Things You Should Know Before Starting a Business

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1 year ago

There are only two ways to become rich, one, you invest money and your investment gives you 10X or 20 X return, and two, you start a business and your business gives you huge revenue. There are also other ways to become rich, for example, you inherit property from rich relatives, you win the lottery, you get a divorce from a rich guy, etc. however, these are exceptional cases. You can become rich on your own only by investing or starting a business. You need money for both purposes. if you have the money you can immediately start investing or start a business. However, if you do not have money, you can start small and gradually build your investment portfolio, or gradually build your business. While investing is comparatively easy, you will have to work hard to build your business, money is never enough for a business, you also need knowledge and skills.

Two Ways to Start a Business

Generally speaking, if you want to start a business, you have two methods, you can invest with cash, or invest with debt. Investing with cash means you put your life savings to build a business. Investing with debt means you borrow money to invest in the business.

If you are investing with cash, you will be taxed, 10 percent, 20 percent, or even 40 percent. However, if you are going to invest through debt, you are not going to be taxed. Even if you are being taxed, you will be paying very little taxes. That’s because debt is tax-free. That’s the reason why big businesses like Apple, Google, Facebook, etc. are investing through debt despite sitting on a huge pile of cash. They are not using their cash to invest in their businesses, they are getting loans from the banks to invest in their businesses.

Now, tell me, which is the best method to invest in the business?

You guessed it right. Getting a loan to invest in a business is the ideal way to start a business because you pay no to little tax.

If you are using your money to invest in a business or selling assets (stocks, properties, etc.) to start a business, you are making a huge mistake. You can use your assets as collateral to fund your business when you do that you will still have your asset and in the meantime, you build a business.

Three Things You Should Know Before Starting a Business

If you want to start a business and if you want to become successful in business, you should know these three things

How much money do you need to invest?

Even though a lot of online businesses, even a few offline businesses, can be started for free, you still need money for a business. You need to invest in product development, sourcing products or raw materials, marketing, advertising, etc. Don’t underestimate the cost and the expenses.

Who are your buyers and how to reach them?

For your business to succeed, you need to generate sales. In order to generate sales, people should be buying your products. Therefore, for a business to run successfully, you should know your target customer. Once you know who your buyers are, you need to see if your products are actually beneficial to them and if they will actually buy them. Then you need an absolute plan to reach your target customer (a marketing plan)

How long can you work for free?

Your business does not start making money the day after it was launched, it will take a long time to generate revenue. So, the third important thing to consider while starting a business is how long do you suppose to run the business without generating even a single penny.

Things You Can do to Become an Online Entrepreneur

If you have a desire to become an Online Entrepreneur, here are some of the things you can do.

Create a product: becoming an entrepreneur means you are offering something valuable to the people. Thus, you will have to create a product that adds value to people’s lives, the products solve people’s problems, the product improves people’s lives. It is you to decide what product you want to create. You can do research to find out what product will help people and make you an entrepreneur.

Build a business: When you can make money by selling the product you have created, you need to build a business as well. You need to influence the lives of many people and not just a handful of people in your society.

Social responsibilities: As an entrepreneur, you also have social responsibilities. Therefore, you will have to frequently donate to social causes. You can tell your customers that you will donate 10 percent profit to a certain charity. This will build your reputation.

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Nice idea ☺️ this so good tips before we start our own business

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