Turning Credit Debt into 1.1 Billion Dollars

Thomas Smale started his business journey when he was in college. He hated how impoverished he was, and he hated working for someone, so he took a risk to change his life. He opened a credit card to buy and flip businesses, and he used his credit card interest as deadlines to make sales. This is a smart risk as he basically has nothing to lose, because he was broke.

During his endeavors, he didn’t pay h

imself in the early stages of the business. He focused on the business, and put all the profit back into the business. This is a common mistake that puts businesses in the red zone, people make a bit of money and thought it would be a good idea to pay themselves because they “deserve it”.

Thomas Kept Learning

Despite his financial success he took on business partners being Ismael Wrixen to guide him. Ismael taught him the Pareto Principle, where 80 percent of effort should be doing what is profitable, and 20 into creative work. By practicing this principle, revenue was increased and bad habit of thinking creatively was reduced, because you simply can’t argue against numbers. It doesn’t make sense to slow down profits for no reason.

How To Start

If you’re going to trade anything, it’s always easier to trade with capital. It never makes sense to trade with no money. Coming from a guy that hates working, you should get a job and earn some money in order to begin flipping. As for what to flip, it can be anything, as long as it works.

While reaching out to people it’s best to sound human, you don’t want to come off as corporate. Having a professional corporate tone is communication a decade ago, now with people having a problem with AI automation and lack of authenticity, people are beginning to prefer a normal talk over a business proposition.

While negotiating, don’t negotiate every detail, find a few details most important to you and make sure it’s instrumental to your goal. Arguing every detail makes you look like a cheapskate, like a old lady bartering for half a durian in a budget market.

key Takeaway

Take the risk Thomas didn’t really have much to lose, he was flat broke, and didn’t really care about the risk. Even if he didn’t make any sales and go bankrupt, he can still be a millionaire, just has to pay a reduced debt, and have a lower salary, which is more than minimum wage depending on how much you’re making.

Don’t pay yourself early People are obsessed with the idea that when they make some money from their business, they can enjoy vacation and buy new cars to show off to their family, but it’s a major killer of businesses, because the company will constantly be in the red of finance.

If you’re not profiting it’s not a business Always treat it like it’s an experiment, there is no such thing as a business that only nets negative revenue.

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