The more you invest in your franchise businesses, the more money you’ll make over time.
Compounding your businesses delivers:
- an accelerated source of revenue
- greater asset base over time
- much needed diversification to your wealth portfolio
Sample Scenario:
Imagine the following: Five years ago (December, 2004), you had $100,000 to invest. Your four different investment vehicles included:
a bank cd
the stock market
real estate
small business ownership
Which of those four investment vehicles do you think would win using the historical data from the past five years? If you guessed small business ownership, you would be correct. And significantly wealthier.
Strategy: Growth and Income
By reinvesting a portion of your profits, you increase the number of businesses you own. This compounding nature of small business ownership grew to $600,000. The nearest competitor, real estate, came in with a gain of $200,000.Compounding Businesses increases wealth
Notice what happens to your investment of $100,000 as you employ "The Magic of Compounding Businesses" approach as you acquire more franchises using the following Growth Only investment strategy.Wealth 3.0: Strategy 2 – Growth Only
In the small business scenario, each small business costs $50,000 (including franchise fee, opening expenses, and operating capital for the first year), and each business generates a net profit of $25,000 each year.
Look what happens when you reinvest:
1. Growth and Income. Take some profit out, re-invest some portion. After 5 years own 6 businesses. Investment worth $600,000
2. Growth Only. Reinvest all profit. After 6 years own 14 business. Investment worth $1,050,000
Interested in a more thorough analysis? Download Tim’s charts below:
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