The main source of new fortunes now is starting companies. People get richer from starting companies now than they did in 1982 because the companies do different things.
By 2020 the biggest source of new wealth was what are sometimes called “tech” companies. Of the 73 new fortunes, about 30 derive from such companies. These are particularly common among the richest of the rich: 8 of the top 10 fortunes in 2020 were new fortunes of this type.
It’s no surprise that the majority of the wealthy entrepreneurs.
Three important factors define the potential of wealth in a business.
The innovative idea;
The executive team;
And the markets;
Markets have an especially big impact, because only businesses that operate on big markets, preferably in fast-growing industries, can become big and profitable.
The power of starting a business is that you have major success factors on your side. The C.E.N.T.S. approach to entrepreneurship means:
C – Control – to create true financial freedom you must control the “product”.
E – Entry – or more properly put: “create a barrier to entry”. This is sometimes called a moat!
N – Need – You must deliver on an important need.
T – Time – The power of having a well-run business is that you can separate your time from your income.
S – Scale – Having employees gives you the ability to scale by adding more of them or more locations for your business.
But what if you are not quite ready to take on a full-fledged business model and just want to add some additional income (perhaps pay off some hefty bills).