All Business Ventures are helpful to achieve your first successful business. At first you can get really down on yourself when you hire your first employee, and they quit. Your first business will always be rocky, but as GC says “anything can be accomplished with the right action over a period of time with persistence.”
In my post Assets vs Liabilities I gave you examples of my personal cash flow chart. I’m sure you noticed that in the second chart my earned income started to raise. It went from $79 to $621, and my business netted my first $50. I’m sure your wondering exactly what was happening there.
My Business Experience
My business experience was very interesting – looking back on it. In a mere 6 months since I started my Tree Service company I had grown from making 2,000 each month to close to 5,000 each month. Tree Service Danbury started to grow, and so did my cash flow. We were a much smaller business, and of which I ended up selling after a couple months. In hindsight I think I should have kept it, because the owner after me made it into a huge success.
I learned a lot with my Tree Service, and my second business was extremely successful. We’ll talk about that in later posts. I want you to examine the inner workings of my first business. I can tell you that I knew nothing about Trees, but that didn’t matter. What mattered was that I knew a ton about business.
Business isn’t that simple, but it can be simplified. One term that I’d you to get used to using is the term arbitrage. Arbitrage is defined as the simultaneous buying and selling of assets. That’s basically what I did when I started my first business. I found people who wanted their trees cut down, and hired people to do it while taking a little off the top.
I didn’t want to become an expert in tree removal, but rather an expert it making money with OPT & OPM. Both OPT & OPM are two really important terms to understand.
- OPT stands for Other People’s Time.
- OPM stands for Other People’s Money.
When you can start taking advantage of those two factors in order to make money for yourself, than you’ll be in the mix to make some real money. Often people start businesses similar to my Tree Service, and do all the work themselves.
Business or Self-Employed
Business comes down to people working for you. You are able to multiply your time by having people working for you. What happens a lot of time is people get into a self-employed status. Being Self-Employed is sometimes better than working for someone, because you have the potential to grow.
If you take the self-employment route, than you must really work on getting your system down. Your system is makes a business. When you’re then able to duplicate your system, and have people follow it with success than you have a business system.
The most successful business systems in the world are known as franchises, and those franchises make a lot of money. Remember, every business is one step close to your first successful business, and when you start a business focus on the system & expansion.