Anyone around the world will tell you, no matter how much they love their job, getting paid while you sleep is the dream. While it seems far fetched at first, passive income should be every small businesses goal, no matter the type of business you're running.
Passive income, or an income that is created without your physical presence, can sound a little pyramid scheme-y, but hear me out. Passive income has generally been defined as 'set and forget' income, but if you look at it as a secondary income for your business it opens a whole new plethora of ideas.
Passive income does not need to be defined as sitting on a beach in Laos while you watch the dollars roll in to your bank account. Passive income still takes hard work, dedication and persistence to be achieved and a high level of understanding for your business. If you sell an eBook online, you have a fair understanding of passive income. For instance, a customer may purchase your eBook from your online store while you were sleeping. You didn't personally have to sell your eBook to them and the transaction took place while you were elsewhere. Although it may have been hard work to get that eBook in front of your customer (whether via marketing on social media or avenues, or even the time and process it took for that eBook to be available on your website), for all intents and purposes it was a passive income.
For service based industries, it gets a little harder, but not at all impossible.
Take hair-dressing salons. When you have finished getting your hair cut and coloured (the service), the hair dresser will usually suggest a shampoo or conditioner to use to keep your hair fresh and healthy (the product.) The service is the salons primary income, and the product is the secondary, and in this case, passive, income. The salon can then open up a new way for revenue from their secondary income to become more passive, by offering the products in an online store so customers that run out before their next appointment can still purchase the product.
This can obviously be tweaked and varied for a whole host of different business models and structures. Creativity is the key in finding what passive income works for you, and your business. It also is not an overnight success (nor is anything you put work into in a business.) It should be seen as another source of income to supplement your main business structure.
Some ideas on how to implement a 'passive' income to your business:
- Selling products related to your service based business
- eBooks and Workbooks
- Online courses
- Digital downloads or digital prints of images
- Renting out part of your office space or business space
While there are many other ideas out there for personal ways to make a passive income, what works for you and your business should be the most important part about starting on a journey to create a passive income.