In order to make money you must be in the business of making money. There is nothing like making money by chance. You have to provide quality products and services which other people and organisations are willing to buy. If for example you are in a furniture business, you have to produce chairs at a cost of US$ 30 per chair in order to sell it at a price of US$ 35 making a gross profit of US$ 5 on each chair before deducting overheads. Overheads are other expenses you incur during the process of producing and selling furniture other than direct costs of production. If you for example you have overheads of US$ 2 per chair then you have made a profit of US$ 3 on each chair.
The market is full of ambiguities
Making money is not as simple as it sounds. The market where money is made is full of ambiguities which can only be overcome by determined people. There are no clear if any rules in business to regulate competition. Competition is only regulated by the market forces. The market is like a public transport -train where you are free to board provided there is space for you on train and you can also afford the cost. I have not come across any guidelines for avoiding ambiguities except to confront them until you overcome them. You will not make money if you avoid challenges in the market as they create opportunities for making money.
You cannot be blessed in all areas
It is also extremely difficult to possess all the natural blessings in the furniture business. If you are naturally gifted in one thing, you will find yourself quite disadvantaged in another thing. I know of a good furniture maker who makes fantastic furniture but extremely poor at finding a market for his products.
It is difficult to decide to make money
In life you choose to do anything with your life. You can decide to be a musician, a doctor, a teacher, a farmer, a policeman and a businessman or woman among other options. You can also decide to do nothing with your life! I have spent some time encouraging parents to let their children venture into business at an early age but in vain. I have always been told the children require experience through employment before they venture into business. They forget playing a supporting role is different from being the main actor. For example there are quite many people in the world who support football but few of them make it, if ever, to play football at professional levels. You can only make money in football if you play it at a professional level. You cannot learn to make money by only supporting others in making money. You become so comfortable with the supporting role because you face few challenges which can make you go home at the end of the month without a salary. You have be a main actor in the money making process.
Purpose for making money
I have found it difficult to achieve anything without a purpose for my actions. You must have a purpose for making money. It is the purpose that will propel you in the money making process.
Once you have decided on the purpose for making money than the rest is straight forward. Just start your money making journey being guided by the ‘Success Formula’;
I will in my next articles spend some time explaining how each part of my success formula works.
Author: John Muhaise-Bikalemesa
Director Big Drum Advisory Services Ltd