In the years to come, it’s going to be even more important to create passive income. Face it – who doesn’t want money that shows up whether you work or not. Plus, all the new taxes are hitting active income much harder. Forget the benefits of not having to trade time for money – you’ll want to grow passive income for no other reason than you can pay a whole lot less in taxes!
Here are some stories of how some of my other clients have turned underutilized assets (assets just sitting around) into cash. Nice!
Success Story #1: One of our friends bought a commercial building with a small auditorium/meeting spot. Her own business occupied the entire space, except for the auditorium. She used it once or twice a year. She realized that she had a valuable asset just sitting around idle, so she advertised it as a place for meetings and mini-seminars.
The extra rental income covered the entire mortgage. Her other business just got a place for free! Plus, she made some great connections with the people who rented the space and came to the seminars.
Success Story #2: A serial entrepreneur, with years of experience in owning businesses, bought a struggling manufacturing company. He first looked at how busy, or rather, not busy each division was. One of the divisions was basically just sitting there with nothing to do. There was a lot of capital in the company and he knew there were two choices: (1) close it down or (2) get it busy. So, he looked at the sales department. The ‘top’ sales guy said he had not made an outbound phone call in 35 years. The VP of sales said that their reputation was everything. They didn’t need to get sales, they just wrote down the orders.
He fired everybody and hired a whole new sales force. He took one of the sales people and put them full-time on the division with one mandate: pay for herself within 3 months. In 3 months, she’d booked over $1 mill in business for the once idle division. And this was in the middle of the worst recession our country has seen since the Great Depression.
Success Story #3: Actually, this idea didn’t have an immediate cash pay-off, but it indirectly created a whole new client base! One of our clients, a financial planner, was looking for ways to attract new business. He had a great office space with a conference room. He realized that a lot of his connections worked virtually or in smaller offices. He offered his conference room for meetings for his clients and business associates.
His clients were happy and he got new referrals and prospects delivered right to his office!
On Saturday, November 7, 2009, we’re going to look at strategies to create money right now out of assets that you have just sitting around. This one day in San Diego may just be the kickstart your business is looking for! Smart Business: Make More Money, Pay Less Tax in 2010