Another excerpt from my book, How to make money virtually.

There are two people who get into business: one group are those who want to have an avenue to showcase their talent and passion for their chosen niche, whilst the other one are those who are looking for means to free themselves from financial bondage. Either way, whether you’re in business for passion or better financial position, you have one common goal: you want to earn some income.

Indeed, business can be liberating, and, as a matter of fact, can give you both worlds. I am in business because I have talent and perhaps passion in helping out other people. I’ve seen the need of other business persons for individuals who can help them out in their business, may it be in marketing, administrative support, or even logistics. I give them the solutions that they need. On the other hand, with great determination to succeed and effective marketing and financial strategies in place, I can enjoy complete financial freedom. My home base is in London, but I live part of the year in the Philippines. Hence, I tend to travel several times in a year. I also get to pursue other activities, together with my wife. She herself, doesn’t have to actually leave behind her health care duties. Most of all, we can send our children to school, purchase a comfortable house, and meet our daily wants and needs. And if these weren’t enough, I’m so happy that I am able to give jobs to several Filipinos who have families themselves and are dependent on the business for sustenance.

But income will only be good for you if you know how to effectively manage it. And for you to do that, you need to enrich your mind with the basic concepts relating to income, the different kinds of income, how you can generate a steady flow of it for your business, and how to efficiently manage your cash flow so you don’t end up broke without you knowing it.

Defining Income

Income can mean a lot of things for someone. It can mean the sum of everything you earn, such as your wage, interest payments, salaries, and even your rent. If you’re in business, you express income based on the net profit—that is, how much you earn after deducting your revenue with your expenses. Meanwhile, on the economic perspective, it is the summation of both monetary and non-monetary values. And the list goes on and on. You can even come up with your own definition of income. However, there’s only one thing for sure. Income means something good to you. It means that you have money or investments that you can make use of, so you will be able to expand your business, pay all liabilities, and still live comfortably. Now, who doesn’t want income then with that? I guess no one.

Copyright 2008