It’s one of the oldest sayings in the book and usually said by someone who is jealous of somebody else’s success but is it really true? How come people like the dragons from Dragon’s Den earn so much? Is it because they already have lots of money already and the gravity of that cash just pulls more loot in? Well, partially yes.
“Speculate to accumulate” is another old term which, to be honest runs hand in hand with “money comes to money”. Contrary to popular belief you don’t need a lot of money these days to setup a business and that has never changed. For less than a fiver you can set up a website and you can drive traffic to that site for free. Traffic = business. The rule of thumb for a business website is one purchase in every one hundred independent hits. If you can create gravity for your business you could earn double what that website cost within minutes. Money comes to money, albeit small.
Start small but think big.
Let’s go back to the dragons again and look at Duncan Bannatyne as an example.
Bannatyne came from a relatively poor family and began his career in the navy. After being kicked out at the age of 19 he bounced around from job to job until in his early thirties he bough himself an ice-cream van for the small price of £450. The profit he made from selling ice-creams from that one van bought him another van and then those 2 vans profits bought him another and so on until eventually he sold his business for £28,000. With that money he bought a nursing home and applied the same methodology. Eventually he sold his fleet of nursing homes for £46 million in 1996. Then he used that money to set up a health club business and applied the same techniques. His empire is now estimated to be worth around £200 million.
Money comes to money indeed but only through hard work. Now when you see Bannatyne on Dragon’s Den investing in some young entrepreneurs idea, usually it isn’t just a punt, it’s more of a calculated risk.
If somebody came up to you today and said if you give me a fiver I guarantee tomorrow I’ll give you back a tenner you’d do it wouldn’t you? The next day that tenner could become £20, the next £40, the next £80 and so on.
Money does indeed come to money but you need to know and understand the best place to invest your fiver in the first place.