Monday, February 16, 2009

What is a Cash Flow Business

A cash flow business is one that you set up with the direct intention to bring in funds automatically with the ultimate goal of creating income and investment funds. Wealthy individuals maintain several cash flow businesses so that money is continually being brought in. These businesses work for them instead of the other way around.

Here are a few examples of ways that these individuals are creating wealth :

1) Online businesses
2) Real estate that actually brings in an income
3) Stock investments
4) Commodities
5) Dividend Funds

The purpose of a cash flow business is both wealth accumulation and peace of mind. Imagine knowing that whether you are on a trip or out to sleeping soundly that money is continually being brought in. You do have to oversee it but you don't have to run it.

You can hire others to run the business or find businesses that merely require you to advertise for them. The amount of work that you put in is completely dependent on your personal objectives. The same can be said for cash flow investments. You can study and invest yourself or you can find funds with consistently large returns and have them invest for you.

A great book to read that really shows you how to create a hands off cash flow business is the Four Hour Workweek. He shows you how to pick a business and how to have it up, running and on automatic pilot within 60 days. I re-read this book every time I get ready to create a new cash flow business. I also act as a consultant for an investment firm and have learned a lot about how to find money managers that consistently earn returns of 20% or more each year for their clients. What most people don't know is that you can find this information yourself online.

Remember to do your due diligence before making any type of investment. Managed funds are a great way to earn high interest rates without having to constantly monitor your investments yourself. Just research the managed fund carefully before investing and look at how they calculate their rate of return. Also look at what type of commissions that they charge.

Cash flow businesses and investments are out there if you know where to look. Find a cash flow business or several of these businesses and investments that meet your needs in creating both a high automatic income and a life that you can truly enjoy.

Caterina Christakos is a published author and entrepreneur.Looking for a product to sell that pays high commissions and has an automated marketing system in place, including a ton of co-ops? Check this out: http://ezycashgifts.com/?f=cowboy399

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