By Abdulwasi’i Ilyas
Relying on a single source of income is to limit your vast capacity to earn. Particularly true if this source is a paid employment.
With the future laced with so many uncertainties, you are not hedged against any unfavorable eventuality with a single source of revenue or income (depending on whether you own a business or a day job).
Money is a direct corollary of value-addition. The more people you influence through creating products and rendering services that fill their needs, solves their problems, and fulfill their desires (vain or meaningful), the more money you’ll make.
Working from behind that tiny cubicle at some job, there is a ceiling of money beyond which you cannot earn. Your sphere of influence there is limited to whatever responsibility you’re saddled with.
There is no scalability behind the cubicle as there is in business and investing. This explains why most of the world’s ultra-rich are entrepreneurs, not some sneaking, cash-sniffing politician nor office-entrenched employee.
An entrepreneurial philosophy is symbolize mostly by business owners and rarely by a few employees who work long enough in startups to reach senior executive positions.
Multiple streams of income is the secret of the world’s ultra-rich. Here’s a way to proceed along such lines.
Develop your idea around your passions
Whatever idea or group of ideas you choose to execute must command and retain your full concentration and focus. Devoting your entire resources, efforts and time to follow it to fruition.
The stakes in business are high and the odds staggering.
Naturally, your business must flow directly from an area you are deeply interested in and one you’ll be willing to wager everything on.
Only then will you stand to enjoy massive successes mid-stream.
Become Deeply Knowledgeable and Experienced in Business Generally and About Your Specific Line of Business.
Specialised knowledge is a major recipe for success in business and in life. To earn the trust and respect of clients and customers, superior and high quality products and services is key. This is achievable by possessing profound knowledge and proficiency in your field.
As an investor, The Oracle of Omaha, Warren Buffet relies largely on information about his investments to make decisions for profitability. For this, he says he spends eighty per cent of his working hours reading.
That is not binding on you if your line of business is not investing. Giving the difficulty associated with success, anything short of an hour or two hours of daily reading only portrays your lack of commitment to pay the ultimate price.
The role of reading is to improve the quality of your work on a consistent basis. Give reading it’s due and take massive actions.
Execute projects that will see your ideas to fruition and do so extensively. Only then can you gather experience to build the necessary groundwork for continuous improvement.
Build Business Systems Around Your Ideas
Business systems represent solid foundations and a long-term approach to profitability.
The difference between building systems and pursuing ideas in great numbers is in what Jim Collins, (Bestselling author of GOOD TO GREAT) called clock-building as against time-telling.
Ideas are very important and they set the tune and pace for development at all levels. To set your creative juices flowing endlessly, you must generate several ideas daily.
Such ideas can later be prioritized for a picking of those that portend more profit potentials and that are more aligned to your organization’s overall objectives.
Mediocre ideas built around a sustainable and ‘scalable’ business systems will perform better in the marketplace than the best ideas ever.
This is where the story of Ray Kroc, Founder of the McDonald’s franchise comes in handy.
Exceptional Recipes for hamburger and French fries or for any fast food items are a dime a dozen. Ray Kroc’s hegemony is a consequence of his profound understanding of systems.
The business model around which he built McDonald’s gave him the edge. He adopted the franchise model, a common model used in the fast-food business. There is nothing unique or innovative about that, you may quip.
The creative mix of the real estate business with the restaurant’s is the genius. McDonald’s owns or leases the property on which its franchise or restaurants sits.
Franchisees or affiliates pay rent to the company, contributing a substantial amount to revenues, in addition to that accruing from royalties and sales of the company’s products.
To succeed over the long haul, pay attention to setting the right footing for your business, including adopting the most suitable models and systems.
In a subsequent post, we’ll talk more on business models and systems for successful startups. Do make sure to stick around by subscribing to our email updates.
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