How to build a business for the new world: Six major rules

Written by Roberto Lanzillotti Tuesday, 16 August 2011 02:57

There are really two options when it comes wealth creation, build a business or save for retirement.

There are really two options when it comes wealth creation, build a business or save for retirement.

According to Tim Ferriss, one must avoid the old thinking of retirement and saving for the future.

If you submit to a regular retirement plan, you must work 9-5 for up to 40 years and pay into your pension plan the whole time. When it's all over, you'll be living on an annuity which will probably not cover your needs, much less give you the lifestyle you have always wanted.

With old-fashioned wealth creation, you must follow a work-style instead of pursuing a lifestyle. It is not a rule that life must be difficult. Enjoy your life without: A 40 year wait, an endless string of jobs, risk-taking, stock market investments, relying on your family, high scores in college or becoming a wage slave.

The important question: How do you develop a business, which supports a lifestyle rather than a 'work style'? Here are the six rules that are essential.

Rule 1: Firstly, don't put all your thoughts toward making a million dollars. You will wind up toiling as a slave. You need to concentrate on boosting your income by working few hours. It's not possible to give up one and have the other.

Rule 2: Consider mobility. Create a business which allows you to operate it from anyplace around the world. It is a fact that a job or boss limits your freedom to one location, so that if they move you will likely need to move or look for another job.

Rule 3: Decrease the amount of your personal involvement in your income generation efforts. Using technology and spending other people's time and money, you can get more done in less time. This way, you will be able to spend your time on activities you love.

Rule 4: You want to be rewarded every day. You don't want a plan that will only pay you back in the far future. This is what you will find with a standard retirement plan.

Rule 5: Your role should be the owner of the business, not manager. Employees receive paychecks for toiling long hours. Owners receive earnings by hiring managers and assets to toil long hours.

Rule 6: You will experience freedom by working in a field that you love. The idea is to live your dreams! The best way is to identify the things you are passionate about and follow them.

You will find all the difference when you follow these six rules. They will make you happy, instead of a thrall to some corporation or job. You don't need to be totally original with your business model or strategy. There are already ample successful systems, tools and strategies that can help you with passive income.