What kind of assets do I create? - 84/101 Entrepreneur Questions and Answers

This is an except from my book: 101 Entrepreneur Questions and Answers.An asset is anything that puts money into your pocket whether you work or not. This book is a good example of an asset, where I did the work once (wrote a book and put it onto Amazon) and then I'm getting paid every time someone buys a copy of my book- Amazon does everything else and they even send me the money automatically.There are few different kinds of assets that puts money into your pocket automatically- there are literally infinite ways you can achieve this, but there are few core examples:Dividends from stocks.Equity investing from crowd funding.Royalties from intellectual properties.Businesses.You can buy a stock of certain companies that pay what is called a dividend, which is like a reverse membership fee for owning their stock. With enough of these kinds of stocks in your portfolio, you can earn passive income from them. You'd want to pick companies based on the principles of value investing; where you look at the intrinsic value of a company and estimate whether it is underpriced or overpriced. You want a good company that is underpriced, because you'd want to own the company for the long run.There is also the option of crowd funding where you are loaning your money to different businesses around the country that need to for growth or for start-up liquidity. Sometimes it is a loan and sometimes it is a equity investment, where you own a part of the company. Back in May 2016 I bought a few shares in a property business down in the south of England  via a crowd funding website, and I'm receiving around £1 a month in rental income- this is next to nothing, but it is a good proof of concept. I personally like crowd funding, as it is rather unutilized and there are no broker's fees, but there may not many investment choices available and a lot of them tend to be removed from the market, because they get their funding.A rather simple asset you can create is to package your knowledge and sell it online, in the form of books, videos, eCources, etc. People will pay good money for the knowledge you have in your brain right now- no matter what niche, subject, industry or field it is in, there are enough people in the world that will consume what you have to teach.One of the best assets you can have is a business, because its performance is totally down to you; which means that you have total control over the rewards you get. When you start a business and it grows, not only can you receive an income from its performance, but you can also float it on the stock exchange and sells shares of it- thus becoming rich that way.You and I need a totally separate business activity/entity that takes around 15 minutes a year to manage and puts money into your pocket: these are your investments such as dividends an crowd funding, this could also be your books, because if your main focus if you business and you are marketing your intellectual properties, then they will sell on the side.Question of the day: What kind of assets are you accumliating and compoudning?
 •  0 comments  •  flag
Share on Twitter
Published on November 13, 2017 10:40
No comments have been added yet.