How to Invest Your Money Wisely for Your Online Business Success!6:13 PM
Money #Investment: You should seriously consider investing in an online business. Investing money in online business is quit easy task but b...
Money #Investment: You should seriously consider investing in an online business. Investing money in online business is quit easy task but become successful is not really what you think. Invest your money by knowing every single thing you need to be success.
Set Personal GoalsThe first and most important step to succeeding in your online business is knowing what you mean by success and how you know when you get there. If you don’t have clarity of purpose and written goals, you’re going to wander and flounder, but never reach the heights you’re capable of. Many people are afraid of setting goals or avoid goal-setting because they don’t know how. But it’s really very simple. You need to set goals on three levels – Big Picture Goals, Medium – Term Goals and Short – Term Goals.
Obviously, you should start with big picture clarity. Who do you want to be, what do you want to have, and what do you want to do? You might simply sit down and make life goals in these areas: career, finances, family, education, creativity, attitude, physical, personal, and community contribution. Think about how you want your life to look in each of these areas in five years, ten years or twenty years.
Also read: 7 Reasons Why Most Entrepreneurs Fail in Business
- Then create milestones for the next six months and one year in each of these areas; those are your Medium – Term goals.
- Then look at what needs to happen now and over the next thirty days to meet those Medium – Term goals. Those are your Short – Term goals.
- Write all of your goals as positive statements in the present tense: “I am earning $5,000 per month by December 31, 2012.”
- Make sure your goals are very specific and measurable, that they have a deadline, and that they are meaningful to you.
Find the Money ResourcesIf you intend to start a business, you’re going to need some money. You may be able to get by on less money than you have been used to having, but you have to live. And that may mean taking a day job or a part-time job, or working as a freelancer.
While it would be great if you could immediately start turning a profit in your business; that is probably not going to happen, so you need to be prepared to do whatever it takes to reach your dream. Nothing in life is for free. There are a lot of things to consider but when you know exactly what you want, you will definitely find the resources.
It’s not the resources that most people think that the problem is. The real problem that people can’t understand and realize is the lack of resourcefulness! “Ask and you shall receive”.
Also read: Why a Startup Business Plan Is Still Worth Writing
Eliminate Your LiabilitiesMany people think their car or home is an asset, but in reality these are liabilities. An asset is anything that creates cash flow, and a liability is anything that costs money. It’s quite simple.
So what you need to do is create assets that bring in passive income. These could be information products, rental properties, or other products that you’ve created such as apps or software programs. The key is that they should bring in money without costing you money or much time.
And you should eliminate as many of your liabilities as possible.
Pay Yourself FirstDivide your income into three buckets, or sections. Decide how much money you absolutely have to have to pay expenses, and put that in one bucket. Another bucket should be savings or a safety net in case the business doesn’t do as well as you hope or you have an emergency. And the third bucket should be money to run your business.
When you set up a system like this, you will have money for emergencies and you will know exactly how much you can spend on your business.
Cut your expenses to the bone and put as much money as you possibly can into the business bucket. The more money you can create for your business, the better.
Don’t Work for Money—Let Money Work for YouAt first your business will have very little money and you’ll have to work very hard and basically do everything yourself. But as you create money in your business, let that money work for you. Hire people to do things. Spend money on systems. Get yourself out of the business and let money create money for you. This is the key to a financially successful business.
As long as you are working for money, you are limiting your business’s growth, because you are a limited resource. But when you allow money to do the work, you are creating perpetual growth machine.
You may have heard that it takes money to make money, and felt that was an overstatement or exaggeration. But the fact is, if you manage your money wisely and work with it, you can make more money in your online business and build your initial investment into an even bigger company.