3 Types of Business Income


This post is in: Business
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07-29-2010-1

Does your business make you tired, day in and day out? If so, chances are you’re working at just one type of business income: active income.

Active income means that you have to work to get paid. It also means that you haven’t looked at ways of leveraging your time. You’re caught in the entrepreneurial time trap. Bootstrapping in the beginning got your through what you needed to, but as time went on, you likely started thinking about adding staff. Maybe you took that step and hired someone. And, if you’re like most business owners, those first employees let you down. They didn’t do the work the way you wanted them to. They were slower than you. The quality wasn’t as good. They might even have stolen from you.

If you want to see some of the ‘stupid business stories’ that talk about what happens when employees go back, make sure you check out SmartBusinessStupidBusinessOnline.com on Saturdays. We highlight some of the stories of businesses gone wrong that others have sent us, and most importantly, the lessons you can take away from that.

But you can build a business with systems that work so you don’t have to. There are three steps to building systems: (1) Write systems (2) Train systems (3) Enforce systems. In Smart Business Stupid Business we give you step-by-step programs to document systems. That alone might be the best reason to pick up your own copy of Smart Business Stupid Business

As you move from active income to leveraged income (with much higher PROI – personal return on investment), systems will be your best friend.

You’ll safely and confidently turn over work you don’t like to do and focus on what you do best. That’s leveraged income.

Then it’s time to start looking at passive income. Make no mistake, there is work to passive income. But the secret is that you use money and/or time in the beginning to create income streams that continue. This past weekend, Megan and I had a teleseminar that had almost 1200 people sign up for. We gave good information on how to protect LLCs against the new wave of LLC-busting techniques some lawyers are using. And we gave a fantastic offer with good discounts (the 2011 Operation Guide to LLCs). And then every time we hit ‘send/receive’, we had orders flood in. It was work in the beginning, but it became passive income.

Every single business owner has that same ability to create active, leverage AND passive income from the business they already have.

Check out Smart Business Stupid Business Online for ideas on how you can do that.


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