23 Jan Find a Way to Make Money When You’re Not in the Room
I just read an short but enlightening post by Steve Sammartino. In it he outlines what he calls the method for building wealth stated in a single sentence which is this:
Find a way to make money when you’re not in the room.
This is true in the world of personal finance as it is in business. Finding a way for your company (whether it be your technology, your employees or your model) to produce on-going cash flow when you’re not there. Sammartino rightly equates solid investments in real estate, bonds and equities as perfect examples of the best wealth-building tools out there. The internet has opened a huge new world for allowing the acquisition of wealth through many other types of recurring payments. We’re well beyond real estate now.
Does it Truly Take Money to Make Money?
150 years ago capital was the scarce and only resource available to truly create wealth. In today’s digital society, it’s much more easy to use intellectual capital to create and grow one’s recurring income stream. It’s not automatic and can take a great deal of human input, but the ultimate result will often lead to owning other types of capital. Let me paint a “for instance” picture.
We had a client with whom we worked who ran a very successful network of affiliate sites, many revolving around the credit card industry. His small handful of sites garnered some 100K or more unique monthly visitors and netted he and his small company over $50K in monthly earnings. It was a great little company, with the perfect little “coding” and “content marketing” team in place.
About five years after the company’s founding, they were approached by four separate strategic buyers at the same time. All of them wanting to buy his websites. He and his partner (who was the engineering genius behind their network of sites) were not intent on selling anytime soon, but the buyer demand drove up the value of their business to a premium level they had not previously anticipated. Thus, when it came time to make the decision to sell, it became somewhat of a no-brainer decision for them.
Converting Digital Assets to Real, Solid, Productive Assets
Once they had completed the sale of their business, they immediately began turning their newfound liquidity and financial capital into real assets. They turned around and began rehabbing urban dwellings, complete with the help of government subsidies, they now own a small empire of rental properties in various areas on the east coast. Each of these “units” now produces while they are asleep, much like their digital assets had. Only now, they were building real wealth in a much more tangible physical asset.
However you decide to grow your personal asset-base, it’s likely best done by creating wealth that flows to you regardless of whether you are working or sleeping. Contact us today about raising startup capital to get your business to the next level.