Turning Your Business Into a Fountain of Wealth – Episode #20

by Richard Wilson on June 1, 2011

In this episode Richard Wilson talks about how you can re-invest in your business to turn it into a fountain of wealth.  Many times in business those who sell out for a cool $30M are glorified as heroes and the ones who made the right move in business (who wouldn’t want to do that), but what if selling out is not your goal? What is you would simply get bored or have to try out 20 more business ideas before coming across one even half as profitable?  I run my businesses for the long-term, with the intention of running them forever, in a sustainable and ever-more profitable fashion, within this video I talk about how I try and do that.  (Download in MP4 Format)

Video Transcript/Summary: What would you rather have? $1M in your pocket today that you have to pay taxes on, or $200,000 in profit every year coming in through a business that you could re-invest and grow by 10-20% a year.  If you think about how high taxes are in most 1st world countries, how long it takes to test out new business ideas, and the work it took to grow your business from scratch you would probably quickly turn down the $1M offer.

This video is all about how re-investing in your business is an extremely savvy investment because it allows you to have control and transparency over your investment. You can diversify that investment or keep it very focused, you can customize it to fit your lifestyle.

Similar to customizing a stock portfolio to fit your total risk appetite you can customize the level of risk you take in your businesses. In my case I try to manage my businesses like a diversified stock portfolio.  I have a few blue chip businesses that are relatively safe which pay dividends, a few higher growth business ideas, and then some more risky, experimental business ideas which are not proven yet and could produce outstanding returns or flop.  I hope that by thinking of your business this way you can make better choices as to where you invest your energy and profits.

Here are some examples of ways to re-invest profits back into your own business:

  1. Offer a monthly or quarterly webinar – invest in webinar software and tools
  2. Offer a super high-end premium version of your existing service
  3. Sub-divide your niche and create a new website and offering for a very specific but profitable niche of the industry you already operate in
  4. Diversify your business into a parallel industry or similar industry where you could quickly move up the learning curve on what is missing or what clients are hungry for
  5. Upgrade your logos by using services such as Design99
  6. Hire a content creator to expand your blog or publish a newsletter
  7. Hire a ghostwriter to help you publish your first book based on content you have already have produced
  8. Upgrade your video and audio recording equipment, so your audio is higher quality than ours :)

I hope that these ideas help you see the 100’s of ways you could re-invest in your own business.

Thanks for joining us, see you next time!

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