Updated: Feb 23
If your #1 priority is to create generational wealth through your coaching business, then this list holds the keys you need to succeed if you want to build a business that can provide long after you’re gone.
The point of this strategy is: You have to be intentional about planning for the future. The core idea with this is no matter where you are in your business, you can start building generational wealth TODAY!
The most important thing to understand with this is that you can start small and build as your empire grows.
This list will help you create an action plan for the future. The generationally wealthy have a tremendous advantage over the non-wealthy. When you have generational wealth, your mind is free to focus on expanding wealth — instead of focusing on making a living. As the cost of living soars, people who have generational wealth will continue building assets. Unfortunately, people without generational wealth may have to work harder just to pay their bills and buy groceries. Are you ready to get started? Check out these 4 strategic steps you can take to start building wealth now!
Strategic Step In The Process # 1 – Set Up A Trust
A trust is a way you can dictate how your family receives your assets. You can set up a trustee who carries out your wishes, whether or not you’re still alive.
You can avoid probate by utilizing a trust.
Your family would have access to more of your money, making it easier for them to continue building generational wealth.
Another benefit of a trust is that you can avoid public records. This helps you protect your family’s wealth from predators trying to get a piece of it.
A trust can also provide nice tax benefits if it meets certain conditions and can shield your assets from estate taxes.
You can set up specific terms for your family to follow, so you retain some control even after you’ve passed.
Best of all, you don’t have to have a certain amount of wealth to get started. You can add to your trust as your income and assets increase.
Strategic Step In The Process # 2 – Develop Multiple Streams Of Income
The goal is to generate as much passive income as possible. Passive income doesn’t require as much time and energy as active income.
This could come from stocks/bonds that yield dividends or pay interest.
You could invest in real estate and generate returns through appreciation or cash flow.
You could create digital products that are evergreen and produce residual income.
Keep in mind, one revenue stream could lead to another. There are infinite ways to generate multiple streams of income from your coaching business.
Strategic Step In The Process # 3 – Start A Business You Can Pass Down
A business is an asset you can transfer to your children and grandchildren. The key is to choose a product or service that will always be in demand. Warren Buffet invested in Coca-cola because the believed that in 100 years, people would still be drinking coke.
Consumable products or services are always a good idea, you just have to be confident that you’re solving an ongoing problem or servicing an ongoing need.
The Harvard Business Review shares advice worthy of consideration: “Transition is a process, not an event — and the more the continuity plan resembles a discussion rather than an ultimatum, the greater the chances of success. The plan can’t simply be dictated from one generation to the next; incoming leaders need to be prepared and aligned.”
Strategic Step In The Process # 4 – Invest Wisely
You could deposit your money into a bank account, but doing so exposes it to inflation. The problem with inflation is that it steadily chips away at your money’s value. The inflation rate is far higher than the interest most banks provide on your money, and that’s no way to create generational wealth.
Instead, you could put that money to work by investing it in the investment vehicles that historically beat inflation like stocks, bonds, real estate, or private equity. These assets grow your net worth and add to your passive income every year.
If you’re new to investing, consult a professional to advise you of your options and share options that are within your risk tolerances.
Are you ready to take the next step? Meet with a financial advisor as soon as possible to develop a plan suited for your specific goals.