Money Management To Success

Before becoming an Herbalife Distributor, President's Team member, Ron Rosenau, was a successful stockbroker and financial advisor, earning a six-figure income. When he gave up that career to go full time with his Herbalife business, his clients and friends really took notice.

Many of them followed his example, and by following his advice they have also become successful. He has applied his financial expertise to the Herbalife business and developed a money-management guideline that is especially useful for new Herbalife Distributors.

People get started in the Herbalife business primarily to change their financial situation or their work lifestyle. They want to be in control of their time, have a greater earning potential and not have to report to a boss. What a great number of people fail to realise is that when they take on Herbalife as a business they become Chief Executive Officer (CEO) of their own company. This means they have to employ themselves and be responsible for their time and their business, as well as personal cash flow.

Three facts are important to realise and understand when making a commitment to Herbalife as a serious business:

1. Realise is a "major league" business.

2. Most people start as customers, therefore, retailing is the life-blood of the business.

3. It's difficult to be "open for business" without inventory.

With the above three premises in mind, it is important to know how to invest in product, how to reinvest and how to spend some of the profit you earn.

First of all, anyone taking this business seriously needs to qualify as a Supervisor as quickly as possible, because it enables you to buy products at the maximum 50% discount. It's well worth the effort to do this, because from here on it's a relatively simple matter to manage your inventory.

I have found that a Distributor needs to inventory enough products to handle retail and wholesale business without delays. For me, an optimum amount of inventory to keep on hand is at least $5,000 worth of products. Obviously, if you are just starting out, you need to work up to this amount. It is important to remember that you must keep some of your retail profits to buy more products to maintain a consistent inventory level.

Knowing that you are not going to move all of the product equally, you will purchase along the way. As a rule of thumb, take your cost of the products (50% of the retail value as a Supervisor) plus 10% of retail to keep aside, leaving the remaining profit to spend. As you are in the process of building your inventory, I recommend reinvesting the profit and the cost of the products until your retail profits have paid for your inventory and you have at least $1,000 to $2,000 in cash. The extra money can be used for advertising, promotion or buying extra products as needed. Once your business is self-supporting, then some of the profits can be spent on personal items.

An absolute must is opening a separate checking account for your Herbalife business. This will enable you to easily keep track of your profits and expenditures. If you are working the business part time, keep reinvesting all the profit back into the business until it can stand on its own. if you are working the business full time, invest as much of the profit back into the business as possible. Only take out what is absolutely necessary for personal expenditures.

One of the biggest mistakes people make when starting this business and becoming a Supervisor, with 50% buying privileges is spending their first profits on personal items and leaving no money with which to buy products for resale to earn more profits.

If you run a "tight ship", only spending what is absolutely necessary, you will have a foundation that can create a sound, life-long business that has endless earning potential. If you establish good money management habits early in your business, you will build a strong, healthy business that will provide you with the personal luxuries you want.

* The incomes presented are applicable to the individuals depicted and are not a guarantee of your income, nor are they typical