Many years ago I helped one of my consultants triple her income in less than 8 months. She told me she was upset. I inquired as to why and she reported, “I now have to pay more taxes”.
I am reflecting on this today. Yes, the more money you make the more taxes you pay. However, you can keep your taxes lower if you understand things like incorporating. That’s what the wealthy know that many business people do not.
I like to make more money and then have more to give to my foundation or my family and have never cared that making more money means paying more taxes because unless you make a lot more money you will end up as a wage slave working to get out of the rat race.
As a business owner, you need to know some basic business concepts so you not only make more money, you also keep more money.
Learn how to read balance sheets and financial statements and monitor profit and loss statements in your business.
Learn how to play the game from investors.
Be aware of supply and demand. Know what the market needs and pay attention to what sells and who buys.
Follow corporate tax laws and state and federal policies. Have a good attorney and accountant you can trust.
Financial Literacy: The Education You Need
Unless you were taught financial literacy in school, which is not typical, then it is essential you get educated about financial literacy to be successful in your small business.
I was taught by my parents to be an employee and not an employer and while this gave me a high salary, I could not become wealthy with this mindset or model. Once I manifested wealth I had to learn how to sustain it and not just to attain it. This is the financial literacy education you need as a business owner.
So, how do you get out of the rat race and start working toward a wealthier future? You need to understand the difference between an asset and a liability. Take a look at your own life and you’ll probably find the following:
- Real Estate
- Intellectual Property
- Consumer Loans
- Credit Cards
Have you been fooled into thinking things like your house, your car, and entertainment system are assets? Well, they are not. Assets continuously make you money. I have digital products that are sold while I sleep and bring money in all the time. This is the way to building wealth.
If you are a wage slave employed by someone you make money and pay taxes and are surely not creating wealth for yourself – for your employer yes, for you… no.
How do you actually become wealthy, then?
Here are the steps:
- Know the difference between an asset and a liability.
- Focus your efforts on buying income-earning assets.
- Keep liabilities and expenses to a minimum.
- Shift from a poor mindset to a wealthy one
Word Of Mouth Action Plan
There are some steps that create word of mouth for your business and can move you to become a by referral business. It’s a much more fun and easy, effortless way to run a business when you are not hunting for client family members and they are coming to you through reverse marketing!
Here is the action plan that will help you create a word of mouth, by referral business.
- Get your product/services into the hands of key influencers.
- Ask the influencers to talk about your services/product.
- Collect a lot of videos, audios and written case studies and testimonials that authentically speak about your services and products directly from your client family members
- Create a referral reward club with benefits
- Offer special incentives and discounts for people who you meet by referral
- Run special discounts and special sales for those who refer and their referrals
- Make sure you have built a core story and have a Core Unique Positioning Statement built into your marketing
- Make buying super easy
- Have a guarantee in place
Want some help creating a by referral business? Here you go!
Get Client Family Members Spreading Your Word
We all want our client family members to talk about how much value they are getting from our business. If you follow these ideas (even 5 or 6) you will find that you have a lot more positive word of mouth and can build a by referral business.
Build Word Of Mouth
- Cater to client family members
- Create an incentive program for referrals
- Make the client family member right
- Be 100% transparent, authentic and an integrity
- Suprise client family members by overdelivering
- Make it super easy to do business with you
- Always make time for client family members
- If you don’t know the answer, say that and then find out the answer
- Treat every client family member as highly valued even if they invested one cent with you
- Never use manipulative or pressure selling
- Only recommend what will help people
- If you can’t help them, tell them that
- Look for ways to develop personal relationships with client family members
- Treat everyone right all the time
- Go above and beyond if someone is not happy
- Empower your team to go above and beyond as well
- Survey your client family members and make changes based on their responses
I suggest you pick a handful of these strategies and implement them right away.
Create Advocates And Raving Fans
I like to tell my client family members that they want to create advocates and raving fans who are excited to share their products/services with others.
If you have equipped your client family members with tools that make sharing your services and products easier, word of mouth will spread faster.
Make It Easy To Be Shared
Here are the steps you can take that will drive more positive word of mouth from your client family members.
- Give your client family members access to web pages, videos, emails, letters, flyers, and anything else that talks about your services/product
- Ask your client family members to give you positive reviews on Facebook, Google Places, Yelp, etc.
- Give your client family members coupons, discount codes, gift certificates, etc. that they can freely give away to their friends and family.
Before you ask client family members to share you make sure you know what they will be saying to others. Ask them what they would tell a friend about their experiences with your business. The goal is for them talk about the results they have gotten and why you have a superior service or product. If they have a compelling before and after story with your service or product this is very helpful.
The more they can share their story and their claims about how your product/service helped them, the more people will pay attention to what they are saying and then take them and you up on a direct, low-risk experience, a demo, sample, or free trial. And of course, if you have an ironclad guarantee, it becomes easy for a prospect to say “yes”.
Want some help that goes further on this topic? My free gift for you.