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Hey everyone,

I stumbled upon an article about Dani Johnson and the way she developed six different businesses from scratch (pretty much). Even though the way she names the laws is a little ridiculous, she got some points right.

Ironically, my favorite law is the one about "Desire" :

Quote:
Johnson says desire always reveals design and destiny. Everyone was born with a design to succeed. You were born with everything in you. "You have enthusiasm, persistence, faith, adventurous spirit, and the gift to get over it," says Johnson. The only thing you're lacking is the skill to succeed. "That's the part you have to learn and invest in," she writes. You were designed with wealth in mind. Replace the poverty mentality with a whole new way of thinking. No amount of debt is too small to pay off. "If you invest your money is something that makes more money, you create wealth. If you spend that money, the money is gone. Your monthly income is supposed to grow something, just like seed. But most people live from paycheck to paycheck, which means they are eating all of their seed. They have nothing to plant and grow."

I've seen enough friends who forced themselves into a venture trying to be "the next XYZ" and ended up losing time and money, got depressed, and went back to a boring job with accumulated debt. Most of them even had good ideas to back a business. Even though she might look and talk like somewhat of an airhead, she still got some points right, and some peoples might want to learn a thing or two from her, be it to launch a start-up or to straighten one's personal finances.

Too bad the interview is from "The View" ...

Comments (8)

  • snakeplissken's picture

    Great article and really inspiring story. I'm a Tony Robbins fan myself, though

    Remember, once you're inside you're on your own.
    Oh, you mean I can't count on you?
    No.
    Good!

  • In reply to Aliyeva
    cphbravo96's picture

    Aliyeva wrote:
    "People are always trying to hit a home run. Life doesn't work like that. They try to make one big jump and flop. Work with what you have." indeed

    I think this might be the most important point, though all points serve their own purpose and contribute to the overall success.

    Ironically, I've been thinking about this point, in a slightly different context over the last few week...so the timing of this article serves as great affirmation of my conclusion.

    At any rate, I've been guilty of being a person that thinks about starting a business, but hasn't done it. As with most people, my excuse is that it needs to be the right idea, so I'm passionate about the work and so the success will be certain to follow. The fact is, and I often tell folks this, you don't have to be a doctor or a lawyer or banker to become rich. Heck, you don't even have to be an entrepreneur, though your chances of becoming rich are probably much higher if you do. You just have to find one thing and become great at it. You can find wealthy, successful people in practically every industry around, so that should encourage people to think a little more outside of the box when it comes to career paths.

    Anyways, the real point I've come to recently was to stop being passive and to quit waiting around for that one big idea. Being at a small PE firm, I get blasted with emails from no-name business brokers every week trying to sell some random gas station or frozen yogurt shop, etc. It's there I realized that a tremendous amount of wealth, and freedom, could be had just as easily, or maybe even more easily, with a bunch of small businesses as it could with the one large, perfect business every wannabe entrepreneur is waiting on.

    You aren't going to take a moderately successful single frozen yogurt stand in nowhere South Carolina and scale it to tens of millions of sales, but you could certain scale your portfolio of businesses to that size. I saw a guy selling 6 laundromats for just over $1mm. Consistently cash flows $250k every year and requires about 3 hours worth of work a day, which primarily consists of collecting the coins and restocking the on-site vending machines. Not a bad lifestyle business if you have the seed capital and don't want to work too hard.

    But, even then, $1mm isn't easy to come by and isn't easy to part with, so I started moving downstream to the aforementioned gas stations, frozen yogurt shops and delis. Some of these places cash flow $50k a year, with an absentee owner, and can be picked up for around $75k, sometimes with a little seller financing. Clearly you would have to do some diligence and make sure 'absentee' really means 'absentee' but $75k isn't hard to come buy in finance. You could smash your 1st and 2nd year bonus together and pick up a business that's going to return $50k annually into the foreseeable future. Seems like a sweet deal.

    Obviously, the goal would be to start collecting these businesses until the point you could bankroll several businesses a year with the cash flow from the businesses already in your portfolio. Once you get it to scale, you could either retire and take it easy or look at buying a larger, more traditional business that you could invest some time and money in trying to scale up to a decent size. Then you decide whether you flip for a sale or hang on to it and keep it in the family.

    There's no doubt that this isn't going to be the easiest thing around, with no hiccups or bumps in the road, otherwise everyone would do it, but after spending just a few years in finance, you could have built a large enough portfolio to provide you with some much needed/wanted options.

    I'm still vetting this plan and I'm sure I'll come across some issues as I think it through but at first glance, I haven't seen much that scares me off. Realistically, geography is going to come into play, especially if you need to have constant oversight of the businesses and the time requirement of your 'real' job could be a constraint, but it seems like those issues could certainly be managed.

    Regards

    "The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so."
    - Ronald Reagan

  • In reply to cphbravo96
    knivek's picture

    cphbravo96 wrote:
    Aliyeva wrote:
    "People are always trying to hit a home run. Life doesn't work like that. They try to make one big jump and flop. Work with what you have." indeed

    I think this might be the most important point, though all points serve their own purpose and contribute to the overall success.

    Ironically, I've been thinking about this point, in a slightly different context over the last few week...so the timing of this article serves as great affirmation of my conclusion.

    At any rate, I've been guilty of being a person that thinks about starting a business, but hasn't done it. As with most people, my excuse is that it needs to be the right idea, so I'm passionate about the work and so the success will be certain to follow. The fact is, and I often tell folks this, you don't have to be a doctor or a lawyer or banker to become rich. Heck, you don't even have to be an entrepreneur, though your chances of becoming rich are probably much higher if you do. You just have to find one thing and become great at it. You can find wealthy, successful people in practically every industry around, so that should encourage people to think a little more outside of the box when it comes to career paths.

    Anyways, the real point I've come to recently was to stop being passive and to quit waiting around for that one big idea. Being at a small PE firm, I get blasted with emails from no-name business brokers every week trying to sell some random gas station or frozen yogurt shop, etc. It's there I realized that a tremendous amount of wealth, and freedom, could be had just as easily, or maybe even more easily, with a bunch of small businesses as it could with the one large, perfect business every wannabe entrepreneur is waiting on.

    You aren't going to take a moderately successful single frozen yogurt stand in nowhere South Carolina and scale it to tens of millions of sales, but you could certain scale your portfolio of businesses to that size. I saw a guy selling 6 laundromats for just over $1mm. Consistently cash flows $250k every year and requires about 3 hours worth of work a day, which primarily consists of collecting the coins and restocking the on-site vending machines. Not a bad lifestyle business if you have the seed capital and don't want to work too hard.

    But, even then, $1mm isn't easy to come by and isn't easy to part with, so I started moving downstream to the aforementioned gas stations, frozen yogurt shops and delis. Some of these places cash flow $50k a year, with an absentee owner, and can be picked up for around $75k, sometimes with a little seller financing. Clearly you would have to do some diligence and make sure 'absentee' really means 'absentee' but $75k isn't hard to come buy in finance. You could smash your 1st and 2nd year bonus together and pick up a business that's going to return $50k annually into the foreseeable future. Seems like a sweet deal.

    You know how many young soldiers I see come back from deployment and blow that $75k on an Escalade?

    Obviously, the goal would be to start collecting these businesses until the point you could bankroll several businesses a year with the cash flow from the businesses already in your portfolio. Once you get it to scale, you could either retire and take it easy or look at buying a larger, more traditional business that you could invest some time and money in trying to scale up to a decent size. Then you decide whether you flip for a sale or hang on to it and keep it in the family.

    There's no doubt that this isn't going to be the easiest thing around, with no hiccups or bumps in the road, otherwise everyone would do it, but after spending just a few years in finance, you could have built a large enough portfolio to provide you with some much needed/wanted options.

    I'm still vetting this plan and I'm sure I'll come across some issues as I think it through but at first glance, I haven't seen much that scares me off. Realistically, geography is going to come into play, especially if you need to have constant oversight of the businesses and the time requirement of your 'real' job could be a constraint, but it seems like those issues could certainly be managed.

    Regards

    Great post.

    The bolded part is the truth.

    By starting small, you minimize your losses as well as give yourself time/space to make mistakes and learn.