Business News

The best Cup tip

by Peter Switzer

In case you are distracted by the Cup and wondering if you should back So You Think at 3/1, then remember the wise words my dear old Dad gave me: “You can make more money out of horses by following them around with a sugar bag and a shovel.”

And that came from a man whose grandfather built racecourses on the south coast of New South Wales and when he was young had an SP bookmaker business with his country yokel brothers, when they came to the big smoke.

Don’t worry, he ended up as a very respectable small businessman and that’s where I get my healthy respect for the hard workers in small business. And while I respect them, I’m also very objective about their weaknesses as well as their strengths.

Get planning

The same goes for the average person’s ability to build wealth and that’s why on a day when we have a flutter on a long shot, it’s timely to get you to ask yourself this question: 'What is your plan to build your wealth?'

I hope your answer is not: 'Plan? What plan?' If it is this, then on the 150^th anniversary of the Melbourne Cup, make yourself a resolution which says I will draw up my plan to get richer before Christmas.

By doing that, you will be able to make the most popular new age New Year’s resolution, which is no longer to lose weight, give up the smokes or to get in shape. No, you can tell your loved one at 12.01 am on 1 January that you will put your wealth building plan to work in 2011.

Look to experts

Now in case you’re too busy, too distracted or too easily a victim of procrastination, then I will give you a reserve resolution — make your New Year’s promise to go to a trusted financial planner, who will help you make the plan you need.

Great swimmers have the plan linked to a goal and do the work daily to make it happen. Great business builders do the same and often look to coaches, mentors, advisers or fellow business owners to give the blueprint plans that deliver success.

The fact you are reading this article is a great first step but lots of people in small business make the first step to open up and then work hard but they never build enduring brands. They never get rich out of their business.

My Cup tip is that you need help, you need insights and you need a plan. Horseracing is a four-legged lottery, but you can create a plan to build wealth. Sure the odd GFC can come along, but with a consistent strategy based on the history of income generation from investments you can build wealth over time.

Finally, I believe the greatest obstacle to most people’s success is an unwillingness to ask for or to pay for help. This pigheadedness or plain scabbiness holds back people from losing weight, giving up smokes, getting in shape, building a great business and accumulating a wonderful financial nest egg.

Invest in success

For those wondering, I will bet on So You Think and Shocking each way but I know the most work I did on the form this morning was on how I’m going to build my Switzer business and who I need to help me make my dreams come true.

Another smart thing my Dad advised me was: 'If you look after the pennies the pounds will look after you'. And he’s right, but hoarding pennies shouldn’t stop you from investing in success.

The Switzer Super Report is a newsletter and website for self managed super funds. With exclusive commentary from Peter Switzer and Paul Rickard the Switzer Super Report will help you maximise your after tax investment returns and grow your DIY Super. Click here for a free trial or subscribe today.

Published on: Tuesday, November 02, 2010

blog comments powered by Disqus

Related articles

Ghost town: what’s happened to Oxford Street Sydney?

Record car sales; Wage growth near 3-year low

How will the Budget affect mining?

Double whammy to hit motorists

How will the Federal Budget impact the mining industry?