What Startup Entrepreneurs Need to Know

What Startup Entrepreneurs Need to Know

I want to talk to you the person who is thinking about starting a home-based business. There are many gurus out there. Many give out good and great content that is very helpful and can boost your sales to great heights. However, none of them consider the following information to be important enough to give it much time in their business model.

That’s why I am taking the leadership role here and addressing these topics. I think they are extremely important and I believe it is why most businesses fail – because they are missing one or more of these in their business plan.

You as a beginning entrepreneur need to know and address these topics NOW before you even begin. If you do this you’ll be “unstoppable”.

So, let’s address the first topic which is:

“PAY YOURSELF FIRST”

Read: “The Richest Man In Babylon” by George S. Clason. There are a few additions. Just get the one closest to this year. It really doesn’t matter which one you get they all will teach you the same principles.

Paying yourself first is one of the principles this book will teach you but I believe that this is the one that many new entrepreneurs miss because they listen to greedy and frankly stupid gurus who don’t realize the what they are teaching is not a sound principle and bad practices for tax time.

You must come to a point in your business where you need to pay yourself and you might as well do it from the beginning. The book teaches you to pay yourself “10% of all you earn is yours to keep”. Therefore, if your business this week made $2,000.00 you should put aside or write yourself a check and deposit it into another bank account $200.00. That’s your money – NOT – your business’s money. The $1,800.00 is what you work from to run and build your business.

Simple, right? Well not really!

It takes practice and discipline to make sure that no matter how much you have earned in any given week that you always pay yourself first. Let’s say that next week you only make $10.00. You should pay yourself the $1.00 and the rest goes back into your business. The problem the many entrepreneurs have is that they will either keep the entire $10 for themselves and spend it or they will leave the $1.00 sitting in the business account. Both types of thinking are wrong and set you up for failure down the road. You must keep the integrity of the system going no matter how much money you make.

Rule of thumb: Always pay yourself first no matter what the circumstances are.

Even if it means that you must make arrangements because you don’t have to money once you take out your pay.

You NEVER give up your pay, NEVER.

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Budgeting for Success

This brings me to the very next topic that causes new entrepreneurs to head down the wrong road. What to do with the rest of the money you have made? Budgeting is your key to extreme success. I think the problem is that entrepreneurs are always so stressed over making money they don’t plan for when they will have plenty of money to budget. This is a bad plan from the beginning.

Read: “Secrets of the Millionaire Mind” by T. Harv Eker. This book will teach you the difference between how rich people think and how poor people think. It’s work the read and the information will open your eyes to some important things about yourself that need to change.

Secondly, Mr. Eker describes the following that you need to be aware of and I am going to put my words in here to bring home the point. Uneducated and poor people do this and if you are going to start a business you have to NOT do this ever.

They have a JOB and they start a side hussle. They get a pay check from their JOB and they made some money in their new startup. What they do is this:

JOB PAY + BUSINESS PAY = MONEY IN MY POCKET THAT I CAN SPEND

$1,800.00 + $2,000.00 = $3,800.00 that I get to spend

That will make you a very brook and unhappy person real fast.

Here is the better practice:

JOB PAY + BUSINESS PAY = MONEY INTO CHECKING ACCOUNT – PAY MYSELF FIRST – MONEY MANAGEMENT SYSTEM.

$1,800.00 + $2,000.00 = $3,800.00 – $380.00 into my personal account – the rest into our money management system. Leaving you with $3,420.00 to invest into your comments.

This will do a few things right away.

  • It will make you happy because you have a savings account
  • It is your money and not going to bills

We’ll discuss what to do with this 10% a little later

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Money Management System

Investments                    10%     Investment Fund                                                               $342

Project Savings               10%     House, Car                                                                          $342

Education                        10%     My courses, other courses, seminars and the like      $342

Bills                                   50%     Pay all your bills with only this amount                      $1,710

Play                                   10%     Money set aside for fun on your educational trips     $342

Giving & Support            10%     Money you may want to start a scholarship with       $342

 

Yes, I am saying it would be good for you to have seven accounts. It might be even better to have your personal account (the one where you pay yourself first) in a different bank than the other accounts.

Can you see how you would be able to build towards family stability rather quickly, and I used real numbers that might fit you right now! Oh, you are welcomed!

“The best way to get out of debt is to make more money than you are making right now!” Max

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Employee to Business owner

The next topic is one that I guess has gotten a lot of press and many have seen it but still many do not understand it. We are talking about the “Cashflow Quadrant” by Mr. Robert Kiyosaki. His book is named the same and the listen.

The reason why we must look at this topic is that too many people have failed to realize what Robert has been trying to get across to people. So many deceiving people out there manipulate words and trick the uneducated into thinking they are doing one thing and they are not. So I am going to give you the truth about this “Cashflow Quadrant” and explain how you move in it without the craziness that you get from most guru’s.

Cash Flow Quadrant - start up entrepreneurs

E SECTION

If you are unemployed (just broke and not working for yourself), or if you have a JOB – you are in the E section. Yes, they are the same! One has income and the other is waiting to be assigned an income base. There is no difference. Now if you have a JOB – how do you feel about that? There is no difference between you who has a JOB and an unemployed person.

When you start a home-based business, you are in the E section still. You may be doing the actions of the S section person but you are still in the E section.

S SECTION

To move over to the S section, you have to do one thing and one thing only. Fire your boss! Once you do that and your business can support you and your family THEN and only then can you consider yourself in the S section.

B SECTION

To advance to the B section you have to do a few things as well. You must hire more than 5 employees. This will make you a small business. More than 20 employees is a middle size business and over 40 (I think) is a large business.

You have to develop a system where by you can step away from it and it stills pays you regularly, consistently, and independently.

I SECTION

To be in this section means that you have figured out how to have a few (two or more) B section businesses and they are all paying you on a consistent, very regular basis without your input.

Now, this should clear away a lot of the lies the MLM industry tells you, the gurus who want you to buy their systems, and the thoughts you may have had in your current home-based business.

This is also good to know because you need to know where you stand. I am not trying to bash any one or any industry, but I am trying to alarm you so that you can tell a liar when you here one.

Some clarity is still needed. I have many friends that are in the S Section today who have made millions of dollars. I know a lot of people (I am a big networker) but I have never, not even once met a millionaire who was in the E section. In my option, they don’t exist. Of course, there are many people in the B and I section who make millions of dollars. That we all understand!

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Why this website

As I see it the people that come to my website are looking for a home-based business, and some are looking for home-based jobs. I am going to tell you as much as I can about every JOB and business I can find so that you’ll have a working knowledge of it before you decide to jump into the deep waters. This way you can make an intelligent decision about the business or JOB.

I’ll also try to open your eyes about each businesses ability to grow. Meaning I’ll let you know if there is a way to get that business into the S or B SECTION or not.

  1. The FREE areas of this site are to allow you to get a quick look at the topics we cover.
  2. The next level is a paid level (small amount) and this is where you’ll be able to see the content discussed each business.
  3. The last level is a membership that requires a small fee and only lasts for three months. Here we outline those businesses that we have determined that it can get you into the S or B SECTION, and/or that you could make over $10,000.00 a month in the business and we will tell you how. This level is designed for people who have made a choice to build a real business and are looking for the direction and tutoring needed to get to the levels they are seeking.

It needs to be said that we here at Income Guru will refer these people to the right mentor for the business they have picked. Now, what guru does that? Who is willing to say hey you are done with me…I don’t want you to pay me any more money for my stuff… You can go to someone else and learn what they have to teach you. This is just one of the ways we are different here at Income Guru.

Now it time for you to check out some of the topics available to you. I and my staff welcome you and we hope that you find a JOB or business you like soon.

Make the money baby!

Click here to get started on your journey!