Always give yourself two or more exit strategies from any deal. If you have one main exit and that doesn’t work, you will need the other exits to fall back on, otherwise you have no easy way out without incurring financial risk and hitting the bottom line.
When setting up a business, don’t let the high set up costs force you into a finance deal that will hurt your cash flow going forward. Try to think creatively – one of my businesses has given me passive income from year 2 which was way ahead of the market average. This was achieved by buying and selling used equipment, thus enabling me to reduce my setup costs by over 70%. This gave the business a much better chance of surviving from the outset.
When flipping anything, whether it be small items or houses, think about the end value and work back from there. First take off the profit you’re looking to achieve, then all costs involved in the transaction. This will help you ascertain what you can pay for the item.
Always make an offer on something you’re interested in, even if it’s way below the sellers asking price. Sometimes you can leave an offer with someone, their circumstances may change so their expectations on price will be lower – suddenly the deal could become yours.
Tell everyone what you do. Once you have a proven track record, you’ll be surprised how many opportunities will find you, rather than you having the hunt them out.
I will typically invest in a location where I have a trusted relationship, rather than where a particular property deal is located. When you are running a scheme remotely, it is much easier to manage when you have have someone you can trust on the ground in that location.
Don’t pigeonhole yourself to one strategy. In property I believe that you should be open to multiple strategies – failure to do so might mean that you pass on a great commercial conversion because you are only looking for rent to rent for example. Also you should always have two or more exits to any deal – so focusing on one strategy can be a dangerous approach if plan A doesnt work out and you haven’t built the property to be easily convertible to another exit.
In order to scale your business and increase your potential to earn more income, you need to learn how to leverage other people’s time and money. Outsourcing tasks to others is something I found challenging in the beginning and still struggle with today, however you soon realise that your own time is better utilised on higher revenue generating tasks.
“Subscribe to my YouTube channel to learn about the different revenue streams and also to watch our ‘£zero-100k’ journey, in which we flipped all types of items, taking us from zero cash to the purchase of a house and much more in less than 12 months.”