Do you own a business or does it own you?

braveheart

What is a business anyways? We’ll if you can go on vacation for a week and your business did fine without you, then I would say you have a business. A lot of people think I’ll just quit my job and start my own thing. But what a lot of people do is just start a job that they own. Not a good thing if your wanting freedom of time. If you just can’t stand your job and just want to do anything that’s different to put food on the table then that’s ok. I personally think that if the venture doesn’t have the possibility of freeing up time then it’s not worth my effort. Work on the actual business system and processes especially if you have skilled trade your wanting to work as a business. Find yourself some good people to consult with.Start thinking of your business as a system and not a J.O.B. There is a big difference. I mean, why go into business for yourself when you can just keep your job and increase your skills to get a higher paying job and/or higher status job.

If you start looking at your business as a system, think of it as a passive income money generator. It’s like putting gas in your vehicle. You put the gas in, a lot of processes take place and then you move forward. You wouldn’t open the hood up every time you started your vehicle and start to hand crank it. I guess if you drive a beater you might. The main point I want to make here is, if you don’t start working from your neck up then your going to get tired.

It doesn’t matter if your painting houses, building houses, selling clothes, selling cars, if you do all the work then your going to get tired. So you can either hire employees to help you, work with other businesses to get the job done, or get temporary employees. All of these things are going to add financial risk to your company. And excessive debt if your not careful. So knowing your system will help you get the work done effectively. Start training people to do what you do instead of being the only guy working the business, “job”.

What is residual income?

The simplest way I can explain residual income is in the banking industry. The loan. When you sign a 5-6 year note on a vehicle loan you are creating a residual income source. Of course it’s not your income source. You are telling your banker,hey I’m going to take food off of my table and put it on yours for 5-6 years guarantee. It’s either that or you’ll pay it all in full to get out of it. Of course the sweet thing about buying a new car is depreciation, you have to pay the note in full to get the title to the vehicle. As soon as you drive it off the lot, your upside down. That is very good for the banker and not good for you. He now has a residual income source that your going to have a tuff time getting out of. You’ll have to come up with the extra upside money to get out of this deal. Your only choices here are to borrow the money or come up with it somewhere else. 

 Start thinking of ways of building assets that pay you cash.  It could be as simple as a website that generates a income stream.  Think about the system that is generating the income.  How could this be ran without me contstantly working it?  There’s nothing wrong with working really hard.  But, working really smart is a whole lot better.

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