Surf, the founder of IKEA is rich for many reasons, one of them is his frugality. There is no denying this. While being frugal has had little to do with his success later in life, it had a lot to do with his success early on. Surf, as you need to know, most these businesses start out as small businesses, in this case, out of the man's garage. There are many companies that started out of their own garage. These companies usually have very little money. Most of them of course fail. The number one reason why businesses fail according to the Wharton School of Finance is undercapitalization. Without money, you can't stay in business, very simple. Very few people realize this. While we don't know the whole story here behind IKEA, I'm sure this man came close to failure many times early on. It was his ability to survive the short term failures and withstand the early hits, that led to him to go on the be successful. Many people are innovative Surf, most of them fail too. Many people have a great product, most of them fail too. Many people act on their ideas, most of them fail too.
i still maintain that it has nothing to do with frugality. how woould you account for such noted spenders as richard branson and donald trump? frugality has ZERO to do with success. innovation, risk taking, timing, and luck are the keys. surfer
Surf, the Donald has gone bankrupt many times over because of his spending. He is hardly the poster boy for success. And you are making a causation argument. Being frugal doesn't lead to success no more then not being frugal leads to failure. It's only one of the variables. There have been many studies done showing that being frugal has led to more success then not being frugal. I cite the book "The Millionaire Next Door".
It is clear to me that many of you never went to Africa to see people dying in the streets because of starvation. Most of you don't know what it means to have no food and drink for days, I do.(got lost on an a trip in the jungle and lived 5 days without) That's when I realized how priviliged I am, that's why I gave away my heritage to charity. That's why all my money goes to charity when I die. Hope you guys get my point.
that book is horrible and kyoski, i believe has been shown to be questionable. what you are missing, maverick, is one's funds for business usually do not come from themselves. capital is raised from others, put to work, and hopefully create returns. frugality in ones personal life has little bearing on success---money is drawn to ideas not frugality. being a millionaire and living like a pauper is a pathology. life is to be lived and lived well. best, surfer
and you still are priviliged. doing this act gives you a perspective that few others could even contemplate. the wealth and breadth of awareness you get from this goes several magnitudes beyond. you are rich indeed.
Surf, this is not true. Look at the internet companies of the late 90's. These companies had very bad burn rates (the rate at which they went through capital). Many of them were poorly mismanaged because they all had "ideas" and they were "hot" and "trendy". Very few survived. Surf, yes most companies raise money, but you can't blow that money!!!!!!! You need to spend it wisely. Your backer is not going to keep giving you more and more and more money because you can't stop spending it. You need to do the most with what you have. And btw Surf, there is a correlation between those that can't save their personal money and those that can't save their business money. Usually people who are bad with money are bad across the board. And Surf, no one is saying life should not be lived to the fullest, again, this guy from IKEA was not living in a cave. His house is probably nicer then Vics!!!!!!!!! He just doesn't WASTE his money. Do you see the difference?