The Founder & Executive Director of Zido & Rowvar, an entrepreneur, influencer, media figure, and author of “The Entrepreneur’s Diary”, introduced the “20, 80 by 500 rule,” also known as the “Billonia rule,” as a guide for investors to achieve exponential growth towards becoming a billionaire. This rule involves investing 20% of personal funds and borrowing the remaining 80% to invest in high-return opportunities such as real estate or startups. The goal is to aim for a 500% growth potential for the business, which may vary based on market conditions and other factors.
By reinvesting profits and scaling investments, investors can potentially achieve massive returns in a relatively short period of time. For example, by purchasing a $500,000 rental property with $100,000 of personal funds and borrowing the rest, investors can potentially scale their investments by reinvesting profits. However, this strategy comes with risks, as leveraging gains can also amplify losses. It’s crucial to carefully evaluate investment opportunities and have a solid investment plan.
To successfully implement the Billonia rule, investors should ensure they have a large and dynamic market, develop financially viable and nonvolatile products/services, have a deep understanding of the industry and market trends, and revise their profit model until they reach their target. With determination, strategic vision, and operational excellence, the Billonia rule can help investors achieve success and leave a lasting legacy in their industry. The hope is for many investors to adopt this strategy and become self-proclaimed “Billonia investors” globally.
The information provided in this content is not financial, investment, or tax advice, and readers are advised to consult with licensed professionals for advice tailored to their specific situation. Forbes Business Council is cited as a growth and networking organization for business owners and leaders, raising the question of qualification for joining.
