What You Should Know to Change Your Financial Level
While I haven't experienced everything that billionaires and millionaires are enjoying at the moment, I can tell you that I have learned something along the way on this journey of mine and I have decided to work on it to archive what I am looking forward to and that work is growing my cash flow.
A cash flow business or investment is any business or investment that put money in your pocket, account, or purse daily, weekly, monthly, quarterly, or yearly. First let me say this and say it loud that unless you have enough money to invest in the stock market, putting your $100 or $1000 for long term investment will not make you a millionaire. I am not referring to short term traders, I am referring to investing. That said, let's do the business aspect.
If you want to make money be it in a physical business, or online business one thing you need is something to sell. People pay for value and you will not expect to make money when you do not have what to sell. You can either sell a good, or service provided you sell something.
When you have something to sell, you need to solve the next problem which is who to sell to. You cannot sell things to people who are not interested in what you have to sell. It is important that these two things work hand in hand. These people are the ones you are going to sell the product because they need to be willing to buy what you are selling.
When you are done with finding the two, now you need to work on how to get what you are selling to people who will buy them. A game plan is needed, you need to be able to identify if what you are selling is a good or service. You see, I do not know what you intend to sell, they can only be categorized into 2 things which are either product or services.
From Food, furniture, flipping old stuffs, selling cars, and selling houses, you are dealing and selling products but if you are doing things like cleaning a car, driving a taxi, logistic services, social media management, and hair stylist, then you are selling services. Do you know that when you are working in a job, you are also selling service which includes your expertise and your time. So whenever you are in the business of selling time, you are selling a service provided it is not a tangible, physical object.
When you want to start a business, you need to ask yourself which of them is better, goods or services. You need to get it right here because if you don't it will be a frustrating business. Let me also remind you that you don't do a business on the basis of hobby instead you so a business because you are in it to deliver something tangible to people who want it because you want to make profit.
That said, I always tell people to start a business that is smaller or equal to your financial muscle. You might wonder what I mean, well this is what I am saying. If you are going to do a business that will cost you $1 million dollar when you have a steady financial capacity of $1000, then you should have it in mind that the business is most often going to fail because you are not qualified to handle such business, but if you have grown a business that brings you $10 million and you want to start a business that requires $100 thousand to start and run, be sure that it is going to succeed to a reasonable extent because at this point, you are more than qualified to run the business but then you might not run it to scale the way you would want it because the business is below your experience and skill level. At this point you need a business that matches your cash flow and allows you to scale.
It is good to dream big but you cannot always start big. For every level, there is a different devil and so, for every financial expectation, there are different businesses. The business that will make you $100 thousand will not be the same business that will give you $1 million, and the $1 million dollar business is not the one that will give you the $100 million value. You need to understand timing and balance.
When you have identified these things, then you can talk about which is preferable for you to start, a product or a service because while both of them are good businesses, they have their pros and cons, and one is preferable for people who have money in the business and one is preferable for starters. I will be discussing this in my next Post. I hope to see you in the comment section.
When it comes to finances, and when starting a business, just as you said, one should start from where they are, even though they are to dream big.
Nice piece buddy.