Own 4 successful businesses

In order to have a truly diversified income, you should have at least 4 different sources of it. The best way to maintain those 4 is to place them in different industries so they may be countercyclical in their revenues.

So let’s do the math…

90% of the businesses die before 5 years. So, if you want 1 successful business according to the numbers you will have to try at least 10 times, fail 9 and voilá, you have your 1st successful business.

Then, let’s assume you have more resources and knowledge. This helps you a little and the odds at failing diminish to 80%. Then you would have to try another 9 times in order to succeed in your second business.

The next round comes with a 70% and the 4th with a 60% success rate.

Now you would have tried 9+8+7+6=30 times.

Now let’s have a look at our reality. Do you have financial freedom? Are your monetary reserves increasing or decreasing? How many times have you tried so far? Did you think that you found that winner idea and you tried only that one time, it didn’t work, you felt sorry for yourself and started cursing the world for the misfortune?

I guess it’s time to start really putting into the game all that it takes, which incidentally, odds are, will be everything you’ve got.