So how do billionaires become billionaires?

One way to answer the question is by going straight to the source and asking a billionaire straight up. These dudes did it by asking young Australian billionaire Nathan Tinkler, "Yo dude, how did you become a billionaire?

How to Become a Billionaire: Advice From Carlos Slim

How Carlos Slim Become a Billionaire

How did Carlos Slim become a billionaire? The answer is intriguing to say the least. He basically bought lots of businesses up in addition to building a few.

Sardonic Mexicans jokingly ask one another: "Can you live one day without Slim?" The answer is probably not. Carlos Slim Helú is the richest man on the planet. Forbes magazine has calculated his worth at around 59 billion dollars and he is the principal owner of more than 200 companies, stretching from South America to the United States. His wealth comes from his 200 companies stretching from South America to the United States.

In Mexico, almost everything is connected to Carlos Slim. If you buy a car, a house, health insurance, a cup of coffee, or just use your cell phone, you are probably interacting with his business empire. So how did this first generation Mexican, son of Lebanese immigrants, supplant Bill Gates, the legendary founder of Microsoft, in this list of kings, as the most affluent of the super rich?The question is even more significant when you realize that Helú was born 67 years ago in a country where there is so much socioeconomic inequality and poverty, and yet made most of this incredible fortune inside his native Mexico.

How Carlos Slim Become a Billionaire

Slim started at the age of eight when his father asked him to help with the family store "The Orient Star" in downtown Mexico City. He later graduated from college with a degree in civil engineering and inherited some real estate from his parents.By then Slim Helú was showing his talent and passion to "make money." One of his first companies was Grupo Carso, a holding company which grew to include department stores, restaurants, real estate, chemical engineering, tobacco, telecommunications, Internet... almost everything!But Slim had bigger dreams. He made significant investments in Inbursa (stock exchange transactions, banking, pension funds), and then in diverse and renowned businesses such as Nacobre (Cooper production), Hoteles Calinda (tourism), Grupo Condumex (from electrical and telecommunications conductors, power generators and transformers, to automotive parts as well as electronic components), Cigatam (tobacco), and Sanborns - a very popular super-department store chain that includes clothing, household electronics, gift shops, restaurants, personal care shops, music and books all under one roof.

Slim became a "big fish" when he won the bid for the privatization of the state monopoly Teléfonos de Mexico (TELMEX) , the largest telecommunications business in Mexico, controlling 90 per cent of the land lines and with capital of more than $20 billion.Slim gained more "momentum" during the presidency of Jose Lopez Portillo (1976-1982), who nationalized the Mexican banks. At that time, many Mexican businessmen thought Mexico would nationalize important companies and so they sought to sell their holdings before they lost control. Slim took advantage of this and bought Seguros de Mexico, Mexico's largest insurer, for just $44 million, much less that its real value. Today the company is worth billions.In a recent interview with The Wall Street Journal, Slim said that "his success comes from spotting opportunities," but in addition to this, Slim knows very well how "putting together monopolies" can make real money. Other companies under the Slim umbrella are Telnor ,Prodigy, Telcel, America Movil Latin America, Saks Fifth Avenue, Sears Mexico, Compusa and Volaris .

How Carlos Slim Become a Billionaire

Slim was born comparatively well-off in a mostly poor country, and he had the intelligence and desire to multiply his inheritance into an incredible fortune.But what is the man like in his personal life? Carlos Slim likes to read self-improvement books, suffers from insomnia, and during those sleepless nights is known to read about technology, even though he doesn't use computers or cell phones.He enjoys hosting celebrities at his mansion in Mexico City, serving gourmet dishes and expensive wines. When he travels, his entire family goes with him and he asks to close entire hotels just for him and his "dearest."

He likes art so much and has such an impressive collection, that he opened the Soumaya Art Museum in honor of his wife, who died in 1999 from a kidney disease.Single women looking for a rich husband, pay attention: Slim is single and dating, but is in a steady relationship with a Mexican woman. However, one of his three sons, is single too! But if you want to get involved with the Slim fortune, be prepared to deal with his sons, grandchildren and the entire family, all of whom are waiting for their big "piece of pie."Meanwhile, most of the population of Mexico continues to live in poverty. According to The Wall Street Journal "Mr. Slim has made about $27 million a day while a fifth of Mexico gets by on less than two dollars per day." So, we ask again: "Can Mexico live without Slim?" or is it "can Slim live without Mexico?"

Find out more about Carlos Slim's strategy for becoming a billionaire.

How to Buy a Business: A/R vs A/P

How to Buy a Business

It’s likely that the business you are looking to buy will have customers who owe that business money for services already rendered or goods already purchased. The money that customers still owe the business is called “Accounts Receivable” or A/R.

Smaller businesses with A/R usually give their customers 30 days to pay once the goods or services have been delivered.

In most small business sales (where the selling price is less than $500,000) the seller typically keeps these accounts receivable.

From the buyers perspective this may seem like an unfair situation. After all, the selling price is usually based on the yearly performance of the business. But if you don’t get to collect the existing A/R, than in the first year you will only receive 11 months of revenue.

Here is the thing you need to keep in mind. In most small business sales, the seller delivers the business to the buyer “free and clear”. This means that, while you are not entitled to collect the A/R, you are not responsible for the debts or liabilities of the business either.

Just as the business will have accounts receivable that they have yet to collect, they will almost always have accounts payable – expenses they have incurred but have yet to pay.

How to Buy a Business

The key benefit to selling the business “free and clear” is simplicity. If you insist on including the A/R in the sale price you will have to negotiate the value of those accounts with the seller.

After all, you are not going to pay full face value for those accounts receivable. While most businesses give 30 days for customers to pay, almost every business will have some A/R that are 60, even 90, days old. So in addition to all the other details you and the seller must agree upon, you will have to agree on the value of those 60 and 90 day old (past due) accounts.

Then, you will have to invest the time and effort to collect those past due accounts.

Also, if you want to receive the benefits of the account receivable, you will have to assume the liability for accounts payable.

So, if you find a business that you really want to buy, your best chance of negotiating a deal with the owner is to simplify by removing any discussion of account receivable and accounts payable. Let the seller collect the proceeds from existing sales and let him worry about paying all the existing bills.

Startup capital

Hilarious video on how to find startup capital. Watc this whether you are chasing venture capital or angel capital.

How to Buy a Business Course

How to Buy a Business

Do you want to buy a business? Don't have enough money? Where does the money come from when you want to buy a business? Some will try to tell you that it will come from the SBA via banl loan guarantees and such.

Fuggetaboutit!

If you want to leran how to buy a business and pay for it, forget about the SBA.

How to buy a business course.

How to Buy a Business With No Money down

How to Buy a Business With No Money Down

You learn something new everyday. If you wondered how it is possible to buy a business with no money down, wonder no more.

How to Buy a Business With No Money Down

Good reading if you are learning how to buy a business.

How to Buy a Business

How to Buy a Business Course

Many are the benefits of purchasing an existing business over starting one from scratch. Let's consider a few of these to help you decide which route to go.

- Tangible assets tend to be very essential when you're purchasing a company. Whenever you price a small business, assets are usually an essential component. Together with purchasing a company, you're obtaining essential property which allow you to carry out business as usual. As a owner, a person will not lose time or cash establishing a company. With the purchase of a business, stock has already been in place as well as the employees and customers.

- Financing is another factor. A existing business is looked upon more favorably by lenders such as banks than a new start-up because it's easier to determine a valuation for it. This improves your chances of attracting money.

-Attractiveness, When going with the option of buying a business that is for sale, the buyer can select one that appeals to his or her interests. Despite the fact that you purchase a new company already in existence, it may nevertheless be treated as a start-up since you will bring your unique talents vision to the existing business.

- Variety of choice. Buy a business offers a range of opportunities from very small mom and pop businesses to big corporations. business franchises are yet another option. Whichever purchase business route you take, conducting a business valuation is important. When you value a business, you can be assured that the price you are paying to own a business is fair.

An established business has a verifiable track record of historical data on its past financial performance, market, competition. This helps the buyer and lender to set a value for it. You can buy business as is and incorporate your ideas for improvement.

- True Value. - True Value. A company for purchase offers present affluence . The actual enterprise consists of everything you need to continue on seamlessly with the business. The business valuation is an important step to ensuring you are getting a profitable enterprise. When you value a business, other factors beyond it being financially sound need to be taken into consideration, including tangibles and intangibles included in the sale. When you purchase a business, you also have to make up your mind whether it's a stock or asset purchase. All of these issues should be covered in the business valuation phase.

In contrast to a new business, whenever an individual buys a business, they are don't have to worry about finding the best location, it's already been found for them. Furthermore, the equipment & supplies, vendors, licensing & permits, staff & employees, brand recognition, and marketing & promotions are all in place already for the new owner. However in the event that you've want to start a new business yourself and suffer all the headaches that go with it, then buying a business is not for you. If you prefer own business that you create yourself, then a startup most likely best suits your entrepreneurial persona. Nevertheless, in the event that you have always wanted to operate a business, then a company for purchase is your finest choice.

That is what I have learned so far.