Have you ever considered having home business before? I have been in this wealth building journey for almost 10 years and have tried many different things, including real estate, online business as well as other business ventures. In my experiences, home business is the best thing that I have ever done among the things I tried. In this blog, I will share three main reasons why home business can be the best option among all the things you can possibly do.
Reason #1: Low Investment
Home business is by far the lowest cost of becoming entrepreneur. Let’s list up start up cost for typical wealth building avenues:
Option 1: Real Estate
There are two avenues: Cashflow property or flipping. Both of them require investor to put significant amount of capital into the deal. For cashflow property, investor needs to come up with 20 – 25% down so if you invest in $100,000 property then you need to come up with $20,000 – $25,000. For flipping property, there will be lots of cost for buying beat-up house and cost for renovating those houses. One of my investor friends had to come up with $100,000 before flipping the property. Some may say successful investor do the deal without their money. Yes, that’s true. However, it will require significant reputation so that this person can raise money from others. But, most beginners can’t (This is the exact reason why most real estate investors quit in 6 months).
Option 2: Franchise
Having franchise is one of the options for creating wealth. However, typical start up cost for franchise is very high. Let’s look at the examples (Courtesy from Entrepreneur.com):
McDonald – $1.5 million
7-Eleven – $1.6 million
Dunkin’ Donuts – $1.7 million
Daily Queen – $1.7 million
Krispy Kreme Doughnut – $1.9 million
Many wealthy are investing in franchise because of system that allows them to create cashflow from day in and day out without their presence. However, investment amount is too high for most average people to enter this kind of business.
Option 3: Other brick-and-motor business
Some of my friends consider opening the restaurant or other brick-and-motor business. It may be lower than the franchise since you need to create your own system from the scratch (Which is very hard to do). Nonetheless, start-up cost is still high. My friend started to Asian restaurant and investment for kitchen itself is almost $80,000.
All those options require very high capital investment. Most people don’t have stomach to invest such a high amount of capital…
On the other hands, most home business will cost you probably less than couple of hundred bucks to start and it has potential to make millions in the business. I have tried many other things before but nothing will come close to the home business in terms of initial investment amount.
Reason #2: You don’t need to worry anything other than growing your business
In traditional business, especially in the beginning, you need to do everything including accounting, operation, sales, marketing, legal and even taking out the trash. Many aspired to become entrepreneur and they turned their profession into the business because they like what they do. However, very soon, they find out that they cannot do most of the thing that they like. As organization becomes bigger and bigger, they will be so overwhelmed with other tasks that they cannot handle their business.
On the other hands, all those operations, accounting, legal, marketing etc are all taken care of by the company headquarter. Only thing you need to focus is to grow your own business. This will also lead to reason #1. If we don’t have to think about all other aspects of operating business, that’s mean all other costs are taken care by the company…
Reason #3: Personal Development / Mentoring Business Model
If you are the CEO of the company, do you think being CEO required special training or education (Of course, experiences also)? Of course! When I was in real estate for investing, my wife and I invested a lot of money into the education by going to the boot-camps, seminars and meetings. When I was in other business, we went to 3 day sales seminar for $5,000. All of the educations that we took are worth every penny. On the flip side, I have seen so many people brow away $20,000 – $80,000 for education and don’t do anything. If we asked for additional coaching, there will be additional few thousands dollar.
Any successful people know that success is coming from 5% skills and 95% mindset. So, in most cases, going to seminar or boot camp for couple of times won’t do anything good for most people unless they already paid the price and have solid winning mindset. This is the main reason why many people that I have seen quit their endeavors and went back to the job.
Most home business has personal development and mentoring in place. Because how they structure the company system, system make it in a way that your mentor win if you win. So that, mentor will mentor you and teach you everything that they know. Also, in most companies, there are various training events and conventions to make sure that you will become successful in business and most of those events are very reasonable compared to other seminars outside of your company. So, I can literary say that home business is personal development / street smart MBA program with huge compensation attach to it.
I am in home business for 4 years and I can say that this is the best way to start your own business with lowest capital investment with solid mentoring program. Where we can find the business that only cost few hundred bucks but there is total possibility to make millions? Certainly, it is not for everyone but if you want to start your own business for your financial freedom, why don’t you try and at least take a look, you won’t be regretted.
I hope you got great value out of this blog post. If you want to get my detailed notebook, 9 Lessons to Become Successful Home Business Entrepreneur, you can just download by filling your first name and email address.
P.S: My friend Russell Brunson just released his new book ExpertSecrets. It’s literally the underground playbook for creating a mass movement of people who will pay for your advice! You can get a copy of it here for FREE.
P.S2: If you are in the local in Los Angeles, I am hosting Robert Kiyosaki’s cashflow game to foster financial education. If you want to learn more about it or would like to attend, you might want to check it out by clicking here.
- Biggest Pitfall For Part Timers (In Business) - May 16, 2018
- Why Memorizing Script Is Waste Of Time (Even Winning Script) - April 27, 2018
- One Of The Biggest Pitfalls Most People Fall Into - April 25, 2018
- Power Of Association: How To Tap Into Your True Potential - April 17, 2018
- Successful People VS. Unsuccessful People Part 6 - April 11, 2018
- How You Do One Thing Is How You Do Everything - April 3, 2018
- How To Approach Cold Prospects At Mall - March 27, 2018
- Business Mindset Tip: Are You Ritz Carlton Or Holiday Inn? - March 21, 2018
- Successful People VS. Unsuccessful People Part 5 - March 10, 2018
- Biggest Take Away From Business Building Seminar - March 4, 2018