Not all business owners are wealthy and starting a business does not always guarantee success, as there are only a few business owners in the world who have been able to elevate their businesses from the ground up.
There are three things you must do to create wealth quickly in your business.
- Have a wealthy mindset.
- Understand how wealth is created in a business.
- Be in the right business at the right time.
1. Having a wealthy mindset
A mindset is defined as a way of thinking about yourself, other people, and the world. It is what you believe about yourself that affects your level of success.
There are two kinds of mindsets in the world – the fixed & poor mindset – the growth & wealthy mindset.
The fixed mindset is that which is formed from childhood. It is the mindset developed during our most vulnerable and naive years. This mindset is what forms us and prevents us from growing.
The average person has accepted certain beliefs as truth without question or validation. This means that most people carry within them the seed of poverty.
The only way to be successful is to get rid of these ignorant seeds and be open to new learning and information. If you do this, you will upgrade your childhood beliefs and produce a different outcome from your parents.
If you don’t, you will end up in the same place as your parents. It is your ability to constantly dump your past ignorance about money, career, business, and life, and upgrade them with information that opens the door for wealth.
Having a growth or wealthy mindset is about learning, re-evaluating, and dumping past beliefs. Every new wealth goal you want to achieve carries with it a price tag.
This price presents itself as obstacles that stand in the way of your dreams. To achieve your dreams, you must navigate these obstacles and overcome them. The only way to overcome obstacles is to acquire three things.
- New knowledge.
- New skills
- New relationships.
Knowledge is the precursor to them all and without new knowledge, moving up the wealth ladder will be difficult for you.
You gain new knowledge by studying and modeling the lives of wealthy people. All successful people have a growth mindset.
They seek new information and are constantly learning. If you want to be successful in business, you must do what successful people do. The problem is that the average person is resentful against successful people.
Most of what successful people do will contradict your childhood beliefs. The bad news is you can’t become what you hate. So, if you are serious about becoming successful, you must model the lives of successful people.
Poverty and wealth do not go well together, so successful people will not look like or behave like the people you grew up with, especially if you are from a poor or average background. Holding on to your childhood beliefs is choosing to never get wealthy.
2. Understand how wealth is created in a business
Solve a problem for a lot of other people in exchange for an agreed reward. This involves helping them get rid of their pain, obstacles, challenges, and move to the next level in their lives.
Although all businesses solve a problem, all problems are not created equal. Certain problems command high reward, while others command low reward.
High reward problems are important, urgent, and difficult to solve for the customer. Low reward problems are common, easy to solve, or futuristic in nature. So, if you want to create more wealth quickly in your business, you must solve important, difficult, and urgent problems.
3. Be in the right business at the right time
Not all businesses can make you rich. Certain businesses can only help you get by. Thus, being in the right business at the right time is critical for creating wealth. But what does being in the right business mean? It means three things.
- It means that the person is the right person for a particular type of business. That is, the business aligns with the person’s personality, passion, and competence.
- It means that the person is solving the right kind of problem for the customer.
- It means that the problem a person solves is profitable and in high demand by many people.
If your business is not in alignment with your personality, competence, and passion, you run a high risk of failing in that business. Even when you succeed, you are bankrupt of happiness and fulfillment.
To create wealth fast in any business, you must be able to pass the ten-dollar test.
The Ten-dollar Test
The ten-dollar test is one that helps you answer a critical question.
“If every business in the world is given only ten dollars as a reward, irrespective of the kind of problem they solve, would you still be in your chosen business?”
If money was not part of the promise, will you still be motivated and focused?
Businesses that succeed – pass the ten-dollar test- are able to maintain their passion and focus in good times and in bad times.
If your business pursuit is all about the money, you may or may not succeed. But even when you do succeed, happiness and fulfillment are out of the equation. The key is to do what you love and get paid handsomely for it.
The right timing for a business
Nothing can stop a business whose time has come. There is a right and wrong time for every business. There are businesses that are evergreen, and those that prosper for a short while.
Evergreen businesses are central to the way we live and grow as human beings. For example, humans will always need food, water, shelter, and money to survive. So, businesses that find smart ways to meet these needs will always be in business.
If the time for your business is not yet here, your wealth will be delayed. And if the time for your business is past, you will struggle financially.
Businesses that solve today’s relevant problems are those that will create quick wealth in business. To succeed in business, you must align with the times and seasons, and the changing trend of human nature. You must also find better and smarter ways to meet fundamental human needs.
Creating wealth in any business is not something that happens by default. It takes creativity, problem-solving, and the ability to command a high income.
If you want to succeed in business and need help getting started, we can help you.
How to build solid financial success system and achieve financial freedom quickly
These are the three systems you need to speed up your financial success by almost 20 times.
The majority of people I know want to increase their financial success. If this is also what you want to do, you need solid financial systems.
What systems do you need and how do you increase financial success especially if you are stuck in a 9-5 job? In this article, I will show you exactly what to do.
To increase your financial success, there are three systems you need. These systems determine how fast or slow you achieve financial freedom and are explained below.
Multiple Income System
This is the system that brings in massive money into your life. It comprises 3 main components – quality of your main income, source of your income, type of income.
The quality of your income can be high or Low. It is high if your main income gives you the ability to save more than you spend. It is low when you can only spend more than you save. High-quality income is the only type of income that can make you rich.
The second component of the multiple income system is the source of your income and there are two types – the one source income and multiple source income. The key to fast-tracking your financial success is to upgrade your source of income from one to many.
The third component of the multiple income system is the type of income you earn. There are two types of income – active income and passive income.
When you earn only active income or have a weak passive income, you limit your chances of financial success. True success is created when you have a strong active income and a strong passive income. You accelerate your financial success when you depend on passive than active income.
These are the three components of the multiple income system. When you have all three components working for you, you accelerate your financial success by almost twenty times.
So, now that you know the first system for fast-tracking your financial success, let’s look at the second system.
Money Preservation System
Earning extra income is just one step in the financial success process. What truly creates wealth is the income that you keep. True riches are created when you keep more income for yourself.
Unfortunately, this is rarely the case. Most people are only keeping leftovers for themselves. They are enriching others through their spending and getting poorer and broke every day. To achieve financial success, you must preserve more of what you earn. To succeed with preserving income, you must maximize two key components – the savings component and investing components.
The savings component works best when you save big portions of your income every month and investing your savings to produce solid passive income. To save big portions, you must strive to increase your savings by 1% every month. You must also try to maintain a low maintenance living standard.
The second thing to do to preserve your income, is to ensure that money saved and invested is never lost. Losing money through unguided investment decisions is not wise. To achieve financial success, you must invest to preserve your savings.
So, now that you know the second system that can accelerate your financial success. Let’s look at the third system.
Money Multiplication System
The money multiplication system is the system that enlarges your wealth. There is a limit to which savings and investing alone can make you rich.
This is because they are heavily dependent on your own direct effort. To create massive wealth, you need to move beyond your effort and create systems that can enlarge wealth even in your sleep. To create this kind of system you need one critical component – Leverage.
What is Leverage?
The best way for me to explain leverage is to use the example of a school Teacher and a movie star. A school teacher solves the problem of ignorance through education and a movie star also solves the problem of ignorance and boredom through education and entertainment.
Both teach their audience something about themselves or other people, that they do not know before. A teacher delivers her services by standing in front of a few students and is confined to a classroom. Every day of her life she does the same thing, teaching the same materials to different kinds of students.
Without her presence, her work cannot be delivered, her time is blocked. She is cut off from the wider society and can only earn income from her direct effort. Although, the teacher arguably provides higher perceived value than the movie star, she lacks leverage and her income is limited by it. This, therefore, means that you can provide enormous value and still not be rich. Value alone does not lead to wealth. It is value and leverage that creates massive wealth.
The movie star in contrast has massive leverage. He shoots a movie in some remote town unknown to the audience. He invests weeks, months, and sometimes years producing the movie. But, once produced, he never has to do the same movie over again. The movie produced is distributed all over the world. He is seen on all the media platforms, in theatre, television, and DVDs.
His movie is watched by billions of people. He is able to build a solid fan base and is patronized from all over the world. A movie star works once and is paid for a lifetime. It is the long-lasting and far-reaching value of the work of a movie star that makes him richer and wealthier than the classroom teacher. Thus, even with little perceived value, a person can create massive wealth with the right leverage.
Leverage is thus the ability to work once and be paid for life. It also the ability to do it in one place and spread it all over the world. The tools that make leverage possible is the right relationships, the right media platform, and the right distribution system. If you do not build your own leverage system, there is a limit to how much money you can earn.
Explore Data on the Nairametrics Research Website
So, these are the three systems you need to speed up your financial success by almost 20 times. Perhaps, you are thinking to yourself how do I build these systems and where do I start. If this is you, we can help. We will help you build these systems and accelerate your journey to financial success. If you need help, send an email to [email protected]
Grace Agada is the Senior Financial Happiness Director at Create Solid Wealth. She is an Author and Column Contributor in six National Newspapers. She is a contributor at BellaNaija, Nairametrics and Proshare. She is on a mission to help working-class professionals and CEOs become more financially successful. To learn more about Grace and how she can help you, send an email to [email protected]
Must-do things after you finally become debt-free
Now you are finally debt-free, these next steps will help you make sure you never fall back into debt again.
So now that you are debt-free what next? Remember that clearing your debt is just one part of the exercise; staying out of debt is vital to ensure that you don’t end up in the same financial injury. Living debt-free is not rocket science. All it requires is the consciousness that healthy finance is essential for you to live a happy life.
You may want to check out our previous articles 9 Brilliant ideas to pay off debt fast in 2021 and How to get out of debt: A step-by-step guide where we discussed extensively how to find your way out of debt.
Outlined below are some things to help you live debt-free; have a good read.
Make a list of your income and expenses
The first thing to do to ensure that you don’t fall into debt is to plan. Planning is such a vital step to success for anything we want to do in life. Indeed, if you don’t want to fail, you cannot neglect to plan. This doesn’t have to be complicated in any way. It’s as simple as you putting down words and figures. The first step in this process is making a list. You need to see on paper, what your finance looks like. It may not seem like such an important thing to do, but it is necessary. Making this list, all you have to do is write out what you earn on one side. If you have different streams of income, put it all on paper. Then, write out your expenses on paper, everything you know you spend money on monthly. Depending on when you receive your incomes; you can make it weekly or bi-weekly. Just compare how much is coming in against how much is going out.
Create a budget plan
The next step in the planning process is to create a budget. Based on your analysis from the step above, you should assign every dollar/naira you earn a task. You cannot afford to be passive with your money, give them work to do. They are available to make life easier for you right, but if you don’t tell them what to do, they cannot help you achieve that. You have to understand also; depending on what the ratio of your income to expenses is, you might need to make certain adjustments. In fact, if you want to stay out of debt, you NEED to make those adjustments. This step is not as difficult as you may think, if you do not know how to go about this process of creating a budget, you can use a budgeting app to make it easier for you. There are so many choices out there so you must choose wisely because your financial needs may be different from your neighbour’s.
Be intentional about your money
This tip can be summarised into the first two steps already outlined. But it is such an essential factor that deserves special attention. Intentional merely is being deliberate in your actions. Therefore, being intentional about your money requires that you don’t leave anything to chance. Conscious money habits will ensure better financial health and keep you from running into debt. So, as basic as the first two steps might seem to you, you really cannot neglect them.
Do not make purchases based on emotions
It is very easy to spend to make ourselves feel better. The painful truth is that the things you buy won’t make you feel better. They cannot take away that feeling, because when the initial gratification has waned, you would still be left with that emptiness you were feeling in the first place.
Unsubscribe from sales emails
Everybody likes to get the first updates for those juicy deals and grab them as they come. If you have not planned for it, please don’t do it. You have to unsubscribe from emails that make you spend more money. Remember that the person sending those emails wants to make money. You do not need to place that instant ordering; turn it off.
Maintain a good credit score
Remember when we talked about how to stay out of debt; one of the tips offered was to negotiate lower interest rates. Having a good credit score qualifies you for lower interest rates. More than that; having a good credit score grants you more negotiating power, better insurance deposits, easier approval for loan requests, it also affords you higher credit limits. Overall, having a good credit score places you on better standing than having a bad one.
Do not tie up your money in illiquid investments
As necessary as an investment is, you must engage in those with high liquidity as opposed to illiquid investments.
Earn more money
There is no human on this planet that this idea will not be appealing to. We always want to have more money, no matter how much we already have; it’s in our nature. The simple ways to earn more money is to get a side hustle, become a freelancer or contractor; use your skills to make money. With unlimited access to technology, the world of work offers more opportunity than ever for anyone to turn their skills into pay.
Staying out of debt can be summed into these few words; “Live within your means”. The way to ensure that you do that is by planning. Be intentional about your money. Life can happen at any time but even when it does, with a proper plan already in place, you will be better equipped to handle unforeseen circumstances than when you don’t even know where your money is coming from.
How to get out of debt: A step-by-step guide
Follow these few simple practices and you may well be on your way to living a debt-free life.
Having to run or hide from someone just because you owe them some money is not a very fun exercise. But what if you didn’t have to do it, what if you lived debt free? Hold your gasps; it’s not so shocking. It is very attainable, and if you can follow the few simple practices we’re about to examine, you can be well on your way to FREEDOM.
Here, we’ve outlined necessary steps to help you live debt-free;
Gather your data: These include records and information that contain your bills and expenses, income and source(s) of income, credit score etc. the goal here is to get you acquainted with yourself. You have to know yourself well enough to understand your spending pattern and identify critical areas to adjust or habits to do away with.
Understand your debt: Make a list of all your debts, all that you currently owe, and how much interest rates are charged on them. Remember to include the minimum required payment for each debt. This would help you understand the type of debt(s) you owe. Understanding your debt will help you know how it happened and give you a clearer perspective on how to clear it. If you have more than one type of debt, it can be challenging to keep track, and you may find yourself always paying money and not even knowing if you are a step closer to clearing your debts. But you cannot begin to pay off your debt until you understand what the figures in your records represent.
Create a budget and debt pay-off plan: Creating a budget should have come as a first step. However, that would be more effective in the situation that debt doesn’t exist, because one of the reasons for budgeting is to make sure that you DON’T fall into debt. Having gathered your data and coming to terms with what the records are; the next thing to do is to create a plan. There are different tools you can utilize to help you. A simple keyword search would give you an idea of what to do. The budget plan doesn’t have to be complicated, create a list that you would be able to understand and stick to the program.
Lower your interest rates: The reason why people fall into debt and find it challenging to pay is due to the interest rate charged on their actual amount borrowed. You see; because you are required to pay interest rates on that money, it drags out the length of time you could payback. Negotiate your interest rates lower. Even when you may have already borrowed and started paying it off, if you find it challenging to complete payment, you should consider asking for lower interest rates. Depending on who your lender is, and how persuasive you are, you may find yourself having less to worry about.
Pay more than you have to pay: Another reason you could remain indebted to someone is when you stick to just paying the monthly required amount. Because of the interest charged on most loans, you only concentrate on paying that specific amount for that particular month. That keeps you in debt because instead of bringing you closer to clearing your debt, you are only dragging it out. Regardless of the interest rate, if you can pay more than the expected amount, you should go on to do so. It is something that you can discuss with your lender. It serves both of you because the faster you clear your debt, the quicker he gets his money back.
Earn More Money: To settle your debt, you have to go out of your way to ensure that your income supersedes your expenses. One way you could earn more money is by starting a ‘side hustle’ or taking a part-time job. In this modern age, there are more opportunities than ever, for anyone to diversify their streams of income. And most of these gigs are conveniently remote; you can run them from the comfort of your home. Of course, any human would be elated at the prospect of earning money, and when you are in debt, you just have to go out of your way to do everything possible to clear.
Curb Your Excesses: If you are in debt and you are finding it difficult to clear, evaluating your lifestyle habits could help put things into perspective. You have to be honest with yourself. If you want to pay off your debt faster, you’ll need to cut your expenses as much as possible. One tool you can create and use is a bare-bones budget. This is a strategy you can use to make your expenses as low as it can go and live a minimalist lifestyle. Live only on bare necessities and do away with frugality.
No matter the type of debt, you can always clear it. Never believe that it is impossible. Always remember to have a plan. You really cannot afford to leave your life to chance. Be intentional about every aspect of your life, especially with your finances.