Passive income streams can be a smart way to support your business in a consistent way while you are testing your market with new ideas.
Some entrepreneurs know exactly what they want to do and can hit the ground running with a business idea.... others, take more time to establish themselves and look to generating passive income to support their business.
Note: This blog is written by guest writer, Adam Taylor and edited by Susanna Reay.
According to Forbes, many with the entrepreneurial spirit need a boost in the right direction to help them carve out a niche that works for them.
A consultant like Susanna Reay can help you find that initial footing with confidence!
But until you get that confidence nailed, one of the best ways to manage your finances in the interim is to develop a passive income stream to supplement your freelance earnings.
What Is Passive Income?
In short, passive income is money that’s generated on a regular basis without having to spend much time or effort creating new business.
Some require an upfront investment to get going, while others require you do advance work to set up your stream, and then maintain it.
Some entrepreneurs have multiple passive income streams, which allows them to offset slow revenue-generating periods, while others have just one or two that help tide them over when freelance revenue is slow.
DIY Passive Income
There are several ways to set up your own passive income streams, but some of these will take a lot more marketing than others.
For example, you could start publishing a blog and solicit subscribers, write an ebook and get royalties, design a course in a subject where you have the expertise. If you’re a graphic artist, photographer or designer, you can also sell your designs over and over again for different uses.
Once you have your marketing machine oiled well, these elements will no doubt produce passive income, but it's the foolish entrepreneur who sets this up thinking there is no time or effort used to make this work! - Susanna Reay
Within the online world, joint ventures, affiliate deals and sales commissions are the fastest way to earning passive income... so long as you are authentic and believe in the products or services you are sharing with your community.
Buying real estate as an investment property — especially a multi-family dwelling like an apartment building or duplex — is a more passive way to make your money work for you.
The Pros and Cons
The pros of passive income are easy — you generate money without a lot of effort. In a sense, your investment is like an employee working on your behalf. You “pay” the employee in the form of an upfront investment or advance work product creation, and you enjoy the rewards of the employee’s “work” in the form of a regular income.
The cons of passive income are in the fact that not everyone has the time or money to invest upfront, and it can take a little while before passive income streams start producing.
Finding a Good Fit
There are myriad passive income investments to choose from, all with different entry points. While conducting your due diligence and finding a fit that’s right for you, an e-commerce business could be a solution. According to Cision PR Newswire, e-commerce continues to expand exponentially and can be remotely managed.
To give yourself the best shot at success right out of the gate, consider hiring a freelance e-commerce marketing professional to help you launch. If you aren’t sure about how to find the right person, make it a point to read reviews and ask about delivery time and costs before hiring someone. This initial investment will save you a lot of time and frustration!
Establishing a passive income stream can help you reap long-term financial rewards.
Find your place in the entrepreneurial landscape and get a jump start on growing your business with coaching advice from Susanna Reay.
Guest Author Bio:
Adam Taylor left his corporate job to work as a freelancer and hobbyist writer, chasing a balance between the work he loved and the life he wanted. He's taught himself how to work smarter, not harder. He's committed to separating work and home so that he can enjoy both. Now, with taylorandNoel.com, he's sharing his best practices with other freelancers, in hopes they can do the same.