How to Be a Capitalist Without Any Capital

Success isn't about following the rules—it's about knowing which ones to break and creating your own shortcuts.

1. Diversify Your Income Streams

Relying on one source of income might feel secure, but it can leave you vulnerable. By cultivating multiple streams of revenue, you’re not only safeguarding yourself from potential failures but also boosting your earning potential. Think of it as spreading your bets—you’re minimizing risk while maximizing opportunity.

Nathan Latka’s own journey exemplifies this approach. In addition to running a podcast, "Top Entrepreneurs," which generates income through sponsorships, he also operates Top Inbox, a Gmail tool that adds value to users' email experience. Each stream of income feeds into the other. For instance, sponsors on one platform get spotlighted on others, benefitting both Latka and those buying ads.

Consider a scenario: if one of his ventures were to face challenges, the others would keep him afloat. This method isn’t just about surviving setbacks; it’s also about multiplying gains.

Examples

• Latka’s podcast produces ad revenue at premium rates—the more listeners, the higher the payments.
• His Gmail tool doubles as an advertising space, showcasing sponsors to a wider audience.
• Together, these separate ventures earn him multiple six-figure income annually.

2. Copy, Then Innovate

You don’t have to reinvent the wheel. Borrowing proven ideas can be just as effective as creating something entirely original. Successful companies often start by identifying existing strategies, tweaking them, and applying them to new fields.

One example is Wealthfront, an investment service that implemented Dropbox’s referral system of rewarding users for bringing in new customers. This adaptation helped Wealthfront secure more clients without coming up with an entirely new strategy.

Even as a small business owner, copying works. Aspiring T-shirt sellers can scan Etsy to identify successful motifs and styles—for example, cat images or yoga poses—then combine those trends into a fresh, marketable design.

Examples

• Wealthfront’s referral program was inspired by Dropbox’s user rewards.
• Etsy sellers use data to understand trends like wine-themed designs or monochromatic shirts.
• Entrepreneurs taking an existing concept and applying it to adjacent markets often see quicker success.

3. Systems Over Goals

Focusing exclusively on goals may seem productive, but it’s limiting. Instead, invest in building systems that handle repetitive tasks and streamline operations. Systems create a consistent workflow, allowing you to focus on growing your business.

For Latka, creating Facebook fan pages individually for $700 seemed like a solid goal, but it limited his growth. After he developed software that automated the process, clients began subscribing for $300 per month to create their own fan pages. This shift allowed him to grow exponentially without adding to his workload.

Efficient systems also enable outsourcing. Document your repetitive tasks—such as email outreach—into an easy-to-follow guide. Then hire others to execute them while you focus on higher-value activities.

Examples

• Latka’s Facebook fan page business shifted from manual work to subscription-based software.
• Automating processes saved time and increased customer scalability.
• Task outsourcing allows businesses to grow with fewer hand-held operations.

4. Sell Tools to Thriving Industries

It’s often better to support booming sectors than to compete in them. By selling tools to companies in fast-growing markets, you can earn a steady profit without diving into the competitive chaos of those industries.

During the Gold Rush, many became wealthy not by mining for gold, but by selling shovels and pickaxes. Similarly, companies like Onfleet created delivery management software for food distributors like HelloFresh, generating annual revenues of over $2 million by solving logistical challenges.

A comparable tactic might involve designing products like iPhone cases or offering survey software to businesses. Instead of reinventing the industry, provide the tools that keep it running.

Examples

• Onfleet profited by coordinating delivery services for booming grocery networks.
• Amazon entrepreneurs found financial success in related accessories like phone cases.
• Business services like survey tools capitalize on other companies’ core operations.

5. Leverage Existing Assets

Instead of obsessing over reducing expenses, focus on maximizing what you already own. For instance, you might turn your home, car, or other possessions into income-generating assets.

Latka exemplified this with his Austin home. Spending most of his time traveling, he listed the property on Airbnb, earning extra income each month—enough to both cover his mortgage and make a profit.

Unused vehicles can earn a return by joining car-sharing networks. Even if your current resources seem modest, you can create opportunities for passive income by thinking creatively.

Examples

• Renting out properties while traveling can fund mortgage payments.
• Peer-to-peer car-sharing apps generate income during idle hours.
• Turning underutilized resources into steady financial returns eases financial stress.

6. Travel in Luxury without Overspending

Flying business class might sound like a dream, but leveraging air miles and travel services can make high-end travel surprisingly affordable. Using specialized tools and strategies, you can elevate your travel experience without breaking the bank.

For instance, Latka used credit card points from his business spending to book a 45-day first-class trip from Austin to Bangkok for just $120, thanks to a service called Flightfox. Delays and cancellations? Services like AirHelp handle claims, sometimes netting travelers up to $400 in compensation.

Even luxury lifestyles can be managed affordably when armed with the right tactics.

Examples

• Accumulating air miles using business expenses ensures free or cheap airfare.
• Using Flightfox, Latka reduced a first-class trip’s cost to a fraction.
• Tools like ClaimCompass help travelers obtain payouts for disrupted flights.

7. Pick Digital Businesses

If you’re considering buying a company, opt for digital ventures—they’re simpler and more cost-effective. You’ll save on office rentals, insurance, and permanent staff, increasing both flexibility and profitability.

Freelancers can handle most business needs, and platforms like Toptal help connect you to skilled talent. Digital companies are also easy to grow and scale. Take Mail2Cloud, which Latka bought and rebranded as Top Inbox; its simple model allowed him to serve Gmail users as a distribution channel for advertising.

Every step in the digital space is designed to save money and enhance growth with minimal overhead.

Examples

• Digital products negate the need for brick-and-mortar investments.
• Freelancers from global platforms cut ongoing staffing costs significantly.
• Mail2Cloud’s purchase boosted Latka’s asset portfolio with a high-growth opportunity.

8. Cap Your Customers for Higher Revenue

More clients don’t always mean more profit. Limiting customer numbers can create exclusivity, allowing you to offer premium services at higher prices—and generate a waiting list of people eager to pay.

Latka’s GetLatka platform, which provides data to venture capitalists, caps its client list at 50 while steadily raising prices. By focusing on fewer but higher-paying customers, he retains their loyalty while increasing income.

Less emphasis on expansion means more resources on enriching client experiences and negotiating more substantial fees.

Examples

• Exclusivity enhances the perceived value of services.
• Raising prices doesn’t deter followers who prioritize quality and scarcity.
• Waitlists transform customer demand into a pricing advantage.

9. Multiply Revenue Through Competitive Insights

To expand income, look closely at your customers’ habits. Ask them which products they use in addition to yours, and then decide whether to collaborate with, acquire, or replicate those competing services.

For example, a tax software business can learn about its customers’ other tools, then either build or acquire related services to create bundled offerings. This strengthens product loyalty and ensures you’re capturing multiple layers of revenue within the same niche.

Listening to your customers’ needs can help you identify chances to dominate your market subtly.

Examples

• Companies that bundle complementary products simplify customers’ decisions.
• Acquiring competitors’ solutions eliminates their market share.
• Collaborations create mutually beneficial relationships that enhance offerings.

Takeaways

1. Diversify your earnings—explore ways to create multiple income sources.
2. Build systems to handle repetitive tasks and outsource when possible.
3. Maximize the value of your existing assets, such as housing or transportation.