masterinvestor’s Newsletter
Posts
How To Start A Cash Flowing Business?

How To Start A Cash Flowing Business?

Benefits and drawbacks of launching our own company.

Master Investor
May 16, 2024

Summary:

Know the benefits and drawbacks of launching our own company before we launch it.
Funding is needed to launch a business, and there are numerous ways to obtain it.
Owning our own business and controlling investments is less hazardous than being an employee and self-employed.

In the US, more than 42.6 million unemployment claims have been submitted since the coronavirus shutdowns started. To put that figure into perspective, consider that it is higher than the total population of the 22 smallest states in the union. It is likely that we have personal experience with job loss; perhaps we even know someone who has lost their job in the past few months. However, learn the advantages and disadvantages of launching our own company before making the move.

It only goes to demonstrate how dangerous it is to depend on a company for income because they could fire the employee, put he or she on furlough, or even go out of business without warning. And what is the outcome of that?

Unemployed, unable to make ends meet, and finding it difficult to locate another employment since there is so much competition for available positions? To make ends meet, people might even be compelled to accept a job they don't enjoy, a reduction in responsibilities, or a lower salary than in their prior role.

It makes sense that an increasing number of people were leaving their corporate employment to follow their passion on their own terms long before the term "coronavirus" was coined. These independent contractors and self-employed professionals were being seduced by the promise of an entrepreneurial lifestyle that included flexible work hours, remote job opportunities, and the flexibility to select the projects that most interested them.

With so many advantages associated with being an entrepreneur, who wouldn't want to get on board?

Naturally, many are drawn to the idea of controlling their own fate, making their own money, and never receiving a pink slip again especially in light of recent events. The advantages of owning a business are now being realized by a large number of people. However, what does that actually mean? What choices do we have?

Which she of the Cash Flow Circle are we operating from today?

How to launch our own company

Let's examine a few instances of people choosing to start their own businesses rather than pursue the usual corporate ladder climb (since landing a "good job" is, incidentally, a complete scam):

Launching a company of our ownLet say if we had an addiction to high-end purses or clothes. We could make a fortune due to our addiction and admiration we posses. We can spend money on the newest purses from Gucci, Prada, Armani, and Louis Vuitton and any other reputable brand. Every now and then, our friends will beg to borrow the items. So with some financial education and the right team we could make our addiction and liabilities into Rela cash flowing assets, for example, we will make a fortune from just renting out the fancy handbags and clothes. After the lights came on, our tiny handbag or clothes business model trough a rental business of such items now turns a cash flowing profit each day on autopilot and we get to use the luxury items for free whenever we wish. We all too may do this: find an existing issue for which we have an original solution. Choose a skill or interest we have, like accountancy, photography, or trip planning, and locate customers that require our assistance. In any case, there are numerous ways to raise money for our business, so don't let the thought of having to seek capital stop us from launching our own.Not sure where to begin? Here at masterinvestor we are offering free content to help us launch our own business and brands. Start today, and do not wait until is too late to achieve our dreams. Make tangible goods available onlineHave we ever considered starting our own business? Now more than ever, it's simple. Utilize Amazon's platform to our advantage and benefit from the largest wealth transfer history. Find out where there are sizable populations that are in need of the goods that only we can supply.Make digital goodsAre we attempting to find a way to make money passively on subjects we already know a lot about and are passionate about? It has never been simpler. Utilize the time of others (OPT) to create content that we control and can earn from directly. Create our own brandDo you possess a personality that is "larger than life"? Discover how to be your own industry leader by learning to harness your own self. Start with this series of inspiring free videos.
Network advertisingThis alternative may also be known as multi-level marketing, or MLM. We can select the business model, market its goods, and extend an invitation to others to become members too. We can earn money from the things we sell, but we also get paid a portion of the sales of the products made by people we introduced to the company (passive income). For people who like to work for an organization that has already sorted out its procedures and business model, this is a terrific option. In addition, they frequently offer the training required for success.
Investing in real estateInvesting in real estate has two benefits. The first is for rental property cash flow, which is a continuous source of revenue. When we purchase and resell (or flip) real estate, the second is for capital gains. We can invest with little to no money down if we are resourceful.

Advantages of being a business owner

All it takes to launch a business is an idea. Everybody has ideas; all we need to do is step up to the plate and implement them. Are you on the right road, though? Let's first look at the benefits of launching our own company:

Mastery: We are in complete control of our income, expenses, assets, liabilities, and debt.
OPM (Other People's Money) leverage: If we decide to raise capital for our company (highly recommend to always finds ways to use debt to become wealthy - good debt), investors' funds rather than our own can be used to finance the company's expansion or start-up. Here is some information on utilizing OPM. We are the OPM if we are making investments in another person's private business.
Other People's Time (OPT): OPT eventually has the ability to fully replace our time. In the event that the person is currently employed by someone else, he or she is the OPT.
Income without limits: The amount of money we and our business can make is unlimited.
Benefits in taxes: In most nations, the main goal of tax legislation is to lower business owners' taxes. The majority of business expenses can be written off as revenue, which lowers the taxable income of the company. Investing in a private individual's business allows you to subtract business losses from our income from real estate investments or other passive businesses. The lower long-term capital gains rates frequently apply to gains.
Adaptable hours: We choose our own schedule, which allows us to give other responsibilities (like going to our favorite yoga class, or other activity) the priority they require.
Adaptable place: Being the owner of our own business may allow us to work from whatever location we choose, whether it be our home office, a rented facility, or a laptop on the beach. However, this may not be the case for every type of business.
Liberty to express oneself: Through our business, we may fully express who we are and what we stand for, rather than stifling our individuality to fit in with the company line.

The drawbacks of being a business owner

We have to learn to accept the good and the bad in life.

There are challenges associated with being an entrepreneur. Among the drawbacks of starting our own business could be:

Challenging: Of the five asset classes, running a business is the hardest to start and maintain. Ownership of a business, real estate, paper assets like stocks and bonds, commodities like gold, and cryptocurrencies are the five asset types. The track record of the people running and expanding the company is crucial to take into account if we are considering investing in a private company.
Elevated failure rate: About half of all enterprises will not survive for more than five years, according to the Small Business Administration. Merely approximately one-third will remain unchanged ten years after debut.
Extended hours: This is not a 9 to 5 job where an employee or self-employed come in, get the work done, and then go have a lovely lunch or dinner. Holidays, weekends, and nights will probably be worked by us as a wealthy entrepreneur takes constant grow. We are responsible for raising it anyway we see fit.
Not a promise: A consistent salary is not a given. We may meet our goals in certain months and maybe surpass them in others. However, there will be months when we don't, so make plans for those times.
Individuals: People, including consultants, vendors, staff members, and clients, must be dealt with and managed along with their diverse personalities and moods. If this isn't our kind of work, it could be quite stressful.

Hundreds of thousands of people just like we have succeeded in launching our own businesses in spite of these few drawbacks (which won't be drawbacks for everyone); We can read our eBooks to improve our financial intelligence. Are we prepared to take the necessary steps to achieve financial freedom as a reward?

Choose the Wealthy Cash Flow Pattern To Become Wealthy

The middle class and poor class usually have no real assets that are producing cash flow nor capital gains income. Therefore, they are require to work for earned income because they have not yet figure out how to launch their business and invest for passive income.

The difference between the poor and wealthy mindset is in the way we spend our time. The poor mindset people spends their time working for earned income and always looking for a higher pay. The wealthy instead of forcing on earned income from a job, we focus on building passive income and capital gains income through sound investing. Which we are actively performing on a daily basis. In other words, in order to become wealthy we must master how to invest like the wealthy do. Using the new rules of money and recourses we all have avaibalew thanks to technology and the internet. The way we make money determines who we are in the cash flow circle.

Make a decision where we want to be in the cash flow circle, and start shifting the mindset according to the person we want to be in the cash flow circle. Remember that on the right side of the Cash Flow Circle is where freedom and our wealth is achieve. And on the left side of the cash flow circle is where the sense of false security exists temporary for the employee and self employed. Choose the side of the Chas Flow Circle that matches with our goals in life. Depending on the side we choose, then each side comes with a type of mindset. Th left side has the poor mindset and the right side of the cash flow circle has the wealth mindset regarding how to make money. As we can see in the diagrams below, the poor mindset puts the one activity that builds wealth last in their expenses column. And the wealthy mindset puts that activity which is “acquiring assets (or investing)” as priority number one of our expenses column. That is the difference why some our wealthy and free and other are not.