Are Business Card Display Boxes a Wise Business Investment?

Posted on August 25th, 2007.

Here’s an interesting way to look at this advertising business opportunity…

Every now and then I get asked some very bizarre questions from people who are curious about buying business card displays, and as bizarre as this particular question was, it had a ring to it that maybe we can all relate to. Anyone reading this who is looking to invest their funds into ’something’ should certainly look at this perspective in regards to small business card advertising v’s a property investment.

I just had a call from someone saying this… “I’m not sure what to do with my money that i’ve saved”. I said “What options have you looked into”, and they said “Both business and property”.

To cut a long story short, this person had $20,000 to their name….and that’s it. I’m sure you’ll agree that’s not alot of money these days.

When it comes to making money (cash on cash) any successful entrepreneur will tell you it’s all about the numbers and cash flow the investment throws off when making any investment…do the numbers stack up? The average Joe is more then happy to take the advise of uncle Sam and the local mechanic as to what they should do with their money. Hmmm.

NOTE TO SELF: Do not ask investment advise from ANYONE who has a net worth less then yourself! that includes your accountant, business coach, uncle Sam or whomever you ‘trust’ to help you. If they are worth less money then you, shouldn’t they be asking you for advise??? This is basic logic in wealth creation that most people just don’t get.

In my opinion, putting all your hard earned cash into property can actually slow you down in the beginning of your ‘money making’ career. Here’s what I think is the logical path to go down for someone who has $20,000 or less at their disposal…. (this is only my opinion)

The first thing I learn’t about money and wealth is that CASH FLOW is king. Once you can learn how to make money and create a good solid cash flow, then you can buy as many properties and investments as you like… in fact, banks will be knocking down your door to lend you money to buy whatever you want once they see your bank balance rise with spare disposable cash!

Here’s what most people do…

They will save their money and straight away go and purchase their first home with a big loan attached to it. Then what happens is they are so scared to take a risk (like starting a new business) to get ahead because if they default on their loan the banks will close in. Look at it like this…. if you owe the bank a large chuck of money, and you’re in a job, then the bank basically has you in a headlock with their arm tightly constrained around your throat…and if you make a wrong move, your home is gone.

If you can learn how to create cash flow first BEFORE tieing yourself into the banks life, then you can take all the risks you want without fear.

So, how does all this tie into the business card display outdoor advertising business opportunity?

Lets look at a business card dispenser like a property for the purpose of this excercise. What’s the capital growth you expect on a property…10% p/a over 10 yrs? That’s about standard worldwide, so lets go with that. Ok, so on a $200,000 investment in a property you can expect $20,000 extra per year in your pocket (only if you sell it…this is NOT cash flow).

Now, what about a business card box? Let’s say you spent $1000 for just one business card box, what are you expecting in return (%)? If you fill the display with paying advertisers, then your return is FAR and beyond any property investment.. and you have cashflow! If you fill 10 displays with paying advertisers, do you realize you then have a saleable asset also? Yes, I know someone who would set up and fill 5 displays in an area, then sell the business as a going concern within one month and double/triple his money!

If you have little money to invest right now, then property or even buying a business franchise should not be in the forefront of your mind in my humble opinion. Focus on creating cashflow, and the bigger and better investments will come along with the money. If you can get the money flowing into your hands BEFORE making a big commitment to the bank for property, then you’ll have a good peice of mind that you can actually afford what you’re commiting to… plus some leeway to take other risks along the way.

Here’s another way to think about a business card display….

You know how a developer buys a large chunk of land and divides it up into small land parcels for mums and dads to buy…or how someone develops a shopping mall, then leases little holes in the wall to small mum and dad (and franchisee) business owners to sell whatever they’re selling? Well when you buy biz card display, look at it like a property… and all you’re going to do is divide it up and ’rent out’ advertising space! This is what entrepreneurs do… and that’s exactly how the rich make their money. All they do is create opportunities for other people to make money…and they make even more money (win win situation). So when you purchase a biz card box, all you’re really doing is creating ‘opportunities’ for other people to generate leads for their business… and you get the leverage of having multiple displays going and creating forward cash flow into your pocket … a perfect win win situation!

Business card advertising can have very large returns if operated correctly, so think about the numbers and cashflow first, then worry about what you’ll do with the money. Don’t be one of the people that do it the other way around. Don’t worry about the tax you’ll have to pay… paying tax can actually be really good… it means you’re making money!

Here’s a simple question for you…

Would you be happy at the end of the financial year if you got a letter in the mail from the tax department saying “You owe $2 million in tax?”

I hope you said YES! That means you put $4 million+ in your pocket!! The average persons instant thought to that questions would have been “no way”. I hope you get the bigger picture of what i’m talking about here.

Cash flow first!

Dean.

PS. Please note: I’m not a financial adviser. (Just my thoughts from experience)

Compare business card display types here…

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