Steps to Build a Successful Business

Investing for Passive Income

Master Investor
April 03, 2024

Summary:

The golden rule of successful entrepreneurship has always been to mind our own business.
Though the business and financial landscape is always evolving, this counsel remains constant.
Discover many ways to invest in meme coins.
A fundamental understanding of finance is necessary for managing our business; here's where to begin.

In the game of money, the really wealthy and powerful have the upper hand.

Politicians, business owners, and central banks are the game masters in this one, and they control the cards and the rules. They are always manipulating levers, whether it is through raising interest rates, implementing quantitative easing, daisy chains, altering expectations, modifying plans, laying off employees, revising contracts, or other means. Everybody else is constantly catching up.

In actuality, control is the one most important factor that separates the ultra-rich and powerful from everyone else in their game.

The unfair benefit: keeping our mouth shut

We must read and update our data constantly about money because it is changing all the time, we are shrewd players who always know what is going to happen next.

Most poor mindset people tell others to "go to school, get good grades, and find a safe and secure job. But the wealthy mindset will always mind our own business. We understand the value of control and that having it was an unfair advantage.

Poor mindset didn't think it is necessary to mind our own business. The poor mindset would utter, our retirement and medical requirements are the business' and the government's responsibility. The poor think they are entitled to a retirement plan, which is a component of the poor’s benefits package. "Mind our own business," as we recommend all to do.

Most people will only master how to work hard for money (earned income or ordinary income which is taxed at highest bracket of all income) "Get a job and work the way up the ladder," is what most do in this lifetime. Keep in mind that businesses dislike employees who relocate frequently. Employee loyalty and seniority are rewarded by employers. But we always tell all our members to mind our own business instead of someone else’s business.

We recommend to invest in financial education and self development to build the asset column.

What occurs when we don't take care of ourselves

Being an entrepreneur is really about playing the financial game at a high level, which is also a fantastic way to practice managing our own affairs. Most entrepreneurs want to create a business that is valuable enough to be acquired. The explanation for this is really simple: most founders' lives are permanently altered financially upon selling a high-growth company.

For the two creators of Instagram, the immensely popular photo-sharing software that is used by...well, everyone, this was the situation.

Instagram was purchased by Facebook in 2012 for a cool $1 billion. Thirteen staff, thirty million users, and no revenue were present on the mobile app at the time.

With over 2 billion users as of 2023, the app is expected to generate over 40 billion in revenue, which is a small portion of Facebook's overall revenue.

Therefore, it may not have come as much of a surprise to some when Instagram's co-founders announced their resignations in 2018 in order to "explore our curiosity and creativity again."

In actuality, though, it isn't.

What occurs when others don't respect your personal space

The enormous financial gain that founders can experience from purchase is a benefit. The drawback is that they stop becoming entrepreneurs and start living the life of luxury while others take care of themselves.

High-paid workers enjoy a lot of autonomy, but the drawback is that they must ultimately and perpetually answer to someone else.

For Instagram's founders, Kevin Systrom and Mike Krieger, this was the case. The same applied to the creators of WhatsApp, Jan Koum and Brian Acton, whose messaging service Facebook acquired in 2014 for a whopping $19 billion.

The founders of both companies had lofty goals for their products, including avoiding using user data, and they believed that even after selling, they could keep Facebook at distant because of its insatiable appetite for data. In actuality, though, they were unable to.

As reported by "The Guardian":

Thus, the only thing that is shocking about the founders of Instagram and WhatsApp's experiences is that anyone should be shocked by what has happened to them. Facebook is a data vampire; all it does is take users' personal information and use it to create profiles of them that advertisers can use to target them. Corporate can't handle all that pretentious nonsense about "building a global community."

And now, as recent news cycles have shown, Facebook is unquestionably not the kind behemoth it wants the world to believe it to be, with leakers emerging from the shadows. Any rational person would be inclined to doubt their relationship with the social media site after reading the Wall Street Journal's exposé, "The Facebook Files."

Any startup founder hoping to be acquired by Zuckerberg’s empire ought to remember Winston Churchill’s definition of appeasement as “feeding a crocodile in the hope that he will eat you last.” Since he intends to.

Being an entrepreneur always comes back to minding our own business

It is admirable that Koum, Acton, Systrom, and Krieger eventually departed when there was a clash with their ideals, even if they got a harsh awakening about the amount of influence they would have over the companies they established once they sold them to a giant like Facebook.

They most certainly witnessed this fight a long time ago, but they held out hope that they might alter things for the better from within. Many well-paid, high-ranking employees frequently hold this belief, but they frequently come to the realization that they lack the authority to carry out their initial plans.

As previously stated, it's not shocking when former entrepreneurs leave a comfortable position to become well compensated employees. Why? It's just not a part of their DNA.

Thus, when someone like Koum declares, "I'm taking a break from technology to enjoy activities I enjoy, like playing ultimate frisbee, working on my cars, and collecting rare air-cooled Porsches," Additionally, Systrom and Kriger state, "We're planning on taking some time off to explore our curiosity and creativity again. And I'll still be cheering WhatsApp on—just from the outside." What they truly want to say is, "We're sick and tired of being told what to do." "Building new things requires that we step back, understand what inspires us, and match that with what the world needs; that's what we plan to do."

Isn't that the essence of the entrepreneurial spirit at work?

For us, what does it mean to mind our own business?

People who labor for someone else their entire lives frequently experience financial hardship as a direct result. When their working days are over, a lot of people have nothing to show for all their hard work.

It goes without saying that this is their training.

The goal of the contemporary educational system is to train youth for well-paying careers that involve serving others. Their lives will center around getting a decent job to put money in their income column and buying lots of electronics to put money in their liabilities column. They'll go on to work as scientists, engineers, financiers, police officers, and so forth. They will make money from their profession while they stay out of other people's personal space.

You'll discover that most people will tell you what they do when you ask them what their business is. They are mistaking their business for their career. In actuality, most people don't own businesses—they just have jobs. They operate or oversee the enterprises of others.

But for some, this entails being a business owner. If you are good in the kitchen, open a restaurant. Create a company if you studied engineering. Employing other accountants will help you expand your clientele if you're an accountant. Ultimately, you shouldn't launch a business unless we truly want to and it is for others.

For some, this includes finding ways to manage their own affairs outside of their day jobs, such as through investments and other sources of income.

Regardless of how we go about it, managing our finances demands financial education and a financial strategy.

How are we going to take care of ourselves?

So where do we even begin?

Place ourselves correctly. Now, let's begin with the cashflow circle shown below:

Employee: When a person works as an employee, he or she are exchanging their time and effort for money. The person just "have" a job here.
Self-Employed: In this sort of employment, the person manages their own organization and, while not having a boss, their salary is set by the number of hours he or she work. or the amount of clients came in. However, if the person stops working, the person may not get paid.
Business Owner: When we manage our own business, we have complete control. Individuals and systems are devoting their time, effort, and energy to earn cash flow (passive income) for us.
Inside Investor: When it comes to investing in assets, the only thing that is working is our money. We truly are financially free and wealthy here because we master to make money work hard for us in the form of passive income instead of us working hard for earned income.

Laying the financial groundwork

A person can't take any chances when their only means of survival is their employment. The issue is that the greatest risk of all is depending on other people to provide for us. When a company experience downsizing, the revenue source is eliminated. When that occurs, a person can come to the realization that he or she perceived "assets" are actually liabilities.

They are consumed with their car. Their $1,000 golf clubs have lost all of their value. Their largest "asset," their house, turns becomes their largest obligation when they have no income and must pay real estate taxes annually and a monthly mortgage but not limited.

Those from the middle class typically fall into poverty quite rapidly after losing their employment. Although it's untrue, middle-class people believe that having a solid career will secure their financial future. It's an illusion.

Consider ourselves participants in a game. We are placed on a field in this game with no knowledge of the rules. Furthermore, the game master has the right to alter the rules at any moment and without prior notice. It seems as though we are getting the hang of things, but then we have to pick up a whole new skill.

How much of a chance would we have to win that game?

Naturally, the response is no. That sounds like a terrible game, one that we would never play, I'm sure of it. The issue is that we play this game every day.

It's a financial and business game.

Mind our business

Never forget Master Investor’s advice to "mind our own business" if we want to get wealthy, regardless of whether we work for ourselves or for someone else.

1- Take action and invest time wisely.

Excellent plans are rarely accomplished in a single day. We must give our life, our goals, and our future a lot of thought in order to determine which strategy is best for us. This may require several days, weeks, or even months. Take some time to consider and identify what matters most to us in life.

Don't talk to anyone at this time unless you are certain of our desires. Too frequently, people disregard what other people desire for themselves in favor of unintentionally or purposely forcing their beliefs upon others. Now is the time for us to decide what we want for ourselves.

2- Locate a mentor

Once you are clear about your life goals, look for a dependable coach.

This person ought to have accomplished what you're trying to accomplish. Request their qualifications, and do multiple interviews. You'll get an enlightening experience from it.

Our coach will help us create and stick to our plan by providing guidance. Our coach should push us when we don't want to be pushed and chastise us when necessary; they are not there to pamper us.

3- Set feasible goals daily

Many people give up on plans, not because they are flawed, but rather because their aims were unachievable.

Set goals that align with our personal aspirations. A common statement is "I want to be a millionaire."

Avoid doing that. That's a cold, boring, and unrealistic objective that's simple to write off, especially if we the person is struggling to reach their first $10,000.

Make realistic objectives for ourselves, such as, "I want to be able to spend all of my time with my children and not have to worry about money because I want to have enough passive income to cover my family's expenses." That is preferable! Determine the amount of passive income required to reach our goal and create a plan.

We will be more likely to follow through on our plan and reach our final goal if we personalize our goals.

4- Acquire a team

We will need to do background checks on each of these team members. Instead than merely adding anyone to our squad, choose the best player for each position.

Once our team needs to be connected through the mission, get together with them frequently whether through online or in person. These meetings will teach us a great deal about business, investment, and the money-making process.

Avoid becoming sidetracked by projects. Although it might give us an extra dollar, all it did was waste our time, which could have been used to achieve our objective. Don't do anything if it doesn't help us get toward our goals.

By doing our own business, we will be more aware of what the market has to say and able to modify our strategy as necessary.

Continue diligently, taking things one step at a time. If we follow through on it, we stand a very good chance of achieving our goals in life.

Should a person resign from work in order to be an wealthy entrepreneur?

Fortunately, it's not necessary to quit yet. First, start building on your free time everyday. Launch our own company in order to take care of ourselves like the wealthy do through tax advantages and other benefits for operating a business entity. Continue working our day job, but start investing in actual assets instead of debts or sentimental belongings that gets thrown away and loses value. Invest in financial education, acquire assets and always remain learning about business.

When we approach managing our own business this way, it becomes easier: control costs, liabilities and assets, and carefully accumulate a foundation of reliable sound assets for passive income and capital gains income. These resources may consist of:

Business or Companies that don't need to be physically present
Stocks or paper assets that cash flow
Real Estate with a steady stream of income
Digital Assets
Commodities
Crypto

As long as something has value, can generate income or appreciate in value, and has a ready market, it may really be considered an asset.

We will find that our route to riches and financial security is lot clearer and more certain if we keep our mouth shut and concentrate on our asset column.

The "mind our own business" approach

We must question everything all the time. The poor mindset firmly thinks that his or her academic education is the most significant and useful thing. Poor mindset accepts the concept of correct and incorrect responses. Those who mind their own business understand that the correct answers frequently change, and that it is preferable to make the rules rather than follow them.

Since things are changing all the time, we should never stop learning. We didn't think there were right or incorrect responses. Both fresh and old answers holds value.

These days, obtaining good grades and attending school may lead to severe bad debt rather than a stable employment and a fulfilling life.

These days, nobody expects their health and retirement benefits to be provided for life by the government or a company.

Companies today frequently fire employees or adopt unpopular changes to their business plans. They don’t reward loyalty and seniority, and the only way to climb the ladder is to always hop on a new one and hope it’s a rung higher.

While masterinvestor's rule of "mind our own business" is still in effect, poor people’s guidelines are becoming outdated.

Nobody can predict what will happen tomorrow. However, there is one fact that we are all aware of. If we want to be successful in life and win at the game of money, we need to “mind our own business” by continually learning and adapting. Anything less is a recipe for disaster.

So, how will we approach the game?