Wednesday, October 16, 2013

How to Really Get Started With Your Home Business - 4 steps to real retirement income.

A home business could be an expensive investment - but not looking before you leap could cost even more.

Look before you leap into a home business - and save your investment.

People who start their home business usually screw it up - by following what passes for conventional wisdom. They follow the same people who created Welfare, and were responsible for the collapse of every empire from Rome and earlier, right to present time.

Because what you are told - around 97% of it - is the worst advice you could get.


Because any business, any company, and especially any and every government, has to have a continually growing group of willing workers who never ask pointed questions and are constantly and continually just doing their assigned job - most all of these workers die broke.

Take that apart.

A continually growing group  - in order to expand most businesses or government, they have to have more people than last year or last month. Sure, production lines can be made more efficient, but you still need more people to expand. Most businesses and governments are built on the 1 to 1 ratio of people to work. They are not leveraged. More people doesn't usually wind up in  an exponentially-increased work, usually slightly less work gets done per person the more you add to this scene.

...of willing workers who never ask pointed questions - you have to have a herd which follows the leader on a regular basis. They need to fit in the mold, operating much like a group of soldiers, lemmings, or even robots - who don't question orders, but just get them done as best they can.

...and are constantly and continually just doing their assigned job - overtime doesn't mean people don't get paid, they now just get paid more per hour. It's still not an option to not perform, so you are still a wage-slave. But you have to be able to drop your life plans and do whatever the company wants (within very few limits.) They've even got it now that people will compete to have jobs and fight to keep them, while that same job is ruining their family plans and enjoyment. Sure, you can bitch about the job you're "forced" to do, yet you keep going to work.

...most all of these workers die broke. - Because they aren't taught how to save and invest their income into sources which give them a higher return. They aren't taught the secrets of passive income which would give them money coming in during their retirement years. Instead, they try to live off their savings, which dwindle as fast as they use them.

Spending time for money really means "Just Over Broke" (J.O.B.) You can't get paid more by just thinking different or changing something in your own lifestyle. Your time is worth more than just getting paid for it once.

Once you retire, you don't have income any more and have to live off savings, or that nebulous "401K" which fluctuates with the economy.

Again, once you start pulling money out of that plan, you have less and less of it.

What you have to do is to get away from what passes for running a business. You don't just hire people, you leverage any time you invest from anyone. Everyone you hire needs to be able to leverage their time and your time and so result in multiples of increased income.

What you also need is a passive income source (passive means you aren't working much to produce it) that continues to pay you from here on out. And you can then leave to your own children or heirs - for their retirement. Passive income is highly leveraged. You work very little to maintain a scene once it's established.

You can leverage writing or recording something once and then selling this over and over. You only spend the hour or so to create it once. Then you get paid over and over again. Most of your work is in marketing to enable more people to find out about it. You aren't giving the same talk over and over every day - you wrote the book and/or recorded the video which explains your concept and then they can read or re-watch that product as many times as they want without you having to do anything.

The Goal is Interminable Passive Income.

That's real retirement income. That passive income source never quits. And as a business, you can bequeath it to your heirs so they (and their children) can retire on it. Ideally,  you diversify with several of these, so if anything happens to one of them, there are several more to pick up that slack. (Of course, the ideal is to be creative and constantly adding the extra income from the first ones to finance building later ones. The wheel just continues to roll, and your income just continues to increase.)

Steps to reach financial freedom - and never "have" to have a job again.

0. Don't quit your day job. The rule of thumb is when your home business makes more than twice as much as your day job brings you is when you'll be able to afford the insurance and social security payments, etc. that your job is covering for you.

1. Budget your day job income so you live on less and save/invest more.
  • Earl Nightingale said to start saving 10% out of every paycheck.
  • Robert Kiyosaki said to save 10%, invest 10%, and give 10% to charity. Work out how to live on 70%. 
  • T. Harv Eker broke this down further and split out education and a Play percentage out of that main part - so you still took 10% to invest, and 10% to save for whatever you want, and take out your charity portion, then plan to spend 10% on just sheer luxuries. Make sure you spend 10% on your continuing education. That leaves you around 50% for your actual necessities. (If you're self-employed, then you take out 20% for taxes off the top.)
  • The point is to get this discipline in on your life.
2. Out of this, you need to get your debts paid off. All of them - or have them paid by your passive income sources, such that you are free from any wage-slave job to pay for your day to day living basics. Pay down what you can, figure it out to get them all covered. Mortgages, everything. May take a few years. Stick to that budget above, whichever you used (Eker's makes the most sense, and will work the fastest, though.) Meanwhile, you start your business. Today.

3. Getting a "funded proposal" going is the key. Set up a line of income which covers all your business operating expenses. Then leverage this into buying the necessary services so you can simply launch your business. In Network Marketing, this would cover the auto-ship and the cost of any ads you were running to attract prospect leads.

For the highly-leveraged home business, this would cover your shopping cart, hosting, everything. When you achieved that, you have gotten another piece of financial freedom. With debt gone, and an extra passive income arriving weekly, you've got it made.

4. Soon, you'll just have surplus income to invest. That will then give you complete financial freedom - providing you back up your investment in your business, and stick to your budget above. You want to diversify your passive income sources and businesses.

That's the simplicity of moving from a struggling job-holder (wage-slave) to a highly successful entrepreneur.

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Look, there's more on this from Mike Dillard's Elevation Income - which is at this writing just open for business to a select few who apply before the offer is closed.
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