This is way overdue but I’ve intended for some time to produce a series of online training courses for new businesses or even those just thinking of starting a business. With two businesses of my own to run and a growing number of consulting clients finding the time has been a little tricky. Now I’m semi-retired and cutting back on my full day business training workshops the time has come to put my courses on auto-pilot.

First up is a simple six day small business crash course via email, one lesson a day. This is intended for those just considering starting their own business or anyone struggling to get started. It answers the key questions about “how do I get started?” Things like:

• The ins and outs of starting your own small business along with some of the basic steps you will need to take to get up and running.
• Some of the different options available for financing your small business, so that you can choose the one that is right for you.
• An overview of how to create a professional business plan for your small business.
• Some of the basic information that you must know when it comes to paying taxes for your small business.
• Some of the common mistakes that small business owners make, so you can avoid making them yourself.
• The importance of having an online presence and developing an internet marketing strategy for your small business

There will be more short courses to come in future but in the meantime find out more about my Small Business Crash Course. You can enroll for the course from that page.

Oh! I forgot to mention, this one’s FREE!

If you take the course, come back here and let me know how you get on. I would really appreciate your feedback on the course. You can also let me know what else you would like to know about starting and running your own business.

Use the comments form below to give me your feedback, or just click the comments link.

Business is simple, you only need three things…..

1. First & foremost, you need a whole bunch of people who have a common want that needs filling. The more of them there are and the more “hungry” they are, the better.

2. You need a product or service that fills that want in the best & simplest way possible at a price they are willing to pay. This  means providing the most complete solution that you can, NOT as little as you can get away with for the money!!

3. You need a way to let these people know what you’ve got and how it so perfectly fits their needs. You also need to be able to convince them that they can trust you and that you are not going to disappoint them. Unfortunately they, like you, have been disappointed in the past so they may appear a little sceptical!

You would be surprised how many people break one or more, sometimes all, of the above requirements!

From a business management point of view ther are a few basic fundamentals that you need to be aware of – they are, however, pretty obvious.

1. You have to operate your business legally, i.e. in accordance with the laws of the country you will be
operating in.

2. You have to operate within certain financial constraints – namely, there has to be enough money coming in to pay for supplies and operating bills, pay the taxes and have enough left over for you to live on! Otherwise your business will be in debt (possibly as well as yourself) which will result in you becoming a SLAVE to your own business in order to try to get out of debt! Not conducive to FREEDOM!

3. You have to ensure your customers are happy otherwise they will tell each other, they will tell the media, they will tell the consumer watchdog groups and they will tell the business controlling authorities! They may even SUE!The result will be that you rapidly go OUT of business.

You will also have to deal with things called competitors! These are other people trying to sell the same kind of things to the same people as you are. If they are not there to begin with, they will turn up as soon as you show signs of being successful! Don’t worry about them – unless they’ve read these articles – they will probably make all the classic mistakes so will not be a threat. The worst thing you can do is take your eye away from giving your customers the best service you can and focus on your competitors instead. Keep the customer happy, and let the competitors look after themselves. The person who pleases the customer most, wins!

Now I know this sounds pretty demanding, especially the “keep the customer happy” bit. So how do you ensure you can follow the best principles of business whilst still following the best principles of freedom? Easy, combine business with pleasure! In other words, before you look for the “hungry crowd”, seek out your own hunger. If you go into a business which involves doing what you really want to spend your time doing, then you have found your “passion”. That passion will become contagious and will attract others with the same interests or needs – that is the hungry crowd you are looking for. They will become your best customers, possibly even friends and no competitor who lacks the passion will get a look in.

Business should never be a chore, business should never be tying, you should never feel the same way about your business that you may have felt about a job you hated or even just disliked a little! Business should be F-U-N! For both you and you customers!

Have a fantastic week!

By now you should have a clear idea of how you and other members of your family want to live your lives. You will have set your goals both material and lifestyle and be practising the exercises I gave you for achieving those goals. If you have not written down your goals as taught in part 4, please do so now. I cannot stress strongly enough the importance of clearly defined goals. Similarly, if you are not carrying out the goal “visioning” exercise every day, do so from now on – it works!

Onto your debt elimination. Have you carried out the debt listing exercise in part 1 and the debt prioritising exercise in part 2? If so, you should by now have made a start on clearing your highest interest debt. If not, start now – the later you leave it, the longer it will take and the harder it will get! A few of you will have….
ADDED to your debts in the last few weeks (I know this because I have years of experience of human nature). Please, STOP adding to your debts, debt will keep you and your family in SLAVERY for years, and that is precisely the opposite of FREEDOM!

If you really and truly want to take control of your own life you will have taken note of and acted on the earlier lessons. So take stock now of your progress, it will be slow at first – like turning around a huge oil tanker, but once you start to gain momentum, your progress will get faster and faster.

Last week I gave you some freedom principles which have been life changing for me and many other people. I hope you were able to take them to heart without too much difficulty. They may well have gone against years of “programming” but give them “house-room” and they will repay your acceptance many times over.

Here is one more – you may or may not have heard it before, but it is fundamental to the philospher’s often repeated question….
WHY AM I HERE? You are in this life to become your own highest vision of yourself, or at least get as close to it as you can in the time you have on this planet. You are NOT here to be what someone else wants you to be! You are NOT here to conform with the requirements of the State, without question! You are NOT here to be the slave of another or to make someone else rich! You are simply here to achieve your own highest ambition!

But be careful, this does not give you free reign to walk over other people or manipulate others in any way. Remember, they are all here for the same reason you are, even if they don’t know it yet! Be kind to others on the path – they may even reciprocate! We can help others without becoming slaves to them.

Now I want to introduce you to some very controversial freedom principles! Are you ready? Do you have an open mind? You may have heard some of these before, the message is beginning to get out there – so here goes……

• You have the RIGHT to be free and to choose your own destiny! But your choices should not deny the same rights to others
• You may CHOOSE to serve others, and this can be very satisfying, but no one should force, or coerce or manipulate you into doing so!
• You were NOT born into modern slavery, even though it might sometimes feel like it!
• You have the RIGHT to be happy, it is our natural state (left to our own devices!) If what you are doing does not make you happy, or worse still makes you unhappy – CHANGE what you are doing!
• Kill the BIG LIE …. Money DOES Grow On Trees!! In both the literal and metaphorical sense. Literally, apples, oranges, olives, almonds, walnuts….. i.e. CASH CROPS grow on trees. But, more important is the metaphor. When, as a child, you were told that money does not grow on trees, you were in effect being told that there is a limited supply of money. In fact the supply is NOT limited! For those that can change their belief and learn how to make money, there is no limit. There may, however, be limits to what you are prepared to do to make money – but that is your choice and comes from your freedom to decide.
• But also understand that money isn’t everything, it is simply a means of exchange. Do not sell your soul for it. Having the right attitude to money is what is important. Money is NOT the master, YOU are!
• Freedom brings responsibilty. You must live with the outcomes of your choices. Make them wisely.

I shall leave you to ponder these concepts and make room for them in your life. But we are not finished yet, I shall introduce many more before we are finished here!

This week I want to give you the benefit of my experience working in a number of businesses. If freedom is your goal, be aware that not all businesses will give you that. Some businesses can be very tying or demanding.

First of all, what are you going to sell. There are three types of product:

products you sell once, in other words every sale is to a new customer.

Products with repeat sales, customers keep coming back for more.

Products that are part of a family or range, you can keep on selling new products to existing customers.

The second is preferable to the first, but the third is the easiest, once you have a satisfied customer, they automatically keep buying. The first is the hardest as you are having to constantly find new customers and persuade them to buy.

Services likewise fall into 3 different categories just as the products above. However, services also have a different set of categories in addition to the above.

Services you provide personally.

Services provided by employees or subcontractors.

Services that can be delivered automatically.

The above can also be applied to products but in a slightly different way.

You can produce the products yourself.

You can employ other people to make them.

Or you can buy them in for resale.

As you can see, there are a large variety of options here, as well as permutations of two or more of the above.

Producing products or services yourself is very tying. Most people who take this route do not achieve the kind of freedom they seek.

Employing other people can also be very tying, they have to be supervised and managed and someone has to bring in the sales to keep them all busy. There is also a lot of bureaucracy and cost involved in employing staff. This is especially so in UK and Europe, though not quite so bad in USA.

Without going into too much further detail on all these different options, let me give you a few pointers to what I think are the ideal “freedom” businesses.

The ideal product should not need your personal input to produce it on a continuous basis. You may have to create the idea at first, but if you become a production line, you cannot be free.

The perfect product should be deliverable to the customer on “autopilot”, in other words you should not have to concern yourself about delivery.

Similarly, orders should be processed via a simple procedure that carries on automatically once you have set it up.

Payment should ideally be made directly into your bank account, processing cash and cheques is very time consuming.

The perfect product should require very little customer service and the little that is needed should be able to be carried out remotely, e.g by email, telephone etc.

The perfect business should be “portable”, in other words you should be able to run it from anywhere.

Your ideal business should require very little personal input from you other than setting it up in the first place, over- seeing the operation and devising and implementing new ideas for marketing the product.

In a perfect world, your business should not require employees, by which I mean staff directly employed by you. You will need the input of other people, but they should be suppliers, agents, affiliates etc. You may also need professional advisors for the tricky legal & financial stuff or to help with developing the business.

Both Mail Order and Internet businesses can be set up to meet these requirements. This is why I highlighted them in an earlier article!

Next time I shall talk about the basic needs of any business and what separates the successes from the failures.

Until then, have a great week!

Why am I telling you this? Well, to show you what is possible once you achieve the freedom mindset and lifestyle.

Last week I left you thinking about your goals. This week I shall continue with the theme. Setting the right goals and programmimg yourself for success is fundamental to achieving the freedom you seek.

Setting Goals

“Most people, whether in business or not, are too busy earning a living to make any real money!” So said a guy who became a major influence on my business life at an early stage. His name was Roy and he was what I often refer to affectionately as a `hustler’ – by which I mean someone who makes things happen by sheer force of will and personality. Roy introduced me to a number of `success’ concepts but the most important of all was the concept of setting goals.

I have since come across the same philosophy from a large number of people, all of whom are successful at what they do. They all say the same thing – “You can have anything you want if you know exactly what it is, set it as a specific objective and, most importantly, allow yourself to have it!”. So, it seams that you need to start out knowing what you want and set goals to achieve it.

Over the years I have examined the ways in which these people set their goals and found a remarkably common approach. I have also refined this approach to ensure that goal conflicts don’t occur.

“Hang on! What’s a goal conflict?” I hear you ask. Well, goal conflicts occur when individual goals are pursued in isolation without reference to or co-ordination with other goals. For example, a particular business goal may involve working long hours for a while or travelling away from home. At the same time you have a personal goal to spend more time playing golf, whilst a family goal may be to spend more time with the kids! Something has to give …. hence goal conflict, one goal gets in the way of others. Simple really, but so often overlooked.

So how do you get it right? First of all it is important to recognise exactly what a goal or objective is. Most people are too vague and specify aims rather than objectives. For instance an aim might be to get rich – but how do you define rich? In this case a specific objective might be – “By the end of 2005 I shall be earning £100,000 per year and have £250,000 invested.” I hope you see the difference.

A goal must be tangible, measurable, achievable and have a time scale for completion and it must be described in detail. Another example – “I want a new car” is not a goal, it is a wish and, as far as I have been able to ascertain, to get your wish you need either a genie or a fairy godmother – neither seem to be in particularly good supply!

On the other hand – “On 1 August this year I shall take full ownership of a brand new Lexus 2000 automatic in metallic red with grey trim.” – is pretty specific.

Exercise

Try this exercise. Take a sheet of paper and draw a vertical line down the centre. On the left side write the heading Personal Goals and on the right side put the heading Business Goals. At the very top in the centre write the heading Immediate Objectives.

List as many immediate personal goals as you can think of on the left and do the same for business goals on the right. Personal goals are to do with achieving the life-style you want. Business goals are directed at the way you want your business or career to develop e.g. To increase market share to 40% or double turnover or increase profits by 25% or maybe to employ an effective manager to give you more time for other things.

Later you can do the same for medium and long term goals, say for one year and five years ahead.

Next make sure that there is no conflict between personal and business goals, or between goals on the same list, in fact business goals should ideally support the personal goals, after all, what are you in business for?

Now take three personal goals and two business ones, five in all, and think about them in more detail as in the car example above. Then write them out in a similar way to the car example, in the first person future tense. Make sure that each goal is described in full detail, that you state a date by which or on which the goal will be achieved and that you state that you will achieve it. Write them clearly in large print in priority order on a separate, clean sheet of paper. Do not show this list to anyone other than someone who is working with you towards your goals and don’t talk about it. The act of writing down your goals in this way sets in place the plan for their achievement.

Work Your Goals

Every morning read your list out aloud to yourself then close your eyes and picture in your mind the achievement of the goal. Imagine the feeling of driving the car, banking the business takings, relaxing on the sun-drenched beach or whatever your goal entails. Then put the list away and go about your daily business with confidence. What you have just done is to program your subconscious mind to act as an auto pilot to help you achieve your goals. Operating on auto pilot is what the subconscious does best, after all it does a pretty good job of keeping us alive in an increasingly hostile environment.

It is important that having so programmed your subconscious that you now let it get on with the job without hindrance from the conscious mind. That means not actively struggling to make things happen. All things take time, but with this method they usually take less time than by applying conscious force. You will find that ideas for fulfilling your objectives will simply come to you. When they do, act on them at once and you will find yourself moving inexorably towards the kind of life you want.

As each goal is achieved place a tick next to it on the list and say “thank you”. Replace that goal with a new one and write out a fresh list, then continue the process.

How does it work? The truth is I don’t actually know. Many people have tried to give an explanation, either scientific or metaphysical, but we know too little about how the mind (or the universe) works! All I know is that whenever I use this system it gets results and it also works the same way for many other people. Frankly, as long as it does that’s all that matters to me. I don’t need to know how a computer works to use one and I don’t need to know how a car engine works to be able to drive! I’ll leave the PhDs to work out how while I just enjoy the result.

Don’t be sceptical, give it a try for yourself. If it works for you just think how it could change your life! If it doesn’t, what have you lost?

Until next time

best wishes

Manufacturing Wholesale Retail Agriculture/horticulture Business services Personal services Leisure Mail order Internet

Don’t worry, I don’t intend to get too technical here – neither do I want to bore you with too many dry facts. But a clear overview of a subject never comes in wrong. So here goes….

MANUFACTURING

Manufacturing, as its name implies, involves making things to sell. The steps include the design of the product, sourcing and purchasing the raw materials, acquiring the tools or equipment needed to work the raw materials, obtaining suitable premises for the task, employing and training staff to use the tools or equipment to make the products and finding someone to buy sufficient quantities of the stuff to make the whole thing viable.

The benefits are that, if the product is a success, you just ‘ramp up’ production to meet demand and bank the profits. The downside is the cost of setting all this up in the beginning and the potential costs associated with keeping things going during a downturn. It also takes a lot of looking after. It can also be very difficult selling large quantities of products whilst keeping the manufacturing process going. This is where the next type of business comes into its own….

WHOLESALE

The function of the wholesale business is to buy large quantities of goods from the manufacturer and then sell them on in smaller quantities to retail outlets – after adding a profit on to the price. The advantage of being a wholesaler is that you don’t have to invent new products all the time. You just look for products from manufacturers that you think will sell well in the marketplace and negotiate a price that lets you sell them on at a profit. You do, however, have to identify a good market for these products as you need to sell in quantity to make your money.

The costs associated involve large warehouses to store the high volumes of goods coming from the manufacturers. Packaging equipment and staff to re-package the goods into smaller lots to sell on are also required, as is transportation to the customer and sales, admin and accounting staff to look after that side of the business. Wholesalers generally buy from a number of manufacturers in order to provide their retail customers with a wide variety of goods. Their job is to keep retailers stocked with saleable goods that the public will buy.

RETAIL

These are the businesses that ultimately sell products to the public. Larger ones will buy direct from the manufacturer and may even suggest product ideas. The typical small retailer, however, relies on one or more wholesaler to supply a good range of products to appeal to the customer. The majority of retailers sell to the general public, consumers like you and me. Some specialise in selling appropriate products to businesses e.g. stationery and office supplies, office machinery, computers etc.

Retailers need somewhere to sell from. It may be a shop or a market stall, or it may be via mail order or even a website on the internet. In some cases they may use a mobile shop or take their goods to craft fairs, flea markets etc. The aim being to put themseolves in front of as many potential customers as possible.

AGRICULTURE/HORTICULTURE

The primary industry in any civilisation is the production of food. Agriculture these days is big business involving huge farms producing staple crops. However, there is still room for the small holder specialising in home grown or even organic produce. Horticulture on the other hand, is more about cultivating and propogating a wide variety of plants, many of which are sold to garden centres etc.

Modern agriculture is heavily mechanised, though horticulture can be quite labour intensive. One requires a heavy investment in machinery and the other in experienced plantsmen and women.

Both need a significant amount of land to create a worthwhile and profitable business.

THE SERVICE INDUSTRIES

The above areas of business focus on the provision of products, tangible items that can be seen, touched and even heard. Whether large or small, permanent or consumable they are inherently physical. They comprise society’s primary and secondary industries. The third wave is more recent but shows more dynamic growth than the others – it is the service sector.

BUSINESS SERVICES

As business has grown over the years, a whole range of ancillary businesses have developed to service the needs of the modern business. Everything from accounting and secretarial services to photocopier and computer maintenance to specialist advisers and consultants. From the supply and laundering of towells for the washroom to lunch meeting caterers to business trainers and many, many more have sprung up to help business managers to avoid the peripheral areas and focus on their core business.

Basically anything that can help a business owner or manager to build and develop the business or that can take away a time consuming or unwanted chore or distraction, can be built up into a business services business. What’s more, if the service genuinely helps in any of the indicated ways, there will be no shortage of managers ready and willing to pay the price.

PERSONAL SERVICES

In our busy, hectic and stressful society, there is more opportunity than ever before to make money from providing valuable personal services. From traditional areas such as nannies, hairdressers, manicurists etc. to the more modern services such as personal trainers, health gurus and even personal shoppers, there appears to be no area of life (or at least very few) that has not produced a personal service business.

In fact, personal and business services have been among the growth areas of the latter half of the 20th century and are set to be one of the driving forces of the 21st! As more people put increasing value on their time, their appearance and their lifestyle so the personal service industry will continue to provide lucrative business opportunities. Even the traditional domestic servant is making a comeback, though in a form unrecognisable to those of the late 19th and early 20th centuries. Whatever the service, if you can imagine it and provide it well – someone, somewhere will buy it!

LEISURE and HOSPITALITY

While personal and business services have grown enormously the explosion has been in the leisure industry. Clubs, bars, hotels, restaurants, theme parks, leisure centres, health spas, resorts, cafes, amusement arcades, golf courses, gambling casinos, sport, travel… You name it, we’ve got it and it just keeps growing and changing. Lifestyle and leisure the driving force for the 21st century? Who knows! If you think it sounds like fun, it can be, but it can also be very exhausting.

MAIL ORDER

Mail order had its origins in a number of places. It set out to deliver goods to those people who did not have access to them or couldn’t afford them. Settlers in the Australian outback and pioneers of the new frontiers of the USA were able to buy their needs without travelling many miles to do so. In British industrial towns a shilling a week could buy items from catalogues that could not be bought outright from the local shops & stores. Later, the sheer convenience of mail order helped it to grow. Now there is very little that cannot be bought by mail order.

INTERNET

The new kid on the block! The World Wide Web. Forecasts for the amount of future business to be done on-line are astronomical! Already fortunes have been made in the dot com boom and as readily lost in the great dot com crash! Like any new industry, and make no mistake, this is an industry in its own right – maybe even the new 4th wave, the internet has had and will continue to have its teething troubles. I’m told that the great money spinners on-line are sex and gambling – nothing new here then! But close behind, in my experience, is the “Get Rich Quick” brigade. We saw them (and still do) in the mail order field, but that was nothing compared to the phenominal explosion of “how to make money on the internet” books and courses or on-line Multi-Level Marketing schemes.

Some people claim you can sell anything on-line, I have an open mind. Time will tell what will sell best and what will not sell at all on-line. This one is in its infancy – that means there are bags of opportunities out there, but beware there are also pitfalls. Everything is unproven, it changes daily and the sharks are out in force. Take a chance, but also take care.

I’ve tried or checked out all of the above. From a freedom perspective my vote goes to the last two. In future issues I shall tell you why.

I hope this has given you a clear but simple overview of the business market place.

Until next time, have a great week

PS – Don’t forget to post your comments (or criticisms!) as well as anything to do with business or freedom that you would like to see in the newsletter. If you have any hints or tips to share with your fellow subscribers postthem too.

First noting all your debts and listing them in order of highest interest rate.

Then targeting the largest payment to the debt at the top of the list, Including an additional 10% of budget.

Finally, as each debt is paid off, applying the amount allocated for previous debts to the next one on the list.

Once this exercise is complete, you will be completely debt free and ready to apply your budget surplus to investing for your future. More of that later once your debts are cleared.

In addition, you should still be sticking to your budget set out in week 1. Don’t be concerned about this temporary “belt tightening”, it will get much easier as you go along & will ensure your later freedom and happiness.

This week I shall talk about setting goals. Every successful person on the planet has used written goals at some time or another. It is simply not possible to become successful without clear goals. And written goals are the most powerful tool in your success armoury.

Back in part one, I asked you to make lists for every family member of what they need to be happy. These lists form the foundation of your goals. So go dig them out and let’s get to work.

First divide your goals into the following headings:

Material goals – things like, house, car, home appliances etc. Financial goals – income, investments, savings, pension etc. Intangible goals – time together, personal time, having fun Leisure goals – hobbies, interests, sports etc. Spiritual goals – personal development, meditation, becoming a better person or whatever you feel strongly about.

Add any other category you choose to the above list.

Under each heading, make a list of the appropriate goals. I recommend you write your goals in a special book – it gives them a greater focus. You might want to call this your “freedom” book.

The key to setting goals is to ensure that they are SMART!

SMART GOALS are:

S=Specific – in other words, make your goals detailed not vague or undefined. Spell out exactly what you want.

M=Measurable – if it can’t be measured, how will you know when you have achieved it?

A=Achievable – don’t let this limit you too much. It means if anyone has or can achieve the goal, then so can you!

R=Realistic – this means that the goal must be consistent with your beliefs. Napoleon Hill in his epic book “Think and Grow Rich” said “Whatever the mind of man can conceive and believe, it can achieve”.

T=Timely – set a definite deadline or target date for the achievement of the goal. If you don’t, it simply drags on until you become disillusioned.

Between now and next week begin to create your “freedom” book.

Next time I shall conclude with an article on making goals happen. Until then…

best wishes

John

This week I shall highlight the different methods of setting up a business that can be grown into a separate and valuable entity.

Just like self-employment, this can be done on a part time or full time basis. Obviously you will grow it quicker full time and you will have a greater range of choice if you can start full time. If you have a job or other responsibilities that cannot be let go just now, don’t worry. There are plenty of part time opportunities to consider.

The various ways you can get under way are as follows:

Start from scratch with your own idea

Usually the province of the individual with an idea for a new product or service, who has a burning ambition to see their idea brought to market. This approach is generally considered the highest risk, especially with a product which could take a lot of money to set up for manufacture. A service may take a lot less to set up, but it still needs marketing to an uneducated market. The plus point is that you will not have a lot of competition to start with. Points to consider are:

• How much will it cost to set up the business and bring it to market?
• How easy will it be for competitors to jump on the bandwagon if it is successful?
• Will it be profitable enough to fund growth of the business?
• With a new product or service, how easy will it be to recruit skilled staff or train new employees?

Copy someone else’s idea

Most businesses are not unique. They are either straight copies of others, or a variation on a theme. Some business pundits maintain that being second (or later) in to a market gives you an edge over the market leader. The idea being that you learn from the (often costly) mistakes of the leader. To a degree this is true, but if the leader has become well established, you will always be seen to be a copy! Often the way a later entrant to the market can succeed is by being in some way different or better than those who are already there. Examples are – better quality, better customer service, lower price, greater convenience, more choice, added value features etc. A key way to improve on what is already there is to listen to what existing customers have to say about their current supplier and the products. Log both good and bad points then keep the good and improve on or eliminate the bad. Then remember to tell the customer what is different about your offering.

Buy into a Franchise

This is the ultimate “copy someone else’s idea”, because the originator actually sets you up in business and teaches you how to do it. The very best franchises make it almost impossible to fail. Very many well known high street names are in reality franchises run by individual business owners but under a common brand name. Banks and investors like franchises because they have a low failure rate and a reasonably predictable performance. There are still risks however. There have been and probably still are some “dodgy” franchises out there. Run by very plausable people who use a glossy image to win you over, take your money (franchise fees can be very high) and leave you high and dry with little or no support. Some are deliberate fraud, but others are legitimate businesses who see franchising as easy money but do not understand the importance of support and training.

Buy an existing business

There are many hundreds or even thousands of businesses on the market at any given time. They are for sale for a variety of reasons. Maybe the owner wants to retire & has no one to pass the business on to. Kids don’t tend to go into the family business the way they used to. A frequent stated reason for sale is the owner’s ill health. This may be genuine or it may be a cover for the real reason – a failing business. Just be sure the ill health was not brought on by the stress of running the business. Some people get a kick out of starting and building a business, but get bored after a few years and have the urge to do it again with another idea. Others make a business out of buying up under performing businesses, turning them round and then selling them on at a profit. Others may have got wind of something about to happen that will have a negative effect on the business so want to get out while they can. The benefit of buying an existing business is that it has a proven track record and an existing customer base – just be carefull and check it out thoroughly.

Buy into an existing business

This differs from the above in that you are not buying the whole business, just a share in it. If you have the relevant skills and some finance, you may get a very good deal. Often an existing owner wants to grow, but lacks either skills or money or both to make it happen. By selling a part of the existing business to the right “partner” the business can be grown to the point where the individual shares are worth more than the original business. That way you both gain. Alternatively the existing owner may want to retire gradually by bringing in someone who will eventually take over the whole business. The benefits of this way into business is the help and training you will get from the existing owner. There is less likelihood of being “taken” because the original party is still involved in the business. You have a proven business and you can build up gradually as a team. The important thing is to make sure that you can both get on together – this could be far more expensive than a divorce if things go wrong so choose your business partner more carefully than a wife! You should also make sure you have detailed written agreements concerning how the business will be run and who will be responsible for what. That way there is less cause for disagreement later. Get a good lawyer to check it out.

So, now you have seven ways to go self-employed (from last week) and five ways to start to build a business. These are not mutually exclusive – you may be able to do more than one at a time, just don’t start a second one until the first is running on autopilot. You may start self-employed then turn it into a full blown business employing others.

Next week I’ll look at the various types of business, namely:

• Manufacturing
• Wholesale
• Retail
• Agriculture/horticulture
• Business services
• Personal services
• Mail order
• Internet

Until next time, have a great week

PS – now we are getting well underway, I really look forward to hearing about your successes and achievements towards your goals. Please add your comments (or criticisms!) to this article as well as anything to do with business or freedom that you would like to see in the newsletter. If you have any hints or tips to share with your fellow subscribers, add them in a comment here.

Last week I  left you to do a little planning……

• First figuring out what kind of life you want
• Second working out a budget to match that lifestyle
• Third totting up all those debts that stifle your freedom

As a result, you should now have a list for every family member of what they need to be happy, both material and intangible things.

You should also have a budget worked out in terms of how much money you need to achieve your chosen lifestyle. This should be expressed as monthly income. Each family member should be aware of how their needs affect the budget, especially the kids. This is good education for them as it teaches them the value of money.

Finally, those stifling debts. Had you realised just how much they came to, or were you pleasantly surprised?

This week we’re going to start with those debts and use our three step approach to get rid of them. In order to achieve financial freedom, you must eliminate debt. You won’t believe just how great it feels to be debt free until you achieve it!

Let’s look at some possible areas of debt and get a kind of priority list for elimination:

Mortgage – most people have one and believe it should take 20 to 30 years to pay off – nonsense, it’s the lenders who want you to believe that. The difference in monthly repayments between a 20 and a 25 year mortgage is marginal – even between a 15 and a 20 year mortgage the difference in payments is relatively small.

Car loan – most people go for 3 year loans but they can be up to five years. Again, because you pay such a huge amount of interest on the longer term loan, there is only a small difference in monthly payments.

Credit cards and store cards – these are the biggest killers as the interest rates can be extortionate. They also encourage you to make small payments and keep spending – that way all you ever pay them is interest, you never pay off any of the actual loan. In fact it usually just keeps on getting bigger!

Step one – take your list of debts and write alongside each one the rate of interest. If you don’t know, find out NOW! You should already have the amount outstanding written down.

Now re-list the debts in order with the highest interest rate at the top of the list and the lowest rate at the bottom. This is the order in which you are going to clear your debts.

Step two – add up your total current monthly payments on all your debts.

Next for each debt except the first, note alongside the lowest monthly payment needed to keep the lender happy. Add these up and take the total away from your current monthly repayment total. Unless you are in really dire straits, this should leave a surplus. For example – let’s say you are currently paying 400 a month and your list of lowest monthly payments totals 300, this means that you have 100 a month to pay off the debt at the top of the list. What we have done is to target as much as possible to pay off the highest interest debt.

Step three – return to your monthly income budget and add ten percent (if you don’t think you can earn an additional 10 percent then see if you can find that amount by some small budget cuts here and there). You are going to use this 10 percent to really accelerate your debt repayment.

Apply this extra ten percent to paying off the debt at the top of the list – don’t worry about the others. As long as you make the minimum payment on each, they will soon take their turn at priority clearance.

As each debt is paid off, apply the monthly amount you were paying towards the next one on the list – in addition to what you are already paying towards that one. As each debt is cleared the amount going to pay off the next one gets bigger and bigger and because you get rid of the highest interest ones first, the rest start to come down very rapidly.

One important point though …… STOP BORROWING!! If you keep borrowing, the situation gets worse rather than better. Stick to your budget – that’s what it’s there for!

Keep steadfastly to this regime and you will be amazed how quickly your debts disappear.

Next week we will return to the more positive aspects of achieving your chosen lifestyle. Until then…

Have a great week

John