“Security is mostly a superstition. It does not exist in nature, nor do the children of men as a whole experience it. Avoiding danger is no safer in the long run than outright exposure. Life is either a daring adventure, or nothing. To keep our faces toward change and behave like free spirits in the presence of fate is strength undefeatable” – Helen Keller.
It was just few days after I wrote my first JAMB (a prerequisite exam to enter any Government-maintained university in Nigeria), my elder brother brought in an old dingy snooker board to the house which he apparently collected from his debtor who was unwilling to pay him. He dumped the snooker board in one of the garages and went to university every morning for his undergraduate program hoping to sell the snooker board during the holidays to offset his debt. Immediately I saw the board, I saw the opportunity to create a business out of the board to pass away time till my JAMB results surfaces. Prior to this time, I had never done business so I was anxious at the attempt (what would people say? Would my friends not laugh at me? What would my parents say? What if I failed? Would my brother agree to such thing?). Despite my fear, I asked my brother who immediately agreed (anything to bring back his money).
Remember, my motivation was to have something doing while waiting for JAMB result and apparently going to the university so I entered an unchartered region in my life with no-money motivation except to create something I could be proud of. Let me spare you my merchandizing tactics; the business was an instant hit in my neighborhood and all the teenagers and youths in the environment came from far and near to play snooker in my compound for a unique price of ten naira. In two weeks, my brother had recovered his money and immediately recognized the business opportunity so he cut a deal to give me 20% of the profit (what can I say? He is human). I took it knowing what my motivations were and I maintained the momentum of the business with competitions, promotions and strong interpersonal relationship. All the strategy for running this business was inside of me; neither did I read a book nor did I train under any business man to execute this apparent successful strategy.
When I look back and think of all the expensive training I have done in business (customer service, pricing, competitive advantage, supply chain management, etc) from my former companies; I can’t help but laugh at the share waste of money. If I had known all these knowledge intuitively in a passion to create a successful business, then I must explore the inner workings of myself today. This leads to the topic at hand; the topic at hand is guaranteed returns. Everybody wants guaranteed returns on anything they invest in but from experience I realize that you can never get a guaranteed return. Let me expatiate: I started this write-up with the snooker business where it became an instant success but I failed to tell you how the business was faring before I finally took off to the university. After 2 months into the snooker business, there was a huge drought; people stop coming for what I could not place my fingers on. Every attempt I made to revive the business did not bring the usual traffic and I saw myself selling myself short in order to maintain the business; reduce prices, beg people to play, etc.
After sometime, I decided not to sell myself short anymore and stuck to my guns. 3 weeks into this decision, the business started booming again. It boomed 3 times the initial success that my brother brought in a second snooker board to accommodate the crowd. This was a huge lesson for me and after undergoing other businesses and entering the cooperate world; I learnt there was no constant returns in any business even if it booms like the wild fire. This was the major reason the NOSPETCO idea was a hard sell for me; a very hard-sell though I was tempted emotionally, my rational experience did not buy the Oil Business idea. As long as a business exists, there would be unforeseen and unpredictable cost, smart competitors, “force majures” and micro-economic hindrances. Even the Low return interest rate given by Banks always fluctuate not to talk of a company with no hedging function. The idea that it rather collects money from individuals rather than Banks was simply a hog wash as the cost on the borrowing funds from individuals was far higher than the Banks.
Okay, it’s not that I have not opened my eyes wide open to invest in investment vehicles that guarantee returns even when I know it was not feasible. The fact is that all “my investment go bad” last year promised guaranteed returns but this should not be oversimplified because there are actually some guaranteed returns which I would reveal shortly. This is why in order to understand the true nature of investment and the controlling indexes that can give leverage to investment; one must follow the thinking pattern of great investors that walked on this planet earth and understand their personalities and characteristics that guarantees returns. God said as long as the earth exists; seed time and harvest shall not seize. This simply means it takes time to sow but harvest has no time limit; it simply a function of the time you sow that determines your harvest. It is imperative to know that if you constantly sow into an investment vehicle (with a consciousness to really learn from early failures), there would be a guaranteed return.
Last week, I got a call from one of my readers that wanted to interview me for a newsletter to be circulated to youths. One of the questions that hit me was “who has been your role model as an entrepreneur?” Then I immediately answered without much thought “Steven Covey, Mohammed Yunnus, Robert Kiyosaki, Sheik Zayed and Steve Pavlina”. After a while, I started rationalizing my choice of role models; “why did I not call Bill Gates and Warren Buffet?” I knew I rationally wanted to be wealthier than Bill Gates and Warren Buffet put together but I knew in my heart of hearts that being like these wealthy investors was not me; I would rather empower people with knowledge than ultimately seek wealth. It gives me the kick to teach and empower people through various communicative platforms but of course, one must also be financially independent. This was why I totally connect with my choice of role models without much ado. The interview question really made an impact on me because I have really never answered those questions myself though I have asked people on various occasions.
This interview question led me to think of guaranteed returns and why some people are sure of making returns from their investment even when the odds are not favorable. God has placed seasons (fruitful and unfruitful) in our lives so we may constantly know we are humans. Every investment/business platform does not guarantee returns but the investor who understands that every variable return can be controlled to guarantee returns. It is the investor that guarantees return and not the investment vehicle; this is why a deep knowledge of investment is vital to every individual and not relying on anyone (broker, investment guru, etc) to chart his/her courses in life. I remember my first lesson on guaranty vs. warranty; I was importing some electronic goods so I asked for guaranty from the producer and he corrected me by saying; “what we give is warranty not guaranty; guaranty means we are sure the product would not fail so you can sue us or collect your money back but warranty means we would replace or repair anything that goes wrong”. Nobody or investment vehicle can guarantee returns but in taking a peek at the lives of some great investors, we can see the characteristics and attribute they use in guaranteeing their investors.
Sheik Zayed was a man of history; he was the first president of the United Arab Emirates (UAE) and one of the rulers of Abu Dhabi (Capital of UAE). His impact in UAE gained him the name the father of the Emirates Nation and he truly deserves it by turning a country filled with tents, camel and desert into a metropolitan city filled with modern houses, computers and cars. It is noteworthy to understand the history and culture of the United Arab Emirates and to fully appreciate the efforts he took to turn the country around. For all those seeking to be financial independence; it is very vital to study this great mind that change the destiny of his people and made them a model nation to emulate. UAE comprises 7 independent states namely; Abu Dhabi, Dubai, Sharjah, Umm Al Qaiwain, Ajman, Fujairah and Ras al Khaimah. Each state has its own laws and rulers but in 1971, Sheik Zayed who was the ruler of Abu Dhabi at that time convinced the 6 other states to form a federation to enhance security.
Before the federation was formed, Abu Dhabi and Emirate States known as the Trucial States was a country filled with desert, tents and camel before the discovery of Oil. You and I know (using our country Nigeria) that it is not the Oil that turned the country around but the ruler that guides his country wisely and peacefully until a model nation is born. Sheik Zayed used the following elements and characteristics to turn the country around to guarantee returns:
1. Uniqueness
“To be nobody but yourself in a world which is doing its best, night and day, to make you everybody else means to fight the hardest battle which any human being can fight; and never stop fighting.” E.E. Cummings
It is your uniqueness that would give you leverages to guarantee your returns. I have learnt this from personal experience but Sheik Zayed confirmed this through his art of keeping the tradition of the states despite variety of influences. UAE never adopted Democracy, Monarchy or any style of political maneuvers but it maintained its ruler ship style to guide his country to glory. His first exposure from the desert was his trip to Europe in 1953 where he learned what to adopt and what not to; he was the first to build a school in Abu Dhabi after arriving from Europe using his own finances not the finances of the state because his brother Sheik Shakhbut was the ruler at that time. He knew that he needed education for power but kept his tradition.
The ability to maintain your uniqueness gives you a leverage to guarantee your return. It prevents dilution of characteristic like integrity, discipline, resilience, etc which was needed to sustain Abu Dhabi during the desert years and would keep his people from greed and unnecessary corruption of funds when the Oil Money came through. All the characteristics that kept you through your wilderness life must be maintained if you want to continuously guarantee your wealth.
2.Networking
“Two are better than one because they have a good reward for their labor. For if they fall, one will lift up his companion but woe to him who is alone when he falls for he has no one to help him up. Again if two lie together, they will keep warm but how can one be warm alone? Though one may be overpowered by another, two can withstand him. And a threefold cord is not easily broken” – Ecclesiastes 4: 9-12 (NKJV)
When the British Force began leaving the Trucial States in 1968, Sheik Zayed who had been chosen as the leader of Abu Dhabi over his brother, knew his state that just discovered Oil in 1962, would be attacked soon by greedy neighboring Arabs. He decided to go one on one to the other Emirate states and convinced them to form a federation and register under the United Nations as a country. This finally came through in 1971 and they shared resources in order to sustain the rest of the country.
You need to understand the powers of networking if you are keen on guaranteeing your returns. When you join any investment vehicle, it important you network with people who are on the same investment journey in order to help each other through the journey. There would be information sharing, resource control and loss absorption.An experiment was carried out in UK and it was found that you are 6 people from everything you need in life. The more you network, the more your returns are guaranteed.
3.Marketing
Although Marketing is the pricing, promotion and distribution of products/services, it is so subtle that most people miss the strategic intent that is inherent in marketing that simply giving part of your resources to aid your fellow neighbor is marketing – Dipo Tepede
Sheik Zayed understood what would preserve his nation from collapsing and being under siege from his neighboring country, he simply gave 28% of Abu Dhabi’s income for the assistance of Arab Islamic and developing countries to keep them in good relationship with his country. It is only the wise that understands the subtlety that Sheik Zayed employed in order to guarantee his investment.
This is a crucial lesson to all ardent investor who place their investment in states where their neighbors are impoverished. Giving some part of your returns to elevate those around you is a marketing strategy with the intent to guaranteeing your investment. But given off your returns is not the only marketing strategy there is, the ability to devise a plan to sustain your return is marketing like hedging which is a means of guarding against financial loss.
4.Sales
“Nothing happens in any project, except a sale is made”
Sheik Zayed has the ability of convincing other nations to buy into his ideas by condemning all use of violence in the name of religion. He was also able to openly reject all links to terrorism and publicly ask the leaders of Iraq to step down and go into exile to avoid war. He was able to project UAE as a country of peace which was good grounds for economic activities. His power to convince his fellow independent states were expressed when the governing council comprising the 7 independent Emirates State leaders elected him 5 times to rule them (voting by the 7 State leaders takes place every 5 years).
Can you imagine that a man was asked to lead for 38 years when the other 6 state leaders had the chance to be at the helms of affair? This is the power of sales and it is very useful especially in investment even if the investment does not involve sales. Convincing people to join your investment vehicle sustain that investment. All investment vehicles are premised on people, if people do not patronize them the investment would fail. Imagine the share price of a company shoots so high and you have nobody to sell it to, it’s a waste of time. In fact the rise and fall of share price depends on demand and supply. Is it property? You need to sell it well to make maximum returns.
I WOULD LIKE TO SPECIALLY APPRECIATE THOSE THAT MAKE COMMENTS ON THIS SITE (WHETHER POSITIVE CRITICISM OR ENCOURAGEMENT) AND PRAY THAT THEY WOULD NEVER LACK ENCOURAGEMENT IN THEIR QUEST TO FUFILL THEIR GOD GIVEN ASSIGNEMENT. AMEN. THANK YOU!
