Website design By BotEap.comWhen you first become interested in building wealth, you may be asking yourself, ‘So how do I find all these investment, property or business opportunities?’ A little later, you will realize that you are overwhelmed with all the possibilities and opportunities jump out at you from every corner. So how can you know which ones to follow?

Website design By BotEap.comIf you’ve read Robert Kiyosaki’s Rich Dad Poor Dad, you know about his question “Does he eat me or does he feed me?” and it’s a really useful first criterion of how good a business can be. In other words, do you put money in your pocket or take money out of your pocket?

Website design By BotEap.comIf you have to invest some money to take advantage of the opportunity, ask yourself how much, for how long, and what the return on that investment will be at the end of the first year. This is known as your Return on Investment or ROI.

Website design By BotEap.comLet me dig a little deeper into “return on investment” as it’s important for you to understand.

Website design By BotEap.com(What’s useful about the ROI model is that it can be used to compare any potential wealth-creating activity, to compare a real estate deal to a business, a stock market investment to an Internet opportunity.)

Website design By BotEap.comIf you can see that something will put money in your pocket a year from now, and there is another deal that won’t, which one will you choose? If you can see that one deal will return 10% a year from now, and another will return 30%, which deal is the most attractive?

Website design By BotEap.comWhat about an offer where the return will be 30% but it will take you over a year and be harder work, versus an offer that will return 20% but start paying back in six months and is safer? ?

Website design By BotEap.comThis is where many new investors and entrepreneurs take off. The first way they get unstuck is because they don’t set a value on their time. Because they often have a lot, but not a lot of money, they don’t value your time. Later, when you are more successful, your time will be the most precious of all.

Website design By BotEap.comRemember, when you started a new company, did you add up how many man hours you would be putting in and what was its value? New entrepreneurs don’t realize what else they could be doing with those hours (earning some money!), so they discount their actual investment in the business and value it at zero. Bad move!

Website design By BotEap.comThey don’t make their strategy and they don’t stick to it; so they alternate between fear and greed, just as the stock market shows signs from time to time, and opt for the riskiest and hardest deal for higher returns, rather than the safest and easiest deal with slightly lower performance.

Website design By BotEap.comThink of how many deals of the second kind you could make, with less effort, less stress, and quicker returns.

Website design By BotEap.comThe other thing they do is try to “bend” a deal to make it work for them, instead of just looking for another deal that does it, effortlessly.

Website design By BotEap.comInspirational speaker Gill Fielding says she would always rather have the easy deal, leaving her time to do her nails, rather than a big, tough deal where she would actually have to work for her money. And as someone who has ‘tried to fit in’ on many occasions, now I have to agree 100%.

Website design By BotEap.comCREATE YOUR KING YARDSTICK

Website design By BotEap.comThe first thing you need to do is create a measuring stick for whatever deal you’re considering. The ROI figure can be applied to anything and can be compared like-for-like, even if the offerings are vastly different.

Website design By BotEap.comHow much profit a transaction will generate in the first year, multiplied by 100, divided by the amount of money you will have to invest (or the value of the time you will spend) to acquire that profit. That, roughly speaking, is the return on investment expressed as a percentage.

Website design By BotEap.comA house that costs £50,000 and will generate £2,400,000 per year in rental income, after expenses, generates approximately 4.8% return on investment. (Not to be confused with rental yield, which is also different.) If you think the value of the property may grow by 10% that year, add £5,000 to the £2,400 rental gain and you’ll see your ROI is now 14.8%.

Website design By BotEap.comCompare that to a similar deal, where you can buy a business card printing machine franchise that makes a profit of £25,000 per year and you have to invest £75,000 to acquire the business. 33.3% ROI and you have to keep emptying the money. Is it worth it for those returns, you say?

Website design By BotEap.comBut what if you had an 80% mortgage on the property and the interest payments were covered by the rent, leaving you with the same rental income per year? You’ve spent £10,000 to acquire that profit, you have a gain including capital appreciation of £7.4 million, so your ROI is now 74%.

Website design By BotEap.comAnd you don’t even have to collect the money.

Website design By BotEap.comBut either way, both returns are a little better than the building society’s returns, and both are “Feed Me’s.” Use your measuring stick, don’t change goals, and choose opportunities that fit your strategy or plan.

Website design By BotEap.comALREADY IN BUSINESS?

Website design By BotEap.comIf you already have a business, think about the start-up costs and how much time you spent setting it up.

Website design By BotEap.comAre you getting a 35% return on your investment, year after year? Will you get a 35% return on your investment in even ten years?

Website design By BotEap.comWhat is your exit strategy? Are you going to work on your business until you drop, or will you eventually sell it? Could you attract an investor for your company right now? would you do it? Would it sell today and if not, why not? would you buy it If not, why not?

Website design By BotEap.comThese could be some of the most important questions you’ve ever asked yourself about your business.

Website design By BotEap.comMost entrepreneurs think that they have to invest everything in their business in terms of time and money; this shows commitment after all. However, a serious business person would be planning to get their money out again ASAP, with a good ROI, while letting the business thrive in a healthy way and continue to pay you dividends based on profits.

Website design By BotEap.comI recommend reading “E-Myth Revisited” by Michael Gerber, “Rich Dad’s Guide to Investment” by Robert Kiyosaki, and “The 4 Hour Work Week” by Tim Ferris. Take notes, underline and take their wisdom into account. His business will never be the same.

Website design By BotEap.comWe give you examples of the girl who made her boyfriend earn over £18,000 in less than a week after investing in an internet marketing course, the guy who made over £80,000 in just one hour of lunch talking to someone he met at a real estate workshop. .

Website design By BotEap.comI’m talking about the woman who is earning more in a week than she did in a month with her old business, and she’s doing it in less than half an hour a day, instead of 12 hours a day. She attended many courses, but do you think she is getting a return on investment on what she has spent? I think so. What about the dentist who didn’t realize until he invested in a real estate workshop that he had enough capital to become a multi-millionaire almost overnight (actually he did it in less than six months) and who still asks us on joke when do you see us? Am I already a millionaire?” Laughing a lot, while he does it!

Website design By BotEap.comThe only people who don’t get a return on their education investment are the ones who don’t do the coursework or homework or don’t take any action. Those who do not listen, who hold on to their negative and limiting beliefs or allow others to influence them accordingly.

Website design By BotEap.comWithout changes!