Disclaimer: This isn’t a get-rich-overnight scheme.

Earning money is tough. Anybody telling you otherwise is either deluded or trying to scam you. Being unemployed or dissatisfied with your job it’s painful. And I know that you’re a passionate kid who works his ass off but the fact is it’s gonna take a very long time to get rich. There’s no point in reading any further unless you digest this. With that out of the way let’s dive right in!

How did you learn to speak as a kid? You observe and imitate. That’s what we’re gonna do here with a little improvisation. We’re gonna analyze and imitate three multi-billion dollar companies. We’re gonna dig out that billion-dollar question.

A compact analysis of three multi-billion dollar companies

1. AMAZON

A massive online marketplace found in 1994 by Jeff Bezos. It climbed up the Fortune 500 charts like crazy little baboons from #340 to #2 over the past decade.

how to become rich
Did I grow that big? Holy shoe! Photo by Daniel Eledut on Unsplash

What does it do and how does it earn money?

Amazon gains a small commission by acting as an intermediate for buyers and sellers. It allows companies to advertise their products and also sells their own. Prime memberships also add up to the net revenue that amazon makes.

Why is Amazon a big deal?

It helps sellers grow their business by offering them a broader community. (2B visits on amazon.com/month). Its easy-to-use apps offer buyers a wide variety of cheap products. The prime subscription allows users unlimited access to streaming services and free shipping. Also helps writers in self-publishing books allowing them to make larger profits (30–70%). This is much higher than traditional methods. (20–30%)

2. APPLE

Found in 1976 by Jobs, Wozniak and Wayne mounted Fortune 500 charts and rose from #197 to #4 in the past decade.

how to become rich
Coooool! Photo by Floris Andréa on Unsplash

What does it do and how does it earn money?

Apple aims at bringing the best user experience with the help of its products and sells the same. It charges for membership services like Apple music with many other benefits.

Why is Apple a big deal?

Macintosh and Visicalc helped businessmen a ton. Jobs launched iPods when music piracy was over the roof. It allowed users to pay for single songs (0.99 cents) instead of entire albums and is easily accessible. Launched an iPhone that could replace a camera, iPod and a desktop that could fit in your pockets. Created an eco-system where you could sync across your devices which reduced hassle.

3. WALMART

how to become rich

Started as a small store in 1962. Walmart is the current Fortune 500 champion(#1) for the consecutive 7th year. What’s more surprising is that its rank never went below #3 within the past decade.

What does it do and how does it earn money?

Walmart achieves higher volume sales by reducing profit margins. It sold everyday goods at lower prices than its competitors.

Why is Walmart a big deal?

Aiming at making lives of busier families easier Walmart sold cheaper products. It provides a wider range of assortment and established as an anytime-anywhere store. It also leverages experienced salesmen to give a good customer experience.

Rankings of companies on Fortune 500 over the past decade. Source

The basic question these companies stemmed out of

If you’re still wondering what’s related amongst these companies it’s this.

These companies solve problems. Giant problems!

When sellers were struggling to increase sales Amazon connected them to their buyers. An iteration of this idea is.

These companies solved problems that people didn’t know existed in the first place.

In 2007 there wasn’t a portable device that could play music, take pictures and permits you to stalk your ex-girlfriend on Facebook. This reduced the fuss of carrying many devices.

Downloading and maintaining pirated music was time-consuming. Jobs launched iPods where you can download single songs instead of entire albums.

People were okay paying higher prices until Walmart brought it down preyed on it. Note: Stuff in italics state problems

The same applies to other companies.

1. JIO — provided larger internet packs at cheaper prices.

2. Facebook — allowed users to “stay connected”.

3. Uber — helped users call up for private transport whenever and wherever they wanted.

4. Zomato — cut off the hassle of dressing up, travelling and waiting for food.

This leads to the question

What problem can I solve that people didn’t know existed in the first place?

Solving problems and common mistakes to avoid

Pick up a niche and educate yourself. Hunt for problems to solve. Questions you can ask yourself are

  1. What do people in this community are troubled by?
  2. How can I make their lives easier with what I know?
  3. Can I apply this to a wider audience?

People don’t want cooler stuff they want lesser problems and easier lives. Even if you can’t solve anything now educate yourself and keep looking. Ask yourself these questions until a bright blond bulb goes bling over your brain.

Never copy what’s worked for others. It’s downright stupid. There’s no way you’re gonna succeed if you open an online store like Amazon in 2020 without being better than them. I mean waaaay better.

Don’t make it an international thing right from start, like — “I wanna be the best businessman of __”. Start small, something more specific — “I’m gonna start a shoe store and sell the best 100 formal shoes this community has ever seen”. Have a clear vision and mission.

Start with smaller problems (even though you can’t turn them into businesses) and move on to bigger ones. Because that’s what entrepreneurs do, they solve problems.

What now?

This is the most important thing. It’s isn’t a guarantee that you’re gonna earn a lot of money if you solve problems. It boils down to this equation

Severity of the problem ∝ Money earned

That’s why essential services like petroleum and healthcare snatch most spots of Fortune 500. Remember this doesn’t happen overnight. Amazon was an online book store when it started. Start small and keep improvising.

And this is the opinion of a 20-year-old. I found this way to be more sustainable and emotionally satisfying. This mindset gives you direction. And instead of asking yourself “What business is more profitable right now?” you start asking “How can I make other people’s lives much easier?” which leads us to the final question

What problem are you going to solve?

Footnotes

  1. Table created by data collected from Fortune 500 charts over the past decade
  2. Amazon garners 2B visits per month — Source

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