Lakta founded a software company with just $119 in his bank account, this company is now valued at $10.5 million just 5 years on, allowing Latka to earn $100,000 in passive income every month. He contributes this success to not following the typical rules of business but instead shares the 4 rules that lead to his success.
Don’t Just Focus on One Project
The majority of people believe that to succeed you must become an expert in one field. However, Lakta states that this allows for one point of failure.
When engineers design a bridge, they never want to have a single point of failure, he wrote. If the wind picks up to 200 miles per hour and a cable fails, the bridge still has seven other cables to back it up. Likewise, you’d never want to build your wealth around one endeavor. If that one thing fails, you’re destroyed, and you have to start again from scratch.
The 29-year-old advises to focus 80% of your time on a project with the most earning potential and the other 20% on two other side projects, this will allow for a diversity of income and new varied connections in business.
Copy then Twist it
According to Latka creating new innovative ideas is not the way to gain wealth rather he states
The way to get filthy rich is by aggressively copying others and then adding your own twist.
Examples of this can be seen in the tech industry with Facebook copying SnapChats ideas by releasing stories on Instagram.
To be successful in copying competitors Latka gives this advice
The key is to analyse a business and pinpoint a need it’s not meeting for its customers — and then meet that need yourself. You’re going to build yourself rich by copying one, making it better, and creating momentum.
Stop Setting Goals
Latka likens goals to golden eggs if you spend your time and energy chasing it once you have it you will feel there is nothing left to strive for. Negatives also include a feeling of failure when goals are not achieved.
You’ll have to re-motivate yourself to come up with another golden egg to chase, Latka commented.
It’s much better to invest your energy into creating, feeding, and nursing a system that pumps out golden eggs every day. That way, you’ll have a golden goose that keeps making golden eggs for you.
The idea of this according to Latka is to “profit from a hot market that others put the effort into building”
An example of this is miners during the gold rush, they worked hard in difficult conditions and soon realised they needed pickaxes. Other businesses travelled to the mines and sold them pickaxes becoming wealthy off the back of the miner’s hard work.
With these simple rules, people will be able to create their own wealth or grow existing wealth. But for those who do have money some may wonder are you rich or wealthy? what is the difference?
Image Source by CNBC