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4 Strategies to Optimize Your Money Stream Now

have multiple income streams for BIGG SuccessWe’re always looking at models here at BIGG success. Recently, we’ve been thinking about our prehistoric ancestors.

Here’s the progression: BIGG success is life on your own terms. You own your life. You’re the entrepreneur in charge.

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So what if you thought about the family unit like an enterprise? We’ll call it the family business.

Our ancestors had well-defined roles for their family business.

The men largely hunted. The women gathered. The children didn’t just play; they helped. They contributed. They learned about their future jobs.

Everyone was involved in the family business. And there was a genius to its organization.

Hunting

Hunting was a risky activity. If the right thing went wrong, you could pay the ultimate price – your life.

The returns were intermittent. Some days, there was a BIGG payoff. On other occasions, there was none.

But make no mistake – the payoffs had to come frequently enough for the family unit to survive.

When they came, the family feasted. When they didn’t, the family survived on the gathered items.

Gathering

Gathering was a low-risk activity. You may get hurt, but you weren’t likely to lose your life from it.

It yielded steady returns. These returns were a nice addition to the family feast when the hunt was successful. On days when there was no kill, the family could subsist for a period of time on what had been gathered.

Two types of income

Modern finance theory works much the same way. It suggests that investors should allocate a portion of their portfolio to riskless assets (i.e. treasuries).

For the rest of it, hold risky assets (e.g. stocks).

Like the family unit of the past, modern investors use this hunting-gathering mindset. Risky assets hunt for intermittent, high returns while the risk-free assets steadily gather income.

The rationale for this is to optimize your money stream. You earn more money given the risk by balancing your portfolio between the two types of assets.

It’s also a clue to optimize your money stream now.

4 strategies to optimize your money stream now

As we said before, BIGG success is about entrepreneuring your life. As the person in charge, you can use the hunter-gatherer model to optimize your money stream now.

Here are four ways you can do it:

  • Keep your job and start a part-time business

    While holding down a job is not risk-free these days, it provides a steady money stream. It’s gathering. You do the work. You gather the income.

    In your spare time, start a business. It’s the hunting side. The income you make may be intermittent until you get established. But it will allow you to feast once it takes off!

  • Build a portfolio career as a business

    This is a ramped-up version of the first one. It seems to work particularly well for people in mid-career and beyond.

    Instead of trading time for money as you would with a job, turn your expertise or talent into a business.

    Instead of only having one customer (your employer), build a business with multiple clients.

    Just be sure to not just sell time for money. Sure, it’s a career but why not think BIGG and build a business, too!

  • Start a business full-time while your spouse holds down a down

    Another alternative if you have a supportive spouse is to start a business full-time now. Your spouse can provide the steady income from his or her job.

    This is how many couples get started in business. Once the business takes off, the other spouse can work in the business too or start their own.

  • Do one of the above and invest in businesses

    This is the BIGG play. Combine this strategy with one of the others to put your progress on steroids.

    Money and time are two of the five elements of BIGG success. They are your two resources.

    You only have so much time. You can leverage your time with money.

    Instead of working a business yourself, invest in one with someone who does the work. Get your money working as hard as you do. That’s BIGG success.

Want to optimize your money stream but aren’t sure where to start?
Maybe we can help!

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From Merchant to Mogul

By Bigg Success Staff
09-04-08

Success Stories

wine_library 

Gary Vaynerchuk is one of the best examples of personal branding we’ve ever witnessed. He “brings the thunder” to his online video show, Wine Library TV. He also hosts a show about personal development.

He took over the family business when he was 19 – a single liquor store – with annual sales around $5 million. He taught himself everything he could about wines and then turned the family business into a wine store. Then he gambled bigg with a full-page ad in The New York Times, bringing a flood of new customers to his store.

Now he’s doing over $45 million in business thanks in no small part to his show about wine. He’s become one of the world’s foremost authorities on wine, with a reported 60,000 people checking out his daily shows. He’s been given credit for helping the entire wine industry attract consumers that weren’t there before.

He’s also been featured in The Wall Street Journal, The Washington Post, GQ, and Time. He’s been on The Big Idea with Donny Deutsch, The Ellen DeGeneres Show, and Late Night with Conan O’Brien where he got the late-night comedian to taste grass, a cigar, and more to help him “develop his palette.”

Now, he’s the only wine merchant in the country with his own Hollywood agent! He’s garnering bigg speaking fees. He’s living his brand.

We were fortunate to see him speak recently. He emphasized how important it is to know your own DNA – what makes you … you. He said he has succeeded bigg (okay, he didn’t say it that way, but we had to put our “bigg” spin on it!) because he has remained true to himself.

He says we’re in the “gold rush of personal branding.” Gary Vaynerchuk has found his mine … and it’s a bigg one!

Hear today’s lesson and laugh on The Bigg Success Show.

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Teacher Turns $3,000 into a $700 Million Business

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(Image from tv.winelibrary.com)

5 Tough Questions to Ask if You Plan to Pass Your Business on to Your Child

By Bigg Success Staff
06-09-08

Bigg Success in Business

sanford and son 

We don’t see it as often as we used to, but do you remember when business names included “and son”? As in Sanford & Son?

Or daughter.

Businesses are illiquid assets. Before you get into a business, you should know how you’re getting out of it.

You need an exit plan.

One strategy is to pass it on to your children. You may want to keep the business “in the family.” To have the legacy carried on. There are five questions you should ask yourself if this is your plan:

Is one (or more) of your children interested?

This seems so obvious, but it’s amazing how many times a parent has a dream which isn’t shared by any of his or her children. You want the best for your kids. That means letting them live the life of their dreams, not the life of yours. This isn’t easy, but an open and honest conversation is called for to make sure everyone is on the same page.

Is your child qualified?

It’s hard to be objective about your own children. Okay, it’s impossible. You may want to elicit an outsider’s opinion. There are few things more frustrating to both a parent and a child than taking on a task that shouldn’t be taken on. There may be some deficiencies (that’s the reason for the next question), but you need to make sure the basic talents are there.

How will you train your child?
In answering the previous question, you likely uncovered some shortcomings. If these are things that can be taught, develop a program to get your heir up to speed. How did you learn the business? Chances are that’s the best way for your child to learn it as well. It probably means working from the ground up.

How will you determine a price?
This may or may not be an issue. However, if one of your children is going to be involved in the business and the others aren’t, it surely will be. You’ll want to discuss this with your CPA. You should also consider having the business valued by a certified valuation specialist. Here are two links you may find useful for this:

Find a certified valuation analyst

Find a certified business appraiser   

How will your child pay for it?
Assuming that you don’t want to give your child your business, you’ll have to figure out how you will cash out. This may be your most significant retirement asset. Can the business be financed with traditional capital sources, like a bank? Or will you need to offer financing? If that’s the case, there’s another list of questions you’ll want to think about, but that’s beyond the scope of this article.

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4 Retirement Questions For Business Owners

7 Tips to Sell Your Business for Top Dollar

(Image from Sanford and Son Wikipedia page)