What 99% of People Do Not Know About Business

Safe is good but finding more opportunities with risk is better. The one thing that I have seen common with Baby Boomers and Millennials is they wanting to play everything safe. They believe in getting a job, collecting salaries, paying mortgage, saving for retirement, and if they were lucky enough, be able to purchase a house for renting at their old age or put their home for rent while they go to stay in care homes. They just want everything safe but in our world, if you intend to do exceedingly better than 99% of people, then you need to do things differently. When it comes to making money, you need to work for yourself or own a business.

Talking about owning a business, one common mistake that newbies make is they want to make the next Netflix for rentals, the next Uber for workers, the next Amazon for horses. There is nothing bad about having new and great ideas but thinking that you need to start a business with something that will change the world forever is a big myth, you can start with any business with a strong foundation.

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Now that I have mentioned that, another thing that people are so quick to emulate are words from personal finance books especially the one that says a person can save up little money, which they can then invest in stocks and then they can begin to grow their wealth using that. While this is not completely wrong, it is giving the wrong believe that a poor person can become a millionaire or billionaire easily by investing their little. If we were going to be realistic, it will be very difficult for a person who buys $100 shares every year to become a millionaire with a 10% annual ROI but this is easy for already made millionaires who have $10 million to invest as a 10% annual ROI is worth sticking with and they can withdraw the $1 million return for other things.

In this life, you need cash flow, skills, and connections. As simple as these three things might sound, they mean a lot. Imagine that you have a steady cash flow, a great skill at sales, management, marketing, accounting, or engineering, and you have the right connection just like you or better than you, where do you think you will be? Achieving this can take a while but you just need to start a business, and you will be shocked at the network of people you will have.

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What is business without cash flow, but this is very difficult if you do not know what you are doing. To have a business with good cash flow, you need a business that is easy and quick to start, profitable, and scalable over time. In all you do, ensure that you are not a freelancer or a glorified self employed person who is selling time for money on the job that could be done by other people to give you the money you need as well as the time to do other things or scale the business.

When it comes to skill, you will surely learn the skill in the business. As a business person, you need to learn how to sell and this is where you learn sales, you need to make your product popular and acceptable, so you learn marketing, you need to learn how to manage people so you learn leadership.

As I want to end this post, let me state this that if your business is not bringing in profit and doesn't have a great valuation, then it is a non-profit organization. If your business is only giving out services with no solid way of a return, then it is a charity organization.