Multiple Stream of Income ...
A Business versus A Job
Here is a short article on
How I discovered far more
security and financial reward
by being in business earning a profit
than being an employee earning a salary.
The best business system available
To provide a passive income
(without my efforts all the time)
and the possibility of a
multiple stream of income
from various places not just one.
I needed to be free from a job that went from 7am to 7pm.
I was looking for
- more freedom of time to do more important things than earn an income, and I
- sought financial freedom, so that I could be free to think of other things than thinking about making a living.
- I was very interested in understanding how to use my limited time to have a multiple stream of income and not just from my one job.
I needed to
- better understand how money flowed around, and to
- determine if I should change jobs or do something totally different.
A basic question bothered me ...
Why can some people afford fancy cars and homes, and have spare time whilst others worked hard ?
I noticed how some work hard in their self-employed businesses and others
work hard in their job.
My research led me to read widely and attend many Seminars and meetings.
One author though stood out and
answered my questions with amazing clarity - Robert Kiyosaki.
Robert is the author of international best sellers
Rich Dad, Poor Dad and Cashflow Quadrant.
Robert explained complex financial concepts in simple and understandable terms and diagrams. The RESULT was that I discovered
Such clarity was never evident in my past cursory studies of finance or economics.
far more security and financial reward
being in business earning a profit
than as an employee earning a salary.
I also discovered
that there were far more opportunities
to have a multiple stream of income.
Robert explains how we earn an income in one of two ways:
as an Employee or in Self-Employment.
These are the two I understood, as the employee was me, and the self-employed was my
dentist and my mechanic.
He then introduces two other ways to earn an income, and to do much much more.
as a Business owner and as an Investor.
As I thought about these,
the Business Owner was like my Law Firm with Richard who owns the firm and the 10 employees (like me!) who undertake the Firm's work.
The Investor is Richard's silent partner who has simply provided funds (capital) to help establish the Firm. The Investor is a part-owner of the Firm, but does not work in the Firm. The Investor shares in the growth of the Firm and in its profits.
These formed four quadrants, the:
E and S (Employee & Self-employed)
B and I (Business Owner & Investor)
Robert explained that work in the above groups revolved around Systems that allow businesses and organizations to operate. That the creator and owner of these systems has more control over their financial freedom than any other group. The creator and owner of the systems is the Business Owner.
Works for the system as an Employee.
If you are an Employee, you have a job and earn a fixed salary;
Is one of the systems, for example an Accountancy practice.
If you are Self-employed, you also have a job and a reasonable fixed salary;
Creates, owns or controls the system as the Business Owner.
If you are a Business Owner, you own the system and people work for you.
If you are a Business Owner you earn a profit and you define the size of the profit.
The Business Owner can use the profits to invest in the business, other
businesses or in such things as real estate.
This would lead to the multiple stream of income I sought.
By having others work the system, the Business Owner is free to do other things.
The Business Owner uses the services and skills of the Employee and the Self-employed
to undertake the business;
IThis means the best position to be in is theB and I quadrants to secure your financial freedom.
Invests money into the system as an Investor and is a part-owner.
If you are an Investor your money works for you and you share in the profits.
By investing in the system, the Investor is free to do other things, such as invest in other
businesses and have a multiple stream of income.
So, what is a system ?
A System is simply the operations that enable an organization to function. Consider your
organization, think about the purchasing section, or accounts. Think about McDonalds
Think about the systems in all these
– how a purchase is made,
– an account sent out or
– the alarm when McDonald fries are ready.
These systems enable them to function, and they are usually documented as policies and procedures.
A System reduces repetitive business tasks to steps which can be taught to others.
If YOU own the System you do not have to be there to operate it day-in/day-out.
This frees your time and puts you in charge of your financial future.
This means the best position to be in is the B and I quadrants to secure your financial freedom.I needed to start a businesswhich uses systems.
The next answer I sought wasHow can I do this ?
or even betterHow can YOU do this ?
How can I create and own a business system ? I looked into Franchise businesses, Network Marketing businesses, and starting my own shop. All required sometimes large funds to start to purchase the system (franchise), to buy product, or to fit out a building. Funds I did not have.
After much more research, I found the answer.
An Internet Business - the best System.
An Internet Business needed little investment, except my time, AND with the right tools, it is EASILY automated and easily systematized.
After extensive analysis I decided to start my own Internet Business and now I am on the road to financial freedom, retirement independence and have the time to do volunteer, charitable work and start another business.
AND an added bonus was that I easily had the knowledge for my Internet business as I based it around my PASSION. For once my passions could be my work – wow !
I started my Internet Business in the evening after my day job and I was soon on my way to that financial and time freedom I long sought. Here's how I did it.
There is amazing potential in the Internet.
There is amazing potential for business on the Internet, as every day:
- Millions more connect to the Internet with more than 15 000 new subscribers
logging on every day, and traffic doubling every 100 days.
Homes with Internet access grow every day;
- Millions more commence online purchasing – with $4.5 billion in 1998 growing to
more than $1 trillion after 2005.
In fact more than 25% of baby boomers are now in their peak spending years;
- Credit card technology is ideal for the Internet;
- Credit card technology is now a proven, reliable and safe technology;
- Relationships with customers can now be developed over the Internet.
YOU can create your own INDEPENDENT business on the Internet that is based around your life knowledge and PASSIONS from your work, your profession, your hobbies.
Imagine, earning an income from your passion - now that is enjoyable !! How can you do this ?? How did I do this ?
Imagine the opportunity for a multiple stream of income !!