In the home business industry, the goal is to have a “cash flow” home business. What do I mean by that? You want a home business that generates steady residual income. In this post, I’m going to show you some of the best ways to create a home business that will pay you every month like clockwork.
What Is Cash Flow?
Cash flow is “the total amount of money being transferred into and out of a business, especially as affecting liquidity.” That is the Google definition. The Ward Fun definition for cash flow is “the money left over after I pay all the bills and fees on my investment.” For example, say that I have a lawn care service with two riding lawn mowers that I financed for $500 a month. I spend $400 on gas for the lawnmower and traveling. I spend another $100 a month on Facebook advertising. Add all that up, and my total expenses are $1,000. (Expenses may vary depending on the business, but for the sake of this post, I’ll keep the numbers simple.) I bring in $5,000 worth of revenue. Now, subtract from that the $1,000, and what’s left is my cash flow.
Cash Flow Notes
What are promissory notes or an IOU? When a business borrows money from another business, or a person borrows money from a business or another person, this creates a debt, and the promissory note or IOU is proof of the debt. Cash flow notes can be a very lucrative business, and you don’t have to create anything. What do I mean? You can purchase cash flow notes from a business broker. You become the lender, and when the borrower makes payments you earn money from the principal as well as the interest. I like cash flow notes because you don’t need a lot of skills or experience to have success, and you can get started right away. Now you do need to become knowledgeable in the industry. It’s very important to know all those who are involved in the business of cash flow notes and the basic calculations. Once you do that, you can start earning cash flow. A great place to learn how to do this is NOTE INVESTOR, a company that teaches buying, selling, and brokering of privately held notes.
Real Estate Cash Flow
Real estate is one of the most popular ways to create cash flow and passive income. Passive income is earnings derived from a rental property, limited partnership, or another enterprise in which a person is not actively involved. and cash flow. Author and investor Robert Kiyosaki, who is the founder of the Rich Dad Company and who is most famous for his book Rich Dad Poor Dad, talks about buying apartment homes as investment tools to create cash flow. Robert Kiyosaki often tells the story of how his wife’s first real estate deal only gave her a small cash flow of $25. Although it didn’t seem like much, she had to start somewhere. So, even if your cash flow isn’t much in the beginning, just stick with it and it will grow.
In the 1990s, Carleton Sheets, a prominent real estate investor and author, had one of the biggest real estate courses which provided information on how to buy a property with no money down. The course explained how to build great credit and how to find sellers who were willing to finance you with no money down. The course helped a lot of people get started in real estate. The plan Sheets laid out is as follows:
- Buy three properties a year.
- After ten years, you should own 30 properties.
- Sell 15 of the properties with the profit.
- Pay off the other 15 properties.
- Live off the rent received from tenants with the average rent being $1,000.
Sounds like a pretty good cash flow, doesn’t it? For me, my first income-producing property was a two-family house. It had a one-bedroom downstairs and a three-bedroom upstairs. The combined rent I was paid was $800 dollars. My mortgage was $600, so it generated $200 of cash flow. Now, just imagine having five of those homes. Not bad for extra income!
Network Marketing Cash Flow
Creating cash flow in network marketing can be challenging because it may take some time to build your downline, and most MLM companies will have you pay an auto-ship upfront. The particular company I was with had a 3-tier level where they offered a $25, a $49, and a $99 monthly payment plan. The good thing about it so does the downline, and in this particular company that’s how we got paid. So, the more memberships I sold, the bigger the check.
A lot of network marketing companies want you to focus more on getting other sales reps to join your team than getting customers to buy your products. My suggestion is to choose a network marketing company that focuses on retaining customers. The online malls or shopping portals seem to do the best job of keeping their customer base. I believe they also have great success at keeping reps because the reps only have to focus on getting people to take a look at the online shopping mall products. And it’s not just one type of product, but a whole list of products that a person would normally buy in a store. The reps get paid when someone shops through their portal. When something is purchased, the rep gets a small percentage. I say small, but according to OptinMonster, online shopping is growing so fast that the global online shopping market size is predicted to hit 4 trillion dollars in 2020, which could equal very big commissions. If you want to learn how to market a network marketing company from the top earners. Top earners secret
Use Your Imagination To Create Cash Flow
The imagination is a powerful tool that we are born with and that can create a cash flow home business. There are two forms of imagination I’m going to talk about. I got the definitions from the book Think & Grow Rich by Napoleon Hill.
1. Synthetic imagination – Through this faculty, we can arrange old concepts, ideas, or plans into new combinations. This faculty creates nothing. It merely works with the material of experience, education, and observation with which it is fed. It is the faculty used most by the inventor.
2. Creative imagination – Through creative imagination, the finite mind has direct communication with infinite intelligence. It is the inherent power of the mind through which “hunches” and “inspirations” are received.
Remember that lawn care service I told you about? Well, it didn’t last long. I quickly found out that I didn’t like cutting grass for a living. I may not have liked cutting grass, but I still had a five hundred dollar payment to make for the lawnmowers I bought. “How can I make this work for me?” That was the question I asked myself every day while I was unhappily mowing lawns. So I decided to get two new lawnmowers. With plenty of lawns to cut, all I needed was to find someone who didn’t have a lawnmower but liked cutting grass. I would rent my mowers to him or continue to find customers and pay him to cut the grass for me.
I had another bright idea. I own several nice watches, so I decided to rent them out to some buddies of mine who wanted to make a great first impression. Sounds crazy, doesn’t it? But, they actually rented my watches for $30 each.
Using my imagination to create a cash flow home business can be some of the funniest experiences I’ve had as an entrepreneur. But, it also showed me that a home business owner has many options. So, what do you have to sell?
Learn to sell your stuff here.