Tuesday, March 20, 2018

Director Decisions: How To Keep Your Life And The Business On The Right Track

Being the director of a company comes with great responsibility, and you may face
many difficult decisions in a host of different aspects. Being prepared for those
moments is the only way you’ll ever achieve success for both the business and your
personal needs.
In truth, the list of potential dilemmas is extensive. However, some issues are far
more likely to surface than others. Here are some of the most common, along
with what can be done to overcome them.
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#1. Home Or Away?
In today’s climate, it’s very common for small businesses to begin life as home-based
operations. Taking this option reduces the overheads and removes a great deal of
pressure. With simple ideas like using virtual office addresses, it needn’t compromise
a great first impression either.
Some ventures can continue as home-based ventures indefinitely. Others will need
to enter commercial premises, which is why you should know
you need to get the timing right too.
Taking the leap of faith is frightening, especially as getting it wrong can backfire
spectacularly. Get it right, though, and success is far more likely.
#2. Short-Term V Long-Term Goals
As a director, your roles and responsibilities are vast. Ultimately, though, keeping the
venture moving in the right direction. Finding the balance between immediate needs
and future sustainability isn’t easy. The ability to do this often separates the best from
the rest.
Time efficiency is a major factor for all businesses, and investments made to boost
communications can work wonders. Researching items like
how to incorporate video tech into the business” can make a world of difference.
Still, you’ll only want to make those investments if they help the company forever.
Another factor to consider is the fact that you must walk before you run. Expansions
will come, but timing is everything. Grow too fast, and it could backfire.   

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#3. Legal Decisions
In many ways, the formula for business success should simply be: high sales revenue
minus low overheads equals profit. The reality of running or directing a company is
far more complex than that, though. At times, you may face some very difficult
decisions relating to this field.   
As a director, you need to know that the company complies with financial requirements.
If you can’t answer questions like “what is a Director's Penalty Notice?”, you may leave
yourself open to unwanted outcomes. Meanwhile, copyrights and similar items must
be respected.
Arguably the hardest decision is knowing when to either step away or close the business.
For the sake of your health, as well as everyone involved with the business, ignorance
is anything but bliss.
#4. Cutting Jobs
Employees are the most valuable asset to any modern business. However, this is
one of the largest expenses too, which is why you must not overlook its importance
for a second. Sometimes in business, redundancies and sackings become a necessary
Analysing every aspect of the venture should open your eyes to where cutbacks are
necessary. When hiring new people, you should also consider
whether outsourcing might be a better solution. In many cases, this removes huge
pressure and keeps you in control.

When it comes to your team, quality is paramount. As long as the staff situation is designed
with the company’s best interests in mind, you won’t go far wrong.

Thursday, March 15, 2018

Millionaire Short(On)bread: Securing The Capital For The Ventures That Will Grow Your Wealth

Let’s face it. We’re all temporarily embarrassed millionaires and while we may all
aspire to success, wealth and prosperity, we also know that only a fool expects to
see growth where they’re unable or unwilling to invest in the first place. You likely
have some great ideas that will one day bring you this wealth and success but
getting them off the ground is proving somewhat troublesome. The banks are no
help, of course. Ever since the financial collapse of 2007-2008 they’ve been
consistently gun shy when it comes to lending to those who don’t already have
substantial wealth, resulting in something of a catch 22 for aspiring new

But just because the banks have shut their doors, in fact there are some areas where
a bank will be legally obliged to point you in the direction of alternative funding sources
for business ventures. If you live in the UK, for example, get to know the terms of the  
a little extra capital to get the Townhouse Builders to carry out some renovations on
your investment property or secure startup cash for a new business venture you
have a range of options open to you. Let’s go over a few of the more popular ones...

Government grants

Why get a loan when you can get a non-repayable grant to get your enterprise off
the ground. Depending on where you live you may be able to secure government
funding if you can demonstrate that your business proposition is of educational or
scientific value or of value to the greater economy. Australia, for example, has several.
If you feel you could make a strong case for why your enterprise should be government
funded it can’t hurt to at least apply.

Bridging loans

Sometimes businesses need a short term loan at a time of poor cash flow to
facilitate a capital investment that could lead to future growth. This might include
branching out into a larger premises, investing in a better piece of equipment or software
or sinking some capital into a robust marketing campaign. Whatever your reasons,
you may well benefit from a short term bridging loan. These are specifically designed
as short term loans to tide you over in times of need. They can be secured quickly
and with a minimum of administrative hassle, but they also tend to come at a high
interest rate so they’re not recommended for long term investments where a return
is a way off.

Unsecured loans

One of the most frustrating things to plague aspiring young entrepreneurs and
investors is the speed and velocity with which doors slam shut in your face if you
don’t have a lot of assets to offer up as security. However, the financial services
industry has risen to this changing paradigm, resulting in a range of readily
available unsecured loans. Of course the interest rates are less favorable than
a secured loan but if you have faith in your ideas and factor the interest on
your repayments into your cash flow projections, this is unlikely to phase you.  

Tuesday, March 13, 2018

The Mindset of The Wealthy vs. The Middle Class

Once upon a time you were probably told to work hard at school, get a good job,
work your way up through the ranks and then retire with a secure financial future
ahead of you; full of cruises and cabaret! Today, this advice is not only archaic,
it’s potentially hazardous to your financial future.

Today, in a global digital economy we are having to learn about topics such as personal
branding, portfolio careers, side hustles and passive income in order to secure our
financial destiny. There’s been a huge social shift in the way we are making
money - and it’s important to get educated in this growing area of concern.

The book “Rich Dad Poor Dad” presents four categories in how people make an income:

  1. Employee
  2. Small Business Owner
  3. Big Business Owner
  4. Investor

To be an employee is the most common, yet often the most ineffective way to
go about making money, because ultimately, as an employee you are trading time
for money - and someone else is pulling the strings.
Working for a corporation at the higher level does have its perks however, such as
the fancy cars, business class travel, and decent remuneration… but being an
employee is a little like renting rather than owning a house, you’re not building
something that will become an asset (other than a pension) you are simply trading
time for money and when you stop trading time you stop receiving the money.

Many people today are taking the entrepreneurial leap to run their own small business
but often find themselves trading the comfort, stability, and reassurance of having a
regular income where they simply turn up to work do their tasks and get paid with a
whole heap of stress and uncertainty. As a small business owner, at least in the first
year, they are likely to have doubled the amount of time they are working and halved
their salary!

The financial rewards of having a small business can be substantial, but for most
people they are simply trading a job for a job they own.

Small Business owners, in this context, relate to people that ‘own their job’
such as a massage therapist or personal trainer; where they are still trading their
time for money. The limitation being that you can be a great massage therapist,
charging $100 an hour, yet there are only so many hours in each day that you can
realistically work.

Big businesses, however, leverage systems and other people to create their income.  
Let’s take an ice cream van. The small business owner mentality runs an ice cream van
generating $200 profit from selling ice creams. The big business owner, however,
goes out and buys five ice cream trucks and employs five people to serve ice cream.
He now has leverage.  He has created a system and a network that is scalable.
This is how the wealthy become wealthy - they build systems.

The investor has true leverage; rather than work for his or her money, in the
conventional sense of swapping time for money - they put their money to work for them. 
Think of it this way, if you have $500,000 in a savings account that is earning interest
of 10% each year - then, by doing nothing, that savings account is generating $50,000
a year. Now, the challenge is getting that initial $500k in the first place, but the
concept remains - investors create assets that generate income automatically in

Now that we have a grasp of the four ways of making money, let’s look at three general
principles to help you create a life of financial wealth and abundance:

You want to dream big.  Why? Because today, you can have, be and do anything
you want - you just have to walk the path that leads there.

Many highly successful people talk about the importance of having a vision board,
where you connect with your hearts desires and spend time visualising a future life
that fulfils you - just like how athletes use positive visualisation techniques to picture
themselves winning the race, you want to set yourself up for success, you want to
expect success and lean into the experiences you want.  As an example, learn more
about owning your own private aeroplane or go down to the showroom that houses your
dream car.

There’s a popular saying that states the “more you earn the more you learn”.  
This is a sound concept, however, when looking at education from a money making
perspective, it should be noted that there are many people that dropout of college
and financially surpass their well educated white collar friends by simply selling
things on eBay.  

With this in mind, it should be noted that learning is not limited to academic education;
indeed, if you were to learn how to invest in property these skills are likely to get you
much further in life, on a financial basis, than having a generic degree. There are
some academic courses that are required to enter a particular profession, and
these should be considered, but bear in mind, that oftentimes, you’ll find highly
educated white collar workers attending weekend seminars on topics such as
real estate investing, amazon trading, and digital marketing that are being led by
people that didn’t go to college - they just got out there and did it.  

The one thing to bear in mind, when it comes to learning, is to ensure the time and
money you put into the course provides a decent return on investment.

Today, you can easily start a business for under $500.  Indeed, it can be for
under $100 if you’re setting up an online business, such as a blog or online shop.
The key thing to remember is that it’s VERY hard to become wealthy by being an
employee - you need to run your own business and focus more on making a profit
rather than making a salary.

Even if you have just $100 in your bank account, start investing, get into a good
practice and build the habit of creating assets. That’s the main difference between
the “rich and the poor” - the poor tend to spend money in order to derive pleasure
or gain comfort (e.g. a fancy car, nice meal, or expensive outfit) whereas the
wealthy invest their money in order to derive long-term financial stability (e.g.
houses, savings accounts, stock portfolios).

In summary, this article has hopefully opened your mind to looking at the different
ways people make money - but if you want to be financially free, you’ve got to start
dreaming big and investing your time in building assets that generate income without
you having to swap your time for money, like an employee trapped in the rat race.