There are a lot of strategies out there to build passive income (ebooks, newsletters, real estate). However, I think it’s important to first focus on a conceptual shift, because any business can be creatively converted to utilize these principles if you open to your own creativity.
If you focus on strategies too early, your mind might rebel and say “I don’t want to do that. Too hard, too boring, too complicated” and then give up. Instead, I want to inspire you to have a creative and playful approach to your income by connecting you to an expanded view of money and business.
Below is a chart of two different mindsets about business and money. The first one is typical, but leads to working the rest of your life in the same way. The second is the mindset of people who build their business into an asset that makes them more and more money as they work less and less.
|Business as Investment
|Income comes from hourly work.
|Income comes from multiple recurring, passive income streams.
|Business seen as a job: “I am my own boss”. Same boss/worker mentality, only now you are playing both roles. How fun!
|Business seen as an income-producing vehicle. You are the architect, the designer of the system.
|Work 6 hours, get paid for 6 hours.
|Work 6 hours as an investment for later greater income potential. May not see any immediate results from work, so patience is required. You are building a foundation, refining a system.
|Income cap: hours you want to work X amount you can charge per hour.
|Income cap: none! Potentially infinite income. Tied to your creativity and dedication, not the number of hours in a day.
|Spend time/energy/money looking for more clients to pay your hourly fee
|Spend time/energy/money building systems that generate income without further work.
|Work once, get paid once.
|Work once, cleverly, and get paid over and over.
|Work in your business. “Work harder”. Focus on getting the job in front of you done.
|Work on your business. “Work smarter” Focus on automating your work process as you work.
|Requires: dogged endurance.
|Requires: creative imagination, delayed gratification, willingness to learn and try new things, long term view.
|Do what you know, do what the client wants.
|Find out what you need to know to get the result you want.
|Use your brain to help others grow rich.
|Use your brain to grow your own wealth.
|Ultimate goal: retirement after 40 years of work with modest pension.
|Ultimate goal: complete financial freedom as soon as possible (5-10 years is a realistic goal).