There is an important secret to growing wealthy; ultimately you must have either your own business, or an arrangement which enables you to own your own business within a company.
Inspired by the works of Roy MacDonald, Funder & Associates share 5 secrets of running a successful small business.
Studies of all successful people in the business have shown that they love what they are doing and they are not just doing it for the money.
If you are just doing it for the money, it is almost impossible in the long run to be successful, because the money will never fulfil your real desires and needs.
If you cannot be, then you must get someone who is, and promote them. You must be different and have a way of packaging what you do that makes it (and you) stand out.
In other words, you were born to do this. You are ‘on purpose’ in what you are doing.
These three secrets combine to form an absolute success formula. If you study successful people – and, particularly, the really wealthy ones who are consistent – they all have these three elements.
Most people give their life to their business. Most people get trapped in the business – having no time to spend with their family. Being in business should give you more choice, not less.
One of the purposes of running a business is for the business to acquire a Real Estate investment. Your business should provide you with the income to acquire your own building to operate from.
It costs generally about the same to rent what you can buy, so why not own it, rather than pay someone else. In this way, you receive the capital gain and the improvements that you add to it are yours. And there is a feeling of confidence about, and commitment to, the future.
Experience shows that, in asset terms, most businesses appear to make more money in the long run from the increasing value of the building they have purchased than the entire business has made from its capital growth.
In other words, the business provides an income flow whereas the building provides a growing asset.
Over the long term (if you are experiencing hard times, or if you have been able to reduce your ultimate debt on the building) you can determine the rent you really want to pay. As a tenant, you don’t have that option.
Always Remember, Business Never Fail – People just Give Up.
It’s like relationships, they never fail – people just give up and say they’ve had enough.
This may well be appropriate at the time, or it may be way too soon. There have been people with very little chance of succeeding, yet through the determination and commitment of the people they turned them around.
However you must be able to think constructively under pressure, be able to get on with all types of personalities, an ability to organise and take sensible risks financially and manage monies effectively.
If you need further assistance on the secrets of running a successful business, please do not hesitate to contact Funder & Associates.