First, you must choose the right income stream that will soon generate the remaining income for you. I have a formula that I use to choose the right income flow. All possibilities are sent through the filter in the money tree formula - the nine properties of the ideal income stream. It is called the PENGE TREE formula because it spells the word MONEY TREE.
M in the Money Tree formula stands for multiple streams of income
The first goal of starting your own home based business is to add a different income stream to your life as a security net when other of your income streams dry up. But the home-based business you choose should be a source of more than just an income stream. It should eventually be a source of multiple income streams.
O in the Money Tree formula stands for outstanding.
If your product, service or information is not outstanding, it eventually becomes a competitive accident. The goal of creating a money tree is to do the job once and to get the cash flow for the rest of your life. How well do it to create a company and eventually get it to compete. In order for your income source to survive through the next ten recessions because there will be many more recessions throughout your lifetime you must choose a product, service or source of information that is able to be permanent and permanently profitable. When the times get tough, you are gravitating either price or quality. Do not stuck in the middle. Its a sure formula for disaster. And do not compete with the rest of the world on price. Make sure the quality of your products is outstanding the best in the world at a reasonable price. And you have a good chance of success in the long run.
N in money tree formula stands for nothing down.
Why nothing down? Well, it does not have to be completely down but as little of your own money as possible. If you are like most people, you probably do not have a hundred big lies to invest in your business. But what happens if you have a nice bit of money. Should you run and find a company that matches your money and start? I think one of the biggest curses is to have a lot of money to put in a new company. Suppose you want to buy a hot franchise. It can cost you 100,000 and its only for the franchise rights. Then you need to buy inventory, improvements in rental rights, special equipment.
E in the Money Tree form stands for Employee-resistant.
Thats right, you do not want employees. Employees are dangerous. They start to feel they are entitled to their jobs. You can not fire me. I own this job. The rapid increase in employee or employer disputes should suffice to convince you that you want to find a home-based company that you can do with very low employee to income ratio.
Y in money tree formula stands for the world Yield
The currents you choose should be high-yielding, high-quality chambers. Five years ago, a friend of mine, Collette, started such a home-based business. In less than a year she made around 10,000 a month. In addition, this company was a money tree company. It generates cash flow even if she stops working. But why stop when she has so much fun? Today, after five years, she has grown her business until she now earns over 500,000 per year net, net net.
T in the money tree formula stands for the words Trend and Timing.
Starting a business against the trend is to swim the power to the power. Managing a business is hard enough without trying to swim upstream. But when you choose a company that is with the trend its like floating downstream with the power. How do you choose a company that is on trend? The secret is to come in front of a trend and ride the wave.
R in the money tree formula stands for Rest
But to emphasize this concept even more, lets compare it with an escalator. Have you ever walked up an escalator, wrong way? As you step down the escalator you have to go fast just to stay in the same place. And to get to the top you have to go in double speed. People on the escalator do not have to work hard. They just stand there and hold the glove and the escalator takes them to the top.
These two escalators represent the two types of income that you can earn linear income and residual income. Our economy is a downturn. You work hard for your money, but with inflation you earn 3-5 percent more next year just to stay in the same place. But this puts you in higher tax brackets.