Category Archives: Finance

How To Automate Wealth Creation In Your Business

How To Automate Wealth Creation In Your Business

Think about how often you focus on creating wealth for your business… Chances are it isn’t that often. Most business owners get caught up in the day to day running of the business, they're working hard, they're focusing on the next customer, they’re wearing multiple hats, dealing with marketing, dealing with their team and dealing with customers. Because of this, wealth creation gets parked on the side, put on the corner and forgotten about.

I am a big believer that in life success leaves clues. Some of the principles that will have us be successful in business and in life, have been around for many, many, many generations. One of the key principles that I learned very early in life and the key one that not many people apply is to "Pay yourself first".  

What does this mean in business? As a business owner, when do you pay yourself? Often in business what happens is the business owner is the last person to be paid. They pay the suppliers, they pay their wages, they pay all their bills and if there's any leftover, well then they'll pay themselves. They're actually paying themselves last. They’re like the dog sitting on the table waiting for the scraps. Does that set up a good feeling for the owner? No. It's frustrating as a business owner.

Change things around. Make sure you are the first person to be paid in your business. Firstly, it sets you up to play a bigger game in business, but is also the start of that wealth creation journey. A key part of paying yourself first is to make sure it's consistent. Some business owners use their business like an ATM, they’ll just pull money out when they need it, this is a very ineffective way to run a business. Make sure you have regular and consistent money coming out of the business to you. Pay yourself a wage or if it's drawings, just make sure it's a regular amount that's coming out.

Paying yourself first is the first step to wealth creating from your business, the second part is all about what you actually do with that money… Most business owners just spend their money - it's all just disappears on day-to-day expenses and the occasional splurge on something. To create wealth, you need to take part of that money (a minimum of 10 percent) and put that aside into an investment account. It will start growing for you, something you can start building wealth with.

The important principle is that you take part of everything that you earn and make a portion of it work for you. When you do this, you are no longer the person working for money - your money starts working for you, your money starts making more money. Start with 10 percent and then increase that over time.

I’ve got it to around 30 percent now and just keep increasing it and increasing it. If you could just increase your 10 percent by 10 percent each quarter or each year - you will start to increase the amount you are paying yourself and your wealth creation happens automatically.

The key thing is that it has to be set up so that this happens automatically. Set up an auto-deduction for your wage, then an automatic deduction into your investment account or your wealth creation account (whatever you want to call it) so it starts happening without you needing to take any actions.

You can get back in your business and start focusing on what you are great at - growing the business, building the business, knowing that this wealth machine is automatically ticking over in the background.
Start paying yourself first in your business and make sure you putting at least 10 percent into that wealth creation account.

If you need help with this process you might want to consider getting in touch to see how we can help you. Alternatively you can come along to one of my business workshops and seminars.

Creating more leverage in your business

It is easy to get caught up in day to day business activities. The problem with this is you are not making the most of your limited time and energy. Instead you want to find ways to leverage yourself in your business. How can you get more done with less? Highlights of the video: 00:02 - Key…
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The Key Drivers to Financial Success in Business

Have you ever noticed that when it comes to financial success in business that it feels like you’re walking around blind. Often things that you think should be happening just don’t happen. For instance, maybe you’re lacking cash in your business… even though your numbers tell you that you’re making profit? Or maybe you’ve got…
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How To Improve Your Business Cashflow

Do you every find cash flow tight? Every business has a cash flow cycle and for many businesses as they grow it can lead to a ‘cash gap’… where a business runs short on cash. To understand this in your business and how to minimise your ‘cash gap’ check out this week’s video. Highlights of…
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How To Become Wealthy Through Your Business [Video]

You will never become truly rich from your business unless you learn how to spend your cashflow correctly. In this week's video tip, you’ll get to know exactly how. In this week's video: 00:11 - You're spending all your money! 00:26 - What's the problem? 00:35 - How to use your cashflow 01:30 - Break…
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Increase Your Profit By Understanding Your Break Even Point [Video]

Ever feel like your business is just making enough money to pay your bills? Learn how to calculate your break-even point and more importantly, how to use it to grow your business profits. This week's key-points: 00:12 - Are you making enough profit? 00:26 - Your break even point 01:17 - Know your fixed costs…
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How To Make More Money With Less Customers [Video]

When was the last time you reviewed your prices? In this video learn why you should be increasing your prices to enjoy an increase in your profit and deal with a better quality of customer. This week's tip: 00:13 – When was the last time you looked at your pricing 00:32 – Are your prices…
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3 Ways to Get Quick Cash into Your Business

Cash flow is the lifeblood for businesses. In fact, all businesses need to operate on a positive cash flow in order to succeed.  Sometimes cash flow can get stuck when growing or expanding business.  This is a common challenge. Here are 3 key areas in your business that can help you to generate the quick cash…
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3 Bank Accounts Every Business Owner Should Have [Video]

In this video I reveal a simple strategy to effectively manage your money to ensure you always have enough money to pay your bills - and some extra as well. Highlights of this video: 00:11 - What you're doing wrong 00:36 - Here's what you should do 00:42 - Bank accounts you need to set…
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The Must Have Succession Plan

Guest article by Daniel Poultney of Super Advice Services We all hope for an accumulation of wealth after a lifetime of hard work and diligent saving. For many business proprietors (me included), their wealth is tied up in the business, and there is a need to protect our valuable asset. Too few proprietors think about the fate…
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Want to Make More Profit? Put Your Prices Up

Often it is suggested to a business owner to put their prices up, the response is “But my customers will leave, I’ll go out of business”. This response is their gut reaction, however their comments aren’t necessarily valid. If the product or service you sell is priced at $1.00, how many do you have to…
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Take Control of Your Future – Today! Are you using an SMSF?

Guest article by Phil Re of Regency Partners Chartered Accountants Happy with the current balance of your superannuation account? Want more control over your future retirement money? Want greater investment flexibility? Australians have become increasingly frustrated with the poor returns of their industry and retail funds. When you read your current balance, you find that…
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How to Borrow Money with a Self Managed Super Fund

Guest Article by Michael Sharman of Financial Momentum Solutions There is currently a lot of  discussionwith regards to purchasing property in your self managed super fund (‘SMSF’) and how to finance it through a lender. This product has been around for a while now but in the early days it was extremely expensive to not…
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Lessons Learnt Last Year = More Profit This Year

Guest Article by Basil Musca of Profit Optimisers With the new financial year firmly upon us, it’s a great time for business owners/managers to consider the results for last year and what you want to achieve this year. There is an old saying “If you aim at nothing you will hit the target with amazing accuracy”.…
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