Many are bitten by the entrepreneurial bug these days. It is a fashion statement for the young and old alike.
“Jobs” are pretty boring. It kinda gives you a high when you are doing your own thing.
But still, becoming an entrepreneur is easier said than done. It is this enlightenment that keeps many people stuck to their office cubicles.
To all who are on the fence, I wanna ask – How would you feel if I showed you a way to become an entrepreneur without actually building your own business? Without going through the grind, without getting your hands dirty, without leaving the comfort of your present job.
Have I got your attention?
Amount Of Capital Investment
The first thing to do when building a business is to know what is the amount of capital investment you can put in.
“Normal” businesses need a business idea before deciding on the amount required. But this business is different. You only need to decide the amount of capital investment you can put in. And then you can buy an idea. How does that sound?
And the best part is that you don’t need much to start with. You can start with as low as ₹1000 if you plan to invest regularly or as low as ₹5000 if you are planning to invest a lump sum amount.
The next thing to do is to hire a manager to manage your investment. How on earth, you ask?
A professional manager would charge an exorbitant fee. Yes, you are right. But with this strategy, you get to choose a professional manager from the many who are already providing their expert services in the financial marketplace.
Did you get a whiff of what I am coming to?
Perhaps yes. You might have heard about mutual funds. Mutual funds collect money from thousands of “entrepreneurs” like you and me and they have a professional fund manager who manages the money for everyone.
The only difference is they don’t call us – “entrepreneur”, they call us “investor”. But the moment you see yourself as an entrepreneur rather than just an investor, there will be a sea change in your approach.
Think about Warren Buffet, or closer home, Rakesh Jhunjhunwala. They are entrepreneurs of a different kind. They research a business and buy a stake in it.
Can we imitate them? Not many can do that because it needs domain expertise and hours of research. But there is a way to do what they are doing without imitating them totally. And that is through mutual funds.
You just need to select the one mutual fund scheme you want to go with. SEBI, the financial regulator in India has capped the mutual fund expenses to 2.5%. So will be shelling out a maximum of 2.5% of your investment as fund management charges.
So if you invest ₹5000 you are paying your fund manager just ₹125.
Do you get the idea? With just ₹5000, you are actually buying multiple businesses (which are a part of the portfolio held by the mutual fund), without even registering your own company. Or building your own business.
Review Your Fund Manager’s Performance
The performance of mutual funds and its various schemes are available in the public domain. It is very easy to review the performance of your fund manager vis-a-vis other fund managers.
You are the boss and you need to review your fund manager’s performance periodically to know whether your business is doing as expected. If not, you might want to change your fund manager.
I found this as the surest and the easiest way to become an entrepreneur. You would just be investing into various businesses through mutual funds with the help of a professional fund manager and earning a decent return on your business without ever building one of your own.