Most people in nowadays, will like to start a business as a second stream of income; however, they don’t understand the basics and the importance of having a second stream of income. You see a person who is starting a business needs to understand that there are natural laws governing this types of activities, and unfortunately if people don’t follow this natural laws they will most likely fail in their business venture. The following are the ten most important steps for anyone to follow, if they so desire to have a second stream of income. Let it be known that by no means these are the only natural laws governing a particular business venture. However, these laws are always seen on successful people that have started and succeeded in their business ventures.
1) Live way below your means
A person starting his/her own business has to understand that they need to live their life way below their means. Money is a resource, if people spend it in futile things not related to their business, they will most likely wont have sufficient money to make their business grow. You don’t work for money any more when you have a business, you work for people, for your customers. You work to build a reputation. And once you have achieved that reputation money will come. Because money doesn’t come out of the hours you spend doing something, it come from the trust the customers have for you when they buy your product or services. That is the reason why you should always make it a habit to live way below your means. Because until you build a reputation and a customer line that can provide you with a monthly stream of income you should be careful on how you spend your money, and have sufficient money for you to survive.
2) Be an uncontrollable but risk-cautious investor
A person need to develop a risk-cautious mentality. A business owner can’t be afraid to invest in his/her business, to make the business grow. And it can be afraid of having others invest in his/her business. It has to be uncontrollable, what I mean by that is that the business owner needs to seize opportunities all the time. And developed the skills to evaluate a good business opportunity that can benefit the business venture. The way a business owner should evaluate these business opportunities is by deciding based on principles; what are the best business opportunities for growth that his/her business venture needs. Never decided on impulse, you must decided on principles and values. In any decision that concerned with the business he/she has at hand.
3) Be frugal
People will hate you for this, unfortunately! It is imperative that a business owner be frugal. Remember, money is the lifeblood of your business and if you don’t have it at your disposal whenever there is an emergency or a business opportunity, you will not be able to provide for any of them. It is imperative that a business owner take into account all the money, until the very last penny. Because money does not come regularly. The money comes sporadically at the beginning, and as the business owner continues to be persistent in his/her business venture money will follow like waves as time goes by. And for every penny invested he/she needs to understand that he/she will have a laps of time for him/her to have a return of the investment (ROI).
4) Always track your money
A business owner need to know all the in’s and out’s of where their money is invested. They should have at least their own cheat sheet, simple enough for him/her to understand where the money has gone. Specially in the advertisements area. By doing so, he/she will be better prepare to manage that particular resource. Business owners need to know which advertisement campaign works best and which one don’t. It is at no use for a business owner to work on a campaign that don’t work. Always do what work best for your business. Always take in consideration that what work best for your advertisement needs to be economically effective. By that I mean, that the advertisement needs to be adjustable to your budget, and bringing the most returned possible. For that to happen a business owner needs to always evaluate this area of the business apart from what the core product or service is. This area of the business should never be forgotten or given to an other person.
5) Never imply or say how much money you have
In the Wall Street world there is a saying that goes like this: “ Bulls make money in a bull’s market, the bears make money in the bear’s market, but the pigs get slaughter in the long run, and the sheep are let to slaughter as they follow the masses.” In order for a business owner to protect him/herself, he/she needs to be aware of the two most devastating emotions in the business arena: fear and greed. One way to protect yourself from predators is by never saying or bragging about how much money you have or own. Humility can open lots of doors, arrogance can burn lots of breaches, if you know what I mean. It is impetrative for a business owner to keep as much doors open and as much breaches intact as he/she can. When you are in business, emotions play a big factor in whether you win a sell and lose a business or you lost a customer and have a business for life. Life or death depends on the power of your tongue. If you start “spilling the beans” of what you have or what you don’t have people will ether reject or accept you for it. Guard your tongue!
6) Always think that you are rich
Internal positive mental attitude is indispensable. Henry Ford, from Ford Motor Co., says: “If you think you can you are right, if you think you can’t you are right as well.” Using the natural law of attraction, the right way is important. We are human magnets, we attract what we want and what we don’t want. Whatever it is that you resist, persist. If a negative thought dwells in your mind and you are resisting it, it will continue to persist until you get that thought out of your system. Be ware of thoughts of fear and doubt, because if they live and persist in your mind, they will most likely become true. Chinese, use to say: “be ware what you whish for, because you might get it!
7) Learn to use your resources
Most of your resources come from time, money, people, and assets. Time is the most valuable resource that you have. It is much more valuable than money. Money you can get it back, but the time that you lose you will lose it for ever. That is the reason why you should take a look at how much time you spend on your business and your personal life. You are in business to survive and be able to live in a dignify manner. However, you also need to understand that if you don’t put enough time for your business to grow, it will never do it. You need to be able to run and fit your business around your life not the other way around. For that reason as a business owner, it is advisable to manage your personal time and your business life in the most efficient way possible. Money is the second most important resource; therefore, a budget is important for you to best manage that particular resource. Plan your buys, and expenses ensure that you are never over-budget. People is the third most important resource that you have. You need to be able to socialize with like minded people. People that have never been in business before will discourage you and will lead you in the wrong path. Like-minded people are always willing to help! Assemble your team, and ensure they are reliable. At first your team will consist of you, yourself, and no one else. That is because people like to see results before they can start depending on you. It is a logical human reaction. So don’t be upset at the situation. In order for you to be able to assemble a team of followers you need to bring result of your business venture first at a lower scale. Only then when people see that you’ve succeeded in a small scale by yourself, they will start trusting your business venture at hand. The last most important resource, but never least are your assets. Your assets are what you have on hand that you can be able to use for your business activities. For example: a car, your house, the internet…etc. An assets is whatever, item that you own or other people own that it is under your control, that can be able to help grow your business.
8) Do what you love
Don’t ever go into business for the sake of making money alone. You need a purpose, a reason why you are doing it. If your “why” isn’t big enough you will not have the stamina to sustain the hardships of your business venture. Being an entrepreneur is hard enough as it is, for you to start something that you hate. I mean it is not logical, it doesn’t make any sense that you go on a business venture that you hate. Don’t ever set yourself for failure that way. Never, get into a business venture just for the money alone. Something in your life that business has to fulfill, other than financial independence.
9) Learn the process of selling and accounting
Selling a product or service is not enough, if you don’t have some type of accountability system where you know how much you spent, and how much you’ve gain you are spinning your wheels and wasting your time. It doesn’t matter how much you make. What it matters is how much of what you make, you can be able to keep. That is the basis of financial freedom. Selling is a process of transference of feeling, if you can be able to develop the communication skills of putting in someone else’s mind that they need what you have, or what you can offer, than you are selling. The transaction made from a customer to you is called a “buy!” Selling it’s not the transaction of good or services for currency. So in essence, the way to get income is to figure out how many people you can find that needs what you have to offer, and how many of them can trust you enough to “buy” from you! The reason why I brought this up is because people like to buy product, and services, but they never, like to be sold. So make sure you are in this head-space when you are negotiating your products or services.
10) Develop working habits for your business
Finally, a business is more than a job, but it requires for a business owner to develop working habits. He/she is the leader of the company; therefore, the business owner must set the example of whatever, it is that he/she wants done. If the business owner is the one putting up the rules he/she should never be the one bending it. I mean, this is logic 101. The business owner should be the first one coming to work and the last one to leave his/her place of business. He/she should know each and every one of the job description necessary to make the business system work. He/she should know the services, at the same time the business strategies needed for the business venture to compete and survive. It is highly encourage that no business owner should be involved in any business venture that he/she doesn’t understands. Therefore, he/she must constantly be listening and learning about his/her craft. Patience, is a virtue and believing is powerful.
One last note. Anyone can take away your job, but no one can’t take away your business.
