Start a Franchise or Business to Create Passive Income

Today we want to look at two ways you can jump start your passive income by starting your own business.

Let’s not kid ourselves. Starting a business can be risky. You’ve worked hard to build a nest egg. You have bills to pay. Kids to put through college. A retirement to fund. You don’t want to lose what you’ve worked so hard to gain.

If we can talk you out of starting your own business – so you avoid the financial and emotional turmoil that comes with it – we’ve done a good deed. Alternatively, if after reading this, you’re more determined than ever to go for it – you’ve got a big knot in the pit of your stomach – we’ve served you well. Either way, we want to get you off the fence.

Owning a business is not for everyone. You have to be willing and able to take risk. Numerous studies show that wealthy people accept more risk than the average person. You either have to accept some risk or accept a lower net worth.

Let’s look at two scenarios that allow you to start your own franchise or business, yet minimize your risk:

  • You have the money, but no time.
  • You have a job you love. You want to keep it. That doesn’t mean you can’t enjoy the benefits of passive income from business ownership. Find someone with talent to manage the business for you. But you want to be sure they are careful with your money. How do you do that? Structure your deal so they have more to lose than you do. Keep them up at night, so you can sleep. By aligning their interest with yours, you’ll be likely to develop that passive income you want..

  • You have the time, but no money.
  • You have that burning desire to own your own franchise or business, but you’re missing one key piece – money. Find a partner with money. But beware – you’ll be the one staying up at night! If you can replace your current salary and share in some of the profit, you’ll be jump starting your net worth.

Accepting risk is one thing. Learning to manage it is another. Successful business owners are good at controlling their risk. You need to develop this ability before you start out on your own, no matter which scenario you choose.

We encourage you to sign up for our free newsletter, “Bigg Success Weekly.” It’s published every Friday. This coming Friday, in our Home Office article, you’ll learn about a solopreneur who has built a business worth over $3 million in sales. Check it out!

Our quote today is by Dale Carnegie.

“The person who gets the furthest is generally the one who is willing
to do and dare. The sure-thing boat never gets far from shore.”

Next time, we’ll look at how to build a passive income through income-producing real estate. Until then, here’s to your bigg success!

Getting Aggressively Passive: Creating A Passive Income That Sets You Free

Last time, we offered some tips for networking your way through your upcoming holiday parties. Today, we want to talk about one of the most important gifts you can give yourself – a passive income.

Not along ago, we asked you to visualize your dream life – a life where time and money were not an issue. You may think that’s just for fun. It’s not! We’re serious. You can spend your time the way you want. You can be free!

You’re free when your passive income equals the costs of your desired lifestyle.

For the sake of clarity, we define passive income as your money making you money. If you have enough passive income, you can spend your time however you want. You don’t have to work at all, if you don’t want. Or, you can work on your passion.

So, let’s look at the four steps you can take to get aggressively passive and create a passive income that sets you free. The key is to constantly keep your goals in mind so you make the best choices each and every day. For example, if you want to be free sooner, rather than later, you may choose to spend your money differently. Now you have a reason to do so – that dream life you visualize.

Step 1: Purchase with purpose
What if buying that awesome plasma television that you just saw advertised on sale in today’s paper means you have to postpone your new life by a year? That status car may not mean as much as getting to spend your time how you want.

Step 2: Look at the cumulative effect of your decisions
Review your daily routine. $5 here, $5 there soon adds up to a lot of money. Do you eat out every day? Buy a cup of coffee? In his excellent book The Automatic Millionaire, David Bach calls this your “Latte Factor”.  Find one thing that you’re willing to give up now to get to the future you want sooner.

 Step 3: Pay off debt
The reason for the first two steps is to get the money to pay off your debt. Pick one account – ideally it’s your debt on which you’re paying the highest interest rate. Take the money you’re no longer spending from Steps 1 and 2 and use it to pay off your debt.

Don’t stop now … take the money you were using to pay off your first debt, plus the extra money you have from Steps 1 and 2, and use it to pay off your next debt. Repeat until all your debt is paid off.

Step 4: Jump start your passive income
Historically, the two best ways to do this are through owning your own business and investing in income-producing real estate. We’ll look at each of this, respectively, in our next two blogs.

Our quote today is by Groucho Marx.

“It frees you from doing things you dislike.
Since I dislike doing nearly everything, money is handy.”

Next time, we’ll look at how to build a passive income through your own business. Until then, here’s to your bigg success!

people mingling at a holiday office party

Mingle Bells: Tips For Networking At Your Holiday Party

people mingling at a holiday office party

‘Tis the season for gatherings! It’s a great opportunity to reconnect with people, and make new connections. In today’s show, you’ll learn four tips to mingle and network your way through your holiday parties.

Read more

Get The Monkey Off Your Back

Yesterday, we discussed how to build your self-confidence. Today we’ll talk about a recent study on monkeys and what you can learn from it.

Yale University recently released the results of a study on the behavior of some monkeys when given a choice of M&Ms. The researchers broke their experiment into the following four steps:

Step 1 – The researchers gave each monkey an assortment of M&Ms.

Step 2 – They let each monkey choose their three favorite colors. Let’s say that “Spanky” chose red, blue and green. From all appearances, Spanky liked all three colors equally.

Step 3 – Then, Spanky was only shown the red and green M&Ms. Spanky chose the green one.

Step 4 – They showed Spanky the previously-rejected red  M&M and the blue M&M. Spanky chose blue; he rejected the red one again. In a disproportionate number of cases, the monkeys rejected the M&M they had discarded in Step 3. The researchers conclude that this reinforces the monkey’s previous decision. This, in spite of the fact, that he had no preference between the three initially. It turns out that monkeys rationalize their decisions!

Here are three things we take away from this:

  • You’re prone to rationalize. It’s comes naturally!
  • Think about this as you’re making decisions today. Don’t let past decisions unreasonably cloud current choices. You may be factoring in a bias from your prior selections. You’ll make better decisions today, if you’re aware of this inclination.

    For example, we have a friend who failed in business when he was younger. Now, even though he is extremely bright and has gained relevant experience, he won’t even consider going into business again. He (and his family and many friends) are letting his prior experience cloud his current judgment.

  • If you can, rationalize and move on!
  • Time and energy are often wasted second-guessing ourselves. Take a lesson from the monkeys at Yale. Focus on what’s important now, not on what happened yesterday. Time is precious – spend it productively.

    As humans, though, our decisions are often more complex than demonstrated by this study. What do you do when a past decision is affecting your life today?

  • If you must, take action immediately!
  • If a decision from your past is haunting your present, change course. You may need to do some research; do it now – the sooner, the better. Do what’s necessary today to create your dream future.

    Take someone who has racked up a huge credit card debt. He or she should stop using credit cards immediately, find ways to save money, and get a temporary, part-time job if necessary. Rationalizing will only make it worse. Do something about it now!

That’s what we can learn from this barrel of monkeys. Rationalize it if you can. Change it if you must. Either way, move on!

Our quote today is by pastor and speaker, Ralph Washington Sockman.

“Let us not bankrupt our todays by paying interest on the regrets of
yesterday and by borrowing in advance the troubles of tomorrow.”

Get past the monkey business of the past. Make today your day! Tomorrow, we’ll look at some tips for networking your way through the holiday season … and every season. Until then, here’s to your bigg success!

The Confidence Game

If you have owned your own business, you have probably struggled with self-confidence from time to time. You may even relate to and have suggestions for one of our listeners.

We received an e-mail from Beth, who is in the process of starting her own consulting company. She says her problem is that there’s a little voice in her head that keeps pointing out what she doesn’t know. It’s paralyzing her progress, and she would like some advice on how to get past this.

Don’t feel alone, this is a common problem. We congratulate Beth for having the courage to make this move. George has a theory that, as an entrepreneur, the highs are higher and the lows are lower when own your own business. So welcome to the roller coaster!

Here are some tips on how to get past the lows by giving yourself a boost in confidence:

Don’t expect perfection
Allow yourself to be human, by setting achievable goals. For instance, many people feel they don’t know the financial side of business. Read books, take a class, or find someone you can team up with. Do what you do well and let others help you so that you can get started and tackle your challenges.

Rebut the cruel inner critic
Counter your negatives with positives. For example, when that little tells you what you don’t know, tell it what you do know. When it tells you why you shouldn’t take a risk, tell it why you should. Focus on what you can do and what you know you will do.

Be Your Best Friend
Friends tell you what you need to hear, but when they do, it’s in a caring way. We help our friends get through tough situations in encouraging ways. So why not offer yourself suggestions in the same manner? Don’t get down on yourself and be critical just because you didn’t do something right or because you don’t know something.

Meditate
It’s important to practice thinking positive. Take a break, think about a task you completed that made you feel confident, and remember how good it felt. When you go to bed, focus on three good things that you did well that day. It’s a great way to end the day, by focusing on what you have accomplished.

Our quote today is by Stan Smith.

“Experience tells you what to do; confidence allows you to do it.”

Get out of your own way…you’ve got places to go! Tomorrow we’ll discuss getting the money off your back. We’ll share some recent research on monkeys that you’ll find interesting.