Why Are You A Business Owner?
Make more money? Have more time freedom? Build your dreams, instead of your boss’s? That’s what I had in mind when I started a carpet and tile cleaning company 11 years ago. In short I wanted the American Dream.
Or mayby, its what you didn’t want. You didn’t want someone else telling you what you were worth. You didn’t want somone else telling you when to take a break, go to the bathroom, or have a vacation.
To get these benefits you were willing to invest your money, your time, your reputation, your blood sweat and tears to accomplish it.
So how’s it working out for you? Did your business meet your expectation? Did it set your free or ….
Are You A Business Slave?
The sad truth is most of us unintentionaly bought a job and sometimes we paid alot for it. Yes, we can make more money, but freedom, vacations, the American Dream seems to elude us.
Here is why it happened to me and maybe to you. I didn’t have any leverage in my income. For me, I only got paid when I was cleaning carpet, tile and upholstery. Everything else that I did for the business was free like the hours spent learning marketing, sales, bookkeeping and everything else we have to do to learn how to run our business. God forbid we take a day off, get sick, get injured or just burn out. We don’t get paid, but not only do we not get paid we still have to pay the standard expenses on our business. We actually LOSE MONEY when we take a day off.
How to break the chains of slavery and achieve freedom.
You have to get leverage into your life. Some also call it residual income.
Here is the difference, when I clean a carpet I get paid X and that transaction is over, that is linear income.
Compare that to an entertainer who creates a cd once, but gets paid on it every single time it sells for years to come, that is residual income. Did I just date myself, does anyone buy cds anymore? Residual income is better then linear income or as Jim Rohn says, “profits are better than wages.”
To get leverage you must find a way to stop working “IN” your business and start working “ON” your business. Here are a couple tips:
Systemize your business: 24 hour recorded messages, YouTube videos, Autoresponders and blogging are examples of systemizing your marketing. You can do the same thing for sales, product delivery and after the sale service, The more systems you have in place, the less you have do and the more leverage you have.
Hire Staff: If you are worth say $50 an hour (just a round number) and you are doing work that you could pay someone $10 an hour to do you are not maximizing your time. Hire staff to handle all areas that you don’t have to do and you will be able to focus on your highest profit tasks and give you more leverage.
Franchise: When your business model is proven, you can take that model to the market and people will pay you, for you. Now you are making money on your expertise and others people efforts.
Continutiy Program: Create a program that allows clients to pay your company per month for a service, product or expertise. This is can be done in any business if you get creative. For my carpet business I used an Always Clean VIP Program. This program divided my clients next annual cleaning into 12 monthly payment for a series of very valuable benefits only available to member of the program. This virutally guaranteed me that client would not call a different company the following year.
In my business I implemented the first and fourth strategy in a big way and saw measurable benefits from them. If your business is like many businesses, your volume has decreased in the recession and hiring staff or franchising just wasn’t something reasonable for you to do. If your business is back on a growth curve but not up to pre-recession profits then the final tip I recommend is…..
Second Income Stream: Many experts say you need multiple streams of income. Taking your expertise and applying it to a growth industry while you weather the storm in your primary business is a great way to add residual income to your life and help you reach your goals.
If you have any additional ways to and leverage and residual income to your business please comment below.
Make it a great day,
PS: If your business is not in a growth industry or your are not making as much money as you should Check Out This Plan B
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