Stuart Zadel on The Millionaire Next Door Series. Find Your Niche. How do you find your niche to cater to the affluent and generate cash yourself? Check this out.
FIND YOUR NICHE
Hello, friends! As we’re on the penultimate part of our discussion for The Millionaire Next Door Series, I want to ask you something:
What has changed in your mindset after reading the previous installments?
This is important because your mindset plays a huge role if you are to apply the denominators we’ve been discussing in your life. Your mindset is just like a stone thrown into a river: it causes ripples that increase in size as it reaches the riverbank. So the things you’re learning as we go through will only be effective if you couple action with the right mindset.
So; we’re now in the seventh part of the series. But before moving on, let’s review what we’ve discussed on the last installment.
IN REVIEW: AFFIRMATIVE ACTION. FAMILY STYLE
In the previous installment, you will recall that we’ve talked about the ten tips that the wealthy use when talking to their children about their money and how to best communicate it with them. The tips are being used by these parents because they understand the dangers of giving their children massive unearned wealth, and how they bring up their children and prepare them for the handover is very important. For this installment, I will be talking about why the affluent are proficient at targeting marketing opportunities or what they call, “finding their niche.”
FIND YOUR NICHE
In 2013, Mr. Biggs of the famed The Great Train Robbery passed away in Brazil. In one of his famous moments during an interview he was asked, “Hey, why do you rob banks?” He answered, “Well, that’s where the money is.”
The affluent understood that. We’re talking about targeting market opportunities. If you want to do well in business or investing, it’s a good idea to go where the money is. What does that mean? Well, you should target the affluent absolutely. You should target their children and their grandchildren. And even more valuable, you should target the widow and the widowers of the affluent.
The authors of the book ‘went out on a limb’ as they named certain industries or professions that they think will do very well. Of course you can tell me “but Stuart, when it comes to spending their money, you said the affluent were frugal.” And that’s true in terms of the self-made affluent.
But you know what? These people are not frugal when it comes to services. Things like professional advice, legal advice, accounting advice, health care, dental care, certain thought of travel, when it comes to their children and grandchildren, and there’s a whole else more. They own businesses but they are significant purchasers of industrial production services and vacation.
WHAT’S A NICHE?
‘Niche’ means areas to specifically concentrate on. The book specifies the businesses and professions that are likely to benefit from the affluent.
First, estate planning. I read a research report done by Westpac, one of Australia’s big 4 banks and it said, “the single biggest transfer of wealth in our history has begun. As the baby boomers have moved through society, they are now at retirement age, they’re handing over their businesses, handing them down, selling them, many of them are passing away and in fact, depending on the lifestyle that they have lived and so this transition is massive.”
Now, if you are in a profession that can help best in the transition of those assets to the people or dependents, or where they want it to go in a tax effective manner, you should do very well.
Second, income tax. We’ve got governments drowning in inescapable debt all around the world and you can bet that as they go down, they’re going to be looking for more money. This means more taxes, and they’re probably going to target the affluent – the people who have it. So, with that, if you can legally help the affluent avoid increase of taxes, or make decisions that put them in a more advantageous situation, you should do very well.
Third, immigration. The wealthy worldwide are mobilising and they’re moving for a variety of reasons. They are moving their assets out of their countries, and there are many welcoming countries out there. So, again, if you can help with these information, you can do very well.
Fourth, medical and dental care. The wealthy do not skim when it comes to health and they are not confined to the minimum government public standards of health. They’ll pay private, they’ll pay the best. Dentistry; a whole lot of stuff going on. The affluent retirees and their appearances is important to them. Cosmetic dentistry will be a big part of their life moving forward.
Fifth, asset liquidators. Any of the key assets that the wealthy have will be big. They own tangible assets that they may liquidate as they change their lifestyle. The affluent owns coin collections and stamp collections. If you’re an appraiser or related to some of those fields, you’re going to be in big demand and could do very well.
Sixth, travel. When it comes to their children and grandchildren, travel is a very big area as well. If you can provide experiences there for the family, you can do very well.
I’m going to throw one more. It’s not listed in the book but I think it’s huge, and that is food. All sorts of food. The wealthy want better health and they’re wising up that the quality of the food we’re getting may not be the best. So, there is an explosion going on right now. Have you noticed super foods?
INSIGHTS
So, this is my idea. Now, you might be thinking, “Stuart, I’m not in the profession in one of those areas. You don’t have to be. You can invest in them through companies or stock markets or joint ventures and a whole heap of things. It’s the principle you want to get. Now, when it comes to investing of course, as Warren Buffett said, if you don’t understand the business and its products and services, Warren Buffett says, “I advise inactivity.”
Watch the entire Next Door Millionaire Series episodes here.
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