People dream of a life of ultimate success; great wealth & true happiness. But only a few attain it. While many may argue that true success doesn’t entail you becoming a millionaire or a billionaire, in private, they wish they could have a taste of that life, even for just a day.
One of the world’s few billionaires who experience life at it’s helm of true financial success, is Nigeria’s Aliko Dangote; the richest black man in the world.
How did he achieve this height? What did he do right or wrong? What investing tips did he use? And how can it all be replicated?
Dangote may have started his business career at the age of 21, in 1977, with a sum of 500,000 Naira (which could buy 100 brand new Mercedes Benz at that time), but the reason for his success was far beyond is startup capital, but rather, his smart investment decisions. You too, can learn from them.
Here are 5 Powerful Investing Tips That Helped Make Nigeria’s Aliko Dangote The Richest Black Man In The World:
1). Only Invest In What You Completely Understand:
In an interview with MTV Base in 2012, Aliko Dangote expressly stated that he does not venture into any business he does not completely understand, and this keeps both him, and his company focused.
Curiosity they say, killed the cat. But why did the cat actually die?
This statement has ambiguous meanings. But the most obvious, is the fact that the cat sometimes doesn’t make it back alive because, it tried to explore what it couldn’t and didn’t understand.
Curiosity isn’t entirely a bad thing. In fact, the greatest discoveries on earth were made by some of the most inquisitive people in history. But it must be threaded with caution. One sure thing smart caution has proven, is the fact that it has created billionaires in Africa.
Investing in something you don’t understand because that’s what everyone is talking about, or going into, could be the fastest way to end your finances
. When they say successful entrepreneurs take risks, they weren’t talking about stupid risks. Such only puts your finances on the edge.
It’s important that a thorough feasibility study about the proposed business idea is done, and that you’re darn sure the business will solve a real problem.
Perhaps then, you could someday be like, or even far better than Aliko Dangote.
2). Diversify Your Investments:
With a wide portfolio ranging from cement to sugar, textiles, real estate, steel, telecommunications, poly products, port operations, and even now, an eight billion Dollars oil refinery in the works, Aliko Dangote has covertly built an almost fail-proof diversified conglomerate, which employs over 26,000 people.
Multiple sources of income, is a major requirement to becoming a successful entrepreneur. And Dangote’s decisions so far, have shown that he has a knack for venturing into different highly profitable businesses.
The crash in the global price of crude oil has had little impact on his cement & sugar businesses directly. Although the prices of the products are now lower, his cement and sugar sales have only also just risen, with higher sales projections estimated.
One thing the richest black man in the world’s journey has taught, is that in times of economic recession and unforeseen challenges, one or some of your major investments, will cover up for others, till the wave is gone. No wonder he’s now stipulated to be wealthier than Oprah Winfrey, Donald Trump, & Roman Abramovich combined.
3). Start Producing:
Aliko Dangote, after importing and trading in commodities for many years, one day came to the conclusion that if he were ever to reach his true dreams, he’d have to stop being an importer, and focus a lot more on becoming a producer.
This prompted him to setup eleven factories at a go, to kick-start his manufacturing career.
Though expensive, manufacturing is one great way to really control your pricing, and bring products down to the consumer level at really affordable rates.
If you hope to someday beat all the competition, and claim a huge chunk of whatever market you’re playing in, you’d have to change your gear, and switch to manufacturing.
This investing tip, is one of the key secrets of the world’s billionaires.
4). Sell A Brand, Not Just A Product:
Do you know Amancio Ortega Gaona, the billionaire founder of Zara? You can never be like him or better, if you don’t build a brand around your products and services. The same applies to Aliko Dangote.
The Dangote brand is one of the most valuable brands in Africa. In Nigeria especially, almost anything branded as “Dangote” almost always wins the market’s trust.
As you grow your business, make sure people can identify it through it’s brand image. This investing tip will leave a footprint on your customer’s minds about the experience they had with your products or services.
5). Become A Great Networker:
The way you arrive is who you are, and your network is your net worth. If you’re going to someday reach the heights Aliko Dangote has attained, you’d have to surround yourself with only people that can take you there.
How do you get these folks to respect you? You have to invest both in yourself, and your business. You need to master emotional intelligence, have a strong understanding of human behaviour, and be able to nearly accurately sum up a person from the on-set.
The book, “The Art Of Speed Reading People” by Paul D. Tieger & Barbara Baron-Tieger, is a good place to start. It gives the reader an in-depth understanding of the 16 personality types, and how to accurately calculate and estimate which temperament group a person belongs too. The predictive accuracy taught in this epic piece, is insanely correct! This book, is a must read for any true networker.
These 5 investing tips have made Aliko Dangote, not just a billionaire, but the richest black man in the world. The application of these principles in your business journey, will ensure you’re on the right track to building a million Dollar, or probably a billion Dollar business