The face of an ideal wealth creation strategy

What does an ideal wealth creation strategy look like?

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There are three things you can do to lower the risks/costs:

1. Increase your financial or business literacy
   When it comes to developing your business, you need to know how to put together a business plan, how to select profitable markets and how to acquire finance.
   If you want to invest in the stock market, you need to know what techniques you can use to lower your risks, analyse market trends and select shares.
   There is a lot more to building wealth than simply using pension funds or retirement annuities.
   Financial literacy puts more control in your hands, which enables you to make better business decisions. You essentially have the power to raise your return or profits and lower the risks/costs.
2. Leverage passive income businesses
   By using business systems which involve other people and technology you can free up a lot of time and energy as well as lower the costs. Not only that, you generate a passive income in the process.
   A property portfolio can be managed by other people completely. This gives you more time to do other things.
   An online business on the other hand is run entirely using technology. The internet is one way to cut out the need to hire employees, which lowers your costs drastically and raises your profit margins.
   Compare using systems to working for a boss or yourself. If you don't work, you don't get paid. If you don't get up early and work a full day, you probably won't get paid. If your income stops, your livelihood stops.
3. Focus on consumer needs, not business cycles
   Effective wealth creation is based on meeting consumer needs and not on trying to predict business cycles.
   Property investing is a business because people require shelter. It's a basic human need. You supply the property and other people pay you for using it.
   Information is a business because people will always need good, reliable, practical and timely information to make their lives easier. And the internet is a great way to deliver valuable information which has been correctly packaged.
   Financial products like pension funds and retirement annuities try and profit from market cycles. When the economy does well, your returns tend to be higher and vice versa.
   As a whole, market cycles are exceptionally difficult to predict. This is one of the reasons why modern day investing is a high risk, low return strategy.
   Consumer needs on the other hand are a lot easier to identify, track and cater for, which is why a passive income business is a low risk high return strategy.