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In the previous post we looked at the reasons for leaving a legacy for generations in your family and one of them is because it is biblical. In other words having a business of some sort is no longer an option, it’s a must. In the next two posts we are going to look at two ways that you can make that a reality.
There is the traditional model of doing business that involves building everything from scratch including the products and systems to make the business work efficiently. This is how people like Bill Gates, Jeff Bezos, Strive Masiyiwa, Mark Zuckerberg built their businesses.
There are about 3 types of businesses that you can set up under this model and they are summarised as follows:
1. Sole proprietorship
These are basically people that choose to go into business by themselves so they do everything that’s required to make the business work. They normally do the work of many people in a big organization set up so when they are not there the business does not make money. A sole proprietor is found in the S-quadrant of the Cashflow Quadrant.
The other option is to get into a partnership with one or more people each having an agreed amount of equity in the business. The parties involved bring diverse skills to the table so as to provide a more valuable product or service. This is an upgrade from the sole proprietorship type of business in that when working with other people there’s a synergy that’s created.
These are the big businesses where the owner or owners have created systems that allow the business to run efficiently in their absence. They hire the people with the right skills to work on the system which allows them to go on holiday or take time off and come back to find the business still doing well. This is the ultimate that most people aspire to. People like you and me.
For an in-depth understanding of the different business types you can consider when getting into business I urge you to read Robert Kiyosaki’s, “Own Your Own Corporation: Why the Rich Own Their Own Companies and Everyone Else Works for Them”
Each business type has its own set of laws such as tax laws that have various advantages and disadvantages. Understanding the different types will help you make a decision pertaining to which one best serves your interests. I understand that tax laws may differ from one country to another so seeking professional advice is also advisable as you make your decision.
Thank you for taking the time to read this post. I hope you have learned something that will be useful to your business endeavors. Remember to share the post on social media using the social share buttons on the page and be sure to share any comments in the comments section below.
Be sure to get your FREE! copy of The 7 Pillars to Grow a Business That Lasts by clicking on the link below. You will learn the principles that some of the most successful business owners have applied to experience the success that they are currently having. Stay tuned for the next post and until next time,
Be all you can be!