Creating Wealth – 3 Business Building Ways To Take Control And Get Ahead
With all the uncertainty in the world and economy today, more and more people are waking up to the fact that times are changing and that they need to be thinking about creating wealth.
The industrial age – where job security, retirement and pensions were commonplace – has been replaced by the new information age. People are coming to the realization that neither the government nor their employer is looking out for their best interests. And with the volatility and huge swings in the stock market over the past few years, many people have already lost 10 plus years of stored wealth. Home values have tumbled, foreclosures are soaring, the employment rate is hovering around 10% and taxes across the board are increasing…
Creating Wealth is not as simple as it used to be
No longer is the status quo acceptable. No longer are people going to just hand their money over to real estate brokers, stock brokers, or count on the government’s social security program – “broker” has been the result for most people (not a viable way of creating wealth obviously)!
People in droves are realizing they must take control of their lives, and specifically their finances. More and more people are searching for a viable means of creating additional income and creating wealth. The problem is people are already short on time and long on commitments. They need to create a secure source of income, but can’t find a job that will pay them the $200+ an hour they need to reach their goals given their time constraints. Even if they could, another job only magnifies the problem described above and further increases your tax liability, meaning you actually need to make even more money just to keep pace with what the government’s going to take from you in taxes.
The good news is, you do have options. Other than finding that magical secure job – you know, the one that will somehow pay you thousands of dollars a month after taxes with retirement and other benefits – other than that, what else is there for creating wealth?
One option for creating wealth is investing money. If you’re sitting on a large chunk of cash – and with rates and returns as low as they are today it needs to be very large – this could be one way. Chances are if you have this kind of money, you’re probably already pretty well off and not relying on an employer or the government anyway. But just for kicks, if you were looking to invest as a way to take control of your financial situation, let’s say you needed $10,000/month to cover your living expenses, pay down debt and set some aside for a reserve, etc. $10,000/mo is the equivalent of getting a 12% return on a $1,000,000 investment (before taxes). That’s just not going to happen for the average person any time soon in this market – especially when you take into consideration the government’s portion (taxes). Realistically, you’d need closer to $10,000,000 invested to be able to net $10,000/mo in today’s market. So not a very realistic option for creating wealth for the majority of people…
The next option for creating wealth today, based on my personal experience – and according to the majority of wealthy people out there – is the best way to get ahead and take control of your financial future and that’s through starting a business. Business building by far is how the world’s richest acquired their wealth. So here are the different options when it comes to creating wealth through business building:
Business Building – Option 1 for Creating Wealth:
Start a traditional brick-and-mortar type business. Suppose you have this great idea for an incredible product. You can start a business to design, manufacture and sell your product. This again requires a large up front capital investment and business building financing isn’t so easy to obtain right now, regardless of how good a product you might have. A service-based business may be cheaper to start up but the service sector is shedding jobs and you may have quite a struggle in creating wealth that way. On top of that, 9 out of every 10 businesses fails their first year in business, and the odds don’t get much better for the next couple of years following either. One approach to solve this particular business building problem is just to realize this may be an issue and look to start up 10 businesses. Could be a costly and time consuming process but the education would be priceless and your net worth by the 10th business – if you even needed to start all 10 – would be among the top 1% of the country, if not the world.
Business Building – Option 2 for Creating Wealth:
Buy a Franchise (like Subway or McDonald’s). A Franchise is a proven business with an existing structure or system of doing business. In purchasing a franchise, you are buying a turn-key business where you simply follow directions and odds are good that you’ll make six-figures or multiple six-figures a year with this business building approach. The downside again is cost: some of the highest paying and best franchises will cost you half a million to a million dollars and above just for the rights to have access and be approved to work their system. You still have all the other business building costs of a location, employees, supplies, equipment, etc. Banks are more apt to lend money to this type of business structure due to the success record of these established businesses rather than a brand new start-up but even today that may be difficult. So someone with limited skill could make money with a franchise if they follow a system, but it’s still too cost prohibitive for most considering a business building approach.
Business Building – Option 3 for Creating Wealth:
Home Based Income. With a low cost of entry compared to the options above yet with the strength of an established business model, the Home Based Income model is the best solution for most people looking to take control of their finances. The flexibility of Home Based Income of course allows you to work from home and utilize the internet to tap into an existing company’s successful business bringing together all the advantages of the above business models with few of the disadvantages. One disadvantage though of Home Based Income, due to the low cost of entry, is a home business owner will have access to the tools to be successful but must take personal responsibility to work the business consistently to produce consistent home based income. For self-starters this is no problem; for non-self starters, they need to ensure they find a team or home based income support structure that will help keep them accountable.
One other advantage of the Home Based Income model over the others is the ability to create lasting residual income – income where the money comes in without you having to be present. This does take time to develop, as little as 2-5 years for those very serious and committed to their success, though internet marketing has accelerated home based income in recent years and produced even greater results documented after one or two years.
To learn more about how you can take control of your financial future and begin creating wealth today, visit this site now for more information: Home Based Income
+Hans Schoff
... +Hans Schoff knew from an early age that he wanted something different. At 18, upon discovery of an entirely different model based on achieving freedom (not security), he dropped out of college and started his first (home-based) business with borrowed funds (credit card) and began his study on the secrets for creating wealth. That first business expanded into a multitude of others over the years (see ABOUT page), enabling him to focus his time today on developing new assets & increasing cash flow (read: multiple streams of income) to best position himself for the many challenges we'll face in the near future. He now shares his accumulated experiences and knowledge - his secrets for creating wealth and what he's doing now - with his loyal subscribers so they too can create success to soon achieve freedom for themselves and be prepared for what lies ahead. To learn how you can discover these wealth secrets and transform your situation for a brighter future, to begin to turn your circumstances into wealth that grows and grows regardless of your background or experience or what lies ahead, simply fill in the red form down below...
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Home based business is definitely the way to go for me. With all the different articles to help you on the web right now i dont see why more people don’t try home based stuff.
Thanks for publishing these details on your site.
What I can say is that majority of the people don’t earn enough money to save. Savings play a great role as far as investing is concerned.
This is very informative! However,Home based income seems more appropriate for me. Thanks for blogging this nice article.
Thanks for your feedback Lynkez
Home based business is actually getting a greater competition from the high running internet business, though it can work with some products they are less compared to those that can be run online.
Hans. What would you advise someone who is interested in buying gold?
Every one I know is saying, “buy gold”, if things get bad then you will always be safe buying gold. lol… I wouldn’t have a clue about buying gold. Did buy some East Rand gold shares once, but that was about it.
Any advice?
Thx
Steve
Hey Steve, I’d suggest starting with bullion, something that isn’t anyone else’s liability and can be exchanged or traded as in the form of currency. I’d also suggest getting some silver though as well; you can think of silver as change (coins like quarters, dimes, etc) and gold as paper currency (like dollar bills). The reason for this is that with the high price of gold, it’d be hard to buy something small. It’s like only having your call to give someone when all you wanted is a loaf of bread. Once you start building up some bullion then maybe also look into some gold stocks which are very undervalued at the moment. But above all else, continue to expand your personal knowledge base on investing in gold and investing in silver, etc – that will net you the highest return of all! Hope that helps.
Interesting ideas… My sister and her husband have been thinking of opening up a franchise together, I’ll have to forward her your blog so she can see what she’s really getting into! Any tips for her?
A franchise can be a great business to get into again because the system is already in place. It’s a huge committment though; McDonald’s for example has you work at all the different positions in a McDonald’s restaurant for 6 months or so until you understand first-hand how everything works and why. Then you have to attend Hamburger University for another 6 months or so to learn the business. It usually takes a few years before you’re showing a real profit but of course, after a few years of hard work and following the system (and investing quite a pretty penny) you’re able to bring in hundreds of thousands of dollars a year of profit (not sure how hands-on you have to remain to continue to create that kind of income). I believe a home based business is the simplest, most affordable and most rewarding business for most people, but it’s not for everyone. A franchise is another good business model that has proven to work for many people. Hope that helps!
I’ve been wanting to have a small business for a very long time now. Unfortunately, during these past couple years we incurred a lot of debt and have not been able to pay some creditors. It was mostly due to my husbands bad financial decisions. He pursued building a home for us and did not prepare for the financial obligation that came with it. Can we still apply for a loan and get approved despite our situation?
The requirements for obtaining financing these days are becoming more and more stringent, despite the low interest rates and decline in housing prices. That being said everyone’s situation is different and you’ll need to talk with a mortgage specialist or your bank to know what products are available that you may qualify for. There are lots of variables, from your credit rating, to your capability for making payments and the amount of collateral you have, among other things. Your first step is to contact a good mortgage specialist there locally who should be able to help you. Good luck.
Home Based business is a great model to start earning passive income as a derivative of hard work. The cold hard fact is that 95% of people who attempt to make a livable income through IM or WAH businesses will fail. The reason is people think it is a magic bullet when the truth is…. There are no magic bullets!
Hey Kevin, it’s true, 95% of most businesses will fail in their first year regardless. Does that mean one should avoid a home business? Kiyosaki teaches that to him it just means you go out and start 10 businesses knowing that one (or more) will succeed. Why? Because it’s worth it! The rewards are many and endless. Thanks for the comments!
Thank you for your article, i get to favorite your blog !
I agree that you don’t want to just blindly hand over your money to someone who actually makes their money by “moving” your money. However, a good financial planner can at least give you a road map. This way, you stay in control and you are dealing with someone who has an interest in protecting your assets and building them at whatever risk level suits your comfort zone. One funny thing I’ve noticed, that is almost universal, is that brokers always drive really expensive cars (compared to mine). This gives me a little pause as to who is working for who.
Jeffrey, I do not suggest people attempt to become wealthy or invest on their own. Investing is a team sport and likewise one needs good competent advisors. The mistake most people make is they think they can skip the education process by just handing their money over to the “professionals” and then really end up paying for an education! A good financial planner, a good tax attorney, a good CPA, etc – these are all important members of your investing team. Of course, these advisors all cost money, so its important to ensure you are working to create passive income so your business can help pay those bills for you (instead of just handing that money to the government for those who are solely employees – see my Types of Income article to learn more). Thanks for your comments Jeffrey
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According to to me Home Based income is best option because of flexibility and low startup cost.
The internet has leveled the playing field. It offers tools and techniques for growing your home based business faster than ever before. Almost anyone can become an entrepreneur today.
I think the education system is going to have to modify itself in order to compete. A 4 year degree only guarantees debt.
debbie
Ha, that’s a good point! That’s one thing you can count on, and the cost of formal education continues to increase each year (not to mention the course book ponzi scheme – over $100 for a course book? Really? And then a year later you have to sell it for pennies on the dollar as they mark it up and resell it again? I digress…)
Thanks for the post Debbie!
Hello Hans:
You make some excellent points here. I think more & more folks had better change there way of thinking about the typical J-O-B model or they may find themselves left behind & possibly destitute.20+ years ago I saw the 40/40 plan as a dying dinosaur….I have always had a Home based business…Not only have the financial rewards been good but the life long lessons learned about myself & others have been priceless.
Take Care
Matt
Right on Matt! You make a good point about the shift from the industrial age to today’s information age – it didn’t happen over night. It’s been going on for years – decades! That’s why I think today no one can argue that things haven’t changed or that the old system still works today. Thanks for your comments!
I like your post and it really gives an outstanding idea that is very helpful for all the people on the web. Thanks for sharing.
Stock Tips
I’ll take one #3 please with a side of Coca-Cola pleas :-)!
Ah, the life of an entrepreneur building a business online (or offline works too). Although I personally prefer the online world where our business has an even bigger potential to explode.
Yes, the obstacle in taking this route would be why many people decide to give in so quickly…
The requirements of consistency, drive, purpose, passion, and the understanding that it is NOT a get-rich-quick thing. It is on-the-job-training.
Once people grasp that fact – shift their mindset, and relate it in such a way that it is a must to create a pathway to a lifestyle of freedom – building a business online becomes (hands-down) THE best and most profitable way to live a life of total and complete time freedom!
Great post Hans! Thanks for always providing us with valuable insights into building our financial wealth.
-Jaclyn Castro
Jaclyn, would you like to SUPERSIZE your #3? LOL
Yes, building a business is not for everyone, be it a franchise, brick and mortar startup, or home business. As you say, it requires certain characteristics and drive that some people lack or simply do not want to put out. And that’s great. Because there are many companies out there that still do provide jobs for those who are more comfortable trading their time for money. Perhaps the timing is not right for them, perhaps they’ve been one of the LUCKY few to have been able to hold on to that elusive secure job. Either way, it is up to the individual to decide which option (if any of the 3 in this article) is for them. Thanks again for the great comments Jaclyn!
Also, depending on the home based business model you choose to use,
if it is using internet marketing, one “disadvantage” if we could say, is the growing number of competitors you are competing with worldwide.
It’s possible, but you have to do your homework and you must stay ahead of the game so to speak. But it’s doable for those willing to pur in the work and learning. I am one of them.
Hey Mike, the internet is becoming more competitive but then again there are also more potential prospects coming online every day as well, plus new marketing and prospecting techniques or different variations. It’s definitely a changing world! A home based business is not a get-rich-quick program; it takes time, energy and education, like anything else but nothing like what is required for the other ways of building a business for the same rewards, benefits or compensation. Thanks for your comment!
You sure are right about not “handing money over to the broker” anymore. People are going to the internet more and more everyday to take control of things like stocks instead of using an expensive in person middleman.
Hey Jared, it’s true, the internet is a powerful tool, is used correctly. There’s nothing wrong with using a broker, there’s only so much time in a day and you don’t want to have to do everything yourself, so outsource when it makes sense. But don’t just hand your money over to a salesman, cross your fingers and hope and pray that you’ll make money. That’s not investing, that is foolish! Today people must invest into their financial education and increase their financial IQ if they ever want to get ahead.