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Wealth road map!
Dear internet friend,
This very article is for you that want to change from being an employee to a small/big business owner. If you are currently an employee and you have been fighting to become your own boss, read every line of this article to discover how easy you can become a business owner. I call this “from job security to financial security”.
If you live in any area where residents are demanding for a particular products or services, you have a greater chance to make money from them, like I wrote in my previous article, look for need and meet those needs, that is the beginning of your riches.
This same story from "Cash Flow Quadrant" of Robert Kiyosaki really made me an industrious, successful smart business owner. Read this life changing story and decide where to start from.
Once upon a time there was this quaint little village. It was a great place to live except for one problem. The village had no water unless it rained.
To solve this problem once and for all, the village elders decided to put out to bid the contract to have water delivered to the village on a daily basis.
Two people volunteered to take on the task and the elders awarded the contract to both of them. They felt that a little competition would keep prices low and ensure a backup supply of water.
The first of the two people, Ed, immediately ran out, bought two galvanized steel buckets and began running back and forth along the trail to the lake which was a mile away.
He immediately began making money as he labored morning to dusk hauling water from the lake with his two buckets. He would empty them into the large concrete holding tank the village had built.
Each morning he had to get up before the rest of the village awoke to make sure there was enough water for the village when it wanted it. It was hard work, but he was very happy to be making money and for having one of the two exclusive contracts for this business.
The second winning contractor, Bill, disappeared for a while. He was not seen for months, which made Ed very happy since he had no competition. Ed was making all the money.
Instead of buying two buckets to compete with Ed, Bill had written a business plan, created a corporation, found four investors, employed a president to do the work, and returned six months later with a construction crew.
Within a year his team had built a large volume stainless steel pipeline, which connected the village to the lake.
At the grand opening celebration, Bill announced that his water was cleaner than Ed’s water. Bill knew that there had been complaints about dirt in Ed’s water.
Bill also announced that he could supply the village with water 24 hours a day, seven days a week. Ed could only deliver water on the weekdays. He did not work on weekends.
Then Bill announced that he would charge 75% less than Ed did for this higher quality and more reliable source of water. The village cheered and ran immediately for the faucet at the end of Bill’s pipeline.
In order to compete, Ed immediately lowered his rates by 75%, bought two more buckets, added covers to his buckets, and began hauling four buckets each trip. In order to provide better service, he hired his two sons to give him a hand for the night shift and on weekends.
When his boys went off to college, he said to them, "Hurry back because someday this business will belong to you." For some reason, after college, his two sons never returned. Eventually Ed had employees and union problems. The union was demanding higher wages, better benefits, and wanted its members to only haul one bucket at a time.
Bill, on the other hand, realized that if this village needed water, then other villages must need water too. He rewrote his business plan and went off to sell his high speed, high volume, and low cost, clean water delivery system to villages throughout the world.
He only makes a penny per bucket of water delivered, but he delivers billions of buckets of water, and all that money pours into his bank account. Bill had developed a pipeline to deliver money to himself as well as water to the villages.
Bill lived happily ever after, and Ed worked hard for the rest of his life and had financial problems forever after. The end.
That story about Bill and Ed has guided me for years. It has assisted me in my life’s decision-making process. I often ask myself, "Am I building a pipeline or hauling buckets?" Am I working hard or am I working smart?"
Becoming a good business owner require you to pay some price. You may have a goal of someday selling your ownership interest and retiring in a place you have always dreamed about.
Since you can not just "up and leave" your business or practice, there is a Catch. The business must be totally systemized with a knowledgeable management team in place. This is the only way to assume the role of passive owner.
Once you have determined to move forward and become a passive owner, there are several steps that need to happen in order to transform your business.
First, an owner needs to teach employees how to "think" like employers and insist that the management team acquire the skill set needed to run the company efficiently in his or her absence. Locking in non-owner managers with an incentive or bonus program will ensure the smooth operation of your business.
The management team should become very familiar and comfortable with all relationships that impact business operations. These include but are not limited to suppliers and distributors, legal and financial advisors as well as allowing your key employees to develop personal relationships with your top customers or clients.
Alarmingly, many owners fail to share such information with their key employees and also fail to prepare them to think and act like business owners. When you are not around, the management staff and your employees can not access the information that only you know. That is why you need to establish and document systems for both critical and pertinent information.
Passive ownership can be a great exit plan but it is not for everyone. Passive owners that plan and do it the right way can reap the benefits of continued ownership and a steady cash flow to maintain their lifestyle, while having time for family, travel, golf and other hobbies and interests.
As you are pondering your exit strategy don't expect to become a passive owner overnight as it can be a two to three year process or even longer, so start your planning as soon as possible and start dreaming!
If you would like to explore high income business ideas visit www.victoriajoshua..com
See you at the top.
Victoria Joshua
[email protected]
