WHAT DOES ‘MAKE MONEY’ MEAN?

‘Make Money’. Let’s get down to it – what does this mean? As I outlined earlier, ‘poor people’ get making money confused with earning money.  The rich do not!

There is a big difference between the two. Making money is not achieved by focusing on earning an income. It is done by focusing on building an asset. Anyone can start a business. But building this into a valuable business asset requires a totally different mindset, which you need to have from the outset.

What is the difference between a Business and a Business Asset? It is simple.

·         A Business is a money-producing organization that is centred on a single individual and his or her personal efforts. My consulting business fell into this category. Any business selling time or products that is based on a single person’s effort – or unique skill – falls into this strap.

·         A Business Asset, on the other hand, is a money—producing organization that is not centred on a single individual and his or her personal effort. It is centred on built-in systems that anyone can operate and administer. It is thus easily transferable or saleable without the purchaser needing special skills. My publishing business fell into this category. 

There is a world of difference – and the difference is massive in terms of the wealth you will create and the life you will enjoy.

Why am I spending so much time on this point? If you are going into business and about to make the biggest decision of your life – to throw off the perceived security of a job, with its predictable weekly income, in favour of going out on your own and risking everything, working longer and harder, with more stress and financial risk than ever before, you may as well get paid as much as you can for this risk.

Many people, however, do not! And the best way to get paid for this is to build the most valuable business asset you can.

What you do and how you do it is up to you. I will provide you with a step-by-step approach to maximize your chances of success and to minimize your risk in the following chapters.

At this stage the point I do wish to make is …

The only reason to go into business is to make money out of thin air.

You must not accept any other reason for embarking on this perilous adventure. It is an adventure that can sap your energy, drain your emotions and put you into bankruptcy quicker than anything else if you get it wrong. Your goal in going into business is not to earn money. It is to make money out of thin air by doing two things simultaneously:

·         Generate an income and

·         Build a saleable asset.

At first, it’s not even important to make a profit. Take Amazon.com: since its inception, Amazon.com has never made an annual profit, yet it is valued, as of February 2002, as AU$10-15 billion.

Obviously, in order to build a saleable asset you need to generate an income. This means you must sell something for a profit and continue doing this. Most importantly, though, you need to ensure you are building your business in a way that means it is fully systemized, by which I mean it does not rely on you or your personal effort to keep it running and generating income.

If you are able to do this you will have successfully built a seleable asset.

WANT TO ‘MAKE MONEY’?

SOURCE: HOW TO MAKE MONEY OUT OF THIN AIR by Brian Sher