Hey guys, in today’s article I want to give you a quick summary of “The Millionaires Fastlane” by M J DeMarco, one of my favorite business books.
One of the most important take aways for me were the 5 Commandments that are necessary in order to create a successful business.
These are basically the laws you have to pay attention to, if you want to enter the fast lane and build wealth.
Because I think these are very important points, I quickly wanted to share them with you.
Of course I still recommend to checkout this book, even for people who are not planning to start a business, because it will challenge your thinking on many levels and you will start to see things differently.
In order to make the first step in building wealth you need to understand which lane you are driving right now.
What do I mean?
Take a highway as a metaphor. There is a Side Walk, a Slow Lane and a Fast Lane.
The Side Walk
The side walk is for people with poor financial education and spending habits. This has nothing to do with how much money you earn. Even a high income person can be on the side walk if he has no financial plan at all and just drifts through life helplessly.
The Slow Lane
This one is reserved for people who think they can get rich and build wealth by working in a job and save money. This path will lead you to work hard your entire life in hope to have enough money saved to survive after retirement. This is the mediocre way, the way that average people take.
The Fast Lane
The fast lane is reserved for people who know that the only way to build wealth is by going through a process of learning and self development. People who understand that richness in life is not only about the outcome (winning a lottery) but about the entire journey of building knowledge of how to acquire wealth.
What it means to be wealthy
A lot of people think that being wealthy means to have a lot of money.
However, there is so much more to being wealthy than the amount of money you have in your bank account.
Everyone has a different definition of what it really means to be wealthy but for the sake of this article I want to give you my definition of wealth:
True wealth is when you have valuable and meaningful relationships.True wealth is when you are physically and mentally healthy.True wealth is when you have the freedom of choice
The 5 Commandments
Whenever you craft a new business system or have a new Idea in mind and want to turn it into a profitable business. Make sure you go through each of the commandments and get a clear image how you can fulfill each of them.
Many people want to be wealthy but a lot fail because they try things that do not meet the following laws:
You must create a product that solves a pain.
A lot of people think that starting a business is all about following THEIR passion. Do what you love and you will be successful. This is only partly true.
It is very important that you enjoy your work, but more importantly is that you solve a pain for potential customers so that they are willing to pay for your service.
The easier it is, the more competition you will have.
Forget about the Me-Too attitude. Do something no one is doing. If your business is easy to replicate, how long do you think it will survive?
Every successful business out there is build on a solid foundation of hard work and hustling. Something that 95% of all people are not willing to go through.
Don’t let your business be controlled by others.
In order to be successful on the fast lane you need to have full control over what you’re doing. If your business is depending on too many outside factors, then your business will be at the mercy of their success.
Imagine you buy an apartment in a big building complex to rent it out. Now imagine what happens when the owner of the building complex decides to tear it down? Your business is gone.
To grow fast, you need to reach a lot of people.
Different business types have different abilities to scale. A small lemonade stand can only reach people in the neighborhood. A popular restaurant can potentially reach customers of an entire city. An online shop can reach the entire world.
Big does not always equal success, but it helps you to grow influence and accelerate your progress more fast.
Time cannot be traded for money.
You only have 24 hours a day and 7 days a week. If your business depends on the time you put in it will be hard to grow it. It would mean you have to work longer, work faster, serve more clients at the same time or increase your hourly rate. But these are things that can only work to a certain level.
To create a successful business, you need to decouple your time from your income. Your business must be able to continue even when you are not there.