Thinking Like a Business Owner

Many businesses fail because of the misguided mindset of only taking steps forward. When building a business, there are two processes: sales (steps forward) and buying inventory (steps backward). Everyone wants to see money coming in but many hesitate when it comes time to see some money go out; even if the “backward” motion means a continual increase to the overall amount of money that comes in. Operating a Paparazzi business is no different.
Any successful business will take more steps forward than backward but they still must take those backward steps. This is considered reinvesting and it is crucial as you work toward your goal of financial freedom.

Let’s take a look at an example of reinvesting with a goal of earning $1000 per month of disposable income:

Step One: You start with a $300 Starter Kit and receive 100 pieces of inventory. In the first month, you sell 60 pieces for a total cash intake of $300.
Step Two: You reinvest the $300 you earn and purchase new inventory equal to 109 additional items. You now have 149 pieces to sell in month two. During that month, you sell 110 pieces of inventory and earn $550.
Step Three: The $550 is reinvested as you purchase 200 items. In month three, you sell 170 pieces and earn $850. This total is reinvested and you buy 301 additional pieces. You now have a total of 370 pieces.
Step Four: In month four, you sell 260 pieces and earn $1300. From there, you turn around and reinvest by purchasing 470 pieces of inventory; giving you 580 pieces.
Step Five: During the fifth month, you sell 480 pieces and bring home $2400 in cash income. Reinvesting again, you purchase a total of 970 pieces.
Step Six: In month six, you sell 750 pieces and earn $3750! Pay yourself $1880 and reinvest $1870 to buy 680 pieces of inventory to bring your total up to 1000 pieces. 

You now only need to sell 700 pieces a month in order to replenish your inventory and pay yourself $1500 per month. The amazing thing about this example is that it only reflects one side of your Paparazzi business! If you also focus on building your team and adding new Consultants, you will be enjoying additional income from the Compensation Plan! Success in Paparazzi takes work but it is inevitable if you stay the course and continue to invest in the growth of your business.