Billionaire Li Ka Shing Teaches You How To Get Rich With $300
Li Ka Shing is a billionaire and one of the richest man in Asia. He is a true example of someone who came from the gutter and made it to the top by hard working. Li Ka Shing is no newbie when it comes to startups. He started many startups in his life and most of them were highly successful. Both Li Ka Shing and Jack Ma (Alibaba) believes in the same theory. They both believe that entrepreneurs do not need a whole lot of money to build a successful startup. Both of them blame too much early money for early startup’s failure. Here are some words of wisdom that Li Ka Shing has to share with the startup community.
2000RMB ($300USD) Bootstrap
Li Ka Shing said that assuming you have 2000 rmb which is about $300 USD, you should split it into 5 different funds.These 5 separate funds should last you the entire month. The very first set of funds which will be 700RMB($120USD) should be used for living expenses. He believes you have to save as much as you can on food. This means eating a bowl of noddles in the morning, a fruit for lunch, and some mini vegetable meal for dinner. It isn’t uncommon for entrepreneurs to bootstrap on ramen noddles as well. Li Ka Shing believes that you should do this when you are young because your body can still handle it. That should cost you about 600RMB which is around 100$ USD. Then you should use your last 100rmb to pay for an extremely basic phone plan. Those temporary sim cards work as well.
The second set of funds will be used to network and meet new people. A lot of successful entrepreneurs like Tim Ferris agrees with this concept. Time Ferris said that if he had very little money, he would be using it to treat people to coffee. Li Ka Shing feels that you should network with at least 2 new people every month. He also advises that you choose wisely on the people you meet. His advice is to only network with the people that are smarter than you because the old saying goes, “You are the average of the 5 people you hang out with.” Don’t waste coffee and go with the best and brightest if possible and ask tons of questions. In Li Ka Shing’s mind it is all about building the network chain, building your own repetition, and gaining priceless knowledge.
The third set of funds is for learning purposes. You should set aside 300RMB ($50 USD) or so for learning material. Li Ka Shing encourages you to buy some books, attend a free seminar, and take a very cheap class such as an online training class. Use any spare time you have on studying and grinding out the material. The material that you buy should be related to your field. For example if you are into retail clothing, you should purchase material only based on retail clothing and retail marketing, so that you do not waste your money on materials that won’t help your business.
Fourth set is more of an optional set. Li Ka Shing recommends that you save your 4th set for travel. For this set, you should be saving 200RMB per month (35usd$). His belief is that everyone should travel at least once a year and enjoy themselves. You have to have enough money to visit a new place. Use cheap housing services such as AirBnb or community houses to save money on your travel. Traveling overseas is the best thing to do in his opinion because traveling overseas will allow you to see different lifestyle and culture. Use that experience to recharge yourself and gain more motivation to do better in business.
Your last set of 500 RMB (80$) should be saved in your bank. Li Ka Shing suggest that this set of funds could be set aside for a little bit, then you can use it to do small business. In his opinion, small business and startups are safe in the beginning and doesn’t cost a lot of money. You can test stuff on the web, like develop a simple web app or blog to see if you can generate yourself any additional revenue. In other words, take a safe low cost route to try and build something. Li Ka Shing recommends the old school way or buying low and selling high. He suggest that you should buy wholesale and sell them separately for as much profit as you can. When this fund grows bigger, you can choose to either buy something like a car for yourself, buy long term investments such as mutual funds, reinvest back into your business, or save it incase an emergency occurs.
Li Ka Shing says that your salary should be $3000rmb per month by the end of the year instead of the starting 2000rmb as long as you followed all his steps and networked correctly. In addition he said that $3000rmb might make your life turn a little better but it still means you have to work hard. His recommendation is for you to go get a part time sales job that includes training. Sales might not be something everyone wants to do, but it is the best way to build skills for any business. Skills accumulate and run on a snowball effect overtime. His last tip is that you should not be a heavy spender. Do not waste money on clothing and shoes, you can buy all of those when your rich.
“Maintain this balance and gradually you will begin to have a lot of surplus. This is a virtuous circle of life plans. Your body will start to get better and better as you get more nutrition and care. Friends will be aplenty and you will start to make more valuable connections at the same time. You will then have the conditions to participate in very high-end training and eventually you’ll be exposed to bigger projects, bigger opportunities. Soon, you will be able to gradually realize your various dreams, the need to buy your own house, car, and to prepare an adequate education fund for your child’s future.”
Don’t give up and build your startup. Bootstrap and keep learning to build your life.
Original Chinese Interview here: http://appnews.fanswong.com/show.php?id=325950