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How To Obtain a guaranteed income of £100,000 per year
If success breeds success, then money breads money, and providing you can access the necessary funds, and are careful as to what opportunities you enter, you can enjoy good profit, using other people's money.
A good method of collecting a large amount of capital and guaranteeing a large income is to form your own corporation. Cash generated from the sale of shares is much cheaper as there is no interest to pay on it, nor monthly repayments, will pay your salary and is not subject to taxation.
It does not matter what your company does or trade in, it will still be possible to issue shares at a nominal value, say, £1 each. You can buy a limited company off the shelf, ready made, and convert it into a public limited company. You then have the company charter written with an authorisation of one million shares with no par value.
The shares are then divided into lots for distribution. Say, you keep 400,000 shares for yourself, allocate 300,000 for sale to the public at £1 each. The remaining 300,000 you keep to sell at a later date when the value of the shares has risen, and becomes greater than the £1 per share that they have started out at.
Sign up a stockbroker to sell your shares (400,000), usually at a commission of around 20%, and impress on the brokers that your new company is set for rapid growth.
With the capital raised from the initial sale of the shares, invest in getting the company up and running. Once trading profitably your own shares will start to appreciate; it is not unheard of for shares in a new company to grow in value three or four fold in the first few months of trading.
The initial capital from the sale of 300,000 shares less 20% brokers commission will give you over a quarter of a million pounds with which to employ marketing and management experts to run your company, and advise on the best strategy for future growth.
Your own shares (400,000) at a nominal value of £3 are now worth £1,200,000, and the remaining 300,000 shares you have kept behind for future sale can now be sold, again at £3 each or near to that value. Let's take a conservative value of £2 each: this will give you £600,000 extra in operating capital.
Keeping your 400,000 shares as a nest-egg, you award yourself a salary of £100,000 per annum as the company's chairman. Being chairman does not mean you have to take on the responsibility of a managing director: instead, appoint an experienced business professional to fill this post.
The most difficult phase in establishing your own corporation will be in converting your limited company, which you can buy off the shelf, into a public limited company. Here you will need expert professional guidance. You might find a suitable business professional to perform the work for an agreed shareholding in your new company.
See our other guides in this series, especially "Become a paper millionaire almost instantly".
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