One of the things that gets me so excited about all of my projects is the potential in the future. I have been working on my online business for almost 11 months now and I now have a steady income of a couple hundred dollars a month. I thought it was going to be significantly more, but things have changed, and I am adjusting. While there have been better days, I am still happy to earn a couple hundred dollars for my hard work – mainly because it is better than nothing.
Most important, however, is the opportunity that it gives me going forward. I could use this money on fun stuff (like going on a nice vacation), but I plan to re-invest my profits. Doing so allows one to increase the monthly cash flow exponentially. Think about what you could do with a little extra cash each month. You could add more money to your employer's retirement plan, save for your children's education, or create another profitable business. Ultimately this cash flow, however big or small, gives me the freedom to generate more cash flow.
It Takes Money to Make Money
I'm not a millionaire. I don't have a business degree or own a home, but I do plan to generate more income. Having a starting cash flow gives me flexibility in this dog-eat-dog world. Generating income is hard to do with all of the competition. It's even more difficult when you don't have any money to start out with. Many people look for business loans or even loans online to supply the funds for their new idea. Me? I plan to use my own money that I am earning. While it may seem insignificant now, in a few years, it could allow me to retire early.
How Cash Flow Can be Powerful
If you were to have a business idea that generated $200 a month in pure profit for 5 hours a month of work, I am sure there would be one of two things that would stick with you. You would be asking yourself two questions:
- How can I repeat this business in another market?
- How can I grow the cash flow of this business?
Looking at the possibility of exponential growth gets me really excited. Assuming I could double my monthly profit each year, (assuming the $200 starting point), I would be looking at:
- $400 per month after year 2
- $800 per month after year 3
- $3200 per month after year 5
I could keep going on an on. I'll be the first to admit that growing from $200 to $400 is easier than $800 to $1600, but even if I could grow at a steady rate of $400 per month for each year after year 2, I would be looking at $2000 per month after 6 years. Of course this is all hypothetical, but you can see how steady growth becomes so powerful. This is how I plan to retire early. The possible freedom is why small businesses are so popular and I am working to put my income to good use. It all starts with a little money and a couple great ideas.
Shawn Manaher is a former financial advisor, has founded 5 online businesses, and is a coach, speaker, podcast host, and author. He's been featured on The Consults Corner on TAE Radio, The Writing Biz, What's Your Story, and more.