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Valid Reasons To Start A Business (Brand)

Valid Reasons To Start A Business (Brand)

Find out why we want to go into business and investing today by asking ourselves the following key questions.

Master Investor
May 23, 2024

Summary:

Working for someone else will never make us wealthy.
We must relocate to the right side of the Cash Flow Circle if we aspire to wealth.
Not everyone is cut out to launch a business; find out if this is us.

The Cash Flow Circle is one of the main models that Master Investor employs.

It's a straightforward diagram that helps explain four distinct career paths and the driving forces behind each side of the cash flow circle and its 4 different players of money in real life.

E stands for employee

Employees look for stability. For example of an “E” employee is a person who works at a job and they get pay by trading their time for earned income. If they don’t like their job, then they are in the rat race. Some people love their job and that is their purpose in life. There is nothing wrong with being a fantastic employee if that is what the person truly wants. We still recommend those employees and all to learn how to invest in sound assets. Throughout life, people will go from job to job seeking more higher earning for their time. A stable, well-paying work is the most important thing to many. Because they considered being a business owner and inside investor to be risky, they are unable to understand the desire to pursue business and investing as the main career.

Employees don't place a high value on understanding money and how it operates.

Employees search for higher-paying positions when they require more money.

S stands for self-employed

When someone becomes extremely proficient at their job and is weary of working for employers they know they can outperform, they typically shift to the “S” self-employed.

Although they still have a strong desire for security, they are more comfortable taking on a little bit more risk than a typical employee because it gives them more control.

Physicians, attorneys, dentists, accountants, and other service-oriented enterprises and consultants are considered members of the S self-employed. Their exceedingly high standards make them reluctant to delegate. However, this implies that they are only profitable while they are employed. Thus, they are not actually business owners. They are employed. They can only increase their revenue by charging for more hours worked.

B stands for Business Owner

Owners of businesses don't want to be employed. They aspire to possess a product or system that generates income even when they aren't using it.

They are the ones who create jobs and boost the economy since they are excellent delegation skills. Being able to earn money from our business even when we are not working is the nicest aspect of being a business owner. Above all, entrepreneurs want expansion and autonomy.

When entrepreneurs require more capital, they develop new products or buy or build new revenue-generating infrastructure.

I stands for Inside Investor

The most financially literate individuals in the cash flow circle are inside investors. We know that we may live a life free of working if we locate and acquire assets that generate steady passive income (positive cash flow).

Furthermore, they have the lowest tax rate in the quadrant and are skilled at using other people's money (OPM) to buy these assets.

Having our money work for us rather than the other way around is what drives inside investors. We search for a chance to buy an asset that generates more passive income when we require more money.

Reasons for starting a business to become wealthy

Now that we are familiar with the Cash Flow Circle, let's discuss the benefits of launching a business.

We must shift from the left side of the cash flow circle , where we are an employee or self-employed person, to the right side of the cash flow circle, where we are a business owner or investor, if we want to be wealthy.

Put simply, we won't scale unless we can generate passive income through businesses and investing. We can only work so many hours in a day. Furthermore, putting in too much overtime might lead to a miserable existence at best or a swift trip to the tomb at worst. We must always nurture ourselves before anything else, as we require being healthy to develop our true wealth.

On the left and right sides of the cash flow circle, the quality of money made varies as well. gained income is money gained through employment or self-employment. Regretfully, it is the largest income subject to taxes. Passive income is money earned as an investor or business owner. This income has the lowest tax rate.

Lastly, even if working for ourselves or as an employee can yield good income, but we will never be truly wealthy.

We must relocate to the right side of the cashflow circle if we aspire to wealth. Perform this easy exercise:

Using a sheet of paper, draw a line from top to bottom through the center.

Put our expenses on the right and our income on the left. Cover the income column now. How would we cover our expenses if we were unemployed? Most people experience an increase in heart rate as a result due to the fact that their only income is through their job. Leaving them helpless if they were to lose their jobs, the only source of income.

Investors and business owners are not affected by this issue. Every month, they produce assets that provide them with cash flow. They won't ever have to work another day in their lives when they reach the point where it pays for all of their costs.

That really is wealthy.

Motives for beginning a business

The fact that more and more young people nowadays are showing an entrepreneurial spirit is positive. But it's not only young people who can launch a company.

To start a business, we are never too young or too elderly. While Bill Gates was undoubtedly young when he founded Microsoft, Colonel Sanders founded Kentucky Fried Chicken at the age of 66. So many greta stories that we a find today about entrepreneurship.

But regardless of our age, it's critical to comprehend the rationale behind starting a firm. There are valid reasons to build a business instead of just creating an asset.

Making positive cash flow accessibleWe must be in business for ourselves. Working for someone else will never make us wealthy.Rich Dad's other enterprises provided him with additional cash flow, which was one of the reasons he launched so many others. Moreover, he had plenty of leisure because running his businesses took little of his time. He was able to invest an increasing amount of assets tax-free thanks to his more time and money as a result. That's the reason he stated to "mind your own business" and why he became wealthy so quickly.
Selling the companyNo matter how hard we work, we cannot sell a job. This is the trouble with having one.There have to be a lot more people who want something than us in order for it to be valuable.When we build a business, we must keep in mind to turn that business into a brand. Which requires us to install business integrity and intrinsic value in the company. Once we have done so, then it becomes more valuable to others including potential investors. We may get offers that are irresistible to turn down, when we build brands then we put ourselves in position of power.A year and a half later, upon his return, the money manager had increased his investments to $900,000. The man simply sailed away once more.
Taking the company publicWe strive to plan to become "the ultimate investor." Making a company and going public was what made Anita Roddick, Ted Turner, Warren Buffett, Henry Ford, and Bill Gates extremely wealthy. We were all purchasing shares, but they were the ones selling them. We were outsiders trying to get inside, and they were the insiders.
Total Financial Freedom When we build a successful business our reward is excess of cash flow into our pockets, therefore, providing us with total freedom. Having control over our time and being able to do anything because our businesses can afford any liability we wish. And when we are require more cash flow, then that is why we are constantly investing for passive income. Because the more we expand our passive income then more total freedom we can have. The first stop to total financial freedom is financial independence. That is when we have all of our living expense pay for by the cash flow that the businesses are producing for us.
Making a positive impact in the worldAnother benefit to starting business is that we can make and leave a positive impact in the world through our businesses that are brands. When we serve other people and make their lives better, our lives automatically become better. Being more generous is key to building wealth. We must think of how to solve other people problems with a product through a brand. Launching our own business sand brand will allow us to leave our positive mark in the world for generations to last. Pay attentions to big brands that have been around for a long time and let’s learn from their success. This new world we can become professional copywriting and duplicate other’s success with our own unique touch.

Prior to commencing, pose these five inquiries

We now understand the three main advantages of launching a business and why we should do so.

However, not everyone is cut out to launch a business, and that's good.

Actually, the world revolves on these differences.However, we need a business that will make us excess of passive income (positive cash flow) if we want to be wealthy.Therefore, consider these five questions before we begin:

Why specifically are you launching this business?What appeals to us about beginning a business? Perhaps we are well-versed in the industry and can see a need that our company could meet. Or perhaps we think that our company has the potential to really benefit the community and bring about meaningful change. Perhaps we have a great deal of enthusiasm for the field.Whatever our motivation, it needs to be powerful enough to keep us going. Being an entrepreneur is challenging, so be sure we understand why we think our company will succeed.
Are our personal and business aspirations the align?We have to make significant compromises when our personal and business aspirations conflict. But getting to customize our own company is one of the best things about beginning our own enterprise. We have the upper hand.Perhaps we want to see the world. or give our family more quality time. or achieve financial independence and total financial freedom. Whatever our personal objectives are, make sure the company we start will enable us to fulfill them.
Do we think highly of ourselves?Being an entrepreneur is not easy. Along the road, there will be numerous obstacles and setbacks. We will make errors and deal with skeptics who cast doubt on us. We must boodle thick skin and continue to invest in financial education. Getting around the right mentors will help us a great deal on our way to building true wealth. However, as long as you have confidence in oursleves, none of these things will matter. The only thing that will get us through difficult times is having faith in our spirit and our own skills.
Are we ready to take a chance?It's dangerous to quit a steady, secure career to launch our own company.Think about the risks we are and are not willing to take during this period. Are we at ease with the thought of forgoing a reliable source of income in order to pursue our own goals? Do we feel comfortable using our own money to make investments in our business? If not, are we prepared to beg for assistance and money from others?Give ourselves the fullest honesty possible. It will be easier for us to move forward once we are aware of our comfort level with danger. As we always recommend all to do attack our fears because there we will find treasures and our dreams. Getting financial education daily, will help in reducing the feeling of fear while investing because we understand is a calculated risk. In addition, we invest to make money not to lose it.
What other coursework is necessary for me to succeed?When we first start our business, it's impossible to know everything we need to know. Being a business entrepreneur involves a lot of learning. Every day, entrepreneurs for life pick up new skills.That being stated, when we launch our brand, we should be conscious of the gaps in our financial knowledge. We can develop a plan to get the knowledge we require after determining what kind of education we are lacking. Perhaps we need to learn how to build up an online store to sell our products on Amazon, or how to hire effectively.Whatever it is, be sure to schedule time to make up for these knowledge gaps. Additionally, confirm that we are prepared to give this our all.
Why do we wait?Building a business is perhaps one of the most thrilling and fulfilling endeavors we can undertake in life.and it may very well be profitable. As a business owner, we don't have to be right 51 percent of the time. We just have to be correct once. For most people, starting a business is the riskiest path. However, our chances of becoming wealthy are limitless if we can persevere and keep honing our abilities. We might be safer if we stay safe and play it safe on the E and S side of the cash flow circle but we will have no total freedom, and we will also be limiting our actual earning potential by only working at job for earned income. The main obstacle people have in their way to becoming wealthy is their jobs. As ironically that sounds, a job requires a lot of energy and time from the individual. Therefore, leaving the person without time and energy to build true wealth. The person lacks free time to learn about investing. Although, employees and self-employed people can create time daily to learn about wealth but it requires them courage, faith and discipline. Never forget that there is never an ideal moment to launch a company. Many people wait years for the right opportunity to move forward, but that moment never arrives. There's always a reason not to get going. The perfect time is today, the present moment. Let’s capitalize and cease this moment to plant the right financial seeds in our lives to achieve true wealth. As we know being rich and wealthy are two different things. Being rich does not come with total freedom, but being wealthy comes with total freedom. Majority of people focus on earned income rather than passive income. That is why they are never able to experience total freedom and enjoy the finest things in life as we all shall. But we first need to figure out the game of money. In this new economy, we must master the money first and then we anything else we want in the world. Sometimes it's necessary to just jump in. It is up to us to get ourselves there if we want to be our own boss, launch our own company, and live the life of an entrepreneur.So, why do we hesitate? Start today and launch the next valuable brand in the world. All the possibilities are in front of us today.

Use the Cash Flow Triangle To Build A True Business

The 8 integrities of a success business are:

Mission
Team
Leadership
Cash-Flow
Communications
Systems
Legal
Product

Every business is build to solve a problem in the world. A true business is a system of systems doing the selling and telling to potential customers on automatic. Our businesses surplus will buy us other cash flowing businesses and investments that cash flow positively.

Knowing how to build a business can be the best thing we can all master to do because it is the ultimate way to secure our financial future and ensure to live a life of abundance rather than restricted due to lack of money and time to enjoy total freedom. We must focus on assets that will give us passive income and capital gains income.

The asset has to make money on its own in order to be a real asset. Having the cash flow triangle as a guide as we build our businesses and brands it will help us stay on the path towards success.

The business can start with a small idea that grows into a viral brand across the globe by using the new rules of money, and actively investing in our financial education to expand our passive income and true wealth.

To be wealthy we must have wealthy mindset. The following priorities needs to be set in the following order, then if we do we will hold a chance to have true wealth in our lives:

Wealthy
Comfortable
Secure

The poor mindset will have the following order for those three priorities:

Secure
Comfortable
Wealthy

They think about becoming wealthy last, and it is not their main goal because they are focus on the earned income from a job. Becoming wealthy requires time, effort, courage, discipline, and financially knowledgeable. Our recommendation is to not be average investor but rather an inside investor. Always expanding the assets column with real cash flowing assets that our companies control.