Tag: online stores

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Multiple Streams of Income (MSOI)


msoi

 

I was first introduced to this term by Bob Proctor, a prominent Canadian author and motivational speaker on matters of financial wealth, among other fields related to human success (the definition of human “success” varies depending on the paradigm we use).

The concept is fairly simple, but not simplistic. During and after the industrial revolution (1760-1840), most workers started earning their income through employment in factories and enterprises that supported factory work (banks, press, railways, post, mining, and so forth).

By the turn of the 20th century, more than 50% of the North American workforce had shifted to employment. Excluding the Great Depression period (1929-1939), that percentage had experienced an upward trend, reaching its peak during the era after WW2. Fewer people took farm jobs or started their own ventures. Large corporations absorbed small businesses, manifesting capitalism on a wide scale.

Most of the population had retired to a sense of financial security derived from a “guaranteed” paycheck. The widespread possibility of serving the same employer for prolonged periods of time had supported that disposition. Job security had been perceived as a reality.

The Information Revolution came to shake things up. By the mid Eighties, assured continuation of employment had taken a backseat. Clinging to a job that would end with a two-week notice turned out to be questionable.

Disruptive changes are not always bad. They serve the individual(s) who is open to learning and growing, riding the wave of change, instead of getting washed out by it. Rigidity is synonym to breakdown!

Where does all of that lead us to? Flexibility, autonomy, and being in command of one’s life. Blindly following the crowd is risky, and oftentimes, intellectually and financially fatal. Relying on one source of income in today’s economy is not a wise choice, to say the least.

What are the alternatives? Take multiple jobs at different companies? Work “harder” at the same job to the extent you forget your children’s names or birthdays?! Or rely on social programs, where they exist, to bail you out when the unfortunate happens?

None of these options is viable. We can easily discount the first once we consider the conflict-of-interest provision in any employment contract, let alone the strenuous stretch and excessive stress endured by the employee.

The second is possible, and so many people have traversed that rocky path. However, the impact on personal life is undeniable. Furthermore, those who put 70- and 80-hour work weeks are not immune to reorganization storms. Management by numbers has become the rule at the end of the day!

Social programs can help, but they are not enough. They are meant to supplement other incomes, not replace them.

Now we’ve come to a point in our study where we are ready to consider better alternatives. Alternatives that lay a strong financial foundation, upon which to pursue higher intentions. The tool must remain a tool. When making money becomes the chief concern amid the struggle to “make ends meet”, life loses its meaning, its exuberance and joy. Happiness seems like a mirage dancing on a sun-broiled horizon.

Here is a mathematical representation of the solution:

T = P + (n * S)

T: Total income

P: Primary income

S: Secondary income

n: Number of secondary sources

P could be a form of employment or an established business. What about S? It can be any legitimate, ethical activity that produces money in exchange for providing real value.

Investing is one example. Online stores, part-time teaching/training/coaching, freelance writing (blogging, publishing, technical writing), creating digital products and selling them online on sites, such as Amazon™ and ClickBank™.

You could discover more sources. The bottom line is to find something you love and have the skillset to produce, grow and maintain, without jeopardizing your personal life. Again, we’re building a foundation, not a whole structure.

I have covered investing in great detail throughout this blog. You can learn about online stores by reading this particular post: https://soaring-eagle.org/2012/07/04/making-money-online-online-stores/

Please share with us your comments and suggestions. This article is not comprehensive, as the possibilities are endless. Its aim is to open doors of exploration, to deliver the message that there is more to work-life than a single option…

 

The Wealth Maker

 

© Image Credit: www.windowssearch-exp.com

 

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The Wealth Algorithm (7) – Business Plan


 

In the last post, we concluded by listing few steps you’d need to take, in order to finance your dream via a partnership.

Before you can engage a potential business partner in the process, you must be ready in terms of your plan and strategy of developing the capital to reach the intended result.

According to Wikipedia.org, “A business plan is a formal statement of a set of business goals, the reasons they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.”

In our case, there’s only one “goal”, which is the intention we clearly defined. Next, you need to explain “the reasons you believe that intention is attainable”.

There could be different reasons to different people. Imagine your potential partner asking you this question: “Why do you believe that you are able to grow this “X” amount of money into, say, one million, over the course of the plan”?

Here, one should look closely at his/her skills and talents related to managing money, and financial assets in general.

If you feel you don’t have what it takes to succeed at this task, don’t be disappointed, you’re not alone. That’s why lifelong learning is so important, not only for our bank accounts, but also for our physical and mental health.

Keep things simple, pick one or two methods from the ones we’ve covered here. Make sure you understand the ins and outs of each one, then use that in answering the above question.

Let’s assume you were interested in building an online store. After reading and fully understanding the article, expand your knowledge further. Do more research. Try to actually build a simple online store and see if your interest was still the same, more or maybe less. Take all of that into consideration while writing your business plan.

Once you’ve answered that question, the rest is much easier. You want to do your best to prepare a plan that is precise, presentable and convincing. Include a step-by-step action plan that specifies the activities, the desired accomplishment from each activity, the time-frame, and the resources you may need (financial, human, etc).

A good way to start would be to use a “template”. This is available online. Pick one that you understand and can fill out effectively, in light of our discussion above.

The following points cover major areas of a business plan as described on the BDC™ site (Reference: http://www.bdc.ca/EN/articles-tools/entrepreneur-toolkit/templates-business-guides/Pages/business-plan-template.aspx):

  • Business overview: A brief description of your company and where it stands in the marketplace;
  • Sales & marketing plan: The sales & marketing strategies that will be used to target your customers;
  • Operating plan: A description of the physical aspect of your business operations;
  • Human resources plan: Details on your key staff, HR policies & procedures;
  • Action plan: The planned actions of the business over the next 2 to 3 years;
  • Executive summary: A summary of the reasons you are seeking financing, together with a summary of your business operations;
  • Financial appendix: The facts and figures that back up what you say in your plan.

 

All the best,

The Wealth Maker