PART 1 of a 4-part Passive Income Stream training series
You know that businesses are the third asset group you want to be stocking in your asset drawer together with equities and investment properties – specifically businesses that are set up and run in a way that brings in income for you without you having to be involved in the value exchange.
Sadly, 9 out of 10 people who start a business don’t actually understand what a passive business set up means or entails and through ignorance sets up a prison for themselves where the business can’t actually make any money without them.
Not all businesses are equal and not all businesses have passive income assets which can serve you and create your freedom. This is what this video is all about and in it you will learn exactly what a passive income business is so you don’t fall into the trap of creating something that turns into a prison instead of an asset.
As you discovered in the video, a passive income business is something through which you can generate both income and value growth though things other than you earning income based on a direct time based rate.
Most salaried employees earn money by trading their time for income, with the implied agreement that during that time they will add value to the company paying them for that time.
Many self-employed people in any form of service based industry do exactly the same thing. Although they may believe they have a business asset, they actually don’t because often their income is still based on some form of time/ income trade off and if they aren’t “working” they aren’t earning. Therefore without THEM in the equation the business has no value and no income is generated. This is the time for money trap.
The businesses you want to be looking to create or buy or promote are those that earn income through other mechanisms that deliver value without you having to be directly involved in the immediate value exchange.
These other mechanisms should be thought of as sub-assets and how well you manage these and leverage them determines your return.
So that’s the rub, just like your money, these things need to be managed by you and given direction and leadership. It is up to you to leverage them and how well you are able to magnify the value they deliver determines the income and capital growth you receive in return.
These sub-assets include:
- Other peoples time
- Other peoples money
- Other peoples creativity
- Other peoples businesses and products
- Products and service created by you.
The levers you have to magnify their value include:
- Other peoples time
- Other peoples money
- Online and offline distribution
- Systems and processes that deliver the value and or service on your behalf
To create successful business assets you must keep the principle of value leverage clearly in your mind, and keep focusing on how you can remove yourself from the immediate value exchange.
Looking at those principles you will also realise that both your equity investment portfolio and your investment property portfolios are in fact passive income businesses.
With your equity portfolio, you are buying businesses that create value and from which you get to share in the returns from that value exchange in the form of capital growth and income without you having to actually do the work.
With your investment property portfolio, you have physical property delivering the value for you and you get the return.
Success Tip: Consider your life as a business holding company called – MY BIG JUICY LIFE Inc and your various asset within the different asset groups as companies owned and managed by the holding company.
You are the managing director of these businesses, providing leadership and direction to each business – constantly looking at how each business can add more value and thereby bring you a greater return.
Also allow your holding company to have multiple businesses, some being the bigger businesses bringing you your primary source of wealth and to which you give more focus but also have little business streams bringing in a nice steady flow of income.
When you see your financial life and your assets in this way, you realise there is no such thing as a completely passive business only smartly leveraged businesses and a wealth pot being served by multiple income streams filling it up. This is why I prefer to use the phrase “Passive Income Streams” rather than passive businesses, as the goal is not to spend no time on your business but rather to aim for your time being more and more leveraged so that for each hour you put in you get greater and greater returns.
Once you’ve watched the video I’d love to know in the comments below …
“What could you do to increase leverage and create more passive income streams in your life and business?
Also – if you had an aha about your life, your business if you have one or your income streams as you watched this video please share that too. Please share as much detail as possible as thousands of Wealth Chef’s in the making come here each week for juicy wealth snacks, insight and inspiration as they create their juicy financially free lives too. Your ideas and shares may trigger someone to have a big breakthrough.
Thanks as always for reading, watching and sharing so generously and for choosing to master this key ingredient money and live your un-limited life.
In part 2 you’ll learn how to select your online passive business niche to ensure it will be a financial success, by finding the sweet spot where your Passions & Interests, your Skills & Expertise and one of the four primary money making markets overlap. If you haven’t watched that video yet go here >>> Part 2: How to Select Your Online Passive Income Business Niche
In Part 3 you’ll learn all about Online Marketing Systems and understanding the different components you need in place to run a successful and financially abundant passive online business.
In Part 4 you’ll learn about Passive Income Stream training series
7 steps to successfully invest in volatile times >>>