Finding Your Pot of Gold

Gold was discovered in California in the spring of 1848.  By May of 1848 reports were flying that “there was more gold than all the people in California could take out in fifty years.”  28-year-old Samuel Brannan opened a small supply store at John Sutter’s Fort, right in the heart of the gold rush.  Brannan purchased a little vial of gold and traveled the hundred miles back to San Francisco.  As he stepped off the train, he swung his hat, waved the bottle and shouted, “Gold! Gold! Gold!  By the middle of June, three quarters of the male population had left town for the gold mines near Sutter’s Fort.

Brannan never looked for gold, but selling shovels, picks and supplies to the wide-eyed miners made him California’s first millionaire.  His store was selling as much as $5000 a day (about $140,000 in 2010 dollars) in goods to the miners.

Did all the miners find their “pot of gold?”  Not a chance.  Most of them wasted time and meager resources only to return to their original homes, poor and discouraged.

So where are you looking for income opportunities?  In the last ten years thousands of people jumped on the computer bandwagon, believing that programming, web design and software development were the only real sources of wealth.  As you know, not everyone going in this direction has become wealthy?  But are there associated opportunities with this area of focus – absolutely! 

In the last ten years the number of massage therapists has quadrupled.  (Our massage therapist comes to our house every Friday afternoon.  People who work on computers all day are prime candidates for massage.

I have a friend here in Nashville who produced a red “panic button” that fits over any key on your computer keyboard.  She has now sold over 100,000 at $1.50 each.  A convent even ordered 10 PANIC buttons.

I have talented young musician friends who are not trying to be the next Alan Jackson but are generating significant income selling guitar straps, personalized drum sticks and a book on How to make it in the music industry.

Is it possible that in your own search for “gold” you are overlooking the opportunity to become a millionaire by selling picks and shovels?

Wanna be a wealthy idiot?

The name Nasrudin is used as the mythical character in a tradition of Sufi tales.  Here’s one:

Nasrudin used to stand in the street on market days, to be pointed out as an idiot.  No matter how often people offered him a large or a small coin, he always chose the smaller piece.

One day a kindly man said to him, “Mulla, you should take the bigger coin.  Then you will have money and people will no longer be able to make a laughingstock of you.”

“That might be true,” said Nasrudin, “but if I always take the larger coin, people will stop offering me money to prove that I am more idiotic than they are.  Then I would have no money at all.”

Sometimes the most obvious solution really isn’t the best one.  You might assume that the best way to grow your business is to get more customers – it may in fact be more profitable to reduce your number of customers and charge them more.  Here in Nashville a doctor just reduced his 3,000 person client list to 300 “invited guests,” each of which he charges $2000 annually to be his patient.  He is their “concierge doctor” – and he locks in a $600,000 annual income with minimal office expense.

We all “know” that “winners never quit, and quitters never win.”  But is that really true?  How does that work with smokers?  Or with people who have taken a wrong turn on the freeway?  What if you have been in business for a year and still haven’t made any money?  What if your retirement funds have suddenly been shown to be worthless?

20 years ago this month I suffered through a devastating business crash.  I scrambled to find solutions for both the emotional pain and embarrassment as well as the financial disaster I had experienced.  My logical mind raced to find ideas where I could make money quickly to address the screaming creditors and the ongoing needs of my family.

Yet one of the “solutions” defied all normal approaches.  In reading the book of Proverbs each day – the chapter that correlated to the day of the month (31 chapters) – I began to see timeless principles that I had repeatedly violated in my previous attempts at financial success and I also discovered some counterintuitive keys for increasing my bank account once again.

I learned that wisdom is more valuable than gold or silver.  But that seeking wisdom will ultimately bring gold and silver on the back side anyway.  Here’s what it says in Proverbs 3: 13-17

“God blesses everyone who has wisdom and common sense. Wisdom is worth more than silver; it makes you much richer than gold.  Wisdom is more valuable than precious jewels; nothing you want compares with her.  In her right hand Wisdom holds a long life, and in her left hand are wealth and honor. Wisdom makes life pleasant and leads us safely along.”

 The dictionary defines “wisdom” as “The ability to discern or judge what is true, right, or lasting; insight.”   How are you doing with “wisdom” in these days when stocks, real estate, and mortgages may turn out to be worthless?  Are you increasing your “wisdom portfolio” and assuring that you will be wealthy in the coming years?

 One of the evidences of “wisdom” is finding that authentic fit for how God wired us.  Many years ago I met Dave Anderson, the founder of Famous Dave’s restaurants.  He told me that as a young American Indian kid he had wanted to be rich, but in chasing money it always seemed to be just out of reach.  When he finally gave up on getting money and just resigned himself to doing what he loved to do, (making great barbeque) the money showed up in lots of unexpected ways.  Among other things Dave founded The Life Center for Leadership with a $1.4 million gift.

Maybe you’re chasing the wrong thing.  Give up on getting rich — try getting “wisdom” and see where it leads you.

Finding Your Idea

Yes, I firmly believe there are still many opportunities to make millions selling “picks and shovels” in whatever gold rush is happening today.  Here are some ways to find your idea.

• Improving an existing product or service is the surest and quickest way to success. Brand-new products or services are usually very risky.
• Don’t look for get rich quick schemes. If it sounds too good to be true, it probably is.  Look at the long-term perspective.
• Decide to be excellent at whatever you do. This provides more leverage than any other factor.
• Go to trade shows.  If you’re looking for an idea, just start looking at what is being done in that area.
• Check products being sold in foreign countries.  Even in our global economy, it’s estimated that 80 percent of products are never sold outside the country where they’re produced.  Years ago a gentleman saw a wheelbarrow advertised in a magazine. It was fiberglass and plastic, superior to what was then available in the United States. He asked to be the U.S. distributor.  He took one sample wheelbarrow to a home and garden show and received over fifty thousand orders. He did not invent it, did not patent it, he simply asked to be a distributor for an existing product. With only a $5 profit margin, that’s $250,000 profit!
• Pay attention to passing fads and trendy ideas.  People have made fortunes with the Pet Rock, hula hoop, politically related T-shirts and bumper stickers, sports theme items, and other fads that present a short window of opportunity.
• As you travel, look, listen, and learn.  Orange Julius started on the West Coast. The guy who recognized this creamy orange drink as a growing phenomenon brought it back to the Midwest and made millions.
• Make sure you find something you believe in, something you would buy yourself and use yourself, and would sell to your best friend.
• Share your ideas. Don’t be secretive. Get input from everyone you know. Ideas are a dime a dozen. But the person who puts a plan of action together is the only one who will benefit.
• Eighty-five percent of what you need to know about running a successful business you can learn from running a successful mail-order or eBay business. You can experiment with nearly all the necessary components of a traditional business and adjust your work model as you learn.

Revolutionary Insight

Doggles

The inventors of Doggles-sunglasses designed especially for dogs-say they came up with their business brain wave after noticing their dog was squinting in the sunlight. Ken and Roni di Lullo of Midnight Creations tried their own glasses on their dog’s face . . . but nothing stayed on or worked well. After experimenting with sports goggles, the innovative husband and wife team developed a special pair to fit their dog perfectly. Other dog owners approached the couple when they were out walking, and a business was born. After a CNN story featured Doggles, sales quadrupled overnight, and these days the di Lullos have a $1 million business.

This is the normal process of innovation. A real person recognizes a real need and provides a solution. The most successful ideas often involve not a complicated invention process but just a simple modification of an existing product.

Examples from No More Mondays

Looking for Gold — or Making Money?

Gold was discovered in California in the spring of 1848.  By May of 1848 reports were flying that “there was more gold than all the people in California could take out in fifty years.”  28-year-old Samuel Brannan opened the small store at John Sutter’s Fort, right in the heart of the gold rush.  Brannan took a little vial of gold and traveled the hundred miles back to San Francisco.  As he stepped off the train, he swung his hat, waved the bottle and shouted, “Gold! Gold! Gold!  By the middle of June, three quarters of the male population had left town for the gold mines near Sutter’s Fort.

Brannan never looked for gold, but selling shovels, picks and supplies to the wide-eyed miners made him California’s first millionaire.  His store was selling as much as $5000 a day (about $140,000 in 2008 dollars) in goods to the miners.

Did all the miners find their “pot of gold?”  Not a chance.  Most of them wasted time and meager resources only to return to their original homes, poor and discouraged.

So where are you looking for income opportunities?  In the last ten years thousands of people jumped on the computer bandwagon, believing that programming, web design and software development were the only real sources of wealth.  As you know, not everyone going in this direction has become wealthy?  But are there associated opportunities with this area of focus – absolutely!  In the last ten years the number of massage therapists has quadrupled.  (Our massage therapist comes to our house every Friday afternoon.  Her rates are $70 an hour and she stays booked weeks in advance.)  People who work on computers all day are prime candidates for massage.

The chair I am sitting in is a HumanScale Freedom Chair.  It’s an $850 solution to the posture challenges of sitting in front of a computer.  I can’t imagine being without it.  In the background I have music playing -specifically setting the stage for productive “knowledge work.” 

Is it possible that in your own search for “gold” you are overlooking the opportunity to become a millionaire by selling picks and shovels?