This week we saw the release of the BRW young Rich List. This list provides a lot of interest because investors are looking to emulate successful entrepreneurs. In general terms those trying to get rich quick will try to find the right industry.
Over the past few years that would have led many people to believe that to really make serious money you need to be invested in resources. Just look at the number one holder of this list, Nathan Tinkler, who had been on top since 2009 until this year. However, when you look through any list of how people have made money the one thing that will stand out is that it usually comes from a vast array of industries though at any point in time if an industry has had a gollden run then you will find that industry overrepresented for the year (but not over the long term). So for the past few years it has been resources. So have these entrpreneurs been smart or lucky? No one really knows the answer to this question though most will believe they are smart. Nathan Tinkler is a case in point. Super smart or dumb luck?
Through the early 2000s you would have seen a raft of technology based entrpreneurs in the list and they are now re appearing again. However, this latest round of tech entrpreneurs tend to be more social media and using the internet for traditional business – eg. online retail.
You will however find that there is greater variation within an industry than there is between industries. This year was no different. Technology held the number one position with 24 of the top 100 and retail – the much maligned industry came in second with 16 of the top 100.
The good news is that success can be found in any industry, not just the obvious ones. Who would have thought making muesli would get you onto the list. But this is exactly what Carolyn Creswell has managed to do and is estimated to be worth $50m!
The best advice is don’t try to find the magical industry, try to find the gaps in your own industry and exploit them.
This information is general in nature and does not take any individuals needs or objectives into account. It should not be taken as a recommendation to invest. Before making an investment decision you should seek your own financial advice to determine whether the proposal is appropriate for your individual circumstances.