Posted by: fathersez | January 21, 2008

How can we nurture and reap the fullest dividends from our greatest asset

Patrick at Cash Money Life wrote that our greatest asset is an intangible, i.e. our ability to generate income. I am in complete agreement with this view. 

In fact, almost all the methods of valuation of businesses are tied, in one way or another, to the ability of the business to generate income.  Even if we do have an asset that generates income by the busloads, it was “our ability to generate income” that resulted in us owning the asset in the first place. 

Pinyo over at Moolanomy has also given his views on how to protect this “greatest asset” of ours. 

How then should we nurture this asset so as to reap its fullest dividends?

Our ability to generate income is largely dependent on :- 

Our educational levels 

This is pretty much self explanatory. Having said that, we have to take proactive steps to ensure that our education is in tune with current day market requirements. This does not just apply to those of us in careers, but also to our ability to generate income from investments, trading, arbitraging etc. The informal part refers to knowledge gathered from books, blogs, trade shows etc. 

And of course, our continuing education. Many Internet entrepreneurs are products of this.

Our Past Experiences 

Our past experiences will have a direct impact on our ability to generate income. Almost all higher level jobs require “experience”.  And we all value the advice of experienced experts in the fields of investing, money management, real estate etc., over the inexperienced ones.  

Mistakes made and the lessons earned hone our skills and ability to generate income. 

Our network of Friends and Family 

Our ability to generate income would be almost directly proportionate to the strength, depth and coverage of our network. A person who has a network of close and trustworthy friends in the banking, real estate, stock broking and investment banking fields would most probably have a far better success rate in investing than one who starts out alone.  

Our travels 

Travel broadens the mind. Even though globalization has made the world a smaller place, not all parts of the world are the same. For example, certain parts of Asia may be comparable to that of the UK, say, 25 years ago. So if someone from the UK visits that particular part of Asia, he / she may think about how the UK has progressed and bring those changes to Asia.  

Let us think MacDonalds in Kuala Lumpur, Starbucks in Jakarta, etc. 

To nurture our greatest asset, we have to nurture these four areas continuously.

Where should we focus our reviews 

When we draw up this list for our personal individual situation and seek to identify a unique opportunity, we should remember the following.   Business opportunities are created when we have a service or product that :- 

a)    makes people money, 

b)    saves people money, 

c)     makes people feel more secure, physically or emotionally,  

d)    makes people feel better, physically or emotionally,  

e)    saves people time.

I am sure, there are others, but these broad areas should be good enough. When you put these two together, we should be able to see that a job or a career need not be our only option.  

Whether we take a job and work on the other options part time is not the issue. The fact is that the door is now open wider, and we should be in a better position to, at least see, how we can generate more income.

For me, this exercise has given me ideas on two book projects.

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Responses

  1. I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.

    Allen Taylor

  2. fathersez, I love the way you think about these topics and agree with almost all of them.

    I’m just not sure I would call McDonalds and Starbucks progress! 😉

    But, I understand where you are going with this, and you are correct. The world grows and progresses at different rates. It is extremely valuable to travel and experience other cultures. Doing so has made me a better person.

    Thank you for the mention of my article.

  3. I’m so glad to hear that you’ve mentioned travel. We sometimes forget (especially us “ugly Americans) that we’re also bringing our country to the country we’re visiting. Some of the people we visit may never get another look at someone from our country again, so we need to remember that and act accordingly!!!

    And it’s very true that our network of friends and family is what supports us. Most foster kids are born to mothers that have no friends or family to give them a support system…

    Great post.

  4. Thanks for dropping by, Allen.

    And thank you for your kind words, and having doubled my number of RSS readers. (just like you pointed out on how to double our capital within a week)

    Best regards

  5. Patrick,

    As a former pilot you must have done some serious travel, so your mind would be as broad as can be.

    You just so happen to write on issues that I feel strongly about.

    BTW, I also have my own reservations on Starbucks and McD, but the franchise holder in Indonesia laughs daily and loudly as his people carry the dough to the bank.

    Thanks for your support.

  6. Brooke,

    Despite the best selling book by the same title, most Amercans are not ugly.

    I grew up in the island of Penang where the US Army guys would flock for their R & R during their breaks. This was during the Vietnam War. THis is my earliest memory of Americans and all of them are good. (Oh, boy…that was soo long ago.)

    Thanks for dropping by.

  7. Excellent follow up to our post fathersez. Great job on your discussion about how to improve our ability to generate income.

  8. Thanks, Pinyo.

    Hopefully people will start trying not to think of jobs as their only way to earn money.

    Best regards


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