How to become rich? - Part 2 - How to build your mindset?

Hope everyone already read my previous article. Lets get to the point and see how we can start a business. Remember that this is only an excercise to train your brain. Don't expect huge profit. Don't be greedy.

Step 1: Borrow Rs 100/- from your mom.
For this step you have to borrow Rs 100/- someone. Even if you have enough money do not use it. Just borrow it. Keep in mind that when you are borrowing money you have to pay interest. Borrow money at 4% monthly interest. That means at the end of 30 days you are paying Rs 4/- as interest. Inform your mom that you are returning Rs 104/- after 30 days

Step 2: Buy something you can sell.
Go to a gift item store. Buy something fancy for Rs 100/-. Don't spend extra. You have only Rs 100/-. Try to manage. Bargain if necessary. Buy something you would like to have. Then there is a good chance that you can sell this to your best friend.

Step 3: Setting the selling price and find a buyer.
Set the profit margin 40%. That means you need to sell this item for Rs 140/-. Talk to your best friend. Tell him/her that you have this beautiful item you would like to sell. Tell that the selling price is Rs 160/- and you are giving it away for Rs 140/-.
Since this is not an expensive item you will be able to sell it easily.

Step 4: Buy your second selling item.
Now you have Rs 140/-. Again buy something for Rs 140/-. Now use your experience to find a good selling item.
Set the profit margin 40%. Which means your selling price is 140 x 40% = 196/-.

Step 5: Sell!
You know the drill. Sell! You have only one month. Sell at least 5 items.

Do the math. Lets say within 30 days you have done 5 sales.
You sold your second item for 196/-,
third item for 196 x 40% = 275/-,
fourth item for 275 x 40% = 385/-,
fifth item for 385 x 40% = 540/-.
At the end of 30 days you have Rs 540/- in your hand.
Pay back the borrowed amount with interst. Now you have 540 - 104 = 436.
Kaboom!
You made Rs 436/- out of nothing! You did not spend a cent of your money!
I told you, starting your own business is not too hard. Keep practicing your buying and selling for few months. Don't spend your business money for your personal things. After 6 months you'll have good amount of money. Most importantly your mind will be well trained. You will start to see loads of business opportunities.
As I mentioned in my previous article Sri Lankan billionaire Mr. Dhammika Perera got in to business field using a similar method.
When he was about 8 or 10 years old he sold a pumpkin to his Dad. When he was 20 years old he owned a building near university of Moratuwa.

If you really want to be rich start practicing now. Best time to start a business is NOW!

Next thing you need to know "How to manage your money". Let's discuss that in my next article.