5 Best Industries to Become a Millionaire
To become a millionaire, choosing the right industry is a must. Building a business to evolve it into something bigger, requires us to be in a wealthy industry. There are five main industries that fit this criterion. It is advisable to comb through these industries based on the three Cs of business i.e. capital, cashflow, and contacts.
1. Real Estate & Construction
The capital needs in this industry are huge. We would need lots of good credit, that would allow us to get our business off the ground. We’ll also need cash on hand to pay our day to day bills and operational expenses.
The second factor is the type of cash flow we can generate in this business. There are not only business bills to pay but personal and household expenses as well. So, we have to be aware of the fact that in the real estate industry, typically there is a minimum of thirty days wait time for us to get paid. On the real estate development side of things, it could be years before we get any returns on our capital.
The third factor is the contacts. We would need to connect with real estate developers, investors, brokers, home builders, renters, and current owners.
The capital needed to get started with a typical business in this industry is about $10,000 to $50,000. A large part of this sum goes into buying new equipment to manufacture our product. We also need to invest a lot in product development and research.
Cash flow consideration is highly important in this industry. Before we can receive payment, we have to go through a lengthy process of research, marketing, sales, manufacturing and delivering. So, we need to keep that in mind.
For contacts, we need to connect with larger manufacturers, sub-contractors or niche manufacturers within gaps in the market.
3. Health Care
The health care industry is a really tough one as we need hundreds of thousands of dollars or even millions to get started. All that goes to research and development, scientists, labs, testing and much more.
On the flip side though, if the drug we design ends up becoming successful, the possibility for huge cashflows and profits is endless. But the barrier for entry for average people in this field is pretty high.
In terms of contacts, we would need to go to college, get a degree and form connections with people in the same field and establish relationships with people in the drug industry, big pharmaceutical companies, and regulators.
In the field of technology, capital requirements are huge. We would need hundreds of thousands of dollars to research and develop a product or service, if not millions.
From a cash flow point of view, we might start making cash flow immediately but turning a profit may take quite a lot of time. The more people start using our technology and the more viral it goes, the faster we can earn a profit.
Contact building is really important. We need to connect with lots of end-users, investors, techies, software developers, and engineers.
5. Financial Services
In order to get a financial services type of business off the ground, we would need anywhere between $500 to $2,500 depending on what type of licenses we want to get, to operate in this industry.
From a cash flow standpoint, we can usually find our first customer within 7-30 days. But we would need to establish trust and credibility first to make a dent.
As far as contacts are concerned, everyone can be a contact. Financial services are something that everyone can use and they can all become a part of our circle of influence.