Would you prefer to receive $1,000,000 or a magical penny that doubles in value for 31 days? What Does it Take to Live Your Dreams On a Penny a Day Doubled?
The Penny Challenge is an challenge that has you earning, investing or save one penny a day doubled for 30 days. On day one you have one penny, then two pennies on day two, four pennies on day three, and so on.
The Penny Challenge is the basis for some of our favorite lessons when we’re coaching or teaching entrepreneurship, business or personal finance workshops to entrepreneurs, business owners, undergrads, grads, employees women, kids and people in general around the world. We use it to explain compounding, leverage and duplication.
Let’s see if you can answer it too!
Wandering on the street one day, you notice a shiny penny on the sidewalk. When you pick it up you learn that this isn’t an ordinary penny, but a magical one. The power of this penny is that it doubles in value each day for a month. In other words, when you wake up the next day, you miraculously have two pennies; on day three, four pennies; on day four eight pennies, and so forth.
We ask people to estimate how much the magical penny is worth at the end of 31 days and then poll the audience to see which option people prefer: the magical penny or a one-time payment of $1,000,000. Which would you take?
The Deeper Meaning of Penny Challenge
This challenge is not only fun but also it has some hidden meaning and values to it. For example, this challenge teaches us that how conveniently we have forgotten the value money holds and also the quote that says “every penny counts”.
We all know for a matter of fact that we have never really concentrated on how and where our pennies go and we’ve always cared about the big amount, but once you participate in this challenge, you’ll understand the meaning that a penny holds and also the value of it.
Every penny counts, that’s the whole concept behind the penny challenge. You can start this challenge any day of any month. It may help you realize that even the smallest changes in life, career or business can add up to big rewards as shown herein.
If you were to take a penny and double it for 30 straight days, how much will you have in the end to live your dreams?
It might seem like a pretty silly and simple question, but if you don’t know the actual answer, it might surprise you. Let’s take a look at the math and see how much a penny doubled for 30 days would turn into.
The Power of Compound Interest
This little exercise demonstrates the power of compound interest. If you have never heard of this term, let me give you a quick definition.
Compound interest is defined as the addition of interest to the principal loan or deposit over a period of time. In simple English, it simply means that if you deposit money consistently over a period of time, the money you initially put in earns interest, the money you continue to put in earns interest, and the interest earns interest.
The principle is the same as a snowball. When you roll a snowball off of a huge hill, it starts off small But as time goes on, gets bigger and bigger. That is basically what compound interest is.
Looking at the doubling a penny for 30 days analogy, every time you double a, the double pennies also get doubled. Just like a snowball, starts off slow and small, but grows exponentially.
On day one you will have $0.01, on day two you will have $0.02, and on day $0.04 on day for. On and on we go.
What happens to this penny over 30 days?
Now that you have a basic understanding of compound interest and how this is going to work, let’s figure out how much this penny turns into over 30 days.
| Day | Amount | Day | Amount |
| Day 1 | $0.01 | Day 16 | $327.68 |
| Day 2 | $0.02 | Day 17 | $655.36 |
| Day 3 | $0.04 | Day 18 | $1,310.72 |
| Day 4 | $0.08 | Day 19 | $2,621.44 |
| Day 5 | $0.16 | Day 20 | $5,242.88 |
| Day 6 | $0.32 | Day 21 | $10,485.76 |
| Day 7 | $0.64 | Day 22 | $20,971.52 |
| Day 8 | $1.28 | Day 23 | $41,7743.04 |
| Day 9 | $2.56 | Day 24 | $83,886.08 |
| Day 10 | $5.12 | Day 25 | $167,772.16 |
| Day 11 | $10.24 | Day 26 | $335,544.32 |
| Day 12 | $20.48 | Day 27 | $671,088.64 |
| Day 13 | $40.96 | Day 28 | $1,342,177.28 |
| Day 14 | $81.92 | Day 29 | $2,684,354.56 |
| Day 15 | $163.84 | Day 30 | $5,368,709.12 |
If you simply took one penny and doubled it every day for 30 days, you will have a total of $5,368,709.12.
This here is where you will see the power of compound interest. For the first 21 days, it only totaled $10,485.76 and completely blew up on the last 9 days.
We use the penny example primarily to illustrate the power of compounding and how important the time value of entrepreneurship and money is when it comes to earning and investing in your dreams and for retirement. The beauty of the magical penny is that it offers many other lessons too.
Start Living Your Dream with a Penny Doubled For 30 Days
The Power of Business Compounding and Leverage
Networking for Business
There are many different marketing networks available to businesses. Some of the most popular networks include LinkedIn, Facebook, and Twitter. What makes these networks so powerful is their ability to connect businesses with one another. This connection allows businesses to share resources, learn from one another, and build relationships that can be valuable allies on the path to success.
Marketing networks can be used for a variety of purposes, including:
-Generating leads
-Building relationships with potential customers
-Developing new marketing strategies
-Strengthening current marketing efforts
Businesses should take the time to identify which network is best suited for their specific needs. Once a network has been selected, businesses should create a strategy for using it. This strategy should include goals, objectives, and targets. The strategy should be periodically evaluated and adjusted as needed.
The power of marketing networks is very real and can be a valuable asset for businesses of all sizes. By understanding how to use these networks and adapting the strategy as needed, businesses can achieve their goals and reach their full potential.
The Benefits of Marketing Networks
Not only are marketing networks powerful tools for businesses of all sizes, but they can be used to achieve great success. By understanding the benefits of marketing networks and how to create and leverage them, businesses can create a strong foundation for success. Marketing networks provide businesses with a number of benefits, including:
1. Increased reach: Marketing networks provide a global platform for businesses to connect with a large number of potential customers. This increased reach allows businesses to reach a wider range of potential customers, which can lead to increased sales and increased profits.
2. Increased communication and collaboration: By communicating and collaborating with other businesses in a marketing network, businesses can learn from each other and create effective marketing campaigns. This increased collaboration can lead to increased success and increased profits.
3. Increased innovation: By being part of a marketing network, businesses can benefit from the innovative ideas of other businesses. This increased innovation can lead to the development of new products and services, which can increase sales and profits.
The Benefits of Personal Networks
Personal networks are largely external, made up of discretionary links to people with whom we have something in common. As a result, what makes a personal network powerful is its referral potential.
The power of marketing networks can be a powerful tool for success. Networks can help businesses connect with potential customers and suppliers, and can provide valuable information and guidance. When used effectively, networks can help businesses achieve their goals and achieve success.
Can You Live Your Dreams with a Penny Doubled For 30 Days?
Each and every day, people are living their dreams. Millionaires are created. Families form and create tremendous relationships. Individuals get healthier day by day. Life-long learners grow intellectually and improve their lives daily. Let it be you! The fact is, living the life of your dreams is possible if you learn and apply the “Penny For 30 Days Concept”. People prove that every day.
Have You Ever Looked at Someone Who has Earned a Penny Doubled For 30 Days and Wished That It Could be You?
People think about getting wealthy all of the time, when only a small percentage actually does. But any of the masses could.
A man I knew had an MBA from Harvard and an engineering degree from MIT. Smart guy. When he retired, he started doing what he liked best: teaching college courses in economics and business planning. But when he taught economics, he also taught personal economics. This is the philosophy that he started his classes with: Decide how you want to live now, versus how long you want to work.
This means that if you spend everything you make now, you’ll have no choice but to work longer and harder. But if you start a business and then start investing in your financial future now, you’ll have many choices.
You can retire early, travel more, continue your career or start a new career later in life. Once again, it all comes down to choices. Think tomorrow today… and live better tomorrow.
- Someone is going to start a business that makes millions.
- Someone is going to make a great investments that earn millions.
Why not let it be you?
- Someone is going to decide to improve their relationships.
- Someone is going to enjoy love with their family.
- Someone is going to schedule some meaningful time with their friends. Why not let it be you?
- Someone is going to become a life-long learner.
- Someone is going to go back to school.
- Someone is going to set a goal to read a book each week for the next year. Why not let it be you?
- Someone is going to make the decision to become healthy. Someone will run their first marathon.
- Someone will join an aerobics class.
- Someone will start eating better. Why not let it be you?
You get the point. Everyday people are improving their lives. It is simply a matter of a decision being made. Let it be you! But how? By following these very simple actions:
1. Earn a Penny a Day Doubled by Committing to Work on Yourself, Your Finances, Your Career or Business
Are you going to improve or stay the same? No matter what you have achieved, you are at a certain point right now. What you have achieved in the past is fine, but it doesn’t make a difference for the future. The decision about what you will become is made each day and every day. Each day someone is making the decision to better him or herself. Let it be you.
2. Earn a Penny a Day Doubled by Making a Plan
Once you have decided to become better, you will have to have a plan. It doesn’t have to be a long, intricate plan. It can be simple. Start a business. Save a dollar a day. Walk a mile a day. Read an article a day. That is a simple plan with achievable goals. Someone is going to develop a plan that will take them into the future of their dreams. Let it be you.
3. Earn a Penny a Day Doubled by Your Actions
All of the great ideas, without action, become stale and useless. The key to turning dreams into reality is action. People who have great ideas are a dime a dozen. People who act on their dreams and ideas are the select few, but they are the ones who gain the wealth, health and wisdom that is available.
Someone will act today. Let it be you. Stop looking at others who live the good life, wishing that you were as well, and instead begin to commit to your improvement, develop a plan and act on it. Someone is going to. Let it be you!
4. Earn a Penny a Day Doubled in Residual Income
Start earning residual income today!
Everyone likes the idea of making additional income, but not everyone is able to create a secondary income stream. This might be due to a lack of strategy or genuine advice.
You’ve got a steady paycheck from your 9-to-5 job, and that’s cool. But deep down, you know you’ve always wanted more. More money. More freedom. More flexibility. And so you decide it’s finally time to increase your current income.
One of the best ways to earn more with little effort is to build a passive income stream through Network Marketing. With residual income, you should be able to earn more income and typically do so passively.
A Network Marketing Business is easy to integrate into what you are currently doing. So you can start building wealth alongside your 9-to-5 job or another primary income source.
Active income vs. passive Income: Which is best for me?
In theory, all of your income sources carry similar weight. But when it comes to achieving financial freedom, passive income leaves active income in the dust.
You see, active income is the money generated from all those efforts you’re currently making. And you need to keep working if you want to continue making a living. If you quit, you don’t get paid. Your time literally equals money.
What is passive income?
Passive income is money you earn that doesn’t require you to do a lot of “active” work to continue making it. In essence, you can do most of the work upfront and put in some additional effort along the way to earn an income.
Passive income that doesn’t require you to work actively. And the money continues to flow in for years and years. If you’re looking to design a dream life where you are financially free, it might be better for you to focus on passive income.
Just remember, while you might be able to build a passive income stream with a small investment, you’re not making any less of a commitment than someone investing their time. Making passive income comparable to income earned from active efforts requires a good amount of work upfront.
You’ve probably heard the expression “make money while you sleep.” That’s the biggest draw that entices people to earn passive income.
What is the difference between residual and passive income?
If you search “residual income meaning” on Google, dozens of interpretations will pop up, with some suggesting that residual income is the same thing as passive income. And to some extent, this is true. The reason people often use “residual income” and “passive income” is because they make a residual while earning passively.
For example, a small business owners—let’s call him Michael—decides to earn passively. For this purpose, he inserts Network Marketing links in some of his posts or advertising. When visitors in his business click on those links, he generates passive income. The commission Michael earns from his affiliate company and the taxes he pays on his overall affiliate income are deducted to arrive at his residual income.
As you can see, by using this strategy, something as small and meaningless as a penny can quickly turn into something huge with time! That’s why, in the world of business building, saving and investing, it’s absolutely important that you start early, and be consistent!
How much passive income can I earn?
You can make as much or as little passive income you want. However, it’s not a get-rich-quick scheme. You’ll need to put in some hours, effort, and capital initially to create a passive income source. The good news is that nailing these things early allows you to sit back and enjoy the financial rewards for years to come.
You may invest as little as $100 in the beginning, then reinvest your profits until your passive income grows to a sustainable figure. With a high-recurring income, you can make enough money to live a happy, healthy life.
Which Would You Pick to Earn a Penny a Day Doubled: Network Marketing or Traditional Business?
[A]: Network Marketing Income
Passive income can really help elevate your earnings and fill in the gaps that your 9-to-5 job can’t fill on its own. If you’re looking to create an additional income stream so you can strengthen your financial future, these ideas can help you do that.
And it’s OK if you like your full-time gig too. The work that goes into earning passive income tends to be manageable when paired with a 9-to-5. You can do both. A real-world application of this phenomenon is building a Network Marketing Business, Saving and Investing for Retirement. The earlier you start, the more you will have in your retirement.
What Is Network Marketing?
Network marketing relies on individual distributors who market and sell a product to their network of friends, relatives, and people they know or meet. The distributors make money through commissions on the products they sell. Often, they’re not employees of the company, but rather independent contractors.
Distributors in network marketing businesses typically use three strategies to succeed: lead generation, recruiting, and building and management.
Lead generation is the process of locating new customers and clients who may be interested in the product. Recruiting is the process of adding customers and business partners to your network. And building and management are the way you train, motivate, and manage your recruits.
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Earn a Penny a Day Doubled With the 13 Top Benefits of Network Marketing
#1 – Income Can Be Exponential and Residual
This is a factor that I’ve never seen in any other business. What do I mean by that?
Residual income would be, for example, when you subscribed to an internet service, they get a residual income because you’re paying for that service every single month.
Exponential has to do with the compounding effect of something. It is not purely multiplication. It compounds over time. Let me give you an example. Exponential means that your internet service would get other internet services for them, or your phone would get other phone services. But phones don’t get phones, and real estate rental properties don’t get more real estate rental properties.
Those businesses give you residual income (the phone company collects a payment from you every month for the phone use, or the landlord gets paid every month for the rental property), but those types of businesses cannot create the exponential income you can get from network marketing.
When you combine those two together, this is what you get: I acquired 40 customers and I now I have 36,953 customers. That’s a 92,000% increase from my effort, when united with a team. I recruited 129 new representatives, and that number turned into 41,000 representatives. That is a 32,000 exponential factor. That is a really, really big deal.
#2 – Team Effort
Because I acquired 40 customers, I now know how to get customers, so I become valuable to the person that I bring into the business. That’s how my 40 customers turned into 36,000 customers. That is the team effort.
I make myself unimportant to the generation of my income. That is one of the biggest points of how to create wealth.
Here’s an example: In real estate, let’s say that you sell a $225,000 house, and you make a $5,000 commission. You’d have to sell ten of them to make $50,000. In the next year, you have to do it again if you want to make $50,000. If you want to make $100,000, you will have to sell 20 of them. It’s all you.
I’m not cutting real estate down in any way. I will never cut down any industry. It is just from my vantage point, after being in a lot of different businesses, that network marketing has the most opportunities for building wealth. I talk about this in another video, Side Hustles That Made Me a Millionaire. I think team effort is a big part of that.
#3 – Reps, Not Employees
I prefer that the people I work with are not employees. I’ll just leave it at that, because with employees, I have to pay them for whatever they do during working hours, whether they produce anything or not.
#4 – Build from Anywhere
I can build my network marketing business from anywhere in the world. That is really important to me, especially right now in 2020, when it seems like America’s sliding off into the ocean. I like to be able to live where I live. I live up in the mountains, on a farm with a river. I like doing it where I want to.
#5 – Low Financial Entry and Risk
Low financial entry into it is important to me. I can’t believe that at this point in time, I spent $1,500 to start my business, and now I have a $300 million business under me. That is incredible.
#6 – Own Customers
I own my own customers. When you compare network marketing to other businesses, what you’ll find is that in the other businesses you don’t own the customer.
If you’re, for example, an Amazon seller, you don’t own the customer. That means that you acquire them for somebody else. Your acquisition of customers takes the most amount of effort – the most amount of money that is ever spent is to acquire a customer. You’re acquiring customers for another business and you don’t get that upside potential of owning that customer.
#7 – 1099 Income
In a W2 (salary) income, somewhere around 30-40% of your income is taken out before you ever see it coming, because it’s taken right out of your check. The advantage with network marketing is that we have 1099 income. If I want to run ads for my business, the IRS allows me to take that deduction for the money I spent to advertise my business. In a way, it doesn’t cost me anything, because I get it back.
#8 – Geographic Diversification
As a real estate agent, I would have to be in a certain location, and be limited to this location. I like the ability I get in network marketing to make money out of Italy even though I don’t know the Italian language. I like being able to make money out of China and not know any Chinese whatsoever.
#9 – Work With People You Want
Working with people that I want was an important one for me when I first started. I remember there were people in the military who were jerks. I don’t know any other word to describe them. I didn’t like to work with them, but if they were also wherever my duty station was, I HAD to work with that person for two years.
I like to choose the people that I want to hang with.
#10 – Money and Time Freedom
Because I’ve been making a six to seven figure income for 31 years, this one is lower on the scale for me. I’ve been able to create wealth, and so have had money and time freedom for years. You can place whatever value you like on this one.
#11 – Easier Transition (Part-Time)
This was a big one for me when I started out. I didn’t know I would be transitioning into a full time effort. I thought I was just getting money so that I could close on a house. When I first started, I had no idea that it was going to route me into creating wealth.
#12 – Marketing Is Dynamic
This one takes a little bit of an explanation. How do we do network marketing? Some people try to brand us by how we do it.
When I first came into network marketing, somebody said, “Is this one of those things where I have to go door to door?” I said, “No, I’ve never knocked on anybody’s door.”
He was trying to put it into that category. Someone else asked, “Is this something where I have to spam my friends?” I said, “No, what are you talking about?”
It Doesn’t Matter How You Want to Build, You Can Build the Business if You Follow These 9 Steps
If I bring somebody into the business and that person owns a postcard business, how am I going to recommend that they generate leads so they can show the plan and follow the 9 steps? Postcards.
If a doctor comes into the business, how am I going to tell him to build his business so they can show the plan and follow the 9 steps? He can send a postcard or an email to his patients and have them come into the office.
It’s dynamic and it’s constantly shifting. I had a lady who specialized in doing expos. Guess how I told her to generate leads so she can show the plan and follow the 9 steps? Go to expos.
You can never say how we do it because we are always changing and adapting to any opportunity, technology or situation following the so they can show the plan and follow the 9 steps.
When the coronavirus hit, we shifted to Zoom, just like that. How can we do big events? Let’s put them on the internet, do them on Zoom. It’s that aspect of network marketing that I love.
#13 – Availability of Training
7 Fundamental Skill To Network Marketing
If your are making less than $100,000 a year in network marketing, the key to success is mastering the 7 Fundamental Skills of our profession. Those skills are:
- Finding prospects
- Inviting prospects
- Following up with prospects
- Closing prospects
- Getting new prospects started
- Promoting events
- Use a marketing system that is proven to work
That’s it.
This was number one for me when I first started, but not now, because I don’t need to be trained a whole lot anymore. I had to learn when I first came back into the industry, because back when I started, the fax machine was the blazing speed that we operated with.
But today, it’s the internet. I had to learn social media. I had to learn ads, display ads, Facebook ads and YouTube marketing. The concepts were the same, but they were just placed in different places.
You just don’t get that availability of training everywhere.
In real estate, I think you do, because you do have to have a broker sponsor you in order to be accepted and hang your certificate up on their wall. I think there is guidance from that sponsor, but I don’t know how much marketing training there is. I want to emphasize: I’m not putting it down or doubting it. I’m just saying that I don’t know how much there is.
I do know that based upon my situation in network marketing, training is getting in there elbow to elbow. I really want this person to succeed. It helps me. Why wouldn’t I?
Which of These Is #1 for You?
Tell us what you think. What is your #1 benefit of network marketing? We tried to choose one, but we ended up with 13. Looking across at them all, we see that these have been evolving in our life now for many years.
Tell me what you think. What is your favorite? Maybe give us your top one or two. If I missed any, let us know.
Can You Earn a Penny a Day Doubled With Network Marketing? Absolutely!
Yes, you can to make money with network marketing. However, it’s not easy. To be successful typically requires a serious application of effort, time, and money. Casual salespeople will quickly find themselves losing money.
Is network marketing risky?
Yes, like starting any other business there are risks that go with network marketing. You generally risk a few hundred dollars compared to the average start up cost of $45,000 for a traditional business.
Network Marketing post-opening startup costs:
Starting a network marketing business can be cost effective especially if you choose to sell the products or services of a company and you also choose to run the business from your home, share office space with a friend or make use of virtual office.
You risk the money it takes for startup costs, inventory purchases, and training materials. You’ll also spend time and money filling out paperwork, filling and shipping orders, and recruiting new salespeople. However you do not spend money on rent, employees, inventory, etc.
Can You Make Your Money Back in Network Marketing?
Network Marketing comes with a 180 day Guarantee: To make your money back, you’ll need to sell a lot of product. And to continue to make a profit, you’ll need to continue selling more (and sometimes recruiting new salespeople for your downline). Consider whether your network truly has enough buyers to support your business’s needs, and research the network marketing company thoroughly before you get involved.
[B]: Traditional Business
Is Traditional Business Risky?
Deciding to start a business is exciting, but can also be daunting if you’re a new entrepreneur. Calculating business startup costs, worrying about long-term profitability, securing startup funding — it can all be pretty stressful.
The question of costs is critical because the initial investment can be significant. A Kauffman Foundations study shows the average cost to be around $30,000, and costs tend to increase each year.
Fortunately, certain types of businesses, such as micro-businesses and home-based companies, have lower financial entry barriers.
What is the Average Cost to Start a Traditional Business?
The cost of starting a small business depends on the type and size of the business you’re opening and your industry. For example, opening a McDonald’s franchise can cost you $1 million, while starting a social media consulting company may cost less than $10,000. The average cost will vary on a case-by-case basis.
Different types of business structures—like sole proprietorships, partnerships, and corporations—have different startup costs, so be aware of the different costs associated with your new business.
Common Traditional Business Startup Costs include
The Business Plan, Research Expenses, Borrowing Costs, Insurance, License, and Permit Fees, Technological Expenses, Equipment and Supplies, Advertising and Promotion, Employee Expenses,
It is important to note that the startup costs for a sole proprietorship differ from the startup costs for a partnership or corporation. Some additional costs a partnership might incur include the legal cost of drafting a partnership agreement and state registration fees.
Other costs that may apply more to a corporation include fees for filing articles of incorporation, bylaws, and terms of original stock certificates.
Launching a new business can be invigorating. However, getting caught up in the excitement and neglecting the details can lead to failure. Above anything else, observe and consult with others who have traveled this road before—you never know where you might learn the business advice that helps your particular business succeed.
The Major Benefits of Owning Your Own Business
Here are just a few of the biggest.
Independence and Control
Have you ever worked a job in which you felt you could do better if you had control over how the work was done? Let’s face it, jobs can be constricting and sometimes don’t allow you to maximize your knowledge and skill.
When you build your own business, you do what you want, how you want, when you want. You develop the product or service to the level you think is best. You have systems and routines that work best for you. And if you need a powernap in the late morning or afternoon to boost creativity and productivity, you can take one.
According to the Small Business Trends Alliance survey, 55% of small business owners started their own business because they were “ready to be their own boss.
Financial Rewards
Granted, statistics on business success can seem grim. After all, roughly 50% of businesses survive to five years. With that said, there is much you can do to improve your chances of success, and in fact, depending on your goals, opening a business might be a better financial option than working for an employer.
For one, with a business, you’re more likely to earn what you’re worth, especially if you’re a woman. Instead of earning 82% of what a man earns, a woman can charge her value in a business. As the business owner, you can set prices and grow your salary with the business. When you throw in the business tax perks, you could end up making more than you would in a job.
Flexibility
Running a business can work well for many different lifestyles. For women, especially, owning your own business can give the lifestyle flexibility necessary to raise a family and still have a successful career.
Women-owned businesses have been showing up at a faster rate than new businesses in general—at 21% per year vs. 9%, respectively, from 2014–2019. According to a series of case studies by the National Women’s Business Council, flexibility was a major factor for many women who decided to pursue entrepreneurship.
Millennials and Generation Z workers are known to look for flexibility in their workplaces, and running a business can work well for many of them. Likewise, people who are close to retirement or already retired may find owning their own business gives them the chance to keep their hands busy while not demanding the same rigid schedule of a typical job.
People who want to travel or live a particular lifestyle can benefit from entrepreneurship, plus you might be able to work from home—or anywhere else you like.
Directly Helping People
Many small business owners launch their own businesses to make a positive impact in their local communities. This can happen through the products or services they provide or through the local causes they support. Small businesses also account for nearly half of the private workforce in the U.S., so launching your own business is a great way to provide jobs for many in the local community.
Opportunity for Innovation
Established organizations can—and do—create great change and innovation. Often, though, the most powerful new ideas come from small business owners that venture out on their own when they can’t get traction for their ideas in their current workplace.
Many business icons started with an idea that has changed the world. From Disney to Zuckerberg and Bezos to Gates, all of them had small ideas that turned into huge successes. Many of these entrepreneurs launched these companies from their garage.
What to Watch Out For in Traditional Business
Despite the many benefits of running your own business, it’s not right for everyone. Being your own boss comes with some major risks, including:
- Financial risk: If half of businesses fail within five years, then you’re taking a 50% chance of losing some money on your own business. That’s why it’s critical to write a thorough, clear business plan and make sure you have a reasonable chance at success.
- Personal liability: Beyond merely losing the money you put into the business, you could put more of your personal assets at risk—from your car to your house—if you don’t structure your business to protect them.
- Time commitment: The feeling that you’re always on the job can be a drain for many business owners, according to a Bank of the West Bank Small Business Growth Survey. Many business owners work much more than a 40-hour workweek.
- Stress: The West Bank survey also noted the fear of burnout as a major concern for many small business owners. This is particularly true in light of the ongoing public health and economic crisis, which saw daily stress rise significantly among small business owners.
The Bottom Line of Traditional Business
- Owning your own business brings some great benefits, and many entrepreneurs are satisfied with their decision after they make the plunge.
- The most common reason people launch their own business is to be their own boss.
- Other benefits include flexibility, financial rewards, the opportunity to innovate, and a chance to impact your community.
- Still, there are serious risks to launching your own business, and you should carefully consider and plan before you take the leap.
Can You Make Your Money Back in Traditional Business?
Traditional Business comes with Low Salary, NO Guarantee, High Failure Rate and High Start Up Costs.
Average Small Business Owner Salary in the U.S.
Many new entrepreneurs might not know that small business owners don’t get to just take money out of their business at will. Instead, they draw a salary. In addition, most of a start-up’s income goes to pay operating costs or is reinvested into the business, so funds for a salary may be extremely limited. Business owners will need to consider a variety of factors when determining what salary they should draw.
In August 2022, the salary of a small business owner in the United States ranged from about $30,000 to about $146,000 per year, according to PayScale, a compensation research company. The average business owner’s salary was $63,560 per year.
Average Small Business Owner Failure Rate in the U.S.
18.4% of private sector businesses in the U.S. fail within the first year. After five years, 49.7% have faltered, while after 10 years, 65.5% of businesses have failed. Hawaii sees the highest business failure rate within the first year.
Average Small Business Owner Start Up Costs in the U.S.
A Kauffman Foundations study shows the average Traditional Business cost to be around $30,000+, and costs tend to increase each year. 1. Equipment: $10,000 to $125,000, 2. Incorporation fees: Under $300, 3. Office space: $100 to $1,000 per employee per month, 4. Inventory: 17% to 25% of your total budget, 5. Marketing: Below 10% of your total budget (even 0%), 6. Website: Around $40 per month, 7. Office furniture and supplies: 10% of your total budget, 8. Utilities: Around $2 per square foot of office space, 9. Payroll: 25% to 50% of your total budget, 10. Professional consultants: Between $1,000 and $5,000 per year, 11. Insurance: Average of $1,200 per year, 12. Taxes: Variable, but 21% corporate tax rate, 13. Travel: Variable, 14. Shipping: Variable, etc.
Now Imagine if You Could only Doubled this Penny with Your Own Business. Which Business Would You Choose? Network Marketing or Traditional Business?
We chose Network Marketing because Compound interest, Network Marketing Leverage and Duplication works wonders if you are to Doubled Your Penny with Your Own Business. Remember you have to remain consistent, start early, and give it time. Always remember this if you want a retirement with well over $1,000,000.
If you start at age 40, in a job, career or traditional business it’s almost impossible to reach this goal.
However, if you start a Network Marketing Business, with an average knowledge and work habits, you can have well over $1,000,000 in retirement in as little as five years!
10x your Dreams – Learn What it Takes to Become a Successful Independent Business Owner
If you’re considering joining with us, then there’s no better way to kickstart your dream than by attending a FREE Discovery NO SELLING Session. This event will provide you with the knowledge, skills, and tools you need to launch your business and build a more successful life as a business owner.
Here are just a few reasons why you should join us:
- Learn from the best: You will learn from experienced business owners who have successfully built their businesses and are willing to share their insights and strategies with you. You will have the opportunity to learn from some of the best mentors in the industry and gain valuable insights that will help you start your business on the right foot.
- Develop new skills: This is an excellent opportunity to learn new business techniques and develop new skills that will help you serve your clients better. You will learn how to be a more effective communicator, active listener, and problem solver, among other essential business skills.
- Connect with peers: This is an excellent opportunity to connect with like-minded individuals who are passionate about entrepreneurship. You will have the opportunity to network with peers, share best practices, and learn from their experiences.
- Get inspired: This is a place where you can get inspired, recharge your batteries, and reconnect with your passion for entrepreneurship. You will leave the meeting feeling energized, motivated, and ready to launch your business.
- Special rates: As a prospective independent business owner, you can take advantage of the Early Bird special rates. This makes the Discovery Session an excellent value for the knowledge, skills, and tools you will gain.
If you’re serious about becoming an entrepreneur and want to start your business on the right foot, then this FREE Discovery Session is the place to be. Don’t miss this opportunity to learn from the best, develop new skills, and connect with like-minded individuals who share your passion for entrepreneurship.
A Wonderful Message for You to Earn a Penny a Day Doubled
If you want to improve anything, especially your personal finances, you have to measure and keep track of it every step of the way. By blindly working in a traditional job, saving and keeping your fingers crossed will not get you to your financial goal.
You need to invest in yourself, your small business, keep track of your net worth, finances, budgeting, and progress towards your financial goals. Just like this example of doubling your penny, you have to keep a close eye on it to make sure you’re on track and getting to your financial goals!
If you’re serious about reaching your financial goals, make sure to contact us and start keeping track of your education, business, finances and wealth management! There is no better way out there that does it this well. Believe me, we’ve looked
Let’s Make Your Life Extraordinary, Together.
Join a “Year of MKS Master Key Mastery Coaching Programs and Systems”. We’ll spend the first Mondays of the Week with you taking you through advanced personal growth, business growth, profitability optimization and productivity so you can win this year and every years you are in business.
These are just a few tips to look out for when considering Breaking Through Your Upper Limits.
We personally believe this is the best way forward if you are looking for a Breaking Through Your Upper Limits. This is for people who have a dream or desire to be financially independent and are willing to put in the hard work to do so.
Wishing you prosperity and success. Remember You Were Born To Win!!
Michael Kissinger and Sydney Reitenbach
Phone: 650-515-7545
LinkedIn Profile: https://www.linkedin.com/in/michael-kissinger-a66b214/
E-mail: mjkkissinger@yahoo.com
Facebook: https://www.facebook.com/michael.kissinger.35
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