Getting Rich - Two Strategies for Wealth That Work!

Getting Rich - Two Strategies for Entrepreneurial Wealth That Work
By Lynnelle Bianco

Everyone wants to be rich. By that I mean we all want to live the lifestyle we want without worrying about finances, whether that means working at something we love or not having to “work” at all.

Because the lifestyle you want might be different from the lifestyle I want or the next person’s, what rich means to you, me and the next person differs. Therefore your strategy will be different from mine, theirs, etc. That being said, there are really only two basic tactics for growing wealth. Most of us entrepreneurs, especially those of us “knowledge” entrepreneurs, use a combination of both of them.

The Savings and Investment Strategy This strategy is pretty simple. You make money and you save and invest as much as you can.

One way to think about it is to mentally divide the money you make – before paying any expenses - into three piles.

The first pile is is the largest and is for living expenses. This pile is about 75 to 80% of your income. You then need to live within your means. Yes, you can.

The second pile is for savings. This is 20 to 25% of your income until you build up long term savings equal to six months of living expenses. Yes, you can. Yes, this will take a while, but as entrepreneurs it’s critical to have that cushion for unexpected market or personal “bumps”. Then allow yourself a short-term savings stash. This money is for vacations, gifts and other things you can plan for.

After you have the 2nd pile full, the 20 to 25% (or more - as much as you can put away) of income goes into the third pile which is for investments. Income from investments stays in the investment fund; out-of-sight / out-of-mind.

The hardest part of the Savings and Investment Strategy for most people isn’t lack of cash flow – it’s lack of discipline. Yes, it's hard to save a huge chunk of your income. Few wealthy people will tell you it was fast and painless. The next time you hear yourself saying "just this once" or “it’s only $xxx” stop yourself and think, “Will this make me wealthy?”

The Product-ize Strategy Most of us knowledge professionals sell services and we have to show up to make money. We can make good money, but we have to show up to do it. There is a limit to the number of hours we can put in and the number of clients we can physically see in a day. The product-ize strategy finds ways to create income streams that don't require us to show up.

Here's how one entrepreneur used this strategy. She made most of her income doing leadership training and coaching, primarily for small banks. She started developing information products for the people and organizations she trained. Therefore, her training was also her market research.

She now sells all kinds of products; a partial list includes books, e-books, forms, slide sets, training outlines, workbooks and reminder products. These were sold through various outlets but primarily online. Most of the income from sales of these information products and from licenses to reproduce these comes in whether she works or not.

The most difficult things about the Product-ize Strategy are:

1. Setting aside time to develop the products, and
2. Doing the separate work of marketing them.

We're already so busy with our service business that it's difficult to set aside time and learning the additional expertise to pursue this strategy. But guess what this requires as well? Discipline. Funny how that word keeps popping up. Action Steps

• If you're not saving regularly, take some time this week to analyze your current expenses and set aside something to save. Start with any amount. Getting started is the important thing. Discipline to continue and increase that amount is key.
• If you're already saving, find one way to increase the amount you put in investments.
• Based on your expertise, think about how you can “product-ize” your expertise. Decide on one information product that you can develop for your market.
• Produce an Action Plan - including specific tasks and dates for completion - for producing that product.

Lynnelle Bianco is owner of Bold Vision Consulting, a business coaching and growth consulting firm. She runs coaching programs and peer groups that help business owners, entrepreneurs and professionals become better leaders and build bigger, more profitable businesses. Contact Lynnelle at http://www.BoldVisionConsulting.com or call 207-221-3492.

Lynnelle brings over 20 years of professional, corporate and retail working experience to clients. Having held senior positions in marketing, new business development and client service for global institutions — as well as owning and operating her own small businesses — Lynnelle brings real-world experience and forward looking perspectives to helping today’s professionals and business owners achieve breakthrough success. …and remember; Be BOLD! Success starts with a vision.

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