When asked recently, what was the best small business to start Dan Kennedy had an interesting notion about building a business:
“One of the lessons I learned slowly and painfully has to do with income versus wealth.”
So what’s the difference?According to Dan, sales and profits are important, and that’s what most business entrepreneurs focus on. However sales and profits are not wealth, they are income.
Wealth, he says, comes from creating valuable assets, that produce income. You can either work all your life creating income, or you can work on building wealth. Such as a business assets so that the income eventually takes care of itself. That he said, is the best type if business to start.
For example, opening your own little cafe creates income, but creating a system, such as McDonald’s that can be ‘duplicated’ and ‘scaled’, now that creates wealth.
Today
Many sport and entertainment superstars, successful business owners, entrepreneurs and even lottery winners, may have a big income but they easily fall into the trap of wealth ‘simulation’ instead of wealth ‘creation‘.
When they are focused on creating income they tend to spend much of it on the trappings of wealth, living a wealthy lifestyle, simulating wealth by dissipating cash.
I personally know, because I spent the first 40 odd years of my life focused on wealth ‘simulation’ with beautiful houses, exotic cars, wives, expensive friends and other things, that gave the appearance of wealth.
But when the income stopped – they all disappeared. If I had instead focused upon creating wealth rather than earning income, things could have been very different.
Wealth Creation
Focusing on wealth creation means, using the income to build or acquire assets that then generates income with which to acquire more assets. You continue to do this, until generating an income doesn’t require yourself to do the actual work.
Your personal income should not be used for living a luxurious lifestyle, butinstead, used to create or acquire assets from which you can eventually live a wealthy life.
Wealthy People Understand
Most truly successful wealth creators understand this principle implicitly.
Warren Buffett
John D Rockefeller
Warren Buffet still lives in the modest home he bought in the 1958 and the late Sam Walton drove an old pickup truck, these are both examples of wealth creators living well below their means. John D Rockefeller and J Paul Getty are examples of wealth creators whose use of this principle has ensured that their legacy lives on, generations later.
If I am ever asked “What is the best small business to start?
My answer to that question is…
“The Best small business to start at home, is an affiliate marketing business”
Why?
Because setting up a home based affiliate marketing business is relatively easy and there are many factors that make it very attractive.
One of the most desirable factors is being able to work from your own home. Your home is often your most comfortable surroundings. Everything you want and need is right there.
Small Children
If you have small children, a home business is even better. You can work and still be home with the children. You also don’t need to worry about commuting and work wardrobes. You can work when you want and schedule your jobs around your other commitments.
Working from home does provide people with many wonderful advantages.Many of us dream of throwing in our 9 – 5 jobs. We would love to tell our bosses to “take this job and shove it”.
Fear
Yet many of us are frightened of doing what we most desire. The fear of leaving that secure source of income stops most, and those who get past that fear don’t have the capital to get a business up and running.
Some are afraid of being scammed.
It’s true a home business does take some money and a typical traditional home business will need a significant amount of start-up money. Most people rely on banks for the financing which puts them at further risk of failure.
A traditional home based business that is run as a sole proprietorship can take years to get established.
Failure
On average, nearly 70 percent of small businesses fail in the first year. Those that do make still have many hurdles to get past. It usually takes 5-7 years to realize any significant profit in a sole proprietorship. During this time, the business owners have to continually promote their business just to keep it afloat.
A typical traditional home based business has to worry about competition. Unless you really hit upon a niche in the market you are likely going to have to attract customers away from already established businesses in your area.
This can be difficult because customers tend to trust what they know is good. If you do manage to do it you may be creating some bad blood between you and other businesses.
Risk Reduction
However, by working a home based affiliate marketing business the risk level drops by about 90 percent as you’ll be selling products that have already been on the market.
You can actually check the saleability of these products before you market them. If the products you choose are well known and trusted then you won’t have a problem attracting customers.
Less Stress
This takes the stress off of you although you are paid according to how well you perform, you don’t have to worry about sales targets and making a certain number of sales every month to keep your job.
You concentrate on marketing and promoting the goods and services to increase your earnings. This could, therefore, be the best new business to start.
If you are selling Physical products on Amazon, then a tool such as Jungle Scout makes it incredibly easy to find ideal products to source and sell online.
Writing Content to Attract Visitors to your website
One of the important things to be able to do is to get visitors to your website. This often can be achieved by having engaging content that your reader will want to read and is of particular interest to them. Most people don’t know where to start when first creating content for their site.
To explore further, how to write engaging content, take a look at my post; How to Write Great Website Content using the link below;
A home bases affiliate marketing business is much easier to manage. You will have to work hard to promote yourself but the best internet business to start is one that gives you an education because running an internet business can be extremely rewarding and the financial rewards can be tremendous.
So if you want to know how to build an online business, a business that will allow you to work from anywhere in the world, while you are in your pajamas (and many other benefits) then check out my number one recommended online training course that you can begin for FREE.
So get behind the wheel and take Wealthy Affiliatefor a test drive, it costs you nothing to see if it’s for you.
“If you already know how to build a website or are currently online and are struggling to make a full-time income then you may like to view my post make money online fast to find out how to make $1,000 per month”
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