In my franchise network, I found that the business was often side tracked by customers and demands that although they made some money, they used lots of time and resources, for no added gain. The real gain I was looking for was to increase the passive income of the business.
Only once the business owner sets this as a goal, will the business truly make the necessary adjustments needed to tackle the most important tasks of producing long term sustainable passive income streams.
To me now this sounds obvious but in the beginning of my learning process, of launching a business, this was not at all clear. Only once I understood the importance of having money flowing into the business that does not require huge effort to produce, did I see the massive benefits to the business. Once this became clear then it became easier to make the system changes to make this a reality.
The staff members within the business, largely could not see any difference and seem blissfully unaware of the benefits of passive income. This is largely due to the fact, that as employees they are trading their time for money and have never earned any passive income of any significance, so to them it is not an issue. This is why, if, as a business owner, you come from a corporate background, it is natural to make the same mistake, of not valuing passive income.
If you are reading this article and you have not got a clue about what I am writing about, and you have no idea about what "passive income" is then you are no doubt stuck in the same mindset that I was, in the beginning. For me a simple definition of Passive Income, is money that is produced for very little time or effort. Real Estate for example can produce a rental income that is largely passive and requires very little effort.
In my business we have 3 main areas: manufacture, rental and franchising. We sell rental items from our factory to our franchise network, that produce a growing passive income stream back to the main business. My mistake had been using lots of my factories time and resources to produce rental items for competitors and other customers, non of which had the same passive income flowing back to the company. The difference is subtle but the results long term very different.
Your business may not have the same opportunities for creating passive income, but if one opens ones mind to the possibilities of seeing something new, them it is quite possible that new opportunities and changes in focus can produce new results.
Passive Income in a Franchise - To learn more about this author, visit Andrew Edwards's Website.
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Andrew Edwards
(Visit Andrew's Website)
Andrew Edwards
Party Animals Jumping Castles
www.fun4p
artyanimals.com
www.face
-painting-fun.com
w
ww.sitesell.com/sellsafe20.html
Born in 1964, the son of a South African
gold mining manager, I grew up in the days
of the SA gold boom. I was lucky enough to
go to private schools while many others in
the apartheid era faced hardship and lack.
While I cannot complain about my schooling
one thing it never taught me has how to
run a business, let alone a national
franchise network. In 2003 after a long
career in the electronics corporate world,
I decided to "exit the rat race". I had
started my own sideline business in the
un-related party hire industry, and found
it a great learning experience. My
financial learning had just begun, as I
rapidly tried to increase my Financial IQ.
Success for me is defined as a delicate
balancing act, to keep all areas of life
whole and fulfilled. Success brings real
enemies and false friends, so for me
"success" in the American Dream definition
is not nearly enough. For me meaning,
purpose, fulfillment and wisdom are areas
that I hold dear. Money is only one of the
tools we need to learn to master in this
life.
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Complete
List Of
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