Don’t just hope for a pot of gold. Act now!

by Kate on July 12, 2010

Owning a business can be a good way to build a valuable asset. But since the main thing that determines the value of your business is how much profit it generates, it pays to focus on building profit now, rather than simply hoping for a pot of gold at the end of the rainbow.

When you meet your wealth creation goals by running a profitable business and investing the proceeds wisely, the money you make when you sell will be a bonus rather than your salvation.

Having a goal for net worth is a way to keep focused on building real wealth now rather than hoping for it in the future. Your net worth is the difference between what you own (like your house, superannuation, business assets etc) and what you owe (mortgage, business loans, business liabilities etc).

What is your net worth now and what do you want it to be 12 months from now? Based on this, how much profit and cash does your business need to produce each month so you can achieve the goal?

Now, how will you make it real?

{ 1 comment… read it below or add one }

1 Deb Evans July 12, 2010 at 8:35 pm

This ties nicely to your previous post regarding a business checkup. As we enter the third quarter it’s time to revisit goals for the year and readjust if necessary. There is no time like the present to get started!

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