Wealth strategies for small businesses - income or equity?
Pavlo Phitidis, Founder - Aurik Business Accelerator, tells The Money Show about wealth strategies for business.
But first we need to know what the difference between income or equity is.
An income business means that you're going to apply your time through a skill to generate revenue in the instant that you apply your time - like a masseuse, a consultant, a plumber - it's people who have to show up for the work. Giving value to the moment. And if you get sick or you're not there - you don't get paid.Pavlo Phitidis, Founder - Aurik Business Accelerator
The equity strategy is creating a system to do what you do. A system effectively finding customers, delivering a service or product and administering the relationship with the customers. If you're going to build a system on your behalf that system lends itself to equity - equity value as opposed to income value. The business carries its value and expresses itself once the business is sold. So you earn your income at the end of the event as opposed to every transaction.Pavlo Phitidis, Founder - Aurik Business Accelerator
Listen to the full sound clip below.
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