Basic Business Knowledge
In this post I take the time to share some of the basic business knowledge that I have gained in the last 7 years. For most people, their business model is to work a job. However, let’s look at the options available for people who want to be entrepreneurs. There are basically 3 options – a conventional business such as a retail store, restaurant, or skill-based business such as auto repair, carpentry shop, masonry, computer repair, etc. Or maybe people will open a service-based business such as an accounting office, mortgage and real estate brokerage, or insurance, landscaping. You also have the various franchise opportunities out there which people will pay anywhere from several thousand dollars up to a million dollars for. You have the different professions such as health care and legal services.
This isn’t exhaustive but gives a general overview of various business models people pursue. What does it require to have a conventional business like these? You have to purchase or rent a retail space of office. You need equipment and supplies, You need inventory. You need staff. You need business insurance. You need to invest in promotion. You need a lot of money to start and maintain the business until you turn a profit. Actually earning a profit will depend on how much you invest versus the amount of sales you get. Just look at these typical businesses in your town. How many storefronts have you seen come and go over the last several years? How many “Going out of business” situations have you seen? Imagine the money that was invested and the incredible amount of work and time that went into launching those businesses, only to have them crash and burn. Why do these businesses fail? They didn’t offer a product or service people want, they didn’t promote their business sufficiently, The goal obviously is to earn more than you spend. But what about time?
Is you goal to create more time or give up more time? Think of the people you’ve known with one of these conventional businesses. How much free time did they have? How much money did they have to put at risk? Then there are different types of home-based businesses. To simplify, there are 2 categories – businesses with duplication and residual profits, and businesses where it’s just you doing the work. However, in network-marketing you get to benefit from not just your effort, but the effort of hundreds and even thousands of others. Just like the big franchises have a central business model which gets duplicated by others, individuals like us can do the same thing but for a fraction of the cost and a fraction of the effort.
The difference in network marketing is – we get to benefit from the magic formula – we get to earn residual profits that grow in such a way that they grow beyond just our own effort. This is called passive income. This is why business icons like Warren Buffet, Bill Gates, Donald Trump, and Robert Kiyosaki give high praises to this model. We can be on a cruise and the income will continue to grow. Or think in terms of financial security. If you became sick or incapacitated and unable to work your business, as long as you built it right, you’re income would be secure. This means your lifestyle would be intact. Compare that to a job or conventional business. If you can’t perform, the income stops. Think of people you’ve known who had health issues and were no longer able to work. What happened to their lifestyle? This is why we need to realize that creating residual income is like having life insurance that kicks in while we’re alive.
Also, remember that in a conventional business, just like working a job, you’re still trading time for dollars. If you want an abundance of time AND money, unless you’re a movie star with a string of hit movies or TV shows, or a musician with hit records, or an author with a million seller, you will never have the combination of time and money. Here’s your answer. Join a team of entrepreneurs who understand these principles and are committed to helping others become financially free while dramatically improving their health. Ask me how you can leverage the time, money and ideas of others to earn residual income online. I will be happy to share with you. In this digital age that we live in what you don’t know can hurt your pocket, take time to reflect and apply this basic business knowledge. Cheers.