169) Unit Trust Business vs Other Business

169) What are the differences between Unit Trust business vs Traditional business?

Traditional business

1) Have a shop. Meaning rental, water, electricity, telephone, fax, etc.
2) Need to employ staff. Meaning have staff problems.
3) Keep stock and display items. Have to carry items around. Keeping stock in store rooms.
4) Incur stock delivery charges.
5) Handle cash or credit card transactions. Accounting & consolidating amount issues.
6) Cash flow issues. Cash stuck into stocks.
7) Bad debts, payment and collection issues.
8) Risk or robbery, theft, fire, flood, damages, etc. Need to buy insurance.
9) Specialized skill required in the business. Training can cost thousands.
10) Time consuming to keep open during business hours.
11) Operates on certain hours only.
12) Not possible to close business for a long time.
13) Business limited to shop locations.
14) You pay for your own holiday trips.
15) Clients can go to your competitor and you lose everything. Nothing to hold the clients to you.
16) Income are based by products you sold. Only active income, no passive income.
17) Your stock may have expiry date and become old fashion, Worry of old stocks.
18) May be affected by health issues like Covid-19 scenario. Cannot open for business.

Unit Trust Business

1) No shop, no office required.
2) You can do it on your own. Recruit others as business partners. They do their own similar business.
3) No stock, no store room.
4) No stock to deliver. No delivery charges.
5) No cash, no credit card. All via existing bank systems.
6) All in cash terms. No cash tie up in stocks.
7) No debts. Only collect cheques.
8) No robbery, fire or flood risk. In fact, can even get free insurance.
9) Simple sales and technical skills. Training provided at very low cost.
10) Flexible hours.
11) Can do any time convenient to you.
12) Possible to take a long break.
13) Can do business anywhere.
14) You can win awards and get free holiday trips.
15) Clients investment are always in your Asset Under Management (AUM). Unless they redeem all the investments.
16) Active income from initial sales. AUM gives Career Benefit. It is the passive income stream.
17) No stock, no expiry dates. Unit Trusts gets better as it gets older.
18) No issue of meeting clients. Business can still operate via online.


Link to article on Why Should You Consider Becoming a UTC?
http://highlevelrules.blogspot.my/2017/07/why-should-you-consider-becoming-utc.html