How far do you plan for?

7 replies
I came across this blog post by Mark Cuban.

Originally Posted by Mark Cuban

The first step to getting rich is having cash available. You arent saving for retirement. You are saving for the moment you need cash.
...

The 2nd rule for getting rich is getting smart. Investing your time in yourself and becoming knowledgeable about the business of something you really love to do
It doesn't matter what it is. Whatever your hobbies, interests, passions are. Find the one you love the best and GET A JOB in the business that supports it.
...
Before or after work and on weekends, every single day, read everything there is to read about the business. Go to trade shows, read the trade magazines, spend a lot of time talking to the people you do business with about their business and the people they buy from.
This is not a short term project. We aren't talking days. We aren't talking months. We are talking years. Lots of years and maybe decades. I didn't say this was a get rich quick scheme. This is a get rich path
Now you wait for times of uncertainty and change in your business. The time will come. It may come quickly, it may take years and years. But it will come. The nature of our country's business infrastructure is that it is destined to be boom and bust. Booms are when the smart people sell. Busts are when rich people started on their path to wealth.
...

You will know when that time is here for you because you will know your business inside and out. You will be ready because you will have been saving up for this moment in time

How to Get Rich | blog maverick

Do you agree or disagree?
To extend the discussion, how far ahead in the future do you plan for?
If you are nearing retirement age, what would you have done differently?
#plan
  • Profile picture of the author Claude Whitacre
    Originally Posted by socialentry View Post

    I came across this blog post by Mark Cuban.




    How to Get Rich | blog maverick

    Do you agree or disagree?
    To extend the discussion, how far ahead in the future do you plan for?
    If you are nearing retirement age, what would you have done differently?
    I agree with everything he said, although counting on turmoil isn't necessary. You can make money even in a steady economy....but the big opportunities are when there is "blood in the streets'.

    For example, one of the single most profitable things I do is buy inventory from other retailers (selling what i sell) when they are closing their store. I can buy inventory for 10% of my usual cost. But you have to buy from the business owner, not a liquidator.

    Huge fortune are made buying when everyone else is selling, and then waiting until everyone is buying...and then you sell.
    How far do you plan ahead? Cuban is right, wealth building is a decades long process. It takes ten years to become an expert, and most of that time you'll make mistakes that prevent you from making any real money.

    I am nearing retirement age. What would I have done differently? Started speaking sooner, and built a much larger mailing list.
    And not married my first wife.
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    • Profile picture of the author socialentry
      Originally Posted by Claude Whitacre View Post

      For example, one of the single most profitable things I do is buy inventory from other retailers (selling what i sell) when they are closing their store. I can buy inventory for 10% of my usual cost. But you have to buy from the business owner, not a liquidator.
      How do you know when they are going to be out of business? Word of mouth? Is there a database for it somewhere? Do you usually buy in bulk or do you have the luxury to cherry pick?

      I'm kinda looking for something to do during the summer. Flipping stuff doesn't sound too bad. I live in Montreal, if that's relevant.

      Originally Posted by postraven

      I think it is foolish to not save for retirement. Invest in yourself first, then in a business. The fact is that more businesses fail than succeed. Why gamble on that?
      I think it's foolish not to save but I think it's better to save for rainy days then retirement.

      Maybe I am naive but assuming somebody goes into an industry that is not completely dead end, it's really hard to imagine someone failing if he genuinely tries over several decades. I can't think of a scenario (barring another Great Depression on the eaves of a 78th birthday or a terminal cancer diagnosis or similar) where failure over the course of a lifetime is not avoidable.

      I hope I can find a line of business that is engaging enough to spend the rest of my days in without ever retiring.
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      • Profile picture of the author savidge4
        Originally Posted by socialentry View Post

        I'm kinda looking for something to do during the summer. Flipping stuff doesn't sound too bad. I live in Montreal, if that's relevant.
        The easiest way to start this is hit up the big chain stores and find their markdown section. Walmart as an example ( the ones I regular ) actually move this section all the time, so you have to kind of hunt around for it. Once you have found the treasure trove pull out your phone, pull up ebay, search for the item, use the "advanced" section, look at "Sold items" and then you have an idea of what you are able to buy something for, and what it is selling for.

        I know for my wife... she buys a lot of bulk stuff, People actually call her; Hey I got this stuff. She searches a lot of Craigslist.. She looks for going out of business sales ( we had 90 of the full body "Gap" kid mannequins when they closed a number of stores in the area. - Bought them for $5 each and over the course of a few months sold them for an average of $60.00 each.

        Something she has been doing lately.. hitting garage sales for kids stuff, getting real good deals and then cleaning up the clothes and items and taking them to a local consignment shop... Less work on her end.. buy baby clothes for $.25 and the store sells it for $3, and she collects $1.50.

        Tons of ways to get into this, you just have to constantly be on the look out ofr the deals with profit.

        I would say the one thing you need to consider and watch aside from cost versus sale price is the expense of boxing and shipping. I think this is a bit easier in the States, but I am sure you can figure that out.
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      • Profile picture of the author Claude Whitacre
        Originally Posted by socialentry View Post

        How do you know when they are going to be out of business? Word of mouth? Is there a database for it somewhere? Do you usually buy in bulk or do you have the luxury to cherry pick?

        I'm kinda looking for something to do during the summer. Flipping stuff doesn't sound too bad. I live in Montreal, if that's relevant.

        Stick with industries where you know the values and know where you can sell the stuff you buy.

        My situation? I see posts on industry forums where someone is thinking of retiring...or a business withing driving distance is having a "going out of business" sale.

        I buy everything. I pay one price and take everything I want. But I may leave quite a lot too. I only take what I know I'll sell.

        But usually, the inventory I buy is about 25% something I can sell as new at retail, and the rest is either damaged, out of date, or something with no demand for it.

        For example, I paid $400 for and entire retail store's inventory. The guy was going to declare bankruptcy, and the bank was going to seize his store. It was $400 he never would have had...if I hadn't shown up. I got about $10,000 in product, parts, and fixtures that I could use.

        I used to run an ad in the paper that simply said "Going out of business? We buy inventory for cash". About 4 out of 5 calls we got, I wasn't interested in...but I'd get calls for things I knew I could buy cheap and move fast.

        You need to buy right. Only buy what you think you can sell, or you'll end up with storage sheds full of junk.

        I sell what I get for about half of retail, and I buy at about 10% of retail or less. Usually much less. I'm really only looking for someone willing to take anything.
        You can sell anything you buy on E-bay..although I used to use classified ads.
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  • Profile picture of the author postraven
    I think it is foolish to not save for retirement. Invest in yourself first, then in a business. The fact is that more businesses fail than succeed. Why gamble on that?

    The rest of what Cuban says I agree with. Most people want to get rich quick and easy, but that's more of a dream than reality. Sure, some do strike it rich, but they're the lucky ones.

    If you invest all of your extra time and energy into learning every aspect of an industry, you'll become an expert and really know what makes it work or not. The more knowledge you gain, the better equipped you'll be at making a successful business and seeing holes or opportunities when they do present themselves. Otherwise, you're just guessing.

    As for me, I have my retirement planned for and the other expandable income I put into my personal business. Eventually, those scales will tip and my business will help fund my retirement even faster, which will then allow me to focus 100% of my time on my business without having to worry about retirement, since it's already set.
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  • Profile picture of the author eccj
    Originally Posted by socialentry View Post

    I came across this blog post by Mark Cuban.




    How to Get Rich | blog maverick

    Do you agree or disagree?
    To extend the discussion, how far ahead in the future do you plan for?
    If you are nearing retirement age, what would you have done differently?
    It is interesting that he says the first thing is having cash. Consider that his fellow shark recently published a book called The Power of Broke.
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  • Profile picture of the author micktian
    just starting !
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