How NOT to be a millionaire

“21 Obstacles That Would Prevent You To Become A $$$Millionaire$$$

In 7 Years…”

Submitted By: Anant PednekarProfessor: Dr. Ryan Baidya

Class: Financial InvestmentsDate: 12/15/09

Q/A - 1

Higher Competition– Lot of people doing one type of business, and lot

of products are same or similar. To differentiate one product from another is an obstacle because one product has many substitutes available

Q/A - 2

Newcomers in the market– Products are already in the market and new

products are still coming and consumers get attracted to those products that’s why new comers are an obstacle

Q/A - 3

Low Finances– Loans from banks are not available to everybody.

If the credit score is not good you will not get a loan for any kind of investment

Q/A - 4

Poor technological advances– It is much more difficult to become a millionaire

in a country like India than to become one in USA. Because technology gets out-of-date once it reaches to other countries like India, etc.

Q/A - 5

Economic Crisis or Recession– Unemployment rises, stocks fall and every area

of industry is challenged, credit is tight, foreclosures rise, and no-one admits their responsibility. This is not a nurturing environment for a becoming a millionaire within a specified time period

Q/A - 6

War– If all countries are in war then the businesses are

affected and the losses are high and profits are low

Q/A - 7

Corruption in Government– In India the corruption is high within the

government offices so the filing, registration and other office work gets delayed or stuck up and the businesses stop from proceeding further

Q/A - 8

Natural Calamities & Disasters– Earthquakes, volcano eruptions, flooding, can

affect businesses severely and are thus a major obstacles to becoming a millionaire

Q/A - 9

Higher Rates of Interests– Because of economic crisis banks and lending

institutions charge very high interest rates on loans which is taking more than 25% share of the business profits

Q/A - 10

Higher Inflation Rates– Inflation can be a destructive force, particularly

for small businesses. A spike in inflation could also cause a business’s cost of capital to surge. If inflation rises high enough, the Federal Reserve may attempt to moderate prices by raising interest rates

Q/A - 11

Real Estate Market Crash– If people invested all their money in buying real

estate property, they can lose more than 50% of their investments during an economic crisis

Q/A - 12

Shortage in Money Market– Rich and greedy people will send their money in

other foreign banks and their will be a shortage of money in the market. Other reasons can be economic crisis and war

Q/A - 13

Heavy Custom Duties– To keep control in import/export government

imposes heavy custom duties on products going across the borders. This limits product import/export and can affect businesses and investors

Q/A - 14

Trade Control & Barriers– This can be explained by an example. If products are

not needed from another country then any country can setup a barrier to protect and use their own products. Such trade barriers and controls can prove to be a major obstacle for becoming a millionaire

– To save & protect own product market and give less competition from other country product some countries developed Trade Barriers and because of which new product/new business gets limited opportunities in International trade

Q/A - 15

Bad Infrastructure– In India infrastructure is very bad so the product

delivery is delayed and it disturbs the smooth supply of the product

Q/A - 16

Political Unrest– In India the government changes very frequently

and new rules are made very often. This could affect investors in businesses and add delay to becoming a millionaire in 7 years

Q/A - 17

Bias in Personal Opinion– There is a difference of opinion within every

individual or every partner who invests in a business. No two people can think alike. This can reflect on overall productivity of the organization which in turn can prove to be an obstacle

Q/A - 18

High Rates of Income Taxes– No matter where you do business there is heavy

income taxes that takes away the profit-share

Q/A - 19

Misappropriation (Robbery, Fraud, Stealing, Cheating)– Misappropriate staff, employees, workers, etc.

can cause any business to fail thus affecting the investors ROI and opportunity to become a millionaire

Q/A - 20

Government intervention– In India the government intervenes with the

registration, licensing policies and stuck up the monetary and fiscal policy is also affecting business operations a lot

Q/A - 21

Consumer Brand Loyalty– Most of the time consumers are very loyal to the

particular brand or product. They don’t want to change their brand or product which they are using from long period of time and in which they developed faith and confidence about product quality etc. Such kind of consumers always hesitate to buy new brand or a new product

Thank You…