Entrepreneurship | wealthymatters

Real Wealth Vs. Paper Valuations

May 31, 2015 Leave a comment

Sam is a painter. He has about $50000 in cash and no particular income source apart from small gigs here and there. He is very savvy in his expenses and doesn’t waste any of it, painting most of the time.

He shows his paintings to one of his friends, who happens to be a consultant. The friend on seeing a particular painting, stops and wanders in exclamation, “Dude, you should show this to art galleries, they would pay 100s of millions for this”.

Sam gets excited. He gets some more consultants to do the review for his painting and they too tell him that they can sell the painting easily for 50 million dollars. He pays the consultants $500 each in fee and they are off.

Sam is very happy. He is going to be a millionaire. He decides to celebrate. Spends 1000 dollars on dinner and wine. Next day, he meets a lot of people, “They say, yeah, this is a really wonderful painting. Congrats, you’ve come up with your masterpiece.” Read more of this post

Filed under Alternative Assets, Entrepreneurship, Paper Assets, Theory, Tool Kit Tagged with paper wealth, postaday, real wealth, stealing your wealth, valuations, wealth effect

Out Of The Box Thinking To Make Capital

May 31, 2015 Leave a comment

“I heard a story how a company made its capital back in 1970s in Kerala. There was a manufacture who wanted to install a huge machinery in a pit prepared in their factory. The machinery was very heavy and delivered by its manufacturer at the site of installation. Now placing the machinery in the right position near 30 feet below the ground level was a big problem. It should be handled carefully otherwise it will damage the base as well as the machinery.

Remember huge cranes were not available in those days as they are today. Many quoted for the job and all of them thought of bringing crane from other locations and get the job done and they all quoted above Rs.10 lakh to 15lakh.Somebody also enquired if there is a problem if the machinery get wet with water. The answer was ‘no’. Read more of this post

Filed under Entrepreneurship, Theory, Tool Kit Tagged with acquiring capital to start your business, Bootstrapping, out of the box thinking, postaday, problem solving

The Price Of Success

April 24, 2015 Leave a comment

Now go see how cheaply you can go purchase the success you want:

Filed under Entrepreneurship, Theory, Tool Kit Tagged with how to be successful, is success worth it, postaday, price of success, success

Remembering The Fire In Ourselves

April 14, 2015 Leave a comment

wealthymatters

“We need to remember that we are fire. However, some ash gets accumulated over the mind. Once you blow the ash away then the fire will rise up and shine brightly….

If there are too many worries in your mind, then just say ‘Hmm’ (with slight force), and all that ash that has accumulated on the mind will be wiped off and you will feel fresh and bright.

Often we sit and worry, ‘Oh, this is not happening’, or, ‘That is not happening’. Life is such, sometimes what you wish won’t happen; sometimes what you don’t want happens. Never mind. Don’t sit and brood over it. Move on; march ahead remembering that you are fire.

When you know you are fire, nothing can burn you. People say, ‘I am burned out. Oh, I am so tired!’ What burned out? Come on! How can anything burn fire? Move on, knowing that you are fire. Let go of the past and move happily into the future.
And take life in its totality. Some pleasant, some unpleasant experiences – all these things happen and then they go away. Knowing that ‘I have all the blessings, I have the Grace, the best will happen to me’, you should move ahead.” – Sri Sri Ravi Shankar

Virtual Equity

January 4, 2015 3 Comments

wealthymatters Have you ever wondered how billion dollar infrastructure projects are financed by the private sector in India? Here is the story:

Say there is a Rs.10,000-crore project, with a 70:30 debt-equity ratio. The promoter needs to put up Rs 3,000 crore as equity . Suppose he can scrape together Rs 1,000 crore. He will inflate the project cost to 15,000 crore.

His required equity contribution now goes up to Rs 4,500 crore but he gets credit worth Rs 10,500 crore, more than enough to finance the entire project.

During implementation through promoter-owned companies, money will be taken out of the project, to fund a part of his equity contribution and to grease the palms that allow such an inflated project cost to go not just unchallenged, but actually blessed.

While implementing the project, he will start another project, take money out of it to fund the remaining part of the original project’s equity contribution and to service the loan on the first project once its construction is over. Then he will start yet other projects, to actually finance the second project, and so on. The first project will turn into a cash cow, if this string of loan-financed projects can continue to mushroom long enough for the loan on the first project to be fully paid off. Read more of this post