Many people realize they can live comfortably working for someone else, but to get "cash flow" wealthy they need another source of income, and hopefully expanding and lasting income. Today, more than ever people need to create their own recovery/stimulus package.
Having your own business (even home-based) is the solution, but for many the costs and required expertise are daunting.
In fact, most businesses end up making about a 10% net profit, and often even that is unrealistic. Revenue has to pretty high to make a comfortable living. What if you could reverse this 90% to overhead and 10% to the bottom line scenario? That’s a good question: Bringing 90% to the bottom line, not 10%. How does that sound.
We'll explore more of this 90/10 phenomenon in a moment, but first let's take a look at the 80/20 rule.
THE 80/20 RULE
Let's take a hard look at some most interesting numbers. Of 100 businesses that start up today, how many do you think make it their first year? The answer is about 20%. And of those that make it one year, about 20% of those make it to the two-year mark. That's a net of four or five out of the original one hundred.
But did you know of the people who buy a franchise or go into a network-marketing type home based businesses, the success is about 85%. This is an important observation. Diane Ravitch said: "The person who knows HOW will always have a job, the person who knows WHY will always be the boss." It's important to think like a Leader, a why person, one who does the right things, and not just like a Manager, a how person who knows how to do things the right way. WHY people are the leaders and they’re the one who see through all of the clutter to achieve real success.
Why, then do these people make it, while many people fail who try to do it on their own?
The answers abound: Support, A proven track to run on, And an established product or service. These are not insignificant. 20% to 85%, it’s like stacking the deck in your favor.
Now think, how much money do you want to make? You set the target and in "Friendship Marketing." You can just worry about that which you can do: Educate, Share, Associate—In short, NETWORK. Some might call this marketing. Well, it is in a very exciting and rewarding way. And think that Social Networking, or marketing is the new way to go. It's called "Invitational Marketing," and it works so well.
Look at this graphic. Notice all of the responsibilities before you start up a business. And you have even more obligations and expenses to keep a traditional business going forward. Overhead, Sweating All of the Details. Long, long hours. And, well, if you’ve been there before, a touch of loneliness—climbing the ladder all alone.