Building Your Cash Machine

(Written by guest contributor Loral Langemeier)

When most people think about the state of the current economy, their first thought is almost never “What a great time to start a business!” But the truth is the timing couldn’t be better. Financial freedom is attainable in any economic climate. You just need to know how to fit in and find your angle.

The strategies I teach are all about your fastest path to cash with a self-sustaining cycle of income that I call a Cash Machine. It’s a small business that utilizes the skills and talents you already have to create new money. It’s not rocket science, and quite honestly it usually isn’t something you’re passionate about. It’s a way to generate income that will support the life you want and the means to follow your passions, whatever they may be.

A Cash Machine is one that will fare well in any economy. It provides goods and/or services that people need and will buy. Everybody has skills and talents that can be leveraged into a steady income. EVERYBODY! It’s just a matter of properly identifying what you can do to make money now.

So what next?

If you’re serious about creating new money in your life, you’ve got to ask yourself what you’re willing to do, how much time and effort you’re willing to spend, and what kind of investment you’re able to make. When it comes to initial investments, most Cash Machine businesses cost next to nothing to start. In fact, some of the biggest corporations were started on a shoestring budget. Why not yours?

Usually it’s the amount of time and effort you’re willing to put forth that will decide whether or not you’ll be successful. You’ve got to be in it to win it or don’t waste your time.

The first thing you need to do is sit down and take a personal inventory of ALL your skills and talents, even your hobbies and household chores. This is not the time to be shy or hard on yourself; if you’re good at something, it can probably make you some cash.

For example, if you’re an accountant, that means you’re good with numbers, managing projects, keeping a tight schedule, and so on. If you can relate well with children, child care might be the route for you. People who are good around the house can make pocketfuls of cash doing odd jobs for neighbors and friends. The list is endless. Be realistic, but don’t hold yourself back.

The next step is the key to my Cash Machine strategy. It’s called “business modeling” and it takes a lot of the guesswork out of starting a business. Do your research. We all know there’s nothing new under the sun; someone else is doing the same thing or darn close to what you want to do. It’s time to find out how they do it. Pay attention to what’s working, but also study and understand what’s not working and why.

If you’re considering a service- based Cash Machine, make a few appointments with comparable companies and find out how they present themselves, what they charge, what their sales strategies are, and how they negotiate their pricing. Be a sponge.

If your Cash Machine is based on the sales of goods, learn all you can about the packaging, pricing, branding, and marketing of that product. Absorb everything.

Many times business owners don’t mind talking with fellow entrepreneurs. My suggestion is to ask for a phone Q & A with a business that’s comparable but out of state. Most people are flattered you’d want to ask them!

Once you have your model in place, it’s time to put your spin on things. What’s your angle? Is your product or service superior? How? Do you offer better convenience? Define why. Identify your niche. This is what sets you apart from your competitors. This is also how you start to determine your pricing. Remember, people tend to comparison shop, and if you’re more or less expensive, they’ll want to know why.

Branding is an important component to any Cash Machine. When you’re deciding on a name you’ve got to think about how people will perceive you. How do you want to be portrayed? Think of your brand as a personality. It’s what makes you unique. It’s a good idea to center your identity on your objectives. It’s okay to have a catchy, fun name, but if it’s too obscure, you might be spending too much time explaining yourself when you should be selling your brand.

We’ll get into branding and marketing a bit more next time. Do yourself a favor: write out all your skills and talents. You’ll be surprised at how many different attributes you possess that can truly earn you cash! Don’t make this harder than it has to be. Start simple. Pay attention. Build on successes. Make it happen!

Ready, set, GO!

Action Steps

– Make a list of your skills and talents.

– Decide which ones you could use to build a Cash Machine side business.

– Research businesses similar to the one you want to start.

– Identify your niche.

– Think about how your branding can communicate your objectives.