Home About Privacy Site Map

Passive Money
Key to Security

The difference between owning a job and owning a business is passive money. When income for your business is based solely on your efforts, you own a job. When income continues into the business, even when you have taken time off, you own a business.

Why is a Passive Income Important?

When you own a job, it might be more accurately said that the business owns you. You know that if you don't work you don't get paid. Taking time off is not done lightly. If you take too much time off you not only lose income but you could potentially also lose customers.

A lengthy illness could wipe you and your family out financially.  With an illness you not only suffer the loss of income, you can also incur some catastrophic medical bills - insurance often does not cover all the treatment.

Creating Passive Money

Having employees is one way of creating some passive money for yourself. For a home based business that can be difficult to do and it opens you up to a wide range of liabilities and burdensome expenses.  With employees you generally need at least 10 before you can easily take time away from the business. Zoning laws will normally limit you to the number that you may have working on from your home.

Finding Independent Contractors and farming work out to them can be an effective way of leveraging your time and creating passive income for yourself.  Here the customer pays you and you pay the independent contractor. 

Rental income from real estate can be a good source of passive money. Each month you collect your rent from the one time activity of renting the property. A property management firm can free you from any of the day to day responsibilities of maintaining the real estate.

Royalties is still another source.  Most often one thinks of royalties in terms of books and music.  It can be applied to other products.  Software for example.

An Internet business can also provide you with passive income.  Product sales can be set up on an automated system where the product can be delivered automatically as in the case of informational products or by a fulfillment house for physical products.

Network Marketing is well know for creating passive income. They do so by having systems that allow you to put your customers on autoship so that each month their order goes out without your having to do anything. They also allow you to build an organization that you can earn overrides on their sales.

Securing Your Future

By thinking in terms of Passive Money you can build a home based business that will not only provide you with an income, but also with security and freedom. A business built with passive income is also easier to sell. The buyer knows that the income is not as dependent upon the relationship of the owner and customer.


"A home based business gives you all the benefits of a non-home based business without the burden of the high overhead."
~ Larry Louzon

Subscribe to my newsletter, Home Business Compass ...
gain unique insights and strategies to give you the Slight Edge of Success!

Your E-mail Address

Your First Name

Then

Your e-mail address
is totally secure.
I promise to use it only to send you Home Business Compass.


"The business of America is business" ~ Calvin Coolidge
 Home
 Insights and Updates
Getting Started
 Starting Business
 Pers'l Development
Business Type
 Home Business Ideas
 Network Marketing
 Internet Business
 Home Franchises
Running the Business
 Business Marketing
 Biz Management
 Home Office
Resources
 Home Biz Resource


[?] Subscribe To This Site

XML RSS
follow us in feedly
Add to My Yahoo!
Add to My MSN
Subscribe with Bloglines





Home Site Map

Copyright © 2008 - 2014. All rights reserved. HomeBusinessCompass.com