Page 244 - merged.pdf

CHAPTER 8 MASTERING YOUR MONEY

As your company grows and your cash reserves build up,
you can then begin converting your variable costs to fixed
costs, which tends to be lower. Although variable costs require
a much lower startup capital, it tends to be more expensive,
since you are paying on a project basis. For example once
we had enough capital, we began acquiring my own training
centre and hiring full time staff.

3) Outsource Your Work
Imagine that you want to start an advertising agency. You
know that it would costs hundreds of thousands of dollars to
acquire an office, purchase computers, copiers and other
office equipment. You would also need at least $50,000 a
month to finance a team of copywriters, art designers, media
planners and an administrator before you can secure your
first customer.

Is there a way to start such a business with minimal capital?
Yes! Outsource your entire operations to freelancers working
in a different country! With the power of the Internet and
technology, you can actually outsource any part of your
business operations to a team of professionals working in a
different country (e.g. India, China, UK, Malaysia etc…) at
a fraction of the costs!

For example, if you secure a contract to conceptualize, design
and execute a series of advertising campaign for your clients,
you can actually go to an online marketplace for freelancers
like www.elance.com or www.workaholicsforhire.com. Post
your project details, make a selection and award the contract
to the best team that meets your requirements. When the work
is done, you can charge your clients $20,000 in creative/design
and consulting fees and pay your freelancers $10,000
(as an example), making you a net profit of $10,000 (50%

SECRETS OF BUILDING MULTI-MILLION DOLLAR BUSINESSES 235