Meg's finances were okay, but she wanted more than to just
barely meet expenses. So she decided to start an Internet
business.
She searched around, found a reliable company that she liked,
products that she felt comfortable using and promoting.
But she didn't have the money to promote her business. What did
she do? What any smart business owner would do. She borrowed the
money to invest in herself.
Meg found a quality Network Marketing trainer, studied Internet
Marketing and invested her borrowed money intelligently. She
slowly built a thriving business.
Meg is the ideal. She built her business from the ground up, was
able to pay back her loan in 3 years time and retire from her
job.
But what happens if you're not Meg. What if you're Bill?
Bill's Floundering
Bill has already gotten himself over-his-head in debt.
He responds to an ad, decides to put yet another $20-$100 into a
"business opportunity" for the sole purpose of making quick
bucks to pay off his debt.
He sends out a bunch of ads to a mailing list of 100,000 that
someone sells him for $50. He waits for the responses, for the
$20 bills to start pouring in.
He does get a response all right, but not the one he wanted. His
ISP pulls the plug on him for spamming. He is now $70 to $150
further into debt and is worrying his socks off. Plus, he can't
get online.
What's Your Story?
Which movie do you want to play in? Meg's scenario or Bill's?
Silly question.
The point is, if you're Bill, you need to get out from under
debt weight first before you can seriously pursue a business.
Does that mean you shouldn't look for a viable opportunity or
that if you are already in one you should quit? No, it doesn't.
But it does mean that you need to separate your business from
your debt elimination program, so that you can work your
business long term instead of trying to make a profit from day 1.
Make a Business Plan
Your business plan must be long term. It should include: Goal
setting -- what you are aiming for in what time frame long term
3 plus years medium term 1 year short term 1-6 months Know Your
Product -- study it well Know Your Customers get into their
brain know what they want know the benefits Create a Marketing
Strategy Learn from the experts Create a Budget Test Your
Advertising Use your company's co-ops Work the Strategy -- See
your business grow
Make a Debt Reduction Plan
You have several options to debt reduction.
Self-Help Plan -- A simple plan whereby you pay off your
smallest debt first.
As that debt gets paid, you take the money saved and add it to
the payment of your next smallest debt.
As the next smallest gets paid, you take the amount saved and
add it to the smallest remaining debt.
You continue on this way making larger and larger payments to
your next debt until your last is paid off.
This plan works very well, if you have at least a little more
than the minimum requirement to pay on each debt.
If you're near bankruptcy, this won't do.
Debt Consolidation -- you can consolidate your own debt if you
still have substantial credit. This will allow you to make one
monthly payment to one source. Refinancing a mortgage would come
under this plan.
You can consolidate through a consolidation company. The
advantage here is that they can bargain with your credit card
companies to give you a zero finance charge. The trade-off is
you lose your good credit.
Debt Payment Organizations -- You can join a cooperative that
works to pay off members debts. The main advantage here is that
you can get your debt paid without losing your good credit. You
need to be careful here, though, to make sure you have a genuine
club that does pay your debts. It's easy to fake this one.
Bankruptcy - This one has to be included because it is an
option, although a poor one. You will get your debts eliminated
but you are also guaranteeing the loss of credit, something you
want to avoid at all costs, especially if you really want to
build that business and achieve some success. Bankruptcy can
haunt you for a long time to come.
So, if you are under the weight of a debt load, choose the debt
reduction plan that's right for you and turn around your Bill
scenario to that of a Meg.
If you're not in debt yet, play out the Meg story. Avoid Bill
(and bills) at all costs
About the author:
Gloria Reibin is owner of Advantage E-Com, which offers business
opportunities, training and consultations to help you choose an
on-line business that is right for you. Visit her site:
http://advantageecom.com
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