Ever wondered about starting a business?
Or you must have heard or thought that 'to be rich you must be doing a business' haven't you?
Well, the thought is absolutely right if you want to be a rich and retired person you must be in at least one business. I never heard of any person, rich and financially free without a business.
You must be thinking that starting a business need money, space, capital, furniture, sometimes people to work, many types of government clearances, hassles of acquiring all these things, a product idea or a developed product or service ways of marketing it, marketing channels, and on top of that the risk of going the business in to LOSSES, 'what if after doing all this no one buys the product or the service???'
A lot of uncertainty is there, like everything is hanging in the air.
Too little are the things which are under control.
We don't know what we don't know.
There are also friends and colleagues who are telling that business is risky.
How do I know this? Because I was doing the same thing, exactly as I said. I am been there.
All these thoughts makes us uncomfortable. People advise us to do the job, be an employee. And then this idea of going with the heard starts appealing to us, 'there are billions of employed people, doing job for their employer, they are doing good in their life and without the tension of how to manage the business. Just doing one type of work in which they are specialised and getting paid for it. Their salaries increase as they get more experienced. What's wrong with it?'
So people leave the thought of running a business for later, but slowly they get caught in the responsibilities so deep that there is no time for entertaining the thought of starting a business. It just get added to the unfulfilled dream's list and lie in some remote corner of the brain.
So I am taking this as a starting point and going to show you a way towards business and financial freedom.
Remember the first post in 'The Power of Compounding' series? In which I have given the example. You can read it HERE.
The No. 1 way for employed people to start a business is to NOT START IT AT ALL,
Huh!!!!! ๐จ
Hold on let me complete,
The No. 1 way for employed people to start a business is to NOT START IT AT ALL, BUT TO OWN A BUSINESS STARTED AND RUN BY SOMEONE ELSE.
It is easy, much better and safer way than to start our own business.
It is as easy as clicking a button on your cell phone. Technology made it easy.
What you want is just have an account with a stock broker. The broker will surely help you to open an account, no big deal about it.
But what to do after opening the account is a tricky thing. Most people fall in to the trap of listening to broker or acting on tips or watching a business channel, searching for stock guru's, which are very very dangerous things to do, these things can and most of the times will rob most of your money.
Instead stick to your goal of owning a business. Don't be in a rush, there are plenty of opportunities, and to get rich you will only need a handful of those. Now just think about which field you are working in, probably you are already having the knowledge of the working of companies of your field, may be some inside knowledge too. These are enough things to start analysing the companies in your fields. Just imagine that if you had a company in your own field of knowledge then how would it be? How will you run it? How will it sustain? How will it grow its profit? Or in simple terms how would you make your company ideal as per your thinking? And try to find out such company.
Almost 99% of the people putting money in the stock market don't do it, so you already have an edge over them. If you do this thing, you might find a lifetime investment opportunity.
The key is to be cool, patient and confortable with whatever you are doing, if anything is making you nervous just stop doing it. Getting nervous and loosing your piece of mind is not our path to make money.
In this way if you find a wonderful business which earns high return on capital, managed by good and ethical management, have long term growth prospect, and the most importantly you understand how it works, also it should be available at a price lower than the earning of the company expected in the future. Then you can think about buying some shares of that company in the stock market and becoming a part owner.
In this way you own a business, though in part. As you own a business, you become a businessman.
Didn't I told you it is simple!!!
But as a real owner does, you have to keep watch over the operations of your company and make sure that your company is on the track you wanted it to be. Otherwise if it is on the wrong track you have to consider about selling it. But as long as it is on the right track and the company is growing your capital, you can sit back, relax and enjoy the life.
Remember a good businessman does not sells his businesses often, he does it when his business is not doing well and he can't do anything about it or he have some better opportunity and needs money to invest.
Invest very small amount of money that you can afford to lose at first, you are going to make mistakes but as you make mistakes, learn from them, take your lesson and move on, don't keep on lamenting.
Or there is another option for this who don't want to do this stuff.
Just invest in index funds of reputed firms. Index funds invests your money in the companies constituting the index. These are generally big and profitable companies which have very low chances of bankruptcy. So your money is safer than the way suggested above, but if done properly, whole heartedly, the first method gives returns far exceeding this index fund method.
But in both the cases you should only invest very small portion of your money to get the feel of the market, the markets are generally cyclical and may take a sharp dip occasionally, so when it takes a dip you should have your head cool and be there to buy your favourite businesses or the units of index funds.
Those who invests in the dips gets the most returns, but no one knows when the market is going to plunge, so better to start investing systematically.
Hope you got some useful knowledge from this post.
Do write any questions arising in your mind in the comments section. Or tell me whether you liked it..
Sumit
The POWER is when,
You use ODDS,
To get EVEN.
Or you must have heard or thought that 'to be rich you must be doing a business' haven't you?
Well, the thought is absolutely right if you want to be a rich and retired person you must be in at least one business. I never heard of any person, rich and financially free without a business.
You must be thinking that starting a business need money, space, capital, furniture, sometimes people to work, many types of government clearances, hassles of acquiring all these things, a product idea or a developed product or service ways of marketing it, marketing channels, and on top of that the risk of going the business in to LOSSES, 'what if after doing all this no one buys the product or the service???'
A lot of uncertainty is there, like everything is hanging in the air.
Too little are the things which are under control.
We don't know what we don't know.
There are also friends and colleagues who are telling that business is risky.
How do I know this? Because I was doing the same thing, exactly as I said. I am been there.
All these thoughts makes us uncomfortable. People advise us to do the job, be an employee. And then this idea of going with the heard starts appealing to us, 'there are billions of employed people, doing job for their employer, they are doing good in their life and without the tension of how to manage the business. Just doing one type of work in which they are specialised and getting paid for it. Their salaries increase as they get more experienced. What's wrong with it?'
So people leave the thought of running a business for later, but slowly they get caught in the responsibilities so deep that there is no time for entertaining the thought of starting a business. It just get added to the unfulfilled dream's list and lie in some remote corner of the brain.
So I am taking this as a starting point and going to show you a way towards business and financial freedom.
Remember the first post in 'The Power of Compounding' series? In which I have given the example. You can read it HERE.
The No. 1 way for employed people to start a business is to NOT START IT AT ALL,
Huh!!!!! ๐จ
Hold on let me complete,
The No. 1 way for employed people to start a business is to NOT START IT AT ALL, BUT TO OWN A BUSINESS STARTED AND RUN BY SOMEONE ELSE.
It is easy, much better and safer way than to start our own business.
It is as easy as clicking a button on your cell phone. Technology made it easy.
What you want is just have an account with a stock broker. The broker will surely help you to open an account, no big deal about it.
But what to do after opening the account is a tricky thing. Most people fall in to the trap of listening to broker or acting on tips or watching a business channel, searching for stock guru's, which are very very dangerous things to do, these things can and most of the times will rob most of your money.
Instead stick to your goal of owning a business. Don't be in a rush, there are plenty of opportunities, and to get rich you will only need a handful of those. Now just think about which field you are working in, probably you are already having the knowledge of the working of companies of your field, may be some inside knowledge too. These are enough things to start analysing the companies in your fields. Just imagine that if you had a company in your own field of knowledge then how would it be? How will you run it? How will it sustain? How will it grow its profit? Or in simple terms how would you make your company ideal as per your thinking? And try to find out such company.
Almost 99% of the people putting money in the stock market don't do it, so you already have an edge over them. If you do this thing, you might find a lifetime investment opportunity.
The key is to be cool, patient and confortable with whatever you are doing, if anything is making you nervous just stop doing it. Getting nervous and loosing your piece of mind is not our path to make money.
In this way if you find a wonderful business which earns high return on capital, managed by good and ethical management, have long term growth prospect, and the most importantly you understand how it works, also it should be available at a price lower than the earning of the company expected in the future. Then you can think about buying some shares of that company in the stock market and becoming a part owner.
In this way you own a business, though in part. As you own a business, you become a businessman.
Didn't I told you it is simple!!!
But as a real owner does, you have to keep watch over the operations of your company and make sure that your company is on the track you wanted it to be. Otherwise if it is on the wrong track you have to consider about selling it. But as long as it is on the right track and the company is growing your capital, you can sit back, relax and enjoy the life.
Remember a good businessman does not sells his businesses often, he does it when his business is not doing well and he can't do anything about it or he have some better opportunity and needs money to invest.
Invest very small amount of money that you can afford to lose at first, you are going to make mistakes but as you make mistakes, learn from them, take your lesson and move on, don't keep on lamenting.
Or there is another option for this who don't want to do this stuff.
Just invest in index funds of reputed firms. Index funds invests your money in the companies constituting the index. These are generally big and profitable companies which have very low chances of bankruptcy. So your money is safer than the way suggested above, but if done properly, whole heartedly, the first method gives returns far exceeding this index fund method.
But in both the cases you should only invest very small portion of your money to get the feel of the market, the markets are generally cyclical and may take a sharp dip occasionally, so when it takes a dip you should have your head cool and be there to buy your favourite businesses or the units of index funds.
Those who invests in the dips gets the most returns, but no one knows when the market is going to plunge, so better to start investing systematically.
Hope you got some useful knowledge from this post.
Do write any questions arising in your mind in the comments section. Or tell me whether you liked it..
Sumit
The POWER is when,
You use ODDS,
To get EVEN.
