The Best Kept Secret of Entrepreneurial Success

Let’s talk about the one thing all serious entrepreneurs seek – Passive Income.

As you know, Passive Income comes from sources outside your employment, that may include rental income, dividend payments and advertising income from a website/blog. 

Or your business.

When you first start up your business with the ultimate goal of it being a passive income business, do you know what the best kept secret of all time is? 

In this blog, I break down a conversation I had with my friend Ryan Lee from Cashflow Tactics. You will learn how to invest at various stages of your entrepreneurial journey. I want to give you a clear path of how to approach investing in order to maximize your growth as an entrepreneur and create financial freedom.

Ryan has a sign that says “RISE UP AND LIVE FREE”. This saying sums up everything written in this article. 

Have aspirations, invest in those aspirations, surrounding yourself with aspirational people and the money will follow.  

Be sure to join our Facebook group which is filled with aspirational people and teachings that will help you on your journey.  

I want you to rise up and follow your path to financial freedom. 

Investing Back Into Your Business

The best kept secret of all time is that YOUR BEST INVESTMENT IS ALWAYS BACK INTO YOUR BUSINESS. Yes, that is correct. Your best investment is always back into your business. 

“Your best investment is always back into your business.” — Ryan Lee with Shanda Sumpter. #investment #businessClick To Tweet

Working your business will always take time and effort, with your share of ups and downs. As I’ve mentioned before, there will always be times when you want to walk away, and that is why I’ve created Heartcore’s Core Programs to help you fast track your business to success, so you don’t have to do it alone.

Catch up on our earlier blogs

Investing back into your business is investing in yourself, in your own people, in advertising and marketing, in extending the services your business provides, in implementing new systems or improving existing processes. It’s investing in your mind sets, your skill sets, and your network because at the end of the day, dollars follow value

Dollars Follow Value

The starting point of any business is the desire to create value. And dollars will follow value. 

Value is created by solving a problem – often in your own life first, then solving it for others becomes your message to the world. 

This is really powerful because you see meaning in your purpose. Your meaning will fuel you up and you’ll show up to solve problems for others in a powerful way. 

You’ll achieve the most success when you are super passionate about the value you create for others.  You have a reason bigger than money. Dollars will follow the value you create. 

Your best investment is always back into your business – this is the best kept secret of entrepreneurial success.

I think a lot of times people think, “Oh, well, I paid for a virtual assistant.” Or, “I paid for a coach,” or, “I paid for technology,” or, “I paid for Facebook ads,” or marketing, or whatever that is. And they look at it as a cost. And it is a cost, it’s an expense to your business.

But if you invest in yourself – say, if you seek coaching – and bring it back to your business, you have a high degree of certainty that you can turn a dollar into two, or a dollar into 10, or beyond. 

Failures are another form of investment. In building a business, you fail fast and fail often – we all do. And there’s nothing wrong with that. Every time you fail at something, every time you have a challenge with something, you gain wisdom. And that wisdom becomes your superpower and your investment.

“Every time you fail at something, every time you have a challenge with something, you gain wisdom. And that wisdom becomes your superpower.” — Shanda Sumpter.Click To Tweet

Money Is Just a Tool

Financial freedom requires stewardship. 

(In fact, freedom of any kind requires stewardship.) 

Why do you want to make money? 

You’ve heard me talk about your why in a previous post. “Only you know … your why – why you want to accomplish what you want to achieve in life.”

I’ve worked with thousands of people, and the people that have actually gone on to achieve amazing success are the ones who had a cause and a reason bigger than money. They realized that money was just a tool, and they had to understand why they wanted more of those tools inside of their life to get the results that they were looking for.

Catch up on our earlier blogs

Scarcity Will Wear You Down

Scarcity in the beginning isn’t bad, because that’s the fuel, that’s the fire that drives you. 

But if you stay in scarcity, it wears you down.

You’ve got to get out of your scarcity mode.

If you don’t, the business that you once loved, you’ll now grow to resent because you can’t figure out how to serve the number one most important person, you. You are the asset. Dollars follow value. 

Are You Investing Your Money In Someone Else’s Business?

I’ve seen too many entrepreneurs and business owners, spend all of their time, effort, and energy inside their business, investing in their mindsets, and understanding how to market, and generate clients, and fulfill on demand. And then, the second they have any money, they turn around and give it to someone else – they buy the latest toy, go on an expensive holiday, invest in the stock market, I don’t know, things that mean they literally, invest their money in someone else’s business. (If you think about the stock market, that’s all it is. Right?)

Your best investment is always back into your business. Why? Because money follows value.

Surround Yourself With Experts

Entrepreneurship is a journey that often defies traditional thinking. More likely than not, entrepreneurship contradicts the “safe” advice given by your parents. 

About 95% of the American population are employees and 95% of the financial strategy out there is for employees. Entrepreneurs don’t fit into the same financial plan. They have the power and leverage of building a business. 

The way you can achieve financial freedom isn’t taught in a traditional financial plan. 

Traditional concepts like investing a portion of money into a 401k for retirement are exchanged in the entrepreneurial world for concepts like making wise investments into yourself and your business. 

Good mentorship will help you learn where to invest and how to navigate the different stages of entrepreneurship. This is especially true as your business gets bigger.  

Make certain that you get advice from someone who understands your mindset and journey as an entrepreneur.  

The biggest gap I see in advice is entrepreneurs not having a good team when it comes to tax advice. They go to a traditional tax person or bookkeeper. 

A good tax expert will help you understand how you can protect your income.  

The Question of Tax

If you look at the tax code, the first line of the tax code says, everything you make is taxable. I know it’s like, “Oh, no.” But then there’s 1000 pages plus after that, that tell you all the ways that you don’t have to pay taxes.

When I started on my journey, I hated my tax bill every year. I didn’t know I needed proper asset advice. An entrepreneurial tax advisor will let you know that. The tax code is thousands of pages long and the first 8 pages are for employees. 

The IRS uses the rest of the tax code to incentivise behavior. They want you to create jobs and solve problems. The rest of the tax code is written to help you keep your money using legitimate tax strategies. 

Don’t follow the advice of a broke advisor telling you how to grow your life.  They’re not financially free. 

A good tax advisor will understand this and be entrepreneurial and aspirational when it comes to your business advisement and mentorship.  

“Don’t follow the advice of a broke advisor telling you how to grow your life. They’re not financially free. A good advisor will be entrepreneurial and aspirational when it comes to your business advice and mentorship. ” — Shanda Sumpter.Click To Tweet

Your flow of money might start small, but with continued focus, sacrifices and nurturing, it can quickly grow.

When you’re making enough money then your original business passive income stream will help you to invest in income-producing assets, such as managed funds and property. 

Important – the key to any stream of passive income is to diversify what you invest in. Having one rental property or $100,000 in shares in one dividend-paying company is risky – the house may become vacant, or the company may run into financial difficulties. The more diversified your investments, the more secure your long-term passive income streams will be.

———

When you first start up your business with the ultimate goal of it being a passive income business, then you need to start by INVESTING BACK INTO YOUR BUSINESS. Use the tax system to your advantage to help you grow your business faster. Seek expert advice and mentorship from good business coaches and tax advisors who are successful in their own businesses. Invest value into your business. Remember, dollars will always follow value. 

“Dollars will always follow value.” — Ryan Lee with Shanda Sumpter. #investment #businessClick To Tweet 

Keen to learn more? Be sure to join our Facebook group which is filled with aspirational people and teachings that will help you on your journey.  

I want you to rise up and follow your path to financial freedom.

Hi! I’m Shanda Sumpter, owner of HeartCore Business, investor to entrepreneurs on The Pitch, and named as one of Inc. 5000’s fastest growing companies in 2017, 2018, and 2019. I’ve helped business owners all over the nation grow and scale their businesses while enjoying their lives more. I believe in giving generously and being honest—all in the name of leaving a legacy.

Connect with me on Instagram

Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email