| Forget all those slow outdated ideas about how black | | | | decision to go shopping, they say to themselves, "I'm |
| people can become wealthy by working hard and | | | | going to the mall today to buy some shoes." However, |
| climbing the corporate ladder, investing in stocks, bonds | | | | since I was selling from my vehicle not only was I |
| and mutual funds, and owning a home. While those are | | | | convenient for consumers and saved them a trip to |
| safe investments for retirement and can help you | | | | the mall, I could show up every week with something |
| increase your net worth, who wants to wait until | | | | new and if they liked it they would purchase it. So |
| they're 60 years or older old to receive the earnings | | | | someone who only went to the mall 3 or 4 times and |
| from those turtle-like investments? Of course, you | | | | spent $200 a month, was now purchasing from me |
| should keep contributing the maximum to your 401(k) | | | | weekly and spending about $400 a month. I remember |
| to the point where your company stops matching, as | | | | having one customer tell me, "you are here every |
| well as maintain your planned contributions to your | | | | week and I can't help but stop to see what you got |
| Roth IRA. But if your like me you want the what I call, | | | | because I feel like I may be missing out." |
| "Now Money!" | | | | 3. Add leverage or "use someone else's time, money |
| If you analyze the Forbes Richest Americans and The | | | | or efforts to benefit you": |
| Black Economy's Wealthiest Blacks lists you may be | | | | Making $250,000 in a year sounds like an unattainable |
| disappointed to find out none of those included | | | | amount for some people. But if you posses the |
| became wealthy simply by contributing to their Roth | | | | Michael Jordan mentality then it becomes achievable. |
| IRA or 401(k). You can become a millionaire if you can | | | | Michael Jordan is arguably the greatest basketball |
| find a way to save $2,000 a month for forty years, | | | | player ever to play the game. And I remember NBA |
| but more than likely you will be too old to enjoy it all. | | | | TV analyst, Ahmad Rashad asking Jordan in an |
| The typical black family net worth is only $6,166 and | | | | interview how he consistently scores 30 plus points |
| the majority of that amount was due to owning a | | | | per game? Jordan simply replied "I don't look at it as |
| house. So simply buying a house is not the key to | | | | scoring 30 or 40 points a game, my game-plan is to |
| wealth! The question becomes how can I make | | | | just make 4 layups per quarter, plus the free-throws |
| money and accumulate wealth now? The answer: It's | | | | when I get fouled." Looking at it that way, four layups in |
| no secret that 75% of American Millionaires are | | | | twelve minutes seems pretty achievable and once |
| business owners or "Ballers!" | | | | completed totals 32 points a game and once you add |
| When I was 26 years old, my net worth was | | | | in the free throws you can see how Jordan scored 40 |
| approaching $75,000 and this did not include owning a | | | | or 50 points easily. |
| home. Instead, I owned a quarter million dollar | | | | Now let us analyze how you can make $250,000 in a |
| enterprise, which operated from the trunk of my car. | | | | year using the Michael Jordan mentality. Now $250,000 |
| How does a young black male create this kind of | | | | a year is about $20,000 per month or $5,000 per |
| wealth without taking out loans, working a "9 to 5" or | | | | week. Let's start with an item (a Polo Shirt) that I sold |
| engaging in illegal activity? The keys to accomplishing | | | | for $35. To make $5,000 in a week I had to sell about |
| this are as straightforward as: | | | | 140 of those items. Selling 140 of the same item was |
| * Becoming financially educated by studying business | | | | difficult for me at first and since I got tired of driving all |
| and wealth | | | | over Dallas/Fort Worth to sell them, I used the familiar |
| * Developing a business model or simply "a way to | | | | concept called divide and conquer. I agreed to let three |
| make money" | | | | others sell the items for me in return for a portion of |
| * Adding leverage to your business model | | | | the profits. |
| * Repeating the process | | | | Now 140 items divided by three people is about 47 |
| You may not realize it, but in 2007, being black places | | | | items per week or only 10 polo shirts per day (and |
| you in a favorable position to capitalize on unique | | | | that's only a 5 day work-week). Now that was a |
| financial opportunities in Capitalist America. The hip-hop | | | | cakewalk for me and it became so easy that I |
| industry, mainly music and clothing, is a \$5 billion | | | | advertised on Craig's List and got two more people |
| business that is creating millionaires almost overnight. | | | | selling items for me in Houston and then the small |
| The hip-hop economic impact has created numerous | | | | towns (Tyler, Longview, etc.) and on and on. And it |
| wealth opportunities in the black community. Money is | | | | gets extremely easier once you add various items like |
| generated from the selling of Cds, clothing, radio, clubs, | | | | Sean John Jeans, NBA hats etc. to your inventory. |
| recording studios, marketing websites, promotional | | | | 4. Stay loyal to your sales area or "the blocks in your |
| teams, models and the list goes on. | | | | hood": |
| If you have not recognized how you can get your | | | | I remember after I had North Dallas and South Dallas |
| piece of the hip-hop wealth pie, then you better start | | | | saturated I began to expand to Fort Worth,TX and |
| rethinking and jump in before the window of | | | | setup shop on a busy street in a burgeoning black |
| opportunity closes. Think about it! You probably know | | | | suburb. I like black suburbs because they are |
| more about this hip-hop market than 84 year old | | | | consumers with more income and higher spending |
| Caucasian Sumner Murray Redstone, who is majority | | | | capacity and there was less risk of me being robbed |
| owner of Viacom, which now owns B.E.T. Since you | | | | for my inventory. When I first started, a few |
| are a consumer in the hip-hop market, you just have to | | | | customers would come by, but not purchase anything |
| think, focus and create a financial plan of action. Now | | | | from me, I was actually operating at a loss because |
| lets get it started! | | | | driving to Fort Worth cost me more in gas than I made |
| 1. Find a product to sell or "flip": | | | | in profit. As I think back they were just getting to know |
| In this 21st century globalized economy, Ebay and | | | | me and after seeing me week after week, they |
| Myspace have demonstrated that the marketplace for | | | | became comfortable, and like any comfortable |
| buying and selling almost anything is profitable. Is Ebay | | | | customer they did not mind spending their money |
| anything more than an on-line garage sale? With over | | | | every time they saw me. Believe it or not, I was the |
| 200 million people selling over 600 million items valued | | | | one of the only self-employed hustlers offering |
| at over $50 billion in 2006, I bet you would have never | | | | exchanges and store credit on the streets. |
| thought having a garage sale could be so profitable. | | | | 5. Re-invest the profits or "stacks": |
| First things first, read and get financially educated. Then | | | | I would like to emphasize this so repeat after me; |
| you must find a product to flip. In the beginning, I | | | | re-invest the profits or stacks! I have known several |
| suggest products over a service because a service | | | | past self-employed hustlers who became broke |
| will require more labor and time, if not yours then | | | | because they could not resist spending the profits |
| someone else's and that equals employee expenses | | | | generated from their businesses on "hood rich" items |
| which will eat into your profits and give you | | | | like new car rims that are valued more than the car |
| administrative headaches. Also, the products can make | | | | itself, "gold grillz" without dental insurance, and |
| money faster than the service, which is crucial to | | | | excessive jewelry. If they had only known that they |
| accumulating new capital or extra cash to expand | | | | could've eventually had all those "bling things" and more |
| your business. | | | | if they only waited just a little longer to make sure their |
| Find a product you are familiar with because it will be | | | | money machines were stable and consistently created |
| easier for you to sell and most importantly, you will | | | | cash-flow. Before you get that new BMW 7 series |
| know its market value. I started out in retail clothing | | | | please prove to yourself that you deserve it by |
| because I loved clothes, but I hated paying the high | | | | creating another income stream to pay the note. And |
| cost for the designer brands. So I would buy clothing at | | | | since you are calling yourself CEO on your business |
| a discount and resell it to people I knew would either | | | | cards, don't front and actually setup a traditional C |
| match the price I paid for it or pay at least 30% | | | | corporation or L.L.C. business structure so you can |
| markup above my cost. Once you've found a product, | | | | write off the note on your taxes. |
| try to monopolize it and control the supply in your | | | | 6. Repeat the process or "double up": |
| market or hood. Once you are able to control the | | | | Once you master the art of product flipping with small |
| supply, you have a better chance at successfully | | | | items like clothing, Cd's, DVDs, etc. you can finally |
| influencing the demand and prices for your product. | | | | move onto big ticket items like houses, small |
| 2. Study your market or "the buyers in your hood": | | | | businesses and commercial real estate. At this point |
| I started out five years ago selling hip-hop clothing from | | | | you have graduated to a deal making entrepreneur |
| the trunk of my car. I carefully studied my market of | | | | and don't have an inventory, but simply your cell phone |
| black consumers in North Dallas and South Dallas and | | | | and computer are making thousands for you. For now, |
| assessed how much they spent on clothing and how | | | | get financially educated by consistently studying |
| much I could profit. Being black, I also studied my | | | | money, finance, and business. Then develop a business |
| personal spending habits and the spending patterns of | | | | model or a way to make money and determine how |
| my peers. The biggest expense I found was | | | | you can add leverage to that business model. It may |
| apartment or house rent, then car notes and finally | | | | take you some time in the beginning, but take baby |
| food and clothing. However, house rent and food were | | | | steps, and soon you will be making extra money and |
| survival purchases and they cost about the same | | | | hopefully creating wealth in no time. Remember, the |
| amount each month, but I discovered that my market | | | | main difference between the rich and the poor is |
| was made up of many extremely impulsive buyers for | | | | ACTION! |
| clothing. | | | | Create Wealth, Enjoy Life! |
| You see most people have to make a conscious | | | | |