Let’s Talk About Return on Investment
A Note from The Editor,
The following discussion is for people that want to write their own check and give themselves a raise. If you are brand new to creating your online business then you are in time to prevent some serious time-wasting. Of all the worst errors, wasting time is the most dangerous and costly.
Have you ever got up during the night, half-asleep and proceeded to make your way out of the bedroom without switching on the light? If you can relate to trying to navigate your way in darkness, then you will understand why others choose to switch on the light – it makes sense!
If you are contemplating joining the growing number of people that will start a business, or try to save their current business, then there are some constructive things you must do and one of them is to focus on Return on Investment(R.O.I.). It should not come as a shock to you that you are making an investment when you start a business. First you are investing your time and secondly your money, so you will want to do those things that will give you a return.
Time is Your Most Valuable Asset
Keeping a lid on your costs is critical and will help you to stay competitive and in the game, while making sure you invest your time wisely, will help you achieve your goals. When you put time into the wrong activities, or the ones that don’t push your business forward, you are losing valuable time and preventing a return on investment.
So if we wish to make the most of our assets what do we do? The answer to this question is – we get a business mentor or coach. When our business is viewed by someone who is skilled and experienced, they see what we don’t and they can make suggestions without any emotional attachment. It’s this assessment that we need to produce a different result. Instead of carrying on in the same path with the lights switched off, as in the opening example, we navigate the space with a new perspective. This is what you are paying for, as well as how to navigate your way and achieve the goal.
If you are new to business, your mentor will help you to create the plan that takes into account your skills, strengths and interests, as well as choosing the market and the best and the quickest way to achieve the goal. The initial planning is important to build a solid foundation for what is to follow – the creation of an asset. This is why your time is so important in this equation. If you spend your time on the wrong thing, you will never build the asset which is supposed to feed you.
Return On Investment
It’s time to analyze this concept further. Our investment in time and money needs to yield a return, otherwise we have lost our valuable and limited resources and the most important one of all, TIME. In the past, the buy and hold mentality for physical and paper assets has depended on TIME as the creator of an R.O.I., but this will not work well in the future, due to deflation, as it is expected that people retiring or saving for retirement will become sellers of assets and not buyers. So buy and hold as a strategy may not be a winner in the future. Instead investors will become traders and this will lead to volatility – especially when assets are hard to value and riskier to hold.
Paid To Think Business Magazine believes that it’s smart to create a portfolio that is a mix of projects that you have started, with the intent of creating an R.O.I. The likely result of creating your own projects is that some will be losers, while others might become winners and actually create a stream of income which will help you buy the lifestyle you want. The alternative to creating your own portfolio is to leave someone else to manage your money and you keep working at your job well into your 70’s. The way things are going the retirement age will have to increase to stop the system from falling apart. In the U.S.A. there are 3 workers for every retiree and this is expected to drop to 2 workers per retiree by 2030, so you can see that Social Security is expensive and that the current situation is not sustainable. The next question is of course, what sort of lifestyle do you really want and the most likely answer is: better than I can afford right now!
So what are you planning for your retirement? Can you fund it? These are the reasons for doing what we do, but in order to achieve what we want, we have to have something to trade. This is why you need help with your plan.
How Do We Choose the Projects For Our Portfolio?
This is where our mentor comes into the picture. Our mentor’s job is to help us choose the right projects and markets and to help us create an R.O.I. This discussion is based on the premise that there will always be opportunities and demand for goods and services. The magazine’s view is that there will always be problems to solve and thus the need for solutions to problems. The business owner is the problem solver.
The partnership between you and your mentor can now be seen in a different light – it’s strategic and innovative. On your own, your perspective is limited by experience and knowledge, while with your mentor the partnership can lead to something new and profitable. In order to make this possible you get to know your mentor first and find out if you are tapping into the skills and knowledge you need and whether you can work with your mentor to increase your R.O.I.
Download the latest issue of Paid To Think Business Magazine and discover the Next Free LIVE Training event streamed direct to you and learn about how you can grab one of 10 remaining spots in Armand Morin’s mentor program.
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