When you know how to make money, you have more control of your time and thus your life. So why is the skill of making money not taught in schools? I think it’s because few people know that learning how to make money is little different than learning how to play the guitar or ride a bicycle.
Few realize that learning how to make money is a skill. It is not luck and it is not the same as having a job or starting a business. It’s significan to notice that learning how to make money is different from starting a business. The two acts are not necessarily always connected.
When you owe money to someone, they own a piece of your schedule so you could say they own a piece of you. Making money is about freedom and learning how to make money requires understanding some principles and practice, just like learning to play a guitar or riding a bicycle.
First skill that’s needed is to know how to sell. Not the pushy method most knuckleheads stumble around with. That is how to NOT sell. I’m talking about learning how to help the customer buy the product or service you’re selling.
Second thing to learn is that you need to like what you’re selling. If you don’t use it yourself, it’s much harder to help someone else purchase it. You need to find a niche that works. Some people call it a ‘hook’. It’s not important what you call it. It’s important that you find something that works for you.
Third, you must learn AND KNOW that you must sell at a higher price than you purchase at – duh! BUT you must also know what your expenses are (what it will cost you to sell your product/service) and this must be at or below what your competition is selling their product/service for. The key thing to focus on is not what you sell your product/service for but what price you pay for it. You make your money when you buy your product/service, not when you sell it. Buy wisely and you’ll be ahead of the competition.
Fourth, you must remove the fear and questions that your buyer has about your product/service. This requires you to educate your customer. Some people call this marketing and there are more ways to screw it up than there are ways to succeed with it. It is a learnable skill and you can also buy marketing from other people who specialize in it. It’s expensive and it’s hard to find those who know how to master it. You can spend a lot of money on marketing and get no or little results.
Fifth, you must be willing to fail, learn and try again. This is a cycle that you will need to accept and be willing to go through the cycle over and over again. The key is this – you should either learn what not to do again or you should make more money than you invested. Here’s the hard part – you must learn that either way you gained. You either made money or you lost, but either way, you gained experience and that’s the real gain in the end.
Sixth, you must learn to test so you can choose the model that performed better and then test that model against a new one. Repeat this over and over until you die, or go out of business, whichever happens first.
Seventh, start your venture with money that you already have. To borrow adds two demons to you – a new expense called interest but worse yet, you get a false sense that you’re in business. By starting with your own money, aka bootstrapping, you find out real early whether your idea is real or just looks good on paper, which leads to the next thing.
Eighth, plan. Have goals and a well-thought out idea of what you’re going to do. And have it written down on paper. Ok, you can type it, but get your ideas onto a hard copy and keep that plan in front of you daily. It’s ok to change it, most likely it will need to be changed, but write it down and use it daily to guide you.
Ninth, do not get discouraged. While there is a “fine line” between being persistent and knowing when to call it quits, most people put the “knowing when to quit” line was too forward. You must be willing to stick with it through much more than a novice would usually think. Persistence is one of the least possessed qualities among people.
Tenth, find a mentor who has done what you want to do. Not someone who THINKS they know how to achieve success. Not someone who teaches and preaches it with an eloquent flavor but someone who has actually DONE IT.
Happy trails . . . .