Tuesday, April 3, 2018

3 Steps To Starting A Business, Changing Your Fortunes And Building A Better Life

Money tips daily serves those who want to save money as well as people who want to make more money.

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.

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

  1. Decide what you really like to do.
  2. Open your mind
  3. 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.

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.

2. Open your mind

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".

3. Take ACTION!

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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