Reasons Why People Are Not Rich Even if They Own Businesses | by Dennis De Silva | Oct, 2022

They say I can’t get a job – it’s much easier

Photo by Lyman Hansel Gerona on Unsplash

I know a guy from college.

He was a high achiever, graduated with honors – and was a student leader.

The guy joined an accounting firm, quit after a few years — and joined a networking company. He posted a new car, apartment and vacation spots with his longtime girlfriend.

Two years later I found him on LinkedIn – and he was back in business.

Another is a close friend.

He dabbled in insurance sales (heading his agency unit), ran his family’s restaurant business, and ran a school with his wife.

I had coffee with him – and he said it was much better to get a job and relieve him of nonsensical responsibilities.

My intention is not to mock them, but to analyze their situation and personal circumstances. Reading the article, you will notice how to get rich from business.

Explore the ground – there are many business owners out there, tired and struggling.

A better view of things

Let’s not overcomplicate things – you’ll also see shopkeepers lining the street who can’t make ends meet.

Whether they intend to start a business to get rich, or to be independent – ​​or to make ends meet

I’m putting it here in this article (assuming all people who venture into business want to get rich), but still strive to make their baby a moneymaker.

If you own a business, chances are you’re not as rich as you’d like — and you might not even be close.

But why is it like that?

When you run a business, perception makes a lot of money.

Well, not necessarily. There are many reasons why people who own a business are still not rich.

Let’s take a look at the most common ones.

They say go all out

It’s a mistake many entrepreneurs make.

It reinvests all of its profits into the business to help it grow and become more successful.

While there’s nothing wrong with reinvesting some of your profits, you shouldn’t do it with ALL of them.

After all, what’s the point of owning your own business if you can’t enjoy the fruits of your labor?

Make sure you set aside some money each month so you can live when things turn around.

It’s good that I never gave my all in this failed start-up.

The insecurity deep inside

If you don’t charge enough for your product or service, you won’t make as much money.

It’s important to remember that people are willing to pay for quality. If you offer a quality product or service, don’t be afraid to charge accordingly.

In the beginning, it’s okay to pay Peanuts as part of the journey – but once you hit the right tones and buttons, it’s time to make changes to your price offer.

Remember, you deserve to be paid what you’re worth!

Beware of the quicksand phenomenon.

The biggest expense for any business is overhead — those fixed costs that stay the same each month, no matter how much revenue you make.

Rent, utilities and insurance – among other things, your profits can be eaten up.

Be sure to keep a close eye on your overhead and see where you can reduce or eliminate expenses. The less overhead you have, the more profit you ultimately make.

Easy lessons – but others don’t find it so easy. Be careful

More sources of running water

Let’s assume that your income comes from only one source – for example, from product sales. It means you are not as diversified as you could be.

Diversifying your income streams is a great way to reduce risk and increase stability for your business (and yourself!).

Explore other ways to make money — like consulting work, speaking engagements, or affiliate marketing.

The more income streams you have, the richer you end up becoming!

There are many reasons why people who own a business are still not rich — even if they’re doing well overall.

If this sounds like you, don’t worry!

There are steps you can take to change things up and get the dough rolling.

Be sure to charge enough for your products or services, keep a close eye on overheads, and diversify your revenue streams whenever possible.

Do these things – and you’ll soon see the better cash flow you’ve always wanted!