Keys to Wealth When Starting a Business
Getting rich is the number one goal of people thinking about starting their own business. But what are the actual factors that launch entrepreneurs from struggling startup to lifelong financial security? Here are a few ideas to keep in mind if your startup goal is to make yourself rich.
Work for yourself
It is very difficult to become wealthy working for somebody else. At the end of the day, employees are another business expense that must be controlled, and there is little motivation for the guy holding all the cards (and all the risk) to pay you any more than the minimum required to get someone to do the job. Working for yourself takes back control over your work life and financial future. If you want more money, you can do what needs to be done to increase your income.
Carry no debt
Debt is a wealth killer, both for a business and for your personal life. Paying interest is like flushing your cash down the toilet. Run your business and personal budgets on a cash-only basis, at least during the early stages of startup. Be stingy with your money and pay attention to fees and interest on any credit terms you are extended. You’ll be surprised how much better the cash flow looks when you are not wasting money on debt fees!
Develop multiple income streams
As long as you are taking responsibility for your worklife and financial future, you might as well throw as many hooks in the water as you can handle. Whether you develop multiple income streams through a single business idea or you pursue several opportunities at once, the more chances you have of making a profitable sale, the more likely you are to succeed.
Learn the numbers
Whether you consider yourself a numbers person or not, you will need to understand how to look forward and back at the numbers to make the best strategic decisions. Accounting is the primary record of where your business has been and those results are used in financial ratios to determine the present health of the company. You MUST understand how these systems work so that you can identify problems and opportunities as they come. And, you must be able to develop strategic plans based on viable financial projections. Don’t leave these critical tasks to anyone else. The bottom line in business is making money, and you need to have a firm grasp on what all those numbers mean to you.
Balance your priorities
Be careful of devoting ALL of your time and energy into the business, especially as the venture grows and develops. Don’t be afraid to delegate when the time comes, because blowing off other important parts of your life can be financially devastating. Basically, that’s a PC way of saying divorce is so are health problems. Take care of your whole life on the path to wealth, or you might well find it all up in smoke when you least expect it.