7 Ways to Build Wealth Personally or In Your Business

Money is a valuable tool for all of us to have and use in our lives. It is there to be accumulated and used… but we must learn how to do both or we will never have wealth and what money we do have we will most likely not keep.

In 1926 George S Clason published The Richest Man in Babylon. In this systematic and entertaining book Clason presents and details the ways to accumulate and keep wealth that are when applied as certain as the law of gravity.

“Money is plentiful for those who understand the simple laws which govern its acquisition.” – George S Clason

In the book Clason introduces Arkad, the richest man in Babylon.  Early in the book Arkad is asked by the King to teach 100 men the secret to wealth. Here is a summary of what he taught them.

1. Begin paying yourself first.
2. Budget and control what you spend. Discipline yourself to live on far less then you earn.
3. Make your money work for you. Invest in safe enterprises or the highest rates of compound interest available.
4. Keep your savings safe. Do not speculate.
5. Buy a home for yourself and your family.
6. Insure you future income for your retirement and the estate you will leave your loved ones.
7. Increase your ability to earn. Be the best at what you do and learn to do more.

Regards,

Eric

Eric W. Leaman

Trustee

eleaman@oedglobal.org

http://twitter.com/oed4smallbiz

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Why Do a Marketing Plan?

A marketing plan outlines everything you will do to market your business, in what order, and when. The time and effort spent developing your marketing plan is a good investment.

An effective marketing plan does the following:
 Identifies and explores the strengths and weaknesses of your company, its products, or services
 Examines, based on these strengths and weaknesses, the opportunities and threats that exist in the marketplace
 Forces you to focus on the needs of your customers and potential customers
 Allows you to anticipate and plan for changing market trends, consumer demands, and changes of your competitors
 Helps you reach company goals within your budget
 Forms an essential part of your business plan

A Question for the Small Business Owner

If you decided to walk away from your business, could you sell it or are you “the business?”

This vexing question is posed by John Walters, OED Certified Advisor, and founder of 1-2-1 Business Consulting LLC. His insight below is eye opening for many a business owner!

Recently I visited two small businesses where the owners informed me that it was their intention to operate the businesses for another four to five years, sell off the businesses and retire on the proceeds.


However, upon further examination, it became apparent that the businesses could not operate for more than a few days without their owners; the businesses did not have the required processes in place to make them self sustaining. Without the owners, there will only be assets to sell when the owners come to retire.

Both businesses were probably worth between $150-200,000. Since the owners were thinking more in terms of $2million each, based on a multiple of 4, they are facing a huge gap and a bit of a wake up call.

When we began to discuss this issue further, it became apparent that the owners were spending significant time in the business. As such, they thought it only natural that they should make all the decisions.

This behavior in reality intensifies the problem – employees realize that there is little point in second-guessing what the owner may be thinking – they stop thinking for themselves and rely entirely on the owner. The opportunity for delegation is lost.

While it may be difficult to delegate tasks within a small business for any number of reasons, including cost, this must be done if the business is to become sustainable without the owner.

As a Business Owner ask yourself the following:

1. Do I really need to make every decision?

2. What can I delegate now?

3. What could I delegate if I give a little training to my employees?

4. What procedures can I put in place so that I do not lose control?

5. What are the vital few things that I must do personally?

6. At what stage should I bring in a manger to take over my responsibilities so that I may sell the business as a going-concern?

7. Do I really need to take every decision?

How you address these issues will ultimately decide if you have a business to sell as a going concern or simply a few assets to sell off. The value creation / destruction potential can be substantial. Think back to the two businesses that I referred to earlier that at looking at $150-200,000 vs. $2 million.


Please give careful consideration to investing in your future by making sure that you have sound Operational Planning, Succession Planning and Exit Strategies in place. The risk of not doing so is too great.

And, please remember that “121″ is there for you should you need any help.