I published the following message in one of the “Investips” email messages that goes out to our subscribers. I decided to re-post it here for a couple of reasons. I am hearing many people developing business idea and plans that don’t “filter” well through what I’ve come to view as critical green lights for proceeding with an idea. If these filters are ignored, you may still find yourself in a profitable business, but you may find yourself working 80 hours a week to and regretting you ever started.
Use these filters to judge whether the idea you are thinking of is worth it from a time and wealth point of view. (not just a paycheck to paycheck point of view!)
USE THE RIGHT WEALTH FILTERS!
It is important to run your business ideas through the right set of “filters” as you make business or investment decisions. Almost any idea can sound good and almost any business can be profitable if it is run well. I’ve found in my personal business experiences that even if it makes money but does not give me freedom away from it, I’m not sure that it’s right for me. SO, I’ve developed 3 basic filers I use to evaluate a business idea.
1. Does it make money? – If the idea fails this filter there is no point going any further. And it doesn’t just have to pass my optimistic view of it. It has to pass my worse case scenario version (or at least the “close to worse case scenario”)
2. Will it make money while I am asleep or on vacation to the beach for 3 weeks? – This implies that I can walk away from it for days, weeks and potentially even months and the income will not decrease. My real estate investing and on-line marketing both are this way. Many other things I’ve tried were not this way. I don’t do them if they don’t have the ability to make money in my absence.
3. Can it be reproduced or duplicated? – This is more of a wealth building filter than an income generating filter. Wealth creation requires the component of multiplication. If you do one thing, your income is connected to that one thing. If it is successful AND if it can be replicated without adding to your work load, then yes it passes the filter. Again, my real estate investing and internet marketing pass this filter so they continue to work for me.
These filters would have kept me out of a lot of bad business ventures. On the bright side, since using them, my wealth creation journey has ben MUCH less frustrating and MUCH more effective.
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