The fun of business is learning how to multiply. This is why people can live off of investing alone, because they understand the art of multiplying. I will run through quick tips on how to multiply your money
Quick Tips on Multiplication
- Understand Margin
- I used to buy necklaces for $50 and resell for $60, less the $5 shipping only leaving me with $5 of profit. That’s a margin of 10%. Very low if you plan to has massive profits. Understand the cost of your services or products and the ROI for each sale
- Fast Money is Not Always an Illusion
- I know the common myth is that if it comes fast, it will go fast. Well tell that to the many companies who went on rounds for funding and walked out successful with millions in funding from banks and investors. Fast money is not always a bad thing, if you’re utilizing leverage, that’s what it’s for, to get you to your goals faster.
- Where is the Waste?
- Waste can eat up profits quicker than having low profits. What I mean is, if you had a canoe and wanted to travel across a lake but didn’t notice the 2 inch hole in the bottom, it would only be a matter of time before the boat stopped its journey across the lake. Leakage is a hidden cost. Focus on reducing waste and over expenditures. This can happen easily when advertising and not measuring your progress.
- Invest in Yourself First
- Would you blindly send your money to Wall Street for a “possible” return of 8% or invest in a Sure deal you have right in your industry (one you love and understand fully) with a possibility of a much higher return? I would guess you would trust your own “knowingness” more than gamble your money away with someone you barely know or trust. Invest in yourself because you are the one who controls your value.
- This seems so simple, but when you put it into practice, it can get a bit tricky. You need to measure your money and know where it’s going. Just like if you didn’t measure your path on a ship, you would have no idea where you were going until you landed somewhere random. You must MEASURE. Use metrics and the easy software solutions to make things easier for you.
That’s it for this edition of Premium Monthly,