Money Talks: The Income

Digg this storyDigg this

What is an income? An income is money that is received as a result of the normal business activities of an individual or a business.
So in plain youngster terms, any money you receive as a result of your service or products is an income. To big companies, they would call their income `Revenue’. Income & Revenue are basically the same in youngster term.
Your parents make an income from their works or businesses. Most people make an income in exchange of their time. Most 9 to 5 jobs pay an income to employees in exchange of their time of service and producing products.
Think about this. Most of the adults around you right now go to work because of their income. Ask them if they would continue to work if there is no income? I don’t think so. I don’t want to get into the definition of money (Please Read: Money Talks: Money). The key here is everyone cares about the income. If there is no income, most businesses wouldn’t exist.

So for you next business, here is what you need to think about:
- Who (your market) would give you money? - They could be people belong to specific age group, professional, hobbies, sports, music, etc.
- How much are they willing to give you? $10? $20?
- How often are they willing to give you? Once in their life time? Once a month? Or a year?
- What could increase or reduce your income? Your competition, your benefit, your customer demand, your timing.?
- Can you bundle your products so you can charge more?
- Can you break down your products so you can continue to charge their every month?

The key of producing income is to make sure you have continuous income. Just selling lots of candy one time is not enough. You want to continue to sell your candy everyday, every week.

Successful youngster entrepreneur know how about predict your income. If you are selling candy to your classmate, how many of them would possibly buy from you? If you are charging a dollar a piece and the convenience store in your neighborhood charge two dollars. You are golden. Let’s say you have 10 pals who love candy and probably will buy from you instead of the store. How much would you get?

$1 (for one piece of candy) X 10 pals = $10

Great so the next question is how often can you get this income? Often would they buy from you? Once a week or once a day? Let’s say everyone love candy so much, but they only have 5 dollars as pocket money. Knowing that they still need money for other things, they can only afford one candy per week. That will mean:

Your monthly income =
$10 (10 people buy one candy per week) X 4 weeks = $40

Now you predict that you would make $40 per month. What would do next? You can either 1) increase the number of people who can buy from you or 2) Come up with another product (e.g. sandwiches) to sell them. You know they all have $5 dollar per week, where do they spend it on? Why shouldn’t they buy from you instead?

By now you should have a pretty good understanding of what an income is about. YoungsterInc can’t possible tell you every single way to make money. The fact is that there are countless ways to make money. Make sure you ask all the income questions in this article and you should have a pretty good idea. Have fun making an income!

Leave a Reply