A book by Nathan Latka “How to Be a Capitalist Without Any Capital”
THE BIG IDEA
Nathan Latka is a college dropout who became a successful serial entrepreneur and investor. In his book, he argues that the everyday person CAN become a multi-millionaire.
The big idea is that to get rich a) you don’t need capital or a trust fund, and b) you don’t need to be lucky. There IS actually a way to buy a small business without any money. And by networking and keeping an open mind you can engineer what others call “luck.”
Think of it like the 4-hour workweek for getting rich.
RICH PEOPLE GET RICH BY DOING THINGS DIFFERENTLY
Rich people get rich by consistently breaking these 4 rules…
1. Don’t focus on ONE thing. All the way from your parents through high school and college you heard the same thing: the world needs specialists, not generalists. The problem with that is that you have a “single point of failure.” Any business you’re in is CONSTANTLY under attack. Someone will come out with a lower price or a better feature. That’s why you want to be working on at least 3 projects at any one time. If one fails, the others can pick up the slack. Plus, you never know which one of your ideas will hit it big, so you want to keep experimenting.
2. Don’t be original. Instead, COPY your competitors’ ideas relentlessly. Trying to come up with new ideas is the sexy aspect of entrepreneurship. But it also comes with huge risks and struggles. Most often, groundbreaking startups fall by the wayside, paving the way for those who come after them. You don’t want to be too early, educate your market, blow through your funds testing features and customer acquisition channels. Identify what’s hot, learn from what they’ve tried, and chances are the market’s big enough for multiple success stories.
3. Don’t set goals! Because once you achieve them, you will lose all your motivation and you’ll have no way forward. Instead, focus on creating a system that helps you achieve goals. So when you hit your target you’re on to the next.
4. don’t join the gold miners. Instead, sell pickaxes to them. If you see people rushing into a market, don’t follow the herd. Think: what products, tools or services will they need to get better. That may be data gathering, analytics dashboards, or even consulting services.
BREAK SOME RULES!
So how are YOU going to sidestep conventional wisdom?
Look at successful companies and see how you’d copy them. If they’re attracting a lot of competition, think about building infrastructure tools and services.
To get rich, you have to create your own opportunities, but that doesn’t mean that you need access to big amounts of capital NOR that you should be taking on a lot of risk. Keep breaking the 4 rules and opportunities will slowly start presenting themselves!