Money
tips daily serves those who want to save money as well as people who want
to make more money.
2. Open your mind
3. Take ACTION!
No matter how hard you try and make savings, eventually you will reach the point
where you cannot cut your budget any further.
It’s
a bit like governments who find that making cuts and reducing wastage can only
go so far. The country needs to produce more revenue and GDP in order to
prosper.
Just like a business, you need a combination of both keeping costs down and increasing revenue and profits.
It’s
the same for your own personal “economy”, which by the way is the only one you
can control, right? After making savings and cutting down on waste and
nonessential spending, how do you the next logical step and start earning a little extra
cash so that you can enjoy a better standard of living?
You
could get a better paying job, work longer hours or take a part-time job, but
you will still be exchanging your time for money. This obviously has its
limitations, as there are only so many hours of your life you can give to an employer.
You
could also start a part-time business, on or offline, from home like millions of
people have done. Most small businesses start as home-based or part-time ventures
with little or no start-up capital.
Starting a physical business requires capital, premises and equipment. Whereas, an
online or service based business usually requires little or no capital as you are
giving your service in exchange for money. You don't need to purchase stock or expensive equipment, all you need is a laptop or smart phone to get started.
If you’re
starting a new business I would NOT suggest renting a shop in the High Street
or signing leases for shops or offices.
Every
year, I see shops in my local area come and go as one business after
another fails. I’ve seen shops selling all manner of things like party costumes and balloons, upmarket
bathrooms as well as numerous restaurants all collapse within the first two years.
Some were start ups, but others were established businesses. One casualty was
the restaurant chain Frankie & Benny’s who didn’t last very long in a premises
they’d spent a fortune renovating. They must have lost between £500,000 and £1,000,000.
Get real! If the likes of Maplins and Toys “R” Us (both have recently gone bust) cannot
make it on the High Street, you’re going to need something pretty special in
order to survive.
Over
the years, I’ve seen so many people who have had a windfall or come into some
money (or borrowed money from relatives who have had a windfall) start up a physical
bricks and mortar business or paid thousands of pounds for some useless
franchise only to lose everything.
You’ve
only got to watch shows like Dragons Den - a BBC TV programmes where people pitch new ideas to wealthy entrepreneurs - to see some of the ludicrous business ideas that people have and
get into without doing any proper market research. Some of the contestants have
already sunk their life savings into an invention or business idea which has no
chance of succeeding.
When asked by the experts what research they had done,
they usually say they have asked their friends and relatives if they
thought it was a good idea and most people said yes! What would they expect
their relatives to say? What do their friends and relatives know about a new business anyway?
I’m
not saying don’t start a physical business, but you have to be very careful and
have enough capital to survive for the first few years.
If your physical business fails and you have ongoing liabilities, such as the rent on a long lease, or personal guarantees, you could lose everything including your house.
If your physical business fails and you have ongoing liabilities, such as the rent on a long lease, or personal guarantees, you could lose everything including your house.
What
are the alternative and better ways of getting into business?
You
don’t have to spend your life savings or start a physical ‘bricks and mortar’
business, as there are plenty of better and safer alternatives with far less risk and liabilities.
When
the Napoleon Hill published his ground-breaking book, Think and Grow Rich,
during the great depression of the 1930s he said that the way to start the
business with little or no capital was to provide “services”. This has not
changed that much in the last hundred years!
In
Hill’s day he mentions services like bookkeeping, which is still relevant today
as most businesses need a bookkeeper in addition to an accountant.
When
I was running a physical business we employed various bookkeepers over the
years, most of whom came to the office and had no business premises of their
own. On average we paid between £25 and £45 per hour for a Bookkeeper, and it
was not easy to find a good one.
The
service sector has replaced the old heavy industries that used to power the UK
economy. Today the City of London employs hundreds of thousands of people and
earns billions in revenue for the British economy.
3 steps to starting a business
- Decide what you really like to do.
- Open your mind
- Take Action
1. Decide what you really like to do
Before
you start any business, first decide
what it is you like to do or better still, what is your passion?
What
do you like doing in your spare time or at weekends?
What
jobs would you do for free?
What
would you really like to do if you won the lottery after you’ve got tired of
travelling the world and sitting on beaches?
We
all have unique talents and skills which can be monetised, so what is yours?
Of course,
you may need further training in your field, this can be done very cheaply in
your spare time.
One
thing that has changed over the last hundred years is the multitude of
opportunities which are now open to us in the internet age.
There
are thousands of jobs and businesses that didn’t exist 10 or 20 years ago.
People
can now make a living selling goods on Amazon, Shopify or Groupon. You don’t
need to rent a shop in the High Street, as these companies have built an online
store for you, and believe me, they get far more "footfall" than you will ever
get in the High Street!
You
don’t need to invent your own product, as there are thousands of products and
services you can sell as an affiliate partner on a commission basis.
You can also sell products for direct sales companies (Avon, Betterware and Ann Summers) and network marketing companies. You can also earn commission working with weight loss organisations and networking companies who have done the hard work of building a product and brand for you.
You can also sell products for direct sales companies (Avon, Betterware and Ann Summers) and network marketing companies. You can also earn commission working with weight loss organisations and networking companies who have done the hard work of building a product and brand for you.
I
know many people who are making a very good living in property, but started
with no capital.
Some
are running letting agencies on a rent to rents basis, with a make excellent
profits and have no shop and very little office overheads.
The
second thing you need to do is to open your mind and change your mindset. If
you’re stuck in your old ways and refuse to see the opportunities around you
then your closed mind will hold you back forever.
Things will not change unless
you change, and as Jim Rohn put it, "If you will change, everything will change for you".
The third
thing you need to do is to take action!
Nothing
moves without action!
Taking
action now might involve making a plan, doing some research or setting up a
free online account with Amazon.
I
can hear some of you saying, well that’s alright for some people, but I haven’t
got the time. This has more to do with your mindset than reality, because in reality, we all have the same number of hours in a day. How we use those hours
will determine our success, happiness and future security.
You can spend all your spare time in front of the television or on social media or use your time wisely by learning a new skill, improving yourself, looking for opportunities or setting up a part-time business.
If
every waking hour really is filled with activities, you might want to consider
outsourcing some of the work you do to free up time for income generating
activities.
Hiring
a cleaner or gardener might cost you a little bit of money, but the time it it
will save will be worth it if you use that time to generate extra income. My cleaning does my house in half the time I would take, which is a double bonus!
I’m
sure your hourly value is higher than a cleaner and if he’s not right now it will
be if you start using your time more effectively.
If
you would like further details on courses to get you started in an online or
property business, please email me at Charles@CharlesKelly.net
Check out my episode "3 Steps To Starting A Business
And Changing Your Fortunes " on Anchor! https://anchor.fm/charles-kelly/episodes/3-Steps-To-Starting-A-Business-And-Changing-Your-Fortunes-e19649
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