Making money while you sleep… The idea of passive income is the supposed dream of many entrepreneurs; but, how does it really work?
Planning it out is easy, but not always simple.
Getting started is simple, but not always easy.
But I believe in you! 😉
To build passive income, you’ll want to optimize everything in your business that can be optimized. This means making things more efficient and removing any unnecessary work to complete the tasks you need to get done.
Many people follow the 80/20 rule of thumb, as in many cases people find that 80% of the tasks they are doing contribute to only 20% of their income, while the other 20% of tasks contributes to 80% of their income.
So, how do you optimize something?
Here’s the simple (but not always easy) 3-step process.
The first thing to do is eliminate tasks that aren’t actually contributing to your success. Measure the return on investment (ROI) of all your tasks and see if anything is really unnecessary. Ask yourself why it’s there, and what would happen if you simply stopped doing it. Weigh the pro’s and con’s to decide whether you want to eliminate that task.
The next step is automation. Anything that doesn’t require a person to manually do the task, set up systems and software to take care of it for you. A tool like Zapier is a great resource for this if you have tasks that involve common processes between two systems.
Finally, anything remaining that must be done by human hands but doesn’t have to be done by you personally… make someone else do it. It’s that simple. 🤷 Invest in your success and saving yourself time. These tasks can be handed off to someone in-house or outsourced to a person or vendor outside the company.
What remains should be a business that runs like a well-oiled machine with little or no interaction from yourself.
That said, many of us love our baby–uh, I mean, business–and we want to be very hands-on in the processes that we enjoy. 😁 That’s great! Try to optimize everything else to maximize your own availability for the tasks that require your hands-on involvement or the tasks that bring you the most joy if that’s how you measure success.
The key here is that you are in control, and you decide which tasks you will do and which ones you won’t.