THIS is Why You Aren’t Making PASSIVE Income
In this day and age, the holy grail of personal finance and money is definitely figuring out how to create passive income. But if making passive income was easy then it wouldn’t be the goal for so many of us. Sure, you are working a side hustle to make extra money, but at the end of the day you’re still just trading time for money.
How do you create a business or revenue-generating project that can make you money on autopilot? Well, I’m Kim, and in this Article we’re going to look at four of the most common mistakes that prevent many of us from making passive income. Tired of sabotaging your future? Well, keep watching!
Spreading your side hustle business net too wide
So, mistake number one Why You Aren’t Making PASSIVE Income is spreading your side hustle business net too wide. It can be tempting to try and build a business that helps as many people as possible, but that is a huge mistake. Why? Well, the truth is, if you build a business for everybody, you’re building a business for nobody. This is actually one of the biggest truisms of marketing and product development.
When you build something for everybody, it means that you aren’t targeting a specific type of customer. And without having a barometer for success with how to please your customer, you end up not being the best solution for anyone. Your business doesn’t resonate with anyone because you’re trying to be everything for everyone.
Instead, by narrowing down your niche and focusing on serving just a few people who have problems or wants or needs that are similar to yours, everything suddenly becomes easier! Those specified, narrower niches will open up like gates in front of new opportunities — and they’ll all be easier than ever before!
Not making passive income
Alright, so reason number two you’re not making passive income is working on unimportant things first. These are things like focusing on your logo, social media accounts, or building a website, before you even have a business that works.
It can be easy to get distracted with these bells and whistles or “shiny objects”. But they’re taking you away from the core of your business: building the best products or services you can for your target audience and building a base of loyal customers. If your core business is to crochet bags on Easy, then spending hours on a logo design isn’t a good use of your time.
Instead, figure out ways to automate and build systems for your business so that you can create a real vehicle for passive income. Or, better yet, focus on making your customer’s experience as seamless and enjoyable as possible. THAT is a great way to make sure you have repeat business.
Thinking about your business as a way to make passive income
The third reason you’re not making passive income with your side hustle business is, ironically enough, thinking about your business as a way to make passive income. I know, that probably sounds weird.
Let me explain … If you’re setting up your business with the intention of generating passive income, then your goals and purpose for everything you’re doing is only oriented on working your way out of a job. That isn’t necessarily bad, but it shouldn’t be the ONLY thing you’re focused on with your business.
Why? Because it means you’re not paying attention to the core of your business, which – as I said before, is to create something of value for your customers. The money doesn’t just roll in without a value exchange. So, focus on creating value and exchanging that for revenue, and THEN fine tune your systems for automation and passive income.
NOT the other way around. Passive income is the LAST step of the process. Why? Because passive income is the automation of your business systems through tools, software, and delegation.
But if you don’t have a proven business system first, then you are automating something that doesn’t actually work. That means no passive income. In other words, you can’t automate something that doesn’t work yet. Just like you can’t drive a car before you put in the engine.
You don’t have clearly defined goals
The fourth and final reason you’re not making passive income is because you don’t have clearly defined goals. If you don’t know where you’re trying to go and the destination for your business, then you won’t be able to figure out how to get there.
And that’s a huge problem! Because if you don’t know where you’re going, you can’t figure out how to get there. And that’s just not good for anyone. The solution? Reverse engineer your business from your goals. What does it look like for you to live the kind of lifestyle that you want? How much money would that take? How many people would it take to pay you that amount? It’s not as hard as you might think.
For example, a hundred thousand dollars is a thousand people paying you a hundred dollars per year. Or, it could be a thousand people paying eighty-four dollars per month. OR, maybe ten thousand people each paying ten bucks a year.
That almost seems doable, right? Again, the focus with that is on what value you can provide to Article and Video to your customers that would allow them to pay the amount you need to make your business viable.
If you start something with just money in mind without the idea of how you might help others first and really diving into the problems of your audience, you’re likely gonna fail. So instead of focusing on making money, your primary goal should be to serve your audience well — and if they’re happy, then they’ll reward you with their business.
Starting something new like a business or side hustle means you’re likely to make mistakes. It is the nature of how life works. But that is okay. It is how you learn. The more you learn, the faster you’ll build a successful venture, and the sooner you’ll make money.
The sooner you make money the sooner you will find ways to automate your systems and make that money passive. It’s how business works! You can do this! Building a successful business is something we can all do. You CAN create a future of financial security and success! Of course, you need a business idea for your side hustle, which is probably step one.