If you are keen to build a business that works hard FOR you, instead of a business that you work hard for, this article is for you.
The same principal that I’m going to share with you applies to any kind of business, be it online or offline.
The key to business survival is CASH FLOW, but the key to building a business that works hard for you is ASSET.
You see, most people are busy building businesses that make money. Making money is their top priority. Fair enough. But if your business objective is simply to make money and not building any form of asset, you will eventually realize that you don’t really own the business. Instead, the business OWN you!
For example, if you invest time and resources driving traffic to a product that you promote as an affiliate, a Clickbank product for example, you will be forever busy driving more new traffic each and every day. You may make money, but you are not really building anything. If the affiliated product is gone, you will have to start all over again.
On the other hand, if you build a website that attracts traffic, and invest the same time and resources to drive traffic to that website, which in turn promote the affiliated product, then to a certain extend, your website is your asset and you can use that asset to churn out profit via different means for probably a long period of time.
Often times, what you think is an asset may not turn out to be one. In fact, in the business world, change is inevitable. What used to be an asset may no longer become one. Your challenge is to keep building more assets so as to reach a critical base, like an old tree with well established roots to the ground and hence not likely to fall under strong wind.
Let me illustrate this point with an example. Assuming you build a search engine optimized website that attracts tons of search engine traffic. Sounds good isn’t it? But who really own that traffic? You or Google? If one day Google change its algorithm, or it decides to penalize your website for whatever reason, your traffic is gone and you will have to start all over again.
On the other hand, if you build a community website with an aim to build a list and a group of followers, chances are even if you lose your search engine traffic, you can still easily gain traffic from other sources, not to mention you still have your faithful followers whom you have built over the years.
Let’s end this discussion with more examples.
Do you know what is Macdonald’s business? It’s not burger. It’s real estate. During the early years, Macdonald’s business model is to purchase shops and rent those shops to its franchisees who pay the rent (and hence the mortgage of that property). In long run, whether Macdonald profits from its burger business, it is almost guaranteed to build a huge portfolio of properties.
How about Google? Google may start as a search engine but its real business is in building tools that can attract traffic. These tools include its search engine, Gmail, Google Map, Google Plus and even Chrome and Android. Google’s range of free tools is its true asset and I’m sure it will continue to create more useful tools. The more tools it builds, the more traffic it will attract and the more ways it has to make money.
So back to you. What assets are you building in your online business? More importantly, do you really own that asset?