How To Lose Debt

If you truly want to build wealth, then one avenue is to build a business from scratch. Sure, it isn’t a tried and true enterprise like buying a franchise. Therefore, building a business from scratch carries ad­ditional risk. But it carries additional rewards as well.

Think about it. If Bill Gates didn’t break off from IBM and create his own PC operating system, where would he be now? Do you think he would be the multi-billionaire that he is? There are many, many examples of people who started businesses that succeeded. Trump, Steve Jobs, Larry Ellison, the list goes on and on.

So it is still possible to make a ton of money by start­ing your own business. If you have a good business mod­el, and funding of course, there are lots of opportunities out there. Once you have built the business, you have built value, hard cash if you will. Someone may want to actually buy your business and pay you handsomely for your “investment.”

Let’s assume you want to keep the business. It can make you money over and over for as long as you work it. It continues to build value as it pays you money over and over. What could be better?

There is another aspect of growing a business. At some point, if it is taking off and making a ton of mon­ey, venture capital money will become interested. That is, people will loan you money to have a stake in your business. Finally when your business becomes large enough, that is, enough market capitalization (cash) to be listed on a stock exchange, you can sell pieces of your business, stock, to the huge underwriters who in turn sell it to the investing public in the secondary mar­ket. How cool would that be?

There is one other differentiation between buying a franchise and building a business from scratch. If you build it from scratch, work out the kinks and develop a successful business model, then you can sell franchises, making more money for your efforts around building a successful business. Amazing, huh?

So there is money to be made by investing your money, and your efforts, into building a business from scratch!!