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.