If you are interested in starting an online home business, or taking over one, you face a daunting task that carries a level of risk and excitement not possible in the 'employee' world.
If the financial independence of self-employment appeals to you - no boss, no income limits as to time and wage, and the ability to let your personal drive determine your compensation - then you will no doubt be eagerly going over the many options available to release you from your current job.
However, the rush of financial excitement must be tempered by the necessary cost of time, money and effort in properly setting yourself up independently.
Despite income claims made by business opportunity companies, or competing businesses, you must be ready to accept the reality of not seeing personal income for several months - or even years.
Starting a self-employed online home business on the side, while keeping regular employment as your financial security, is a wise method of ensuring your income.
Another option is to have substantial savings that permit you the freedom to pursue your dreams unencumbered with other employment. However, the savings must also be capable of carrying the costs of developing an online home business along with providing for your material needs.
Do you also recognize the time that is required in starting your own online home business? In some ways it is almost unnecessary to bring up the point since your passion will likely drive you to spend many hours in your pursuits. If you have other obligations; family, job, social etc. then you will have to consider if you CAN devote the time needed to get your online home business off the ground.
Having discussed both money and time, you must recognize that there is much more effort extended BEFORE a business is profitable than at any other time in your business. Yes, once you are getting work and are satisfied with the income level you may be very busy indeed but you will then be compensated for it. When you are still cultivating your business - marketing, doing free jobs, searching for clients and customers - you may not be seeing any income, or a very meager one, which makes your EFFORTS seem immense.
Do not falter! If you come to the point when you are working your hardest and doing everything your online home business requires but still not seeing monetary results, you may hit a psychological wall. This is where truly entrepreneurial individuals see an obstacle to overcome as opposed to a dead-end to their hard work. Passion for their work and the strong desire to work for themselves overcomes any perceived barriers and moves them to keep going and ultimately becoming very successful.
By persevering you will certainly see the fine fruits of your labors and prove to yourself and others that the benefits of self-employment far outweigh the mediocre status quo of the typical worker's daily grind.
Friday, September 24, 2010
New Internet Home Business
Starting your own internet home businesscan be a very fulfilling experience. It offers many new and exciting challenges, with the hopes of providing financial security for you and your family. To this end, a home businessalso requires a serious commitment and can easily consume a large portion of your time if you don't plan properly.
While searching the internet for business opportunities, you've undoubtedly encountered claims of how working only a few hours per week can result in a successful home business. Although it is true that after your business is established you could potentially devote less time towards it, this is not normally the case in the beginning.
If you're new to internet marketing or the home business industry, you should initially plan on spending at least 2-3 hours per day researching your products and developing your website. You should try committing even more time if you're not working a day job or have other obligations prohibiting you from doing so.
Believe it or not, one trap to avoid is spending too much time on your business It's very easy to become immersed in your business because there is always something to do--a new product to review, updating your website, responding to emails, etc. Before you know it, you won't have time for anything else.
This can be especially problematic when you have a family. For many of us, the benefit of spending more quality time with our family was the reason we started our home business to begin with! Because so many new home business owners struggle between spending time with their families while trying to get their business off the ground, I offer the following tips.
1. Take one entire day off per week. Yes, this means NO WORK. Spend time with your family and friends and as far away from your business as possible. Believe me, the business won't go anywhere. Plus, the day off will help to alleviate burn out. If you've worked more hours than usual in a particular week, take two days off.
2. Set aside 1-2 hours every evening for family time. From 5:30-7:00, for example, you could have dinner with the family, help the kids with their homework and squeeze in time for walking the dog. If possible, try to choose this same time everyday. A structured schedule will allow you to better plan your time.
3. Stop working at a specific time every evening and stick to it. For example, you can turn off your computer every night at 10:00 p.m. You can use this time to catch up on the news and tend to other personal matters. This is also your time to relax and unwind from a hard day's work.
Learning to manage your time is critical to a successful business and living a full and happy life. There's nothing wrong with being dedicated to your business, but your family should be your first commitment. Make time for your spouse, children, parents and friends now, because before you know it, you'll be wondering where the time went.
website needed more targeted traffic
There's nothing new about using joint ventures to get traffic to websites. And good information is freely available from many internet marketing sites on how to set up JVs.
This article is for the 97% of webmasters who aren't aware of a particularly powerful JV partner who already exists, and is willing to work with you.
Before I reveal all, let me just check.....
Like me, I would image you'd be happy if:
? Your JV partner's site gets huge traffic.
? The vast majority of page views are by targeted traffic.
? You can create links wherever YOU like from their site.
? You can start now. There's no delay in setting up the JV.
? The JV continues as long as you want.
? It costs you pennies to set up and run.
Does that sound like it's what you're looking for in a JV?
If so, welcome to eBay. You're new joint venture partner.
But I Thought....
"eBay?" I hear you ask, "Isn't eBay just an auction site?"
Well, it certainly started as an auction site. Today, eBay is an ecommerce phenomenon.
? eBay's 1.5 billion page views puts it in sixth place on Alexa traffic rankings. Ahead of Amazon, AOL and CNN.
? eBay members make 79 million targeted searches for items each day.
? There are 35,000 categories within which to place items for sale.
? There are eBay auction sites in 27 countries.
? eBay has 168 million registered users.
? 117,000 new members join eBay each day.
What we have here is a hugely successful internet business with massive traffic. And, thanks to eBay's sophisticated categorization and searching mechanisms, the traffic is totally targeted.
More importantly, there are several smart ways to drive eBay's targeted traffic to your own website. All of these clever methods add up to what I call the eBay Traffic Funnel.
Does it work? Well, I sell a communications product from my website. I run 5 simple auctions in the appropriate categories using the principles of the eBay Traffic Funnel. Each auction costs me 30 cents and runs for a week. I get around 300 targeted leads from these auctions to my website every week. Not bad for one dollar fifty!
Let me show you just one of the ways to get hold of that targeted traffic...
Sell, Sell, Sell
First of all, you make eBay part of your marketing mix. You start selling your products on eBay.
Why do I say this? Well, eBay isn't just for mom and pop businesses anymore. IBM, Disney, Motorola, Xerox and Dell, are just a few of the major corporates that now use eBay as an additional sales and lead generation channel.
Creating eBay auctions is easy. Anyone can do it - literally. But if you don't want to learn, you can use a Trading Assistant. These are eBay experts who will create, run and manage auctions on behalf of others for a percentage of sales or a small fee.
When you set up your auction one of the decisions you make is in which category to place your item. This is important. Visitors to your auction page - just by being there - have self qualified themselves as being in the market to buy products in that category. This is targeting in real time.
But merely creating the auction isn't the trick. Here's the key tip. In your auction page, make sure you tell your viewers that if they've any questions about your auction, your products or your policies, they should email you. And encourage them to do this by having a live email link in your auction.
As soon as they make contact with you, you've acquired a targeted lead you wouldn't have got any other way. You can start building a relationship. You can get them on your list, direct them to your website and start selling to them.
This is one example of how setting up a JV with eBay can produce significant results. There isn't another business on the web that gives you access to the targeted traffic eBay supplies for the price of a few pennies. Best of all, 97% of webmasters have yet to realize the power of this.
The opportunity for you and your website is there for the taking.
This article is for the 97% of webmasters who aren't aware of a particularly powerful JV partner who already exists, and is willing to work with you.
Before I reveal all, let me just check.....
Like me, I would image you'd be happy if:
? Your JV partner's site gets huge traffic.
? The vast majority of page views are by targeted traffic.
? You can create links wherever YOU like from their site.
? You can start now. There's no delay in setting up the JV.
? The JV continues as long as you want.
? It costs you pennies to set up and run.
Does that sound like it's what you're looking for in a JV?
If so, welcome to eBay. You're new joint venture partner.
But I Thought....
"eBay?" I hear you ask, "Isn't eBay just an auction site?"
Well, it certainly started as an auction site. Today, eBay is an ecommerce phenomenon.
? eBay's 1.5 billion page views puts it in sixth place on Alexa traffic rankings. Ahead of Amazon, AOL and CNN.
? eBay members make 79 million targeted searches for items each day.
? There are 35,000 categories within which to place items for sale.
? There are eBay auction sites in 27 countries.
? eBay has 168 million registered users.
? 117,000 new members join eBay each day.
What we have here is a hugely successful internet business with massive traffic. And, thanks to eBay's sophisticated categorization and searching mechanisms, the traffic is totally targeted.
More importantly, there are several smart ways to drive eBay's targeted traffic to your own website. All of these clever methods add up to what I call the eBay Traffic Funnel.
Does it work? Well, I sell a communications product from my website. I run 5 simple auctions in the appropriate categories using the principles of the eBay Traffic Funnel. Each auction costs me 30 cents and runs for a week. I get around 300 targeted leads from these auctions to my website every week. Not bad for one dollar fifty!
Let me show you just one of the ways to get hold of that targeted traffic...
Sell, Sell, Sell
First of all, you make eBay part of your marketing mix. You start selling your products on eBay.
Why do I say this? Well, eBay isn't just for mom and pop businesses anymore. IBM, Disney, Motorola, Xerox and Dell, are just a few of the major corporates that now use eBay as an additional sales and lead generation channel.
Creating eBay auctions is easy. Anyone can do it - literally. But if you don't want to learn, you can use a Trading Assistant. These are eBay experts who will create, run and manage auctions on behalf of others for a percentage of sales or a small fee.
When you set up your auction one of the decisions you make is in which category to place your item. This is important. Visitors to your auction page - just by being there - have self qualified themselves as being in the market to buy products in that category. This is targeting in real time.
But merely creating the auction isn't the trick. Here's the key tip. In your auction page, make sure you tell your viewers that if they've any questions about your auction, your products or your policies, they should email you. And encourage them to do this by having a live email link in your auction.
As soon as they make contact with you, you've acquired a targeted lead you wouldn't have got any other way. You can start building a relationship. You can get them on your list, direct them to your website and start selling to them.
This is one example of how setting up a JV with eBay can produce significant results. There isn't another business on the web that gives you access to the targeted traffic eBay supplies for the price of a few pennies. Best of all, 97% of webmasters have yet to realize the power of this.
The opportunity for you and your website is there for the taking.
Personal Protection Information
We are living in dangerous times. To know this, all you have to do is flip on the television, the radio, or read your local newspaper to hear one horror story after another. No matter where you live, or what you do for a living, everyone is at risk. Understanding what personal protection is and how you can use it to stay safe should be a primary concern for everyone.
Literally, from the moment you wake up in the morning, anything can happen. From being assaulted on your way to work, to your wallet and/or purse being lifted, or to walking in on a robbery in progress when you just wanted a cup of coffee. Crime happens not just everywhere, but it happens all the time. To be sure of your personal safety, you have to realize you are not living in a bubble.
So, what do you do to protect yourself? The first answer sounds simple. Be aware of your surroundings. No matter how secure you may feel at any given time, always be on the lookout for anything out of the ordinary, any potential of something unsafe. Some general tips are:
Be aware of where you park your car. Always park in a well-lit area as close to the building you are entering as possible. Remember, what looks secure during the bright light of day may not be a safe place once dark.
Do not leave your keys in your purse or pocket when approaching your vehicle. Have them in your hand and ready. Not only will this allow you a quicker entry into your car if there is a problem, but also keys can be used as a self-defense weapon if necessary.
If someone looks suspicious to you, avoid him or her. Do not feel silly for stopping at a very public, secure place until the person moves on. This is especially important if you are out walking or jogging by yourself. Also, always vary your schedule when possible, from the time you head out the door to the path you take.
Do not be an easy target. If you walk with your eyes on the ground, it is obvious you are not paying attention to your surroundings. If you have headphones on with music blaring in your ears, you may not hear someone approach you until it is far too late to be proactive in your self-defense.
The above tips will help you in staying safe, but what do you do if/when your personal security is violated? There are personal protection devices widely available. Find a reliable source of information and learn all you can. Once comfortable, make the choice of which devices you will use. These could include anything from a basic stun gun, pepper spray, mace, a personal protection alarm, and/or many other types of protection devices, from alarms to weapons. When you have made your choice, keep the devices on you, or within easy reach, at all times.
Remember, personal security is something we all have to be concerned with. Be aware. Be vigilant. Be ready to defend yourself if the need arises.
Literally, from the moment you wake up in the morning, anything can happen. From being assaulted on your way to work, to your wallet and/or purse being lifted, or to walking in on a robbery in progress when you just wanted a cup of coffee. Crime happens not just everywhere, but it happens all the time. To be sure of your personal safety, you have to realize you are not living in a bubble.
So, what do you do to protect yourself? The first answer sounds simple. Be aware of your surroundings. No matter how secure you may feel at any given time, always be on the lookout for anything out of the ordinary, any potential of something unsafe. Some general tips are:
Be aware of where you park your car. Always park in a well-lit area as close to the building you are entering as possible. Remember, what looks secure during the bright light of day may not be a safe place once dark.
Do not leave your keys in your purse or pocket when approaching your vehicle. Have them in your hand and ready. Not only will this allow you a quicker entry into your car if there is a problem, but also keys can be used as a self-defense weapon if necessary.
If someone looks suspicious to you, avoid him or her. Do not feel silly for stopping at a very public, secure place until the person moves on. This is especially important if you are out walking or jogging by yourself. Also, always vary your schedule when possible, from the time you head out the door to the path you take.
Do not be an easy target. If you walk with your eyes on the ground, it is obvious you are not paying attention to your surroundings. If you have headphones on with music blaring in your ears, you may not hear someone approach you until it is far too late to be proactive in your self-defense.
The above tips will help you in staying safe, but what do you do if/when your personal security is violated? There are personal protection devices widely available. Find a reliable source of information and learn all you can. Once comfortable, make the choice of which devices you will use. These could include anything from a basic stun gun, pepper spray, mace, a personal protection alarm, and/or many other types of protection devices, from alarms to weapons. When you have made your choice, keep the devices on you, or within easy reach, at all times.
Remember, personal security is something we all have to be concerned with. Be aware. Be vigilant. Be ready to defend yourself if the need arises.
Home Based Business
There are a lot of internet home based businesses, but there are only few profitable and successful ones.
Some people have tried to start a home based business, but have failed. A lot of people would like to start ahome based businessand earn income from home and have a good lifestyle and spend time with their beloved ones. However, lack of knowledge about the best home based business to start and how to make it successful stops many people to start a home based business.
If you want to start a successful home based business, or if you have already just started one which is not making any progress, outlined below are the 4 mistakes you must avoid which are or can potentially make your business fail.
1. A poorly designed and ineffective website. Your website must make you money, so you need a website that is good at presenting your product or service. Internet home based business owners waste time and money creating websites that are full of flashing icons, music, moving graphics. Some websites are so full of these things that visitors simply get confused and 'irritated' by these things and they leave the website and move onto the next one. Granted, a nice website is important for you to succeed with your home based business. But you will need more than just a nice website to make money. A simple, sleek and professionally designed website is what you will need to make money online.
2. Invisibility in search engines. Ranking top at search engines is very important if you want to succeed with your home based business. If search engines can not find, then not many people will know that your business exists. You will have a lot of competitors, so you must make the effort to learn how to improve your ranking on search engines. This is a very broad and detailed topic which requires a separate discussion altogether; but it is highly recommended that you learn about how to improve your search engine raking. It is also a good idea to get some ideas or help from search engines experts.
3. Lack of targeted traffic. Traffic is critical for the success of your online home based business. If you do not have traffic, your business will definitely fail, because you will not make any sales. This point is related to the search engine ranking discussed above.
In addition to search engines, how else can you drive traffic to your website?
? Create links to your site by participating in relevant forums.
? Write and distribute high quality articles that have your keywords and the author's profile with a link to your website, thus creating links back to your website.
? Write effective press releases that journalists will just like to publish.
? Have high quality and unique content on your home based website. Your website must provide a lot of useful information that can make your visitors stay longer, get some 'benefits' from your site, and buy from you.
4. An ineffective sales copy that does not make sales for you. You must have a sales copy that creates sales for you, otherwise you will not make any sales and your home based business will simply fail. An effective sales copy is one that is informative, persuasive, interesting, motivating, and that will make the prospect buy from you. Offer some bonuses. Present some testimonies from satisfied customers. Have various payment options to suit different customers. If you can not prepare a sales copy that has 'the punch' and able to create sales for you; then hire someone to prepare one for you. The success of yourhome based business depends on an effective sales copy, so if you neglect this, you are doomed to fail.
If you want your home based business to succeed, avoid the 4 mistakes stated above. By simply doing the right things that can help you get traffic to your website, you will be successful with your home based business.
Starting A Home Business
Starting A Home BusinessYou've probably heard it said that entrepreneurs are a special breed. Some observers have even gone so far as to say that entrepreneurs are born and not made, or at least that their early environment predisposes them to business success.
We agree that to succeed in your own business, you have to have the "right stuff." But today we live in an age of information, and almost anyone can acquire the knowledge and skills of a successful entrepreneur. All you need is to be sufficiently committed to start and run a profitable business from home. Men and women of all ages and backgrounds have done it. Some were successful corporate professionals before they started their businesses. They had confidence, and skills in selling, marketing, and managing a business when they began. But others were total novices, fearful of business basics like selling and negotiating.
So what was the "right stuff" for them? What did it take to achieve business success? We've met many people who found an answer, but there wasn't any one way. However, many interviews do indicate that by the time entrepreneurs achieve success, they have several things in common:
1. They enjoy what they're doing enough to keep going when times are rough.
2. They are good at what they do.
3. They specialize, providing a product or service that a particular group of people wants or needs.
4. They have learned how to sell themselves and their businesses. They know how they measure up to their competition, why their prospective customers should come to them, and how to let people know what they have to offer.
5. They stay in charge of their money.
6. They are flexible enough to adapt to unforeseen circumstances and adjust their workday to the demands of the business.
7. They believe in themselves and are sufficiently committed to their work to persist until they get the job done right.
Success depends on finding the right combination of your personal preferences, talents, and skills to meet the needs of the marketplace, and then having clearly defined business goals and an effective plan for reaching them. It's like putting together the pieces of a puzzle, starting with selecting the right business for you.
Will you succeed? That, of course, depends on you, but the odds are surprisingly in your favor. Contrary to the myth that nine out of ten new businesses fail within five years, home businesses do much better. Analysis of data from Link Resources, which does an annual survey of the work-at-home population, indicates that on average only 5 percent of home based businesses go out of business each year. This means that over a five-year period, three out of four home-based businesses are still in business.
Why do home businesses do better than office and store-based businesses? Probably because the risks of loss are fewer. There's no lease, and probably no employees, so the cost of staying in business is less. Add to this the fact that if you choose a business that you like doing, you're more apt to persist at it even with a lower return. Also, it is notable that while there may be many who might say, "I tried a home business," like business opportunity buyers who never open their business-in-a-box, these are people who don't do enough to be counted in a survey, such as getting a business license, a Yellow Page listing or joining a trade or professional association.
Virtually any of hundreds of businesses can be started from home. The only limitations are the space you have available and any legal restrictions that may apply. So the question is not so much "What's possible?" as "How do I select a business that has success potential and is right for me?" To answer this challenging question, here are four different roads you can take:
1. Starting a business on your own.
2. Buying a franchise you can start at home
3. Joining a direct sales organization.
4. Buying a business opportunity.
We agree that to succeed in your own business, you have to have the "right stuff." But today we live in an age of information, and almost anyone can acquire the knowledge and skills of a successful entrepreneur. All you need is to be sufficiently committed to start and run a profitable business from home. Men and women of all ages and backgrounds have done it. Some were successful corporate professionals before they started their businesses. They had confidence, and skills in selling, marketing, and managing a business when they began. But others were total novices, fearful of business basics like selling and negotiating.
So what was the "right stuff" for them? What did it take to achieve business success? We've met many people who found an answer, but there wasn't any one way. However, many interviews do indicate that by the time entrepreneurs achieve success, they have several things in common:
1. They enjoy what they're doing enough to keep going when times are rough.
2. They are good at what they do.
3. They specialize, providing a product or service that a particular group of people wants or needs.
4. They have learned how to sell themselves and their businesses. They know how they measure up to their competition, why their prospective customers should come to them, and how to let people know what they have to offer.
5. They stay in charge of their money.
6. They are flexible enough to adapt to unforeseen circumstances and adjust their workday to the demands of the business.
7. They believe in themselves and are sufficiently committed to their work to persist until they get the job done right.
Success depends on finding the right combination of your personal preferences, talents, and skills to meet the needs of the marketplace, and then having clearly defined business goals and an effective plan for reaching them. It's like putting together the pieces of a puzzle, starting with selecting the right business for you.
Will you succeed? That, of course, depends on you, but the odds are surprisingly in your favor. Contrary to the myth that nine out of ten new businesses fail within five years, home businesses do much better. Analysis of data from Link Resources, which does an annual survey of the work-at-home population, indicates that on average only 5 percent of home based businesses go out of business each year. This means that over a five-year period, three out of four home-based businesses are still in business.
Why do home businesses do better than office and store-based businesses? Probably because the risks of loss are fewer. There's no lease, and probably no employees, so the cost of staying in business is less. Add to this the fact that if you choose a business that you like doing, you're more apt to persist at it even with a lower return. Also, it is notable that while there may be many who might say, "I tried a home business," like business opportunity buyers who never open their business-in-a-box, these are people who don't do enough to be counted in a survey, such as getting a business license, a Yellow Page listing or joining a trade or professional association.
Virtually any of hundreds of businesses can be started from home. The only limitations are the space you have available and any legal restrictions that may apply. So the question is not so much "What's possible?" as "How do I select a business that has success potential and is right for me?" To answer this challenging question, here are four different roads you can take:
1. Starting a business on your own.
2. Buying a franchise you can start at home
3. Joining a direct sales organization.
4. Buying a business opportunity.
Business Planning Necessary For A Home-Based Business
To be successful over the long haul, every one-person business needs to do some planning. The more organized the planning - the better the choices you will make. It is not necessary for you to have a full-blown business plan, like the ones used to raise hundreds of thousands of dollars for the start-up and growth of businesses with a lot of employees. For the one-person business a simple business plan will suffice.
Do you really need a business plan? It really depends on the nature of your business. A business plan is a product, and if you see it that way, whether you're in a service business or a product business, you will begin to see the value to the product. Like a product, a business plan is only valuable if it's used. A business plan is really an objective written estimation of what you think is going to happen in the future based on your understanding of the current situation and what has happened in the past.
As you accumulate a history in business, whether you know it or not you begin to accumulate knowledge and data on who your market is. You also accumulate financial information even if you do not have financial statements.
The importance of doing a business plan is the process in and of itself. It's not because experts say you have to do it or a bank says you have to do it, though that may be one way to use it. The reason to do a business plan is that the very process of going through a series of questions about your business will force you to audit the current situation and think about the future - to think strategically.
Whether it's used for starting a new business or growing an existing one, the first step in any business plan is to become familiar with your personal financial condition. What is your net worth? What does your personal budget look like? How much do you need to feel financially secure? The second step is to begin looking at how much cash you will need to start or expand. Is it a realistic amount? Where can you raise the cash you need? With the answers to these questions in hand, your final step is to incorporate them into the business plan itself, which will become the blueprint for the future of your business.
Tip: Calculate Your Net Worth
One of the most powerful steps you can take to understand your financial condition is to calculate your net worth. If our economic life is about the accumulation of wealth (as economists say it is), then to understand our economic life we need to understand our wealth: where it comes from, what forms it takes, and how much of it is available for us to use in starting and running a one-person business.
Accountants have come up with a quick and simple way to help us understand our personal wealth. It's called the balance sheet statement, or statement of net worth, or, What you own and what you owe. Basically, the statement of net worth is created by writing down the value of everything you own and everything you owe and then subtracting what you owe from what you own to see what the difference is. This difference is called your net worth.
Do you really need a business plan? It really depends on the nature of your business. A business plan is a product, and if you see it that way, whether you're in a service business or a product business, you will begin to see the value to the product. Like a product, a business plan is only valuable if it's used. A business plan is really an objective written estimation of what you think is going to happen in the future based on your understanding of the current situation and what has happened in the past.
As you accumulate a history in business, whether you know it or not you begin to accumulate knowledge and data on who your market is. You also accumulate financial information even if you do not have financial statements.
The importance of doing a business plan is the process in and of itself. It's not because experts say you have to do it or a bank says you have to do it, though that may be one way to use it. The reason to do a business plan is that the very process of going through a series of questions about your business will force you to audit the current situation and think about the future - to think strategically.
Whether it's used for starting a new business or growing an existing one, the first step in any business plan is to become familiar with your personal financial condition. What is your net worth? What does your personal budget look like? How much do you need to feel financially secure? The second step is to begin looking at how much cash you will need to start or expand. Is it a realistic amount? Where can you raise the cash you need? With the answers to these questions in hand, your final step is to incorporate them into the business plan itself, which will become the blueprint for the future of your business.
Tip: Calculate Your Net Worth
One of the most powerful steps you can take to understand your financial condition is to calculate your net worth. If our economic life is about the accumulation of wealth (as economists say it is), then to understand our economic life we need to understand our wealth: where it comes from, what forms it takes, and how much of it is available for us to use in starting and running a one-person business.
Accountants have come up with a quick and simple way to help us understand our personal wealth. It's called the balance sheet statement, or statement of net worth, or, What you own and what you owe. Basically, the statement of net worth is created by writing down the value of everything you own and everything you owe and then subtracting what you owe from what you own to see what the difference is. This difference is called your net worth.
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