making money
Thursday, May 4th, 2006Money is like talent,if you don’t use them,they’d be nothing but useless.
if you have a talent,then you should always work out to improve them,otherwise,you would never knew what it might bring you.it’s not going to be a skill unless you are practising and improving it in some continuous time.
if you have money,especially big money.you got to practise your skill to attract more money,if you are living under your potential,then you are a coward.never be afraid to lose some money,just to be sure that you might learn a lesson or two in doing so. but also mind this,never stake out more than you can afford to lose,cause there will always be risks,and make sure that if you are to lose,you do have enough to get you back to where you started. so don’t put all your money in one big sack of bag but divide them smartly and carefully. and don’t loan money above ten times of your salary,whenever things go wrong,you can always work to cover them (it will take some of your time though,but you will learn more from this).
so i really recommend you not to quit your job,but you got to be careful to the ones that you delegate this job,make sure it’s a trustable guy for sure.but in franchise it’s all in the system,so it kinda takes the worry out. like say in the minimarket,the guy who’s watching over the store can’t cheat you,cause you have system,a computer to know all your stocks,right down to the number.
Risk? ah live is all about risk,you get out the street and try to be careful along the way,and still,who knows? the lightning struck you,or something fall upon you,or just a mere car runs you down the road,regardless that you have been walking in the right path and not violating any law,it’s may be caused by a drunk driver or else some other reasons. that’s why they have insurance for the unexpected.
in business it’s all about managing the risk involved,why does the franchising thing worked in the first place? cause they have managed to calculate all the risk involved. they have tested the whole thing and it turns out well,so we might as well duplicate the whole system.
Do we need money to make money? yes,we do, i say.
but the most often thing is,people say that,"i’ve got no money what so ever,how can i start a business? even the small one? " ah.. that’s where this new concept comes in. ever heard of the bank? yup.. it’s not only the place to deposit some money,it is to borrow some also.
so how do we make this work? let’s just say that someone has offer you a franchise of something with the return on investment(ROI) for a solid 25% above a year. what does this mean? it means that if you put your money in the bank for an interest of like say 10% per year,you’re gonna make a lot more money in the franchise compare to if you only put them in a bank.
now if you’re still with me and you’re smart enough to know that the loan interest will always be higher than the deposit one,then all you have to do is to find a business that’s gonna give you like 10% higher than the loan interest.
for example now the loan interest is unlikely about 15% (may vary from one to another), and the franchise is offering you a solid 25% minimum(the higher the better),then i’d say it’s a good business,but you got to look a little deeper in the business,the whole business should only operates not more than 10 % of your equity,most likely around 5% because then you would still have some spare to save,and it’s not coming from any of your money ,right?
so,do you see? why making money doesn’t take money? like kiyosaki said..
so it’s not about the money,but it’s more in the calculating the risk involved and how well you can managed the risk there is.
does business have insurance? in stock they do,it’s called an option. you have a letter in option that will guarantee you if your stock goes down then the undertaker will have to buy you at some agreed price.
sadly i have to answer that business don’t have a so called insurance,it comes and go,so you would just have to be careful,and if you have done as i mention earlier ,you can always start back all over again in another business,so long you don’t put all your money in one bag,and not to borrowed more than you can pay. the recovery should not take more than a year to do though,otherwise you would tend to forgot or to lose the nerve.
So be brave and take actions,only the action that differentiate you from a man and a coward. losing is not good,but doing nothing when you could’ve done something is even worse.at least if you lose you are moving and that’s good,cause you will get the lesson that the other coward don’t.
