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Thursday, April 30, 2015

How to create avenues for passive income








A businessman traveller relaxes in airport lounge. There no greater feeling than that of living in abundance. Where the work of our hands has turned in such great result that we are not afraid of even an economic slowdown. PHOTO | FILE
A businessman traveller relaxes in airport lounge. There no greater feeling than that of living in abundance. Where the work of our hands has turned in such great result that we are not afraid of even an economic slowdown. PHOTO | FILE 
By MUTHONI NGATIA
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We all have different appetites for success. Different people define success differently.
What is your definition of success? Owning a fleet of top German machines or SUVs?
Having your workforce running into hundreds or even thousands? Fat bank balances that make everyone in your banking hall say hello and give you special service?
Taking holidays whenever and to wherever you like? Living in a top rated suburb? Taking your children to the most expensive schools?
Waking up at noon because you know your assets are working for you and money is being made whether you are asleep or awake?
To be honest, different people perceive success differently and that is okay.
Whatever your vision of a rich life is, we need to bring it to the basics of how the business or businesses you are in make money.
WELL CALCULATED EFFORT
There no greater feeling than that of living in abundance. Where the work of our hands has turned in such great result that we are not afraid of even an economic slowdown.
But what kind of business would you be in to have this opportunity?
There is no doubt that passive income is what we are looking at here. Income that flows in, not because of your day-to-day direct effort, but a permanent inflow effect from the work you have been doing.
Think for example of those real estate moguls, who don’t have to report to work everyday while their tenants, whether residential or commercial, have to break their backs everyday so that they can pay rent. Isn’t that a good thing to have?
I know some of them may have loans but there is a huge chunk of established landlords that are enjoying the good fruits of their labour.
I know of a restaurant in town that is famed to be the tea joint for Nairobi landlords. They meet there, enjoy tea, a good laugh and review newspapers.
I think it is good to always do business and in the process, generate a system that can keep bringing you income.
Getting passive income requires a great effort in terms of time and money. Good incomes are not made from get-rich-quick schemes but a well calculated effort.
For example, I have seen that many people, who run hardwares always begin a side project for rentals.
This is a smart move. These businesspeople know where to source materials and use that as a cost advantage while putting up construction themselves.
Depending on your area of business, try and think of what products or ways you can offer customers without the need to work every hour. Try and think through income streams that will make your business less dependent on one income line.
Here is how to do this. Think of ways to add value to what you are providing. This will help you create different kinds of products and services. If you run an auto yard, for example, there are many ways you can make complementary lines of income.
TRUE SUCCESS
If I buy a vehicle from you, offer me the option to buy what you have right there or import services to get a car that I can identify online. Every car requires an insurance, act as my insurance agent.
I may also need to add a few accessories, be on standby with those that are must have such as car identity and an entertainment system.
When you have multiple streams of income, be keen to identity those that can keep the income flowing without your direct participation.
Look out for those income strategies, which can make your recurrent revenue stream growing.
From affiliate programmes that are related to your line of business, you are into value addition for your line of products.
Along the way, the hope is that you return the volumes of income that will bring you the true meaning of success.
Business success is not all about money. Many people view success from a monetary perspective.
In my opinion the true meaning of success is the positive impact of your business to you, those you love, those you service and the society at large.

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