Your Online Business Coach
Profit Growth Wealth Solutions
Creating Wealth From Your Business
How important is it for you to be creating wealth from your business? It is absolutely vital!
You invest your life, your time, your blood and your soul into making your business a success so you had better make sure you have something to show for all that hard work at the end of the day.
Here are my top tips for creating wealth from your business:
1. Make sure you pay yourself what you are worth
As a business owner you understand that your workers expect to be paid a decent wage for the work they do. They want to work normal hours, be paid regularly and receive all the normal benefits. So why don’t you expect the same for yourself?
Your first step to creating wealth from your business is to understand what you would have to pay someone else to do your job, and then building your cash flow to the point where you can afford to pay yourself what you are truly worth.
2. You deserve a return on your investment
Once you are paying yourself a proper wage, you then need to build the business so that it can pay you a commercial return on your investment.
When you make a decision to invest in bank deposits, stocks, shares, or property you expect to be paid a rate of return based on the perceived riskiness of the investment. A decision to invest in a business should be made on the same basis, and given a business investment is likely to have a higher chance of failure than other investment classes, you should expect to receive a much higher rate of return than a "normal" investment – perhaps as high as 30% to 50%.
Talk to your accountant or business advisor to determine an appropriate rate of return for your business, and set yourself a goal to pay regular dividends into your personal account.
3. Understand how to make your business more valuable
Your business may well be your biggest asset so you owe it to yourself to maximize its ultimate sale value.
What do you think a future buyer looks for when he or she sets out to buy a business?
They want one that will reward them for their effort (ie pay a proper wage), they want to receive a commercial return on their investment (ie they want dividends), and they want a business that does not need them to work 7 days a week, 12 hours a day.
That’s right, they want the same thing you do, and they will pay you more for your business if you:
4. Make an investment plan, and stick to it!
If you follow my first 3 tips you should now be in a position where the business is paying you a reasonable amount of cash on a regular basis. You now have a choice:
Toys are fun, no doubt. But early retirement, living the ultimate dream of never having to work again is a goal that is well worth the sacrifice.
Talk to your investment advisor, make an investment plan and stick to it.
Build these 4 ideas into your business and personal life plan, and you have found the secret to creating wealth from your business. But most importantly, you need to start today – the clock is already ticking!