How to Earn Money

How to Earn Money

Here you will learn the important skill of earning money. However, you will also learn how to earn the most amount money possible in whatever you do.

*Bold and Italicized​ words have definitions in the Word Bank*

How do you earn money? Well earning money can be as simple as walking your neighbors' dog or setting up a lemonade stand in your neighborhood. But how can you get the most money out of these jobs? Well, lets take the lemonade stand for example. You have to buy your cost of goods sold (or COGs). For example, the lemons you would buy for the lemonade would have to be taken into account. If you want to get into more detail to maximize your earnings you can also take your Capital Expenditures (or your CapEx) into account. In this case, supplies such as the table and the pitcher would be part of your CapEx cost. You only have to take into account of your CapEx once. After you have figured out your expenses, determine how much money you spent per cup of lemonade. Then price the cup of lemonade higher than your expenses per cup. For instance, if you spent $2 for each cup of lemonade price, you can make it so that it costs $3 per cup lemonade. This means that you would receive $3 in revenue ​and a profit of $1 per cup. Of course if you price your item too high then you won't get any customers, thus losing money. If you price it too low you can also lose money if you don't get enough customers. You can also lose money if you price your lemonade less than your COGs.

Try to calculate the most profit you can gain from this and determine whether it's worth your time. If it's not, then you should either market your items at a higher price or find another way to earn money. Always remember, your time is extremely valuable but it is always good to try to earn money. Then you can learn from your experiences and improve to become a better businessman or businesswoman. It doesn't hurt to try though :)

To earn even more money you can allocate money you earned for the future. Using the lemonade example, you can invest, say $25 of the $50 you earned, to make another future lemonade stand. Then let's say you earn another $50 in profit from the next lemonade stand then you will have a total of $75 in profit ((50-25)+50=75). Another thing you can do is to expand your lemonade stand. You can invest a little more money, perhaps $10 more, and add brownies to your inventory. Then, in the end you may have a profit of $100.

Money doesn't always have to be earned with stationary businesses such as lemonade stands, it can also be earned through services. There are two ways to earn money, by selling goods or offering your services. Services can be things such as walking your neighbors' dogs or taking care of your neighbors' plants. When you offer your services for money, you are also offering your time. Make sure that you price your services for a good amount because your time is also very valuable. For example, if you offer to walk your neighbor's dog for an hour, think about what would be a good price that is worth your time.

Essential Knowledge to Have When Starting a Successful Business

How to set up a business. First think of ways to earn money. Try to think of things you can do that you will enjoy doing. If you enjoy it then it will feel more like a hobby rather than a painful job. For example, if you enjoy baking then you can create a bake sale. It's like you never have to work a day in your life if you create business that you enjoy running.

Advertisement. You can have the best business in the world but if no one knows about it then it's like it never existed. So to make sure your business is known, spread the word about it. Things you can do to attract customers is to advertise your business on social media, make fliers, or simply just talk about your business with other people. Try to think of creative ways to let people know about your business. If you have a great business and people know about it, then you will showering in money. Also, don't be shy to talk about your business with friends and family.
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Another way to attract customers is by giving people coupons and discounts. Although you won't earn the most money per purchase, you will earn a lot more money overall. By giving people coupons and discounts you are making them aware of your business. This may also make the want to come back in the future.

You can also give out small samples of the products you are selling. However, don't give away too many samples to one person because then they wouldn't have a reason to buy your product.

Location. Location is VITAL for a successful lemonade stand. Using the lemonade stand scenario, if you have a prime location, say at a busy park, then you have a much higher chance of having more customers. On the other hand, if you have your lemonade stand on a secluded street then you will probably have very few or no customers. Always remember that populated areas are often the best location to have a business. However, you should always assess your situation. If set up your lemonade stand at a busy intersection on a fast moving highway, then it may be difficult to get customers for multiple reasons. First of all, cars are likely to zoom by, so they will not notice your stand since it's such a fast pace area. Second of all, it would be hard for cars to pull over since cars are moving so fast. That is why you should always evaluate your decision and determine whether this is a good location to set up your business.

Remember, always have a prime location. Whether it would be a busy street or a busy neighborhood, always find a location that you know business would prosper. The more people that are aware of your business, the more money you will make. This can give you a competitive edge against your competitors too.

Customer service. Make sure to be as friendly as possible to your customers. However, you want to also be as helpful as possible too so people know more information about your business. People tend to have more sympathy if you are kinder to them. However, some customers may try to take advantage of your hospitality. For example, they may try to take advantage of your coupons if you have any. Of course you want to make customers happy, but the main point of a business to exist is to earn money. If it consistently loses money then it will not survive in the long run and it will not be beneficial.

You've probably heard this a lot but it's an important part in the business world. PERSEVERE! Kept trying and trying until you become successful and don't give up. However, you also have to know when to stop. If something is obviously a failure or it's not working out, then you have to know when try something different. Remember, don't be afraid to try new things! If something doesn't work out then try something different or keep trying.

​Marketing. When you are marketing your products or services think about several things, the demand on the product, how much effort/time it took to grow it, and how much of this product you have. If your product is highly desirable and there is limited inventory, then you could price your product higher than the normal price. Another example using the lemonade scenario is if you grew the lemons yourself rather than buying them at a market, then you should price your product higher since it took you a lot more effort and the ingredients are organic. Remember, your time is valuable. Some may even say that time is more valuable than money.

How to Earn Money During Covid-19

One way you can make money during Covid-19 is you could create a website. You can use a free website builder to develop your website. However, you will have to pay for the domain name. To make money from a website, you can sign up for Google AdSense. This way you can add ads to your website, and whenever a visitor clicks on the add, you get some money. Another way to earn money during Covd-19 is you can tutor younger kids through communication apps.

Thinking About the Future

Thinking about your future and your career will be extremely helpful.

Thinking about your future and what career you might want can change a lot. For instance, if you want to be an doctor, you can start planning out what you want your major to be in college. In this case, you would want to go to med school. You can also study which colleges specialize/are great at the subject you want as your career. You can also start preparing yourself for your career by getting familiar with it and gaining knowledge about it.

Word Bank

Cost of Goods Sold: supplies that are a one time use.
Capital Expenditures: the supplies you buy that can be reused multiple times.
Revenue: the amount of money earned (not taking account of the expenses).
Profit: the amount of money earned minus expenses.
Invest: to put aside money to potentially earn even more money.
Demand: how much something is requested.