Create Multiple Streams of Income

| January 15, 2009 | Reply

I was speaking with an old banker friend today and we began to discuss new trends that we may see in the business world.  She mentioned that the economic downturn and thousands of layoffs would likely spawn new small businesses opportunities.  I agreed with her.  With so many layoffs and new home business opportunities out there, it’s possible that people will take the leap into owning a business. 

With that being said, I would like to provide information that could help you on your journey after leaving corporate America.  The information I’m providing is directed mostly toward those individuals who are unsure of the type of busines they want to start.  I speak to people in this category because it can be frustrating when you don’t know what to do with yourself, as I did one year ago. 

For starters, I would like to introduce the idea of multiple streams of income.  The idea of many sources of income is becoming more popular now, especially with the trend of home-based business depending on the Internet.  For example, an employee working as a sales manager could start a part-time business teaching sales skills to individuals, and/or write a book discussing the skills needed to be successful in sales.  The objective of multiple streams of income is diversification.  A stock broker recommends diversification in your investment portfolio.  Why not diversify your income sources?  With so many layoffs, having multiple income sources lowers your risk of losing the game of money.

During the first few months after leaving my job, I spent a lot of time thinking, which is what I recommend also.  Of course, this does not mean be lazy and do nothing.  Thinking helps clear the mind, which is often full of rubbish after you leave your job.  In fact, after I left my job I spent about a year thinking and processing information that I thought would help get a business off the ground.  After that year, I was starting to implement some of the ideas that I had developed.

For me, the hardest part of this process was finding a business that would utilize my skills, highlight my talents, and be marketable.  So I researched tons of business ideas that I liked.  I created a list and narrowed it down to five ideas.  I soon realized that out of those five, I had two or three that would be worthy of pursuing.  For example, I enjoy investing in real estate, building website, and writing about investing.  Therefore, my idea list looked something like this:

  • Real estate leasing agent

  • Write a book about investing

  • Write articles for a business blog

  • Buy and sell items on Ebay

  • Build a website that offers some type of real estate service

Keep in mind that I have a skinny budget, so most of my ideas are small.  As I start to develop my ideas further, I can then take the extra money and begin focusing on bigger ideas.  Of course, I could find investors to fund a new big business, but it’s my choice not to do that.  If your budget is healthy, I would recommend taking your best idea and going for it!  However, never spend more than you can afford to lose.  There nothing wrong with starting small and failing.  Losing big is a much bigger lesson to swallow. 

If you’re considering leaving your job to start a business, make sure you’re financially prepared.  Don’t leave your job without a plan.  Although I had no plan after my job, I did have passive real estate income paying my bills (although I was still broke!).  Consider creating multiple sources of income while you have a full-time job.  Not only will you have more money to fund your ideas, but you will gain experience as a business owner. 

I wish the best of luck to your endeavors.

Category: Business, Entreprenuer, Foreclosure, Interest Rates, Investing, Money, Motivation, Personal Finance, Politics, Real Estate, Success

About the Author ()

Rob Myrick is a entrepreneur, web designer, and blogger who resides in Phoenix, Arizona. He works with entrepreneurs who have the need to take their product to the Internet, or who simply need marketing skills as a supporting strategy to their existing business. Rob has worked for several well-known entrepreneurs such as top blogger Katie Freiling, and also businesses such as The Startup Garage located in San Diego, CA.

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