April 19, 2012

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While many young entrepreneurs are embracing a multitude of creative opportunities that come with starting a small business, a segment of the population is still set in an antiquated mindset.

They rely only on their earnings from their employer to build their wealth. Within this scenario, you limit yourself to two ways of making money: “you” at work, and “your money” at work. Of course, the financial growth that’s possible in this situation is limited by the amount of your savings that can be invested at minimal risk.

So the question is … how can you create income for yourself that comes in, whether you’re working or not, and grows over time? Here are four simple ways to get started.

1. Invest in Yourself

The most exciting way, and potentially the most rewarding in the long term, is to create a leveraged business. I believe somewhere — deep down — everyone has an entrepreneurial spirit to some degree.

You may not necessarily envision a perfect 10-year plan to expand into the global marketplace, but you have hobbies, interests, and skills that people value. Like the rest of us, you consume heavily around those areas. It’s also likely that you have experienced insight into what you deem valuable and where the market (you and others like you) is currently under-served.

Those interests and skills can be leveraged to build a part-time business that serves others and adds to your portfolio and potential wealth.

The Point: Don’t strictly depend on others to take care of your financial needs. America is the land of opportunity; it’s not supposed to be the land of social security. Build on your dreams, and fall in love with the responsibility that comes with seeing them to fruition.

By taking that leap, you’re creating a third way to make money. You now have you at work, your money at work, and other people at work for you. You can take on the role of employer, or “solopreneur,” with independent distributors and affiliate networks. You can utilize your hard work to enjoy its benefits.

As J. Paul Getty noted, “I’d rather have 1% of the effort of 100 men than 100% of my own effort.” Depending on your business idea and experience level, a home-based business is an excellent starting point since your initial overhead is low. It’s also a low-risk opportunity to capitalize on small businesses tax advantages.

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