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A Profitable 2009? Focus on Building Your INCOME Not Business Fundamentals

The Importance of Income

If you had money to invest in a stock, would you invest in a stock that had no income? Even if it had a great management team, stellar marketing team, solid sales team and incredible systems in place, you wouldn’t invest in it if it didn’t have income.

Some people may not know how to build a great business. Perhaps they can’t structure solid business models. These same people may know how to build online income well. We shouldn’t minimize the value of that.

The late Mary Kay started by buying wholesale cosmetics. She then turned around and sold those cosmetics to women. She turned it into a business. Mary Kay was worth over one billion dollars at the time of her death.

Colonel Sanders had to close his original restaurant because the state was building an interstate that ran through it. The government gave him a small check as a result. Colonel Sanders didn’t just sit still. He took his chicken recipe to restaurants all over the country. After over 1,000 rejections, he finally found a partner and Kentucky Fried Chicken was formed. He wanted to generate income from that chicken recipe and it became a massively successful business.

Think about eBay. There are thousands of people that started selling things on eBay just to make some extra money. Many individuals started selling there as a part-time gig and did so well that they were able to turn it into a solid business. And today, many people support themselves that way.

Business and Income Go Hand-in-Hand

I’m not saying that you shouldn’t build a business, it’s just we can get distracted by the smaller tasks involved in the process. You need to also focus on generating income; if you have income, your business is viable.

Think about the dot-com boom and bust. Just about all those companies had business plans. Essentially all of them had management teams, marketing teams, sales teams and systems in place. There were billions of dollars in venture capital money invested in the companies. Even so, just about all those businesses went under.

Webvan couldn’t make any money delivering groceries to people’s doorsteps. Likewise, the original pets.com and furniture.com couldn’t generate income. Many of these companies received venture capital money. They had great business structures but they didn’t have income. Without income streams, these companies completely disappeared.

Don’t get me wrong; you need to build a business. Income generation is just so critical; if you are skilled in that area, you’ll have a much easier path to success. If you know how to make money and get that income stream in place, you can then hire someone to turn that income into an actual business.

Don’t get buried under the idea that you must have certain things in place before you can start making money.

In most cases, if you can generate the income, you have a great opportunity to turn that into a business. It’s not true 100% of the time. There may be instances where that income stream doesn’t have what it takes to make a solid business; however, most of the time, you can make a business if you have income generation.

Get to Making Money

When you’re building a business, it’s easy to get swamped and not have results. You can do all these monotonous tasks but not generate any money. You’re constantly in motion and you are exhausted but you don’t have monetary results.

Just get to it. Simply, get to the making money part. Think about Apple. The iPod wasn’t a business when it started. It was supposed to be a new income stream for Apple. Instead, it turned into an entire business of its own, simply because it became so huge.

Give it a try. Pursue some kind of income generation. Don’t get bogged down with building your business. Hire someone to help you build the business once you have the income in place.

We all have different talents. Some people just aren’t that skilled in the business-building area. Others aren’t terribly skilled in the income-building area. Perhaps you can structure your business but you need to bring in some people to generate income. Conversely, you may be excellent at generating income but need help in the business-building arena.

Multiple Paths to Business Success

There is no one specific path to business success. We get so caught up in the right and wrong way of doing things. Instead, we need to realize that there are multiple paths to success.

Again, it’s important to build a business but not to throw that by the wayside altogether. Your business’s growth is important. It’s fine to create cash flow first. Don’t postpone income generation.

Essentially, you need to both build a business and generate income. The best-performing companies and stocks are those that have great income and first-rate management. This means they have superior people running and growing the business.

Use Income to Get Building Help
If you feel as if you’re stuck when it comes to building your business, don’t feel guilty about pursuing income. It’s absolutely fine to chase the dollar initially. You may try many things that do not work. Then suddenly you may strike something that works, and you’ll begin to generate cash flow.

At this point, you see that it can turn into something bigger and better. You can then either build it up yourself to turn it into a business, or use the income you generated to hire people to build the business. Once you have income streams in place, seek out business builders to help you create the structure and long-term plan for your company. You don’t have to do it all on your own.

Determine Your Website’s Earning Ability

Every website has earning ability. Various types of people from all over the world want to generate income from their websites. You’ll see that every website has three different things that basically determine its capacity and capability to generate income.

The three things are:
1. Core offering
2. Asset build
3. Equity build

The core offering is what the website has to offer the public. Think about this in terms of your business website. What problems are you solving? What solutions are you providing? Who is your particular market? What is your offering’s price point? What other offers have you packed into your sales process? This is essential; you must have a strong core offering.

Asset build and equity build are all about the ability to grow both the website’s assets and equity position. As you work through the document, have fun with it.

For many of you, it will be a bit of a rude awakening. You’ll see all the different ways you can generate income from your website. These are tangible things that you can begin doing immediately to make money.

For some of you, it may be a refresher or a reminder. It can give you a little nudge of encouragement. You’ll see that there are a lot of things that you are already doing, and maybe some extra things that you can begin doing now.

While this isn’t designed to be the definitive document on how to generate income, it serves as a great jumpstart to your process. Add your own ideas to the sheet. By all means, expand on it. You’ll find great value as you actually use it.

Remember, you need both a solid business and income. It doesn’t matter if you build the business first or start generating income first. There isn’t necessarily a right or wrong way to do it.

Make your own path; just get started down the road to success!

Internet Businesses and How They Can Help

The world of the internet is large and international. Once you set up a website, it is possible for the whole world to see… except of course if the URL address that was typed is wrong. This is the reason why businesses, especially ones that are just starting out, establish websites online. If in any case they are not successful in their area, there is always the possibility of customers in other places, including other continents.

Numerous people think that it’s a bad idea to start an Internet Business now because of several cases of scams and hoaxes spreading around the World Wide Web. Yet even if these rumors and reports have been spread around to notify buyers to not trust every site they visit, there are still some very successful internet businesses that can still be found in the web today. Some internet businesses sell merchandise, products or services to the consumers of the world. But how does one start an internet business?

An internet business first needs a website and in order to acquire one, the owner must buy a domain name, and find web hosting. Afterwards is the setting up of the website which, with the growing number of websites today, must be unique enough to be remembered. After all of those are done, the owner of the business must advertise online to different kinds of consumers (depending on their product that they are selling) to visit their website.

The owner of the website must also settle the little knots on his/her string such as shipping or payments. Usually payments are done through credit card but sometimes vary. There is still the matter of geographical difference which is usually a problem with most internet businesses. There are some businesses that are exclusive for certain countries but can still be visited by others around the world.

One thing that people do not realize about internet businesses is that they are not really different from regular business establishments. The only thing that separates them from regular businesses is the workplace and what the capital is invested on. For example, in a regular business, a rented space in a building or a mall is being used as a center of different transactions for the business. On the other hand in an internet business, this gives home-based business opportunities to those who cannot or refuse to leave their homes. After all, all transactions are done on the internet so the official website of the business is the center of these transactions. Another example is the investments done. In a regular business, the owner invests on the space to be rented, different utilities that will be used, equipment, a workforce, and more. While in an internet business, you invest your capital on web hosting and a domain name to be used for the business’s website.

To conclude, online businesses may seem to be easy to do and easy to keep track of… but it isn’t as simple as people think it is. It is similar to a business done in person. The owners of the business must also keep strong ties with customers if they want to improve their sales. With an internet business, you will not only establish relations with people in your area but also with customers all over the world.

Seven Costly Mistakes People Make While Operating a Home Based Business

My Story (The Short Version)

My name is Ray Matthews, I am married and I have 6 children and 4 grandchildren and I love the life I have chosen of being a work at home dad. I have been able to be with my wife and children and do the important stuff that life is made of. Sure I’ve had ups and downs, successes and failures, but longevity in a home business is a process that you learn as you go. I want to give you some secrets that I have learned over the years that will apply to any home business. Here are some mistakes that will cause certain failure in a home business. Don’t just read this article, absorb it, consume the information here and increase you chances of success astronomically!

Costly Mistake # 1 – You’re in The Wrong Business

When considering a home business you should consider your strengths and weaknesses. I am convinced that a great percentage of the home businesses that fail in the first five years are a direct result of bad choices when selecting what kind of business to start. I have personally been involved in successful and unsuccessful ventures. I have found that when I have failed in one that it was due to a bad choice I made. Let me explain what I mean:

Your business should match your experience, expertise, and passion. Just because some opportunity looks good and there are others that are making a fortune at it, doesn’t necessarily mean that you will be successful. For example, if you are not an outgoing person and you choose a business that requires lots of personal contact for sales or maybe recruiting, you may not do well in that business.

Before selecting a home business to start, take some time and evaluate your strengths and weaknesses. Take a long hard look at yourself, what you have experience in, what you are an expert at (or at least above average), and what you are very passionate about. If you are selecting a business that fit all three, your chances of success just went through the roof.

Costly Mistake # 2 – You Don’t Know What You Are Doing

Most people fall in love with the idea of owning a business and working from home but they never take into consideration the learning curve involved. Whether it’s an internet business or a repair shop in your garage, there is a learning curve that can destroy your chances of survival long term. You may think that you know your trade well, you may very well be an expert at what you do and you may have great passion for your chosen career, but if you have never depended on it for an income outside your company experience, you may be in for a rude awakening when you attempt to make a living at it.

I am not trying to be negative here, what I want to do is give you the information you need to become successful. So before taking the plunge and risking your future on what you may think is a no brainer business, factor in some time for training and the possibility of repeated failures before you finally find your groove. Set aside some time each day to get some training!

Costly Mistake # 3 – You Have a Great Product or Service, But Poor Marketing

One of the areas every business owner needs help with is marketing their product or service. You may have a breakthrough product  that everyone needs and probably would end up owning, but if it’s not marketed correctly, no one will buy! Marketing is not 10% of your success, it’s not even 50% of your success, it’s 80%. In other words, you can have a great business plan, a revolutionary product, incredible passion, and a great work ethic, but if the marketing is not there and not good, chances are you will be forced to close shop.

The answer to great marketing is two to three hours a day (to start with) learning how to present your business or your brand to the right people in the right fashion in order to create sales. Buy some books on marketing, search the internet for marketing training and learn to present yourself to the world in a way that will bring customers to your web site or place of business.

Costly Mistake # 4 – You’re Overworking

Yes, you heard me right, overworking can cause your business to fail. When I first started in business in 1986, my idea of making it in a home business was working every waking hour. I though if I just outworked the competition, I would become more successful. I don’t want you to misunderstand me here, any successful venture requires hard work and long hours but where we sometimes fail is overworking without clear goals and proper planning.

You can spend 90% of your time doing things that don’t make any difference at all in your success. A mindset of just hard work without proper focus can lead to stress and failure in a home business.Take the time each day to evaluate your activities of the day before and continually refocus your efforts on the things that really matter. Keep a planner and record your daily activities then look back each month and identify what is working and what is not working and begin to trim away the activities that do not produce results. You will be surprised at how much time you spend doing things that are not productive and occasionally counter productive (those activities that actually cause you to lose money).

Costly Mistake # 5 – You’re Stressing Over Small Stuff

Over the past twenty-two years I have stayed awake many nights stressing over things that I had no control over and in the long haul never had an impact on my successes. Stress and worry steals your focus! The things that seem to be overwhelming (mainly financial difficulties) can be overcome by keeping your mind on the outcome and not your current circumstances. Things will only get better if you maintain your composure and keep pressing forward. Stress, fear, and worry will keep you from getting the answer you need, when you need it to take your next step. You will find yourself thinking more about the obstacles you are facing than the strategy you need to overcome those obstacles.

Here is the answer to your stress dilemma; Become convinced that there is an answer to your problem. Search for the answer instead of worrying about the problem. If you trust, the answer will come!

Costly Mistake # 6 – You’re Allowing the Dream Killers to Get You Of Track

When I started my first home business in 1986, there were people around me that doubted my ability to run a successful home business. If I had listened to those voices, I would have never stepped out and I would most likely still be working for a company, competing with the younger talent fresh out of college, or I may have had to take a cut in pay or even change careers and accepted a lower standard of living.

Nobody knows you like you do! Sometimes the voice of the naysayer may even be someone close to you. If you have a desire and passion to make it in your own business, you sometimes have to tune out the world around you and move forward with confidence no matter what others may think or say about you.

Costly Mistake # 7 – You’re Getting Out Too Soon

I am convinced that there are a very high percentage of new home business owners who jump ship just before their breakthrough. Things always seem to get hard just before you breakthrough and become successful. I’m sure that you have heard the old saying “It’s always darkest just before dawn.” This is true in business. You may have done the necessary work to reach the point of success but you don’t quite have the vision to see past the current circumstances. What a tragedy it would be to reach a point where your financial success was just around the corner and then to quit thinking that your never going to make it.

The key here is clear vision. Before you throw in the towel take the time to assess where you are and where you may be in a month or two months. Be clear in your decision to either hang in there or become a failure statistic. Consider the possibility of what real success could do for you and your family and weigh that against what it could cost you to stay in and see your business through. I think you will see that the benefits far outweigh the costs if you have a passion, product, and correct marketing plan.

Conclusion

I hope this article has been informative and will help you become one of the top 5% that stay in business after five years and prosper.