Horizon Financial Forum 5^th February 2013

Liam McNamara: Lessons Learned

Liam’s Story

Liam McNamara is a role model for business owners and investors. He has experienced great success, followed by failure and returning to success by overcoming the same challenges facing many people today.

• 1981 he set up his Food Marketing and Distribution Company

• Grew it to a Turnover of over €3m before selling the business after 3 years to a large multinational.
• Set up Food Manufacturing Company in Joint Venture with a Dutch company in 1986.
• Company failed in 1988 leaving him with significant debts and having lost all the wealth created through the sale of the first company.
• 2 years living in extreme poverty having lost his home and with 3 young children age 9, 12 and 14.
• 1990 secured a job in the Financial Services Industry paid on a commission only basis.
• Retrained and developed the successful business concept that now trades as MCN Associates.

 

Lessons Learned

#1.       Deal with the Fear

The fear is our imagination of what might happen to us in the future. In reality very few of the things we are imagining ever happen. When the fear kicks in it takes control & prevents you from making objective decisions. It is also related to illness in the long term. So, how do you deal with it? – Be aware of it, take a step back & access “What is actually happening here”

“There is Life after Business”

#2.      What are you in business for?

You need to be aware of your motives, what drives you? If you are in business only for the money – this could kill you!

Think of cashflow vs. real value (think good will, infrastructure, people, resources, connections, etc.) Focus on the real value (and that’s where the big money is…)

 

#3.      The 5 Key Skills Needed for Successful Business

• Someone who is creative/ conceptual thinker & sees the big picture
• Someone to commercialise on the idea – make it happen!
• Someone who is able to consistently deliver the product/service
• Someone who is able to explain to the customer the benefits of the product/ service – (marketing/ sales person)
• Someone to take control of the numbers (accounts/ financials)

You need to recognise which of the above skills you have and don’t have and then surround yourself with what you are lacking

 

#4.      The 4 Pillars of Wealth & Current Economic Environment

The 4 Pillars of Wealth are:

1. Cash wealth
2. Property assets
3. Active income
4. Retirement wealth / investment

In today’s economic situation cash is scarce, property has crashed and income is dwindling away or unavailable. The only untouched source is retirement.

Recession vs. Wealth Transfer – assets are changing hands, the wealth of the world is going into fewer and fewer hands

It seems recession has become an excuse for many people. A lot of people use recession as the answer to the question: What happened to your business? However, there is always a specific reason behind the downturn – what was it?

A lot of business owners & individuals fire-fight their business or personal economy rushing from one problem to another. We need to step back & start looking at the bigger picture, find ways to optimise and maximise all we can do.

Tips:

• Always think personal economy in the context of the global economy.
• You should focus on owning real assets (land is a good example)
• 3 areas of solid investment: Health, Energy & Food
• Think globally not locally to minimise risk.
• Always consider counterparty risk
• Inflation is inevitable – it’s a matter of time
• If you are in the soft skills – you need to demonstrate to prospects how you are going to add cash to their bottom line – how can they make/keep more money from you?

#5: DEBT: There are only 3 ways out of debt

• Grow Your Way Out
• Inflate Your Way Out
• Negotiate Your Way Out