Why a Business is Your Biggest Investment?
Most people think of business as something they work in daily that brings in money to keep a roof of their head and food on the table. But a business is an investment and one of the biggest investments you are likely to have.
What Type of Business Do you Start?
A hobby was the first business my husband and I set up. My husband was a racing driver who built his cars and engines. He was approached by a friend who ran a garage to see if he could do some specialist welding repairs on a vehicle. This led to the friend being able to take on insurance work using my husband as a subcontractor. This business was run as a hobby. My husband would do his full-time job during the day and in the evening, he would do the welding repairs. In his day he was one of two guys in New Zealand who could do plastic welding. He was also one of a few people who was a specialist welder for vintage and veteran car rebuilds. Welding was not his profession, it was a skill he had learnt for building his racing cars but became a side hustle.
Most people become self-employed because
1. They are made redundant and are unable to find another job quickly so they start a small business in an attempt to bring in extra cash to replace a lost wage.
2. They believe they can do a better job than their boss or the company the work for so set up their own business
3. They have a hobby and think they can monetise it
4. Are fed up with their jobs and are looking for a way out
5. Have always wanted to have a business but timing was never right to start it.
There may be other reasons but when talking to clients these are the key reasons that they come up with.
How Do You Start a Business?
So, how do you actually start a business? You first have to find clients. No one has a business if they don’t have clients.
I often see people talking about designing a logo, getting business cards, having a business plan, having a website, setting up their social media post etc. But, until you have your first client you don’t have a business so the number one focus has to be finding the client first. The logo, business cards, website etc. always came once I had paying clients who covered the cost of setting these things up.
The old adage is people do business with people and that is very true. I’ve started businesses by networking. Going to a variety of different types of events and talking to the people who are there. I get their business cards and follow up with them. I’m not waiting for someone to call me. I take charge of the situation.
Now you have the opportunity to get your first clients and start trading.
Why Business is Your Biggest Investment
There are 4 key investment categories, business, property, paper and cash. Business is the key which generates the income that allows you to be able to invest in other categories. Without a source of income, you are unable to get started in other types of investing.
But having a business is not just about generating and income. There are people whose investment strategy is based on building and selling businesses. They might start a business from scratch. Build it to a certain level then sell it and start over again.
There are investors who prefer to buy into an existing business and increase the value of it before selling. Another strategy is to buy and hold several businesses all generating income for you.
Business is an investment. It is not just another job from 9am – 5pm that provides your monthly wage. It is a genuine investment which can provide investment capital to buy into other investments.
Business can be the biggest investment you will ever make.
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