Intro
Please visit the Business Networking page for further information on economic opportunities. On this page I will give basic information about how Hraftzer Society can be used for economic opportunities. We will also continue to share resources and information with all new members.
99% of the people I meet will scream that it is impossible to make money with business unless I am "rich already" or otherwise be screaming "why try you'll just fail. You are stupid. You are living in a childish fantasy. I tried to start a business once and failed" or some similar thing. Please be advised that I am not trying to convince losers that investing is for them. I'm simply looking for that 1% of people who are similar to me and interested in working together for business and other goals.
Economics 101 Lesson
The way the nation is structured business is the most profitable use of your time. Passive income is generally taxed at a lower rate than income earned at a job (even if it wasn't business would be worthwhile). A relative moron who owns a business enjoys huge income, while a genius working his ass off at an "entry level job" makes low wages. There is a huge financial incentive to own your own business or to be involved in ownership somehow.
The reason why not everybody owns a business is because most people don't have a high I.Q. and there are some people with a high I.Q. who have other things going on in their life. For example, if you are a movie star bringing in millions of dollars a year acting, you have little need to start a business or invest money. You might buy some stocks or bonds or hire a financial advisor but it really isn't something you spend much time on. By contrast, a lot of people who mop floors for a living lack the basic character requirements or intelligence to run a business. Maybe they have drug habits or otherwise unreliable. Perhaps they have low literacy skills and are not good with decision making or other issues. However, for someone with few opportunities in life, and who posses a basic intelligence, it makes sense to invest in a business (for example, I would consider it normal to work in a restaurant owned by your family and the whole family be partners in the business, in contrast to just washing dishes for a low wage and no opportunity to advance. If your family is too dysfunctional to start a business together then you can join a community like Prosperity Society and work together with those people).
Beyond that, there are advantages to having a college degree, provided you can get the degree without spending too much money. With the exception of a few high quality individuals who may join the Society strictly for friendship purposes, all members in the inner circle should work towards completing a college degree and/or be involved in business ownership and capital investments. This does not take much time or effort, but you do need to be a person who enjoys reading books or analyzing things and solving problems.
If you don't understand this, then research capital gains taxes and passive income, and start researching business profits compared to wages.
Secret Documents on Business
Inner circle members will be provided with a private Society document that outlines the basics of small business, real estate and stock investing. It was written with the consultation of someone with a bachelor degree in business management who works on wall street in the stock market (and also served in the Marines).
Update: I lost this document! We will need to make a new one.
Also, the Prosperity Society Manifesto has a chapter on Business Basics.
Calculated Risks
Business investments are risks, but if you have a 60% chance of doubling your money and a 40% chance of losing it all, this is actually a risk that yields a positive value (whereas gambling yields a negative value; the house always wins). Even though there are degrees of risks and set backs, generally if you are half way competent and keep trying you will come out ahead in business.
We also ask people to seek pleasure or have a drive towards accomplishment rather than trying to avoid failure. You must embrace risk, loss and failure in order to make any substantial gains in the business world or in life itself. Nearly every day I deal with family members, neighbors, people on the internet etc. who scream "why try you'll jus fail" well if I fall of the horse, I'll just get back on it again.
Because of the risk involved in business, one of the primary tasks of business people is to mitigate risks. Risk is generally mitigated through diversification. Our community helps each other to mitigate risks through joint investment and diversification.
Economy of scale and risk diversification are the reasons why it is almost necessary to pool money and work with other people in investments or business ventures. This is true whether you are homeless and broke and just trying to invest $1,000 in some small business or whether you are a billionaire playing on a global scale- networking and collaboration is essential to maximize your potential.
Economy of Scale and Joint Business Ventures
A basic reason for networking is economy of scale and marginal returns. If you invest $10,000 you are likely to have a higher return (percentage wise) than if you invest $1,000. The same is true if you invest $100,000- your returns are bigger than on a $10,000 investment. If you don't understand these elementary level concepts then you probably are not going to be a successful investor anyway. I suggest you research the following (you can do a simple google search and read the wiki article or you can buy books on basic economics). Most of this will be covered in first or second year business courses (like macro or micro economics classes, introduction to business, introduction to investing etc. classes in college):
- Marginal Costs - Marginal Returns - Economy of Scale - Joint Business Ventures - Supply/Demand Curve -
I just assume that the reader understands extremely basic things like the fact that all business people network. Or that the majority of businesses are partnerships and corporations (which is a type of partnership). 99% of people I meet don't understand these basic things, because they are clueless about business. When I ask them to read a book, they are too dumb to read.
On the flip side of pooling money in order to increase relative returns, one can pool money and diversify to decrease risk. So if you have $10,000 to invest and you get together with ten people and create a $100,000 pool, then split that into ten different investments (each of $10k), then even if one of these ten investments goes bankrupt, you'll likely still make a profit.
Real Estate
Many people tell me that they bought a house cheaply and rented it out, only to have it turn into a disaster. The renters tore the place up, didn't pay rent etc. and it cost a lot of money to fix the place and it was a huge head ache. People tell me there is no money in real estate because they have failed, just like they say there is no money in business because when they tried to start a small business it failed. The fact is, they were doing it wrong. The richest people in the country tend to have made their money off of real estate and business. As well, many relatively average people have made a lot of money off of this. By contrast, wages from a job are typically low.
Whenever you buy real estate you need to look at the neighborhood or city. If the city consists of collapsing bridges, drug dealers standing on the corner, or otherwise appears to be ghetto, most likely you are dealing with low quality people, a local police department that doesn't care etc. You need to find a relatively nice neighborhood to invest in or else have some plan to deal with crime and delinquent rents. This becomes harder as the whole country continues to ghettofy, which is a reason to actively be involved in the community, but it can still be done.
Likewise, be prepared to deal with evictions or unexpected repair costs when renting. Don't try to flip houses as it is unpredictable. You can always rent a house then sell it later. You may fail a few times when first starting out, but realize that there are a lot of people making money from real estate or businesses. By contrast, nobody is getting rich by flipping hamburgers.
The Economic Reasons For Joining The Society are Simple:
1. Win-win situations in which two or more people work together are easy to do and cost nothing (other than necessary trust and competence among all parties)
2. Many people who wanted to improve their life have used Private Networking (secret societies among them) to achieve these goals. However, this only works when the society has certain standards in its members and weeds out the incompetent. Secret Societies, Fraternities and Networking organizations have been around for years. There is nothing new or improbable about this.
3. You have nothing to lose by trying it (other than the time put in) and everything to gain.
4. It's risk free.
I can't guarantee any economic benefits, it's just a resource, how you use it is up to you. To be clear: the Society is not selling anyone any kind of investment. It is free to join. It is just an opportunity to network with other people who may potentially wish to start a business, and an opportunity to share information with others and help each other in mutually beneficial ways.
Small Business
There are several small businesses that I would like to start up. The problem is I don't have the time. You need more than one person. You also need to find people who are reliable. You can't have the glue sniffing morons who will destroy your business. You need people who you know personally and can trust.
If I start a small business like carpet cleaning, it doesn't take a lot of money to start up and potential profits are good. However, I still need to work at a regular job. The reason is it takes time to get contracts, to advertise etc. If I just quit my job and only did this one thing, I wouldn't have any income. It doesn't make sense to do this just one day a week, because you need insurance, business license etc. which are set costs. I would be more than happy to start up this business and in the beginning just work one day a week, if I have other people who are willing to participate and do the jobs as business picks up.
This is just one simple example of business networking, of which there are many. It is a HUGE resource to have partners who are sane and reliable. And it makes them money, it makes me money- everybody wins.
Simple Win-Win Projects:
- Using a business or co-operative buying program to pay pennies on the dollar for food, furniture and any other goods. (If you understand the enormous mark-up that businesses put on products, then you can understand extreme financial gains through finding ways around that mark up).
- Creating cooperative living situation (room mates etc.)
- Creating business partnerships or joint business ventures
- Working together to decrease crime in a neighborhood or for physical protection
- Cooperation on legal matters- putting together more compelling legal cases by having reliable witnesses and partners
We cooperate to help our members achieve high social positions, to procure an education, and to be successful in business. In turn, our members dedicate some of their future resources to the Society. Thus we all gain.
Below: My experience with bankers and other people in authority: many of them are incompetent and difficult to reason with.