3 Strategies To Create Wealth and Build a Legacy If what you've been trying for success hasn't worked, it might be time to reconsider your approach and follow these three wealth-building strategies.
By Daniel Mangena Edited by Micah Zimmerman
Opinions expressed by Entrepreneur contributors are their own.
Quite a lot of people claim that the successes they have accrued to date were all done by intuition. "Trust your gut," they'll say, as though it's clear what that means. However, if you're not where you want to be in your life, something isn't working. So allow me to suggest three counterintuitive strategies to build wealth and a legacy that might give you the edge you've been looking for.
I want to preface this list by saying there is no one way to do anything. I decry the "cookie-cutter" approach to most things, except cutting cookies. Your charisma as an individual is your greatest strength if you understand how to harness that power. So many people waste years, decades, and sometimes their entire life trying to force something on themselves that isn't a fit.
If that's you, or it sounds like you could be falling into that trap, stop! You may be an excellent judge of character. You could be a natural-born hustler. Perhaps you're connected to some high-power people, but that doesn't mean you can intuit everything you need to build wealth and a legacy.
So if you've long since exhausted your ideas and are ready to try something new, try one of my three counterintuitive strategies to build wealth and a legacy.
Related: 5 Long-term Strategies To Create Wealth
1. Start with yourself
I know you're preoccupied with all the external factors. Who you are and who you want to do not seem necessary. After all, you'll be a happier, better person once you cross that magic line of "success," right? But why do you think so many would-be entrepreneurs and millionaires burn out?
You can't be of service if you're not in service.
More than your physical and mental health (though those are also vitally important), you need to understand yourself and ask yourself these questions:
- What's driving you?
- Who are you doing this for?
- Why do you seek the outcomes you claim will make you happy?
The problem for many of us is that we get caught living on someone else's terms. This is what I genuinely believe lies behind all midlife crises. You are set for a rude awakening without bringing your awareness to that fact. What often precipitates as a result of that sudden, stark awakening are a bunch of rash and equally ill-judged decisions that you don't want to leave behind for future generations.
"If I only had an hour to chop down a tree, I would spend the first 45 minutes sharpening my ax." – Abraham Lincoln.
You are your ax. It would help if you sharpened who you are and clarified what you want from your life. Ask yourself what you want to be in your dream future. Once you have built a crystal clear picture of who you are in your dream life, what you do with it and how it feels, you will know what you're working towards.
Once you have that, like Lincoln's sharpened ax, executing your plans will feel almost effortless.
Related: The 5 Qualities of Superior Entrepreneurs
2. Put your prices up
This is probably an idea that's been floated to you before. I'm sure you can see sense in it, but you're resistant when the rubber meets the road. Why? You're worried about upsetting client relationships and losing their business. That's fair but do the math.
The Pareto principle, observable across various human endeavors, says that 80% of your productivity will come from the top 20% of resources. The inverse is also true.
The fastest way to increase your wealth is by courting that top 20% and seeking to enlarge it. While, of course, reducing the expended resources on the lower 80%.
A couple of tips on how to do this:
- Put your prices up - You'll probably lose some of that 80%, but you only need a handful of them to become part of the top 20%, and you'll have more than covered that loss.
- Create "evergreen" services - This will depend on what you do, but the principal is adaptable (to a point). Rather than having to serve your clients by being there in person, or live on a call, find a way to deliver that service in a "pre-recorded" manner. You will be expending far fewer resources on that bottom 80%, and you'll also have a scalable product.
As for legacy, you'll have more customers aligned with you and your services. A higher proportion of people will highly regard your business.
Related: How to Build a Successful Personal Brand in 5 Simple Steps
3. Prioritize your network
I'm sure you're probably aware of the importance of a network. "Your network is your net-worth" and all that.
At some point in your journey as an entrepreneur, you have considered marketing your services to the broader world. Most people start with social media. It's the most effective way to get your product or service in front of those who would be most likely benefit from it. Social media is used by 4.62 billion people and represents just over half of the global population and 93.4% of internet-connected people.
More compelling is that, on average, 60% of your new customers will come from recommendations.
This doesn't mean that you shouldn't do marketing, but going back to the Pareto principle, you need to put the resources where they count. Given that over half of your new business comes from your network, you must be attentive.
So, take 60% of your marketing budget and spend it as a mastermind group member.
That sounds like a tremendously self-indulgent waste of money, but the figures don't lie. You're so much more likely to buy from someone who has been recommended to you. You will also benefit from being in the company of people who have walked the path and achieved their own goals. Their advice is invaluable, as it will help you avoid time-consuming trial and error.
One last piece of advice
We often meet a lot of resistance within ourselves when trying new strategies. Sometimes that's ego. Sometimes it's pride. It always is a fear of change. Don't beat yourself up, though. The important thing is to start drip-feeding new evidence that supports the efficacy of your new strategies in your experiences.
Sign up for that networking event. Join a mastermind group. Or even reach out to an existing contact, and offer to buy them lunch in return for some advice!
Success comes in baby steps. So make sure you're taking them.
