide.
Mergers and Acquisitions – billionaires will look at other businesses which will compliment their own philosophy and plans. They will then set about buying the businesses and merging them with their own brand. Again, increasing the value of their business brand.
Shareholdings – when PLC companies are complementary to the business plan and strategy they will buy shares in the companies until they acquired enough to control the company or purchase it outright.
Investing the profits from the companies is about building an existing brand and making it the number 1 go to brand through outperforming or buying the competition.
Step 3 – IPO
As the business brand grows the next step in establishing the success of the brand is to go public and list the company on the share market.
This is the ultimate step for billionaires.
They have grown a business, built the brand so it is recognised as the number one brand for their industry. Listing the company on the share market gives customers and investors the opportunity to be part of the success the billionaires have enjoyed.
Listing a company on the share market is the best way to maximise the profits from all the hard work of building the business brand.
For many, the ultimate share listing is the New York Stock Exchange (NYSE).
Step 4 – Diversify
The billionaires have now established their business as the number one brand for their industry. They have built a successful holding company and have plenty of profits from their hard work.
The next step is to diversify their wealth into other investments. They either learn about different strategies or employ the right people.
Shares – many billionaires buy shares in the companies of other billionaires. They know what it takes to get to the top so they buy into their brands. Warren Buffett is considered one of the greatest investors of all time. His company Berkshire Hathaway is listed on the share market and many billionaires invest in his company.
Cryptocurrency – is becoming a book asset that many top companies are adding to their balance sheets. Michael Saylor was one of the first to adopt Bitcoin as a business asset. This has slowly started a trend with other billionaires to also adopt crypto as a business asset.
Property – they can now afford to buy some of the most luxurious properties in the world. Many have their own private islands and turn both properties and islands into business ventures.
Commodities – Gold and Silver offer protection against difficult economic times so they have large holdings.
Are You the Next Billionaire?
Anyone can become a billionaire simply by studying and practising what the wealthy are doing. It all starts by taking that first step on the journey to financial freedom.
No one is too old to start. Warren Buffett generated over 90% of his billions after the age of 55.
Anyone can start building a business then add more businesses to increase the value of the brand before listing the company on the share market.
As long as you continue to build your business and invest the profits into property, shares, crypto and commodities you too are on the pathway to becoming a billionaire.
All you need to do is take the first step to financial freedom.
