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The 10 Principles of Self-Made Billionaires

By Alex Charfen (https://www.success.com/author/alex-charfen/) | May 30, 2016 | 12 
(https://www.success.com/the-10-principles-of-self-made-billionaires/#comments)

Billionaires (http://www.success.com/article/stuff-rich-people-do-10-things-youre-
probably-not-doing-right-now) have something most of us don’t.

But that’s only because we haven’t learned it yet.

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I’ve site
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billionaires. I’ve studied them extensively, and
here’s what I’ve discovered: Billionaires are billionaires because they all follow a set of
Ok No
unique perspectives, or principles, that help them persevere where others nd challenges.
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I call these 10 principles “The Billionaires’ Success Framework.”

Principle 1: Simplicity of Purpose

Billionaires are billionaires because when they went about building an empire, they were
hyper-focused on a speci c objective. All their effort and energy was dedicated to pursuing
that clearly de ned purpose (http://www.success.com/article/answer-6-questions-to-
reveal-your-life-purpose). For example:

Henry Ford wanted to democratize the automobile—to make it available to everyone.

Bill Gates wanted to put a PC inside every home in America.
Steve Jobs wanted to put the power of a computer inside a phone (and make it painfully
easy to use).

When we look at the whole of these goals, they seem massive, imposing, and yet they can all
be stated in a single, easy-to-understand sentence.

Related: 4 Tips for Setting Powerful Goals (http://www.success.com/article/rohn-

4-tips-for-setting-powerful-goals)

Principle 2: Simplicity of Plan

Billionaires are not known for having highly detailed, highly elaborate plans.

Herb Kelleher, founder of the legendary low-cost people-mover Southwest Airlines, didn’t
use complicated numbers or ingenious technical secrets to turn the airline industry on its
head. His plan for Southwest followed three tenets:

Get the wheels up and get the wheels down.

Have fun.
Embrace being the “low-cost” airline.

These painfully simple tenets are the foundation of the most pro table airline in the history
of the aviation industry. Keeping things simple helps all employees—not just key leaders—
focus on the activities that will be most impactful to the success of the company
(http://www.success.com/article/4-steps-to-revolutionary-business-growth).

Principle 3: Limit
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Billionaires limit what they tolerate—it sounds callous but it’s actually brilliant.
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Billionaires don’t cultivate success from their wants; they extract it from the world by
limiting what they’ll tolerate.

They don’t tolerate incompetent or unhelpful people.

(http://www.success.com/article/12-ways-successful-people-handle-toxic-people)
They don’t tolerate an absence of results.
They don’t tolerate social pressures—they’re willing to embrace the isolation, solitude
and suffering it takes to build something truly great.

Billionaires are the 1 percent of people who tolerate what 99 percent of us avoid, and
generally avoid what 99 percent of us tolerate. They are constantly optimizing their lives.
(http://www.success.com/article/rohn-a-good-life-contains-these-6-essentials) They are
asking themselves on a daily basis, Where’s the operational drag in my life? What can I get
rid of today to make tomorrow better?
Billionaires identify and purge without hesitation—that’s why they’re creating the greatest
outcomes in the world.

Principle 4: Absolute Reliance on People

Billionaires don’t just occasionally lean on other people; they absolutely rely on them to
make it through each day. From personal assistants to the members of the board, billionaires
cultivate fantastic professional relationships (http://www.success.com/article/8-tips-to-
keep-professional-relationships-from- zzling)so they can rely on them when they need it
most.

Here’s why: No single individual could create the leverage and momentum necessary to
create billions of dollars in value. It’s the billionaire who asks for and offers protection and
support, because they know that entrepreneurs accomplish almost nothing alone, and we all
move forward faster together.

Principle 5: Absolute Dedication to People

Due, in part, to their reliance on other people, billionaires are also obsessively dedicated to
people; this includes customers and investors, but especially employees and their close
teams.

This kind of obsession can manifest itself in a variety of ways—some billionaires are
obsessed with creating the absolutely perfect product, some are obsessed with spreading
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Bill Gates, feared early in his career for Ok his Noerce temper, learned to become a strong
and valued mentor for top leaders at Microsoft.
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Warren Buffett created one of the greatest fortunes and business empires in history,
but only after he recognized the need to develop great leaders
(http://www.success.com/article/how-to-build-new-leaders) and keep them close.

And when it comes to the people who create leverage for billionaires, this dedication is
absolute and unshakable. The important people in a billionaire’s life—from founding partners
to their assistants—are always taken care of and usually asked to stay involved in their lives
for a long time.

Related: 8 Traits of Healthy Relationships (http://www.success.com/article/rohn-

8-traits-of-healthy-relationships)

Principle 6: Rely on Communications Systems

Everyone knows that for your business to succeed, clear communication is essential
(http://www.success.com/article/john-c-maxwell-the-greatest-skill-communication). But
over the years, I’ve had the chance to meet with many successful entrepreneurs and most of
them share a surprising trait: They have trouble communicating. In fact, billionaires, the
most successful entrepreneurs, tend to have the greatest dif culty.

But they succeed because they rely exclusively on communications systems, not their own
communications skills (http://www.success.com/article/how-to-speak-well-and-listen-
better). All billionaires create ways to accurately track progress, measure results and
optimize performance (http://www.success.com/article/how-to-exponentially-improve-
your-performance). They understand the importance of being able to gain perspective
through context, and they use systematic communication methods that are consistent and
reliable.

By doing this, they can ll in the gaps where their own abilities are lacking, and create
momentum.

Principle 7: Require Push Communications

I can’t state this clearly enough: Billionaires require push communications.

They don’t wait around for someone to communicate with them. They don’t go around
seeking the information they need, researching their answers for hours. Billionaires expect
their information to be curated, concise and delivered directly to them without having to
ask. This is what they require from their teams.
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by miring themselves with insigni cant or
impertinent information—they know exactly what they need to see and when they need to
Ok No
see it. The people who are responsible for creating momentum in a billionaire’s world are
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required to communicate this information without being asked. They are proactively
pushing key information to the top of the to-do pile each and every day so the billionaire
knows where to invest his time (http://www.success.com/article/john-c-maxwell-5-
qualities-of-people-who-use-time-wisely), energy, etc.

Principle 8: Be Intentional With What You

Consume
Consumption in the absence of intention is waste.

Billionaires are incredibly intentional with their consumption of resources, and no resource
is more thoughtfully consumed than information. Typically the information they need is
relevant to a highly speci c issue or decision. If there isn’t a need, billionaires tend to ignore
the information.

If information isn’t moving you forward to where you want to be, it’s bogging you down.
Billionaires know this, and you should, too.

Principle 9: Make Decisions Based on Data and

Narrative
Billionaires don’t gamble—they make their decisions (http://www.success.com/article/stop-
overthinking-it-9-ways-to-make-decisions-with-con dence) based on a blend of data and
narrative. Why? Because they know the value of dual perspectives—one rooted in numbers
and the other rooted in people.

If they relied solely on data, then a single mistake—a fudged number, an incorrectly recorded
data point—could dramatically skew their ability to make the right decision. If they relied
solely on narrative, their reasoning would be subject to swings in popularity or sentiment,
and they’d be making decisions without anything objective backing it up.

Only by analyzing the data and having in-depth conversations

(http://www.success.com/article/7-keys-to-a- awless-conversation) with the right people
can billionaires grasp enough of the picture to make a quality decision.

Principle 10: Be Proactively Transparent

Many people think of transparency as being a willingness to answer questions. But what
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Billionaires proactively communicate with intention to avoid misunderstandings and

eliminate any type of drag on their organization. They know that vague goals and an unclear
purpose (http://www.success.com/article/what-do-you-want-out-of-life) can stop
momentum in its tracks, so they don’t wait for people to approach them with questions. They
understand the importance of actively showing up and sharing what they need with the
people around them.

Proactive transparency is vital because it ensures that teams understand outcomes and
remain on the same page. It also increases con dence in leadership
(http://www.success.com/article/rohn-7-personality-traits-of-a-great-leader) by eliminating
any hint that something is being held back. A lack of transparency only increases pressure
and noise for billionaires, and makes it dif cult to create the outcomes they want.

No matter the experience or business size, the self-made billionaire’s framework includes
lessons all entrepreneurs can integrate to build high-growth businesses… and build
businesses around themselves.

Related: Are Entrepreneurs Born or Made? (http://www.success.com/blog/are-

entrepreneurs-born-or-made)

Photo by GaudiLab/Shutterstock.com

Alex Charfen
(https://www.success.com/author/alex-
charfen/)
+ posts

Alex Charfen is the co-founder and CEO of CHARFEN

(http://www.charfen.com/about-alex-charfen/). He has spent
his life seeking to understand how to make business grow,
which evolved into the question, “How do you help people
grow?” Through his research and years as a top consultant to
billionaires, the Fortune 500 and Global 100, this question
led Alex to discover the long-misunderstood Entrepreneurial
(https://www.success.com/author/alex- Personality Type (EPT). Best-selling author Robin Sharma
recently described Alex as “the most progressive
charfen/) entrepreneurial mind on the planet.” A highly sought-after
speaker on entrepreneurial awareness, Alex has spoken
around the world for tens of thousands of entrepreneurs and
top global businesses to help them identify and live in their
strengths.

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← To Overcome Failure, Think Like a NASA Engineer (https://www.success.com/to-

overcome-failure-think-like-a-nasa-engineer/)
5 Must-Live-By Rules From History’s Masterminds → (https://www.success.com/5-must-
live-by-rules-from-historys-masterminds/)

12 Comments

Sunaina (http://www.exigorecycling.com) on August 11, 2018 at 8:09 pm

Are you sure, if i follow all the rules i will become a billionaire !! 🙂🙂
Reply (https://www.success.com/the-10-principles-of-self-made-billionaires/?
replytocom=4678#respond)

Praveen Srivastava on August 23, 2018 at 3:01 pm

I think it is all about dedication..And I hope you become billionaire too ✌✌✌
Reply (https://www.success.com/the-10-principles-of-self-made-billionaires/?
replytocom=4761#respond)

Philip on August 25, 2018 at 12:28 am

Sunaina, after reading the traits you still don’t get it then you will never become a
billionaire. The bad news is world is not dying to make you a billionaire, and
We usecertainly
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It’s the
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not showing in your attitude.
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17/07/2020 The 10 Principles of Self-Made Billionaires | SUCCESS

Reply (https://www.success.com/the-10-principles-of-self-made-billionaires/?
replytocom=4770#respond)

Craig Richwine on August 29, 2018 at 4:37 am

No. You still have to take action.

Reply (https://www.success.com/the-10-principles-of-self-made-billionaires/?
replytocom=4794#respond)

Peter De Run on October 30, 2018 at 12:23 am

Hi Sunaina. Yes, I have the same question. It’s easy to share ten characteristics one
sees but are they not just ones personal observation? The reality is that most of
these characteristics may not be sure- re steps one should take. So what actually
do we do with this information? How best to respond to this article?

Reply (https://www.success.com/the-10-principles-of-self-made-billionaires/?
replytocom=5272#respond)

GJ on March 1, 2019 at 5:56 pm

You have to do more…lol. They’re only some guidelines. Nice try though.

Reply (https://www.success.com/the-10-principles-of-self-made-billionaires/?
replytocom=6236#respond)

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Lemuel on October 21, 2018 at 11:43 pm
Ok No
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17/07/2020 The 10 Principles of Self-Made Billionaires | SUCCESS

Given Principles 4 and 5, there is no such thing as a “self-made” billionaire!

Reply (https://www.success.com/the-10-principles-of-self-made-billionaires/?
replytocom=5200#respond)

Barry Hall on October 26, 2018 at 8:31 pm

Many thanks for a great post! Really enjoyed reading it.

Reply (https://www.success.com/the-10-principles-of-self-made-billionaires/?
replytocom=5251#respond)

2asuccess on October 26, 2018 at 8:51 pm

Sounds like a mastermind plan.

Reply (https://www.success.com/the-10-principles-of-self-made-billionaires/?
replytocom=5252#respond)

Hope on October 28, 2018 at 7:07 pm

It’s the mindset that will catapult you to the knowing and being a billionaire! 😉
Reply (https://www.success.com/the-10-principles-of-self-made-billionaires/?
replytocom=5261#respond)

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on September 15, 2019 at 1:25 am
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This is an excellent list! Struggling to think of many points that would top these
statements.

Reply (https://www.success.com/the-10-principles-of-self-made-billionaires/?
replytocom=7972#respond)

Jehoyakim Jena on April 14, 2020 at 12:51 am

This article is epic! I’ve noticed I follow most of them just by adjusting my time and day.

Reply (https://www.success.com/the-10-principles-of-self-made-billionaires/?
replytocom=14578#respond)

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