Happy new year to you our dear reader, it is our hope that you are starting off this year in high spirits and high hopes, and if just in case that’s not the case for you, don’t worry, let us remind you that all you need to do is get through this rough patch and all shall be well on the other side, you have come this far and that only means greatness awaits you, therefore keep keeping on.

As we get started remember it is because of your engagements that we have come this far, so keep giving us suggestions of topics you’d like us to break down for you and we shall do just that.

Now without any further ado, let us get into the topic of the day:

Today we want to focus on the power of aggregators and or the great impact that aggregation of resources can have on an economy and on an individual wealth growth.

But as usual before then let us define these two terms so that we can be on the same page as we move forward.

Aggregators for the sake of this article we’re focusing on funds or resources aggregators, so these are a group of people that have a common interest that comes together to figure out a solution on how they grow together.

Aggregation hence becomes the process of implementing the ideas that have been developed by this group of aggregators.

In today’s article, we just want to highlight the need for the pull of funds and how you can actually capitalize on that concept to grow your wealth, we thought this is the best way to start the year, as we continue to share very simplified financial nuggets as we have been doing, so if you haven’t subscribed to our newsletter go ahead and do that and you are guaranteed of never missing an article.

Aggregation simply means getting people who have a shared interest or goal and then coming together to figure out a way that you’ll grow together, to bring this point home look at how the coffee industry, the tea industry, the dairy industry, or better still the very new in our markets homeownership concepts works. These are people who realized that as an individual they can not accomplish as much as they can accomplish if they came together and pulled their “little resource” together and traded the market as a block.

Another very good example to show how the power aggregation can be put to work effectively is the table banking concept or the merry-go-round concept. Sometime last year we happen to have participated on a Twitter space that was discussing financial growth and someone said that instead of participating in the above you’d rather just develop the financial discipline of saving as the amount of money doesn’t earn you any interest and actually, on the flip side, it actually has a hidden cost attached to it, as every sitting has a cost of the refreshments that will have to be settled.

We don’t disagree with this argument, but what it fails to capture is the benefit hidden in the concept as well, what is this benefit you may wonder?

Remember the saying, ‘two heads are better than one?’ yes?

Exactly that is the benefit of aggregations, it not only allows you to get where you are going faster but it allows you to get there efficiently, in that you get to tap on different brains from the different aggregators and you also don’t have to save for twelve months to raise funds to effect a project but you can actually get the funds today do the project at an interest-free rate or a very friendly interest rate.

The very important core values to have in mind as you are considering incorporating the aggregation concept is understanding the vision (where the group is going) and most importantly the mission (how to get there) of the fellow aggregators if that syncs with what you are looking for then go ahead and join or form the aggregation group, doesn’t matter whether it is a major corporation or a simple table banking, aggregation of funds has been proven to work.

The basic concept to have for aggregation to work effectively is to have the vision and mission statement not only clearly outlined but well understood by everyone involved, have effective structures put in place to enable implementation of the mission to achieve the vision.

It is not logical to argue that pool of funds doesn’t work, how else do you think the stock market works? Those companies that participate in the market bank on the ‘little’ funds from each of the stock bought to pull those funds together and undertake a project which on their own they wouldn’t be able to raise, and if they were able to raise it eventually it would be too late to reap the same benefit as at that time, because obvious reasons like inflation, time value of money and market readiness just to name a few.

Take-Home: if you want to walk fast walk alone, but if you want to walk far walk together, by Ratan Tata

MA Financial Services Consultants.

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