(Is Definitely Not Your Only Option To Major Success!)
If you’re currently in business or you know or are related to someone who is. The both of you already know and realize strategically leveraging debt to make money is pretty much par for the course, correct?
You’re attempting to be or become a successful entrepreneur to any meaningful degree more times than not means borrowing money, right? Sure in the very beginning you can do a certain amount of creative financial boot strapping.
But especially offline even if you’re thinking of opening a single location, non franchised mom & pop corner store or local pizza shop.
Entrepreneur you typically need access to far more readily available capital than what’s currently in your bank account, right? And of course the flip side is, if you don’t effectively manage borrowed money. It will ultimately manage you. In ways you probably won’t like.
So Let’s Have A Closer Look At Why Leveraging Money To Make Money Is Definitely Not Your Only Option To Long Term Success!
First of all have noticed ‘how’ whenever yo and I turn on your TV after one o’clock in the morning. (We’re talking primarily in America ladies & gentlemen.) On practically any night.
You will see at least two or three men and women who apparently are living the financial high life as a direct result of their not only being smart enough to invest in some sort of rental properties.
And doing so using so called creative financing, (aka) “No Money Down” investment strategies.
And according to the closely guarded “secret(s)” they’re more than willing to share (sell us) via their initial, (semi modestly priced) physical home study course(s.) But wouldn’t you know it. By chance they also happen to offer more advanced training, coaching and mentoring via their offline two-five day not exactly cheap boot camp programs.
And make no mistake about it entrepreneur, (this is where) they make a majority of their high six, seven and eight figure a year incomes. Say what? Because the “how to” educational on or offline business is a constantly growing multi billion dollar a year industry.
Which thanks to mediums, (aka) super sophisticated marketing tools like the Internet. And strategic opt in email marketing and social media marketing strategies etc. Shows no signs of slowing down any time soon.
But Other Than Strategically Leveraging Debt! ( How Else Can You And I Benefit From From That Proven Process?)
It’s great and extremely relevant question. Thanks so much for finally asking it. But first. With your permission. Entrepreneur is it okay to at least try and shed a little more, (much needed light!) on this incredibly miss understood financial buzz word and concept. Which is often referred to as “No Money Down” or “Nothing Down.”
Because once you at least grasp the basics. You or someone you love will be in a much better position to benefit from it. As opposed to those who clearly don’t get it. And far too often whined up being hurt financially because of their misunderstanding this age old financial concept.
First of all those terms are not literal. Say what? They’re conceptual. Case in point. Let’s say you and I deposit $1,000 or X amount of dollars in your local bank. And you agree to leave your money parked (deposited) there over the course of the next 12 months.
So you’ve invested in a highly secured investment vehicle known as a ” CD” or Certificate Of Deposit. And “if” for whatever reasons yo decide to take your money or any portions out of the “CD” early. You not only forfeit your guaranteed higher rate of interest.
But you also pay a pre arranged penalty fee to the bank or accredited institution you purchased the “CD” from. Because in reality the bank or credit union whose paying you or I, 2-3% or X% guaranteed for the use of your/ our money for one year or X amount of years.
Guess what they’re actually doing with your/our money? If you guessed they’re systematically re-loaning the exact same thousand(s) of dollars to the general public at much higher interest rates.
Because they need or want to buy a new or used car, house, refinance their current home or investment property loan. Or they borrowed it via one of the bank or credit unions credit cards. (So they could easily be paying annual interest rates of somewhere between 8-27% interest. Huh?
Or they borrowed it to start a business or service etc.
Yea Mega Successful Financial Institutions Have Being Doing So Called Nothing Down Types Of Transactions Since They First Opened Their Doors!
Here’s ‘what” might not be so readily obvious to the financial novices of this world. Both the bank and credit union has paid and salaried employees, do they not? And they also have more than their fair share of not exactly cheap traditional advertising or promotional campaigns, right?
They lease those fancy office spaces too, correct? They pay their fair share in local and state taxes and fees etc. Which partially explains “why’ they have to charge the general public the different rates to borrow their depositors money.
So that when all the financial smoke finally clears. They are successfully leveraging debt to make money. And hopefully you can better appreciate “how” they’re just being the middle person and consistently profiting from doing so. Don’t you agree?
So How Do The Rest Of Us Mere Mortals Consistently Benefit From This Leveraging Assets Or Resources Concept?
What a great question and I’m so glad you finally asked. Basically there are three primary ways you and I as profit seeking entrepreneurs can and do constantly benefit from strategic leveraging of various assets and resources:
1.) First: Entrepreneur any time you and I can generate those potentially bank account filling testimonials from current or future customer or clients. You don’t need to spend (or investment) nearly as much money in outrageously expensive, traditional advertising or promotional campaigns. Because you’ve generated social proof.
2.) Two: Whenever you’re about to appear as either a guest blogger or guest podcaster. You’re generating tremendous long term marketing leverage for literally pennies on the dollar. (Not to mention further establishing your proven expertise.)
3.) Three: Every time you or your major competitors A/B split test, track and tweak one of your main, ( “what’s in it for me?”) power headlines.
And you start systematically generating higher and higher responses for less effort. This is a proven and potentially profitable form of marketing leverage. Don’t you agree?
Entrepreneur are you now starting to (at least!) better appreciate “why” strategically leveraging debt to make money. Is definitely not your only option to major long term financial success? Let’s hope so.
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