Real estate entrepreneur, Grant Cardone, has recently voiced skepticism regarding the launching of new businesses. He pegs such a move as “most foolish, self-indulgent,” and instead urges potential entrepreneurs to invest in established, thriving ventures. The seasoned entrepreneur believes that startups are fraught with potential failure and hardships due to the inexperience of founder(s), lack of infrastructure, and funding.
Cardone further expounds on the downsides of starting a new venture, emphasizing the need for an entrepreneur to not be shackled by the constant demands of the business. According to him, the freedom allowed by correctly delegating tasks cannot be understated. Moreover, he stresses the importance of a robust support system (financial and emotional) and a team ready to weather the various potential storms that come with starting a business.
Identifying the banking and real estate industries as prime examples, Cardone asserts that they consistently provide scalability and revenue. He emphasizes their potential for exponential growth and posits that, with the right strategies and business models, an individual can significantly increase their wealth. In addition, Cardone underlines the importance of reinvesting, diversification, and a thorough understanding of market trends and customer needs.
For potential investors interested in the real estate sector, Cardone recommends investment in publicly traded Real Estate Investment Trusts (REITs). These offer a stable income and lower entry costs than direct property ownership, without the challenging aspects of property upkeep. Although REITs have a slightly higher susceptibility to market volatility, Cardone believes the associated risks can be mitigated with a diversified portfolio.
Cardone’s business strategy largely revolves around acquiring pre-existing businesses, especially those with inefficiencies, instead of starting afresh. He believes this approach leverages branded recognition and an existing customer base, making it a quicker and cheaper path to success. However, critics argue that business victory requires more than just asset acquisition. They believe that maintaining strong relationships, fostering innovation, careful resource management, and adaptability are equally crucial business growth aspects.
