What is financial freedom?

In general terms, financial freedom means that when you go out to eat, when you go shopping at a mall, when you travel, you are free to choose, regardless of price. The relatively scientific explanation is: When your passive income is greater than your active income. Then you have financial freedom. Specifically, passive income is your equity investment, financial investment, copyright, rent, intellectual property, etc. You don’t need to spend a lot of time in obtaining such income. When passive income meets your daily expenses, you are financially free.

How far is financial freedom away from us?

Let me tell you a real story and see how they achieve financial freedom.

Miss North, A network anchor, born in 1990s.

She earns 10,000 dollars a month; she graduated from the school, after that she has become a freelancer for two years. As an online host, no matter whether you are lying at home or walking to the ends of the earth, she can earn broadcasting incomes to support herself.
Her article was written like this: after entering college in 2010, she found that she was especially fond of broadcasting, learning language, learning about post-editing, and learning radio pronunciation. Everything started from scratch.
In 2011, she founded a radio station on the Internet platform and she have no income. At that time, the network anchor was still a rare term, and the radio APP was not born yet.
After graduating from college in 2014, with the experience of four-year network anchors, she came to a music box to host an emotional show, working hard and getting word of mouth better and better. Then, she tried more voices work as part-time job, to play her biggest advantage and make money with her voice. Other people do one day, and she will do two, three, or even more days. At that time, her monthly income is already close to 20,000 dollars.
Starting in July of 14th, she insisted on recording during the day and at the same time attempted to write with the help of material accumulated in the radio show. Every night, she stick to read the books for half an hour and then write.
In January 2015, her first new book, “The world with this rare you there”, went public. In January 2016, her second book, “Meet Every Story with You,” was published. The copyright tax for the two books helped me. She bought a house in the city.

As an entrepreneur, how to develop yourself when you have no money, no team? part 3

3. Appeal
The goal of your product is to satisfy your customers’ appeal rather than demand. Many entrepreneurs are able to make exclusive profits because he knows that customers are not buying a necessities but buying a product that meets their internal needs. In summary: The demand is objective and transparent. The appeal is subjective and irrational.
What is demand and what is appeal?
A beautiful woman can carry a tens of thousands dollars worth of brand-name bags and go out in the streets, or she can also carry her stuff in a good quality plastic bag in the street.
In essence, brand-name bags and plastic bags are both used to “contain things”. There is no difference between them. Plastic bags are even lighter than brand-name ones.

But why would you be willing to spend your hard-earned money buying a bag that costs you a lot, and the bag has the same function of a few cents worth plastic bag, and believe the brand bag can bring endless power to you, and it is going to decorate your own taste and make you more charming and extravagant.

This is the difference between demand and appeal.
The plastic bag is the demand, the brand name bag is the appeal!
It is a demand to have a meal and make you feel full, and a meal must be accompanied by high-grade caviar. That is the appeal.
No matter what you sell, no matter who your targeted customers are, if you want to make a profit, you have to ensure one thing.
Your product is truly something that can be used to satisfy the customer’s appeal rather than their demand.
Rice is always with a constant price based on market and national policies, but rice noodle made from rice can be sold at a premium because of the different flavors of different restaurants.
Let’s stop here, think about your business and future direction.
Why solving the same problem, some businesses can make big money, and others can only make little tiny money.
This is the outcomes of different choices made by ordinary merchants who either selling brand bags or selling plastic bags.
In turn, if you want your businesses make big profits. What we need to think about is how to enlarge your products’ nature of satisfying your customers’ “appeal”!

Don’t let the “demand” trap yourself, and make your product worth nothing.
Unlimitedly expand your products’ nature of meeting your customer’s appeal, how much your products can meet your customers’ appeal, how far your profits will be!
Sixth: Ads and Communication
Ads and Communication will be the top priority of the entire business. For a modern business, if it is owning traffic, then it will be the king, and traffic will mean all the possibility of a business. I began to change slowly from the physical business to online business. At the beginning, I didn’t understand the Internet and I didn’t understand the technology. Most people would think that I wouldn’t do this. There is no way to do it. You must know that I’m an architecture guy. Afterwards, I tried my best to learn and think about the Internet and the rules of the game. Now I can spend two minutes to put my information I want to spread on Google’s keyword ranking first page. Even the most competitive keywords can be done. Arrived, and may be estimated for a few months for the average webmaster, must also understand a lot of technology, and highly competitive and search keywords are not necessarily able to do it. This is the result of thinking and solving problems. In fact, Internet technology is not complicated. You only need to understand the principle of operation, and how to achieve the result, which is the most important. Do not be constrained by the idea of technology.
The most important thing for Ads and communication is to understand the meaning of it. Why do people want to spread information? Why do people need to pay attention to your information? This is the basic principle of communication. If you do not understand it, then you will return to the fourth point, marketing.
Finally, what entrepreneurs do are:
1. Active attitude, in fact, I do anything with an active attitude, and one of the most talked about idea is to take an active attitude and take an active attitude to solve any problems put in front of you. No money, figure out a way to make money, no tram, think of ways to spread your influence, no technology, find ways to learn it, or find some professional people outsourcing. If you got everything already, then why do you need to do business, right? On the other hand, what you don’t have, there is also a group of people who don’t have them, so who is more professional and focused becomes the key factors. Perhaps someone’s starting point be higher, but everyone has their own way, and there is no need to make unnecessary comparisons.
2. Bravely take your first step out. If you are already starting a business, then congratulations, you have already defeated 80% people. Why? Because more than 80% people have their own business ideals, but they are afraid to take the first step to do business. I have met too many people online and they have enthusiasm and ideals. But they took no action. These people accounted for 80% of the population, so you came out of them, you have already won the majority. As for the remaining 20%, most of them have never really thought about starting a business. They have never thought about what marketing is all about.
(the end)

As an entrepreneur, how to develop yourself when you have no money, no team? part 2

Third: The business model is simple and straightforward. Every business has its own business model. A good business model can be achieved immediately. The automatic business I made started to make money in the first month. After the Ads was released, there were many customers consulting and paying. And all the processes are very simple. From the customer’s initial understanding till their determination to buy, the whole process does not exceed three steps. Once there were specialist had analyzed that the more complex the business, the lower the willingness of customers to buy, and the simpler the business model, the greater the willingness of customers to purchase. It’s best not to exceed three steps from product selection to customer payment, and your customer conversion rate will decrease each step by geometric progression.
Fourth: Marketing. This is the hardest thing, and it is also the threshold that distinguishes most entrepreneurs. Your strong marketing strategy can represent the success rate of your business. I have heard many examples of good products that cannot be sold. Of course, I personally think that marketing is not so ridiculous, there are traces, there are even reference examples, I once wrote an article called how to make potential customers pay, you can see, basically wrote my core marketing methodology, these methods allow me to create and promote my own business without spending a penny.
Fifth: Products. When I put the product to the end, it does not mean that the product is not important. On the contrary, the product is very important. The quality of the product directly reflects the feasibility of your business. However, fortunately, the business I have created so far is still pretty good. In business, many buyers have even helped me to advertise themselves because they feel that they are really worth the money. What exactly is a good product? Let me decrypt it for everyone. If you are starting a business or have an idea ready for implementation, you can compare your product against the following three criteria to determine whether it is feasible or not.
1. High frequency of use
It means the frequency of use of a product must be the highest among the same type of product, for example, there are some people selling soup in the market, other people sell water, obviously the frequency of people who drink water is much higher than the frequency of people who drink soup, so you may hear a lot of big brands of mineral water, but you rarely hear about any big brands of soup. All these two are used for drinking, but due to the different frequencies of use, they get different results. This is the first criteria of a good product. You can rethink how often your product is used. If you don’t use it for once each year, then I suggest that you can give it up. Another example of high-frequency, the two most popular hotel and traveling websites have fierce competition between each other before, are now they are looking back and discovering that their biggest rival is actually Groupon , a food take-out websites. Very simple, the frequency of people use food delivery is much greater than the frequency of they use hotel and traveling, when the user’s frequency of use is high, the opportunity to add other products will increase, when the user habits were developed, then he will keep it. The frequency of use of the products will be the biggest feature and advanced competition edge that the product itself has.
2. The price
A: high price and B: low price
A:high price
The high price of a product means that your income is high, the selection of products is too important, and the meaning of the selection is what you choose to sell. Start-up business or small and medium businesses must pay attention to the selection of products, your selection of products determines the life and death of your business, and whether you have the confidence to stick to it. My personal suggestion is if you are selling a single product. The profit of each product is at least 200 dollars and 300 dollars, so that your sales pressure will be much lower. For example, if you want to earn a thousand dollars a day, you can sell 100 pieces with a profit of 10 dollars. Well, the average person’s idea is to sell small profits and sell cheap things, it can attract a lot of people to buy. But I think on the contrary, think about it, if you sell 100 items and you make 10 dollars profits, you will be more tired and more troublesome, and you need to explain your product to your customers. It will cost a lot of time. This is actually a problem. On the contrary, if you only need to guarantee that at least a single order in one day, there will be 100 dollars profits in one order, and even you deal one order in a single week, you can afford it. In this way, you only need to concentrate on solving the problems of a small number of people, and you will become very efficient. The most important thing is that you will be confident because you only need to guarantee one order per day. This is simple! And extra time can also be saved to operate other projects. Of course, there is another one of the most important factors. In fact, I rarely tell anyone! We all remember that apart from considering the cost of products, the time and energy you spend, there is one most important factor in product pricing that is used to filter customers! There is always a 20-80 percent rule in the world, 20% of customers bring you 80% of profits, and the other 80% of customers will only bring a small amount of profit and a lot of troubles. The higher the general product pricing, the higher the quality of the customers that are consuming and the easier it is to understand each other. It will become very efficient and will be pleasant in the later period. The customers who always are preoccupied, I usually give up. My principle is to rather earn less, and never add more trouble. why? Because our time is the most valuable thing, your today’s time spending determines your tomorrow’s development! You only need to spend energy on a few customers and serve those real customers. You don’t have to be exhaustive. Ok! If you use this principle, it will make your range of choices narrowed again and again. This is a high-priced strategy. In addition to thinking about how to make money, you also need to think about yourself.
B:low price
The meaning of low prices is not the low price of the products you sell, but the high price/performance ratio! For example, to achieve the same goal, customers need to spend 1000 dollars to buy some products, and yours only need 100 dollars here, then you have absolute competitiveness edge. For the customer, it is most important to achieve his goals when spending money, and the process of how to achieve this goal is negotiable. (to be continued)

As an entrepreneur, how to develop yourself when you have no money, no team? part 1

In fact, we must not think about making money to be a too complicated and heavy job, and we do not need to bet on all your assets. I have tried to lay out three business plans and spent two weeks preparing product and one month on business models. After that, an automatic business established, and this business now brings me a steady stream of income every month. And I only need to spend less than an hour each week to take care of this business. With or without money, the first thing an entrepreneur must do is to use his brains. When I was doing this business, I thought about a very interesting idea and spent a day doing it. Now about a year has passed and someone is still sending me money for this idea. In fact, business is so simple. Does it sound mysterious? Do not worry, I can decrypt some of the secret for everyone, maybe after you see it, you can set up your own exclusive business immediately. In fact, doing business do not need to be complicated. As long as your direction is correct, you can quickly establish an effective business model in a simple way.
First: Positioning, and looking for customers.
The first thing we did at the beginning of our business was to look for customers. It’s impossible for ordinary people to start a business and making money from all kinds of people. We can only quickly find our way into a certain business scenario, and find a specific group of people and solve specific problems. For example, at the beginning, someone put forward the concept of shampoo and began to make money. Later, the types of shampoo on the market increased, and the competition slowly formed the Red Sea. In order to stand out in the competition for homogenization, a new company has put forward the concept of anti-dandruff shampoo so that it is easy to distinguish it from other shampoos and solve another problem of different customer groups. Slowly, some companies have put forward the concept of shampoos for infants and young children. We imagine that if a company proposes its shampoo, it can be used as a hairdresser, it can also be dandruff, and it can also maintain the scalp. It is suitable for people of any age. It is a product that can be used by all human beings. Its strategy is to cover all the people. Such a product seems to be able to do anything. However, there is no clear target customer. Nothing works at all. There is no distinctive features. How would it be?
Therefore, we must have a clear positioning, at the beginning when you look for the users, you can first do a user portrait, such as the user’s academic qualifications, working hours, age groups, common problems and so on. At the beginning of the automated business that I did, I thought about the characteristics of the customers. According to these characteristics, I arranged the business plan. The results were similar to what I had expected. About 70% to 80% of the customers had their features in line with my previous judgments. There are even a lot of customers whose working hours, age groups, and problems are exactly the same as what I expected. Again, the first thing a successful business owner needs to do is positioning.
Second: Determine the market size of this business.
There are too many market segments in the world. Some business seems to have great chances at first glance, but when you do it, you only discover that the number of customers and the capacity of the market are very few. Maybe this business is a worldwide one. And only got one person, you doing it, but you may even get several dollars a day and the market size is just too small. When forecasting the market size, do not trust any industry reports or industry trends. Someone took the industry report of a project and told me that the prospect of this industry was huge, but later we analyzed it and really down into the real environment, you will find those markets that are at a scale of hundreds of millions, was just a shredded market, there may be only one thousand shares of the total in a certain area, and you will also face competition from unlimited businesses. For example, in the breakfast market, the breakfast market in X city has a scale of a few hundred million dollars. This is the prospect of the industry, but we generally cannot completely take away all the shares of X city. It may just start at a certain area. In a street with a service radius of no more than 1 kilometer, you may find that perhaps the market share that you can really get is only a few thousand dollars, but there are 7 or 8 similar restaurants that compete with you. The scale of the breakfast market for several hundred million in the X city did not have a relationship with us.
Ok, anyway, you must understand this truth. Before you do business, be sure to investigate and consult on how much market size your project can get clearly. This is a decisive factor in judging whether your business is worth doing or not. (to be continued)

My thoughts on passive income and my formula

When people see the word, passive income, for the first time and understand its meaning, they may be very excited, as if they have found a path that others have never known, bright, as if financial freedom is at your fingertips. However, they found that they could not even start it. Buying a house to rent it, you need tens of thousands of dollars to pay for the house price. You don’t have that much money, you buy a fund, the annual profits are too low, you can’t even win the inflation rate, and trading stocks are too troublesome.

However, everything has its intrinsic logic. Since there is a concept of passive income, there must be a reason behind it. There are too many people who talk about passive incomes. What they are talking about is nothing more than paying attention to savings, paying attention to investment, and saving some time to do a part-time job.

But these are all of no use. People who can make big money are never like this. Maybe you now have 5 figure income. You do the same thing every day. Maybe you will be able to do it more proficiently sooner or later, but is it possible to make 6 figures? Impossible. You have to make a difference and think differently. Only in this way you can embrace the 6 figures income, not with the static one. The point of passive income is to change the way you think about things. When you think of something and you need to think differently from ordinary people, maybe you have an illusion of dominance and then maybe you got a way out.

I remember when I graduated from college, I never had the idea of ​​making money or doing my own business, let alone the passive income. For me, a job in state-owned enterprises is the right track. Like many of my classmates in the same age, I began to look for a job after graduation. I later try hard to find a position in a designing institute of a state-owned enterprise. I was doing architectural design. I looked around at my colleagues, engineers and Chief engineers who were middle-aged and had grey hair. I have a spontaneous illusion, that maybe I will end my life here. I started from the bottom position as a technical staff. At that time, I worked overtime every day until very late. I often worked until one or two o’clock and others were all gone. The lights over my desk were always on and I was a little bit lonely. I was just thinking about designing and becoming a master of it and taking the lead. It was a pity that, at the end of the year, I discovered that my bonus was actually only 4 figures, a few thousand dollars. I never thought about buying a house and buying a car and running my own business before, but when my family called me to ask about the New Year’s affairs. By that time, I suddenly had a terrible fear. They thought that I was working in a very high-end company and industry and my income should be quite decent. I remember that I didn’t go home for the New Year that year. It may be self-respect. I told them that there is a big project that I need to do overtime during the New Year. In short, during that time, I began to think about the reality, whether it was important to become a master of architecture, or it was more important to become a rich man.

One day, I casually surfed the Internet and saw the book the poor dad and rich dad. I realized that there were such group of people in the world who actually make money without having to work. At that time, I was brewing, can I do something similar? Of course, afterwards, I did a lot of things. I read a lot of books. There are thousands of books I read. There were as many as ten kinds of business I did, and there were losses and gains, such as dining restaurant and washing machines, online sales of various documents, slowly got to know my own way. Later I began to write something. The process was smooth and magnificent. I remember when I received a profit of more than 8,000 dollars a day, I began to think that money making just should be like that. Ok, no bull shit. Here we go some real stuff.

First, what is passive income?

The passive income I wrote is only for the poor people who used to be like me. Those who have the money to buy a house or invest in stocks can bypass. For ordinary people, I think a reliable passive income is a reliable automatic business. And a reliable automatic business is built on a reliable trouble. The key to passive income lies in the word, passive, which means that you don’t have to spend much time and energy on it. Even if you don’t have too much income, while the effort is extremely low. That is also a qualified passive business.

For example, to open a convenience store, ordinary people’s first reaction is to find a community, do a good signboards, and then try to find ways to increase the products catalogue, and increase its feature products and highlights, such as selling imported products; price-reduced eggs? Or something new to attract more people? Or a more conspicuous store door. Don’t laugh, it’s you! Does this idea feel familiar? Actually, 99% of people in the world had such first response to how to do business. There were too many people who asked for knowledge of entrepreneurship on social medias. Their first choice and entrepreneurial thinking was like this, I was not kidding. Peoples’ most common ideas is simply thinking about which community to choose and what products to sell. It’s like turning around in a pit, but you can never climb out of such pit, because this kind of way of thinking has limited people in the pit. Ok, how can we get out of it? First of all, there must be a clear logical thinking, such as convenience stores (can be split into)=products being demanded + stable visitor traffics. These two points may be the basic components of a convenience store.

Then you need consider the key points of these two components. For example, products being demanded includes how to choose the products, why people buying these products, and what products different people may buy. Stable visitor traffics means thinking about the commonness of customers. For example, if they live in a community, they have common characters, white-collar workers, and white-collar workers who work together. These are commonness.

Well, after analyzing the two basic points, what we need to think about next is how to reach these two basic points. What is the most direct and quick way to solve it? For example, I place a vending machine at the entrance of the community or office building. This is also a convenience store. In fact, several years ago, I thought about putting a vending machine on the corridor of our office building or on the first floor. This is a natural closed environment. There is no convenience store around the office building. Even if there is, everyone will not bother to go out of the building. If you put some cigarettes and drinks in vending machines, there will be a steady cash flow. At that time, I even also calculated the quantity of cigarettes everyone demand, the frequency of drinking water and drinking beverages. Basically, it would be possible to get all your investment back within one or two months.

Actually, doing business equals using the simplest way to solve the most fundamental problems. To solve the same problem, the simpler the method used, the lower the cost, and the lower the time consumption, the higher the revenue will be, and more likely the reproducibility will be expanded. For example, to sell convenience products to people, you may choose opening a convenience store, or you may choose doing a vending machine. For example, to sell information to others, you can choose to sell physic books, you can also choose to sell eBooks. The difference between the ways you choose determines your future way. The process of entrepreneurship is the process of constantly updating to achieve the same result. The simpler, cheaper, and the more attractive your approach is, the greater chance of your success.

Second, the business foundation of passive income.

What is the foundation of a business, in short, traffic. In the final analysis, all business is based on traffic. Whether it is offline or online, for example, a vending machine is placed downstairs or in an office building, which is a business, and the number of residents in the community and office workers in the office building, is the traffic of business. You need to find the commonness of the customers, in turn, the commonness determines the type of products and the business model. In the end, what to do, it is better to start from the areas you are familiar with, or you just develop a kind of feeling slowly. I remember half a year ago I once wrote about how to do a low-cost waste paper recycling business, the results shows soon after the waste paper recycling business works because of the increasing need for express delivery. However, many things have such unclear intuition. If someone had done so, they might have earned it.

In short, a good passive income business=simple, low cost, less time consuming business model + stable targeted traffic.