Part A: How to making millions from $1
Here is a TRUE story of a Singaporean who made more than a million dollar using 1 dollar. The story was shared to me during one of the motivational talks I have attended, and I shall try to recap and post it here.
A Singaporean, let's just call him Alex, wanted to build a shopping mall in Australia, but didn't have much capital. So he came up with a carefully thought plan and executed it as follows.
So Alex approached an Australian local who wanted to sell his plot of land for a certain huge amount. Alex said he is willing to pay double that amount, but the local will first have to sell the land to him for $1. With someone willing to pay twice the amount of money for the land, the local was more than happy to part with it for $1 first.
And so Alex now has the land for $1. The next thing he had to do was to have money to build a shopping mall. There's no way to get this huge amount of money other than to borrow from the bank. But why would any bank be crazy enough to loan Alex, a nobody, a huge amount of money? Alex had no guarantee except his piece of land, and he has no track record to show his shopping mall plans will be a success.
So Alex executed the next part of his plan, to secure an anchor tenant for the shopping mall that has not being built. He approached the founder of Australia's largest (or one of the largest) retailer of electrical, computer and furniture company called Harvey Norman and struck a deal with him.
Alex offered the founder a chance to be the anchor tenant of the not yet built shopping mall for HALF the market rental price. The catch? Harvey Norman has to sign a contract to rent the place for 25 years. With such a great deal, the founder couldn't say no.
With the contract stating that Harvey Norman will be the anchor tenant for the next 25 years, Alex went to the bank to secure the funds needed to build his shopping mall. Alex was a nobody, but Harvey Norman is a BIG somebody in Australia. And the bank agreed.
With the land and the money needed to build his mall, Alex started getting the construction up in the next few years. And after it was done, it's time to reap in the moolah, renting the shops out.
And Alex gave 2 of the stalls to the Australian local who sold the land to him for $1, and that equates to twice the price of the land the local initially asked for.
Everyone's happy. And Alex began to have bigger plans of his own after his first venture.
But before you get too happy... here is
Part B: Why you (and me) will never get rich this way
(1) If you ever want to try this, our mum/girlfriend/mistress/buddies will say you are crazy. And they will give you all kinds of negative comments to bring you back from lalaland to Earth. They don't want you to fail, that's all. And so you give up.
(2) Alex managed to convince someone to sell his land for $1. And you don't think you can do it. It's a CRAZY idea, and you don't want to appear stupid trying to convince someone to do the same. So you will just conveniently say that you suck at sales.
(3) You don't know how you can get to talk to the boss of a BIG corporation. How do you get his email or contact number? How do you even draft a good letter? You don't think you are a somebody, so there's no way he will talk to you. Even if you can, you just get cold feet at the thought of marketing the idea to the big boss.
(4) You probably don't know how to go about building a shopping mall too. And so you won't give it a try. Never mind that Richard Branson wasn't trained at the technicalities of the companies he built - train, airlines, mobile, space travel. You probably will say Richard is different. Haha.
Simply put, we raise the white flag without trying. We are wimps when it comes to setting our own business. So we just sit on the sidelines and bitch about others (we just love to pick on the rich, don't we?)
Here's something I learnt at a separate class - this time a social entrepenuership talk. If you ever want to build a business, don't worry too much about the "How to". Will write a separate article on this another day.