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Anyone who spends any time at all browsing the internet is bound to have been bombarded with advertisements highlighting passive income business opportunities. “Learn how I earn $472 a day from home…” sound familiar? How about earning money without lifting a finger while you relax poolside on a tropical island? While the latter is a personal ambition of mine, I’d like to explore some misconceptions surrounding passive income businesses.
Time commitment
Notice how the subheading above doesn’t say “initial time commitment?” A business that ultimately generates passive income still requires plenty of time commitment and your constant attention. Most successful businesses get to the point where founders (if they’re strategic) can eventually take a backward step and things run smoothly without their constant intervention. A business that earns money without your daily involvement would most likely qualify as a passive business. However, if you don’t keep a close eye on the general running of the business and don’t devote “some” quality time to it on an ongoing basis, things could unravel quite quickly. Yes, most businesses will command more of your time and effort initially, but an established business still requires some close attention if sustained success is desired.
Capital investment
All businesses from small to large conglomerates, require money to get off the ground and this reality applies to passive and online businesses, too. Too often, entrepreneurs discount the capital required to get even the most basic of businesses going. This can often result in business ideas being abandoned in their infancy despite the upside and opportunity these businesses might provide. Those starting online businesses often know exactly how much its going to cost to design and develop a flashy new website but all too often they neglect to factor in the cost associated with driving traffic (customers) to their site. Yes, acquiring a customer online is more affordable, especially for new and small business, than via traditional media such as TV and Radio. However, if you haven’t planned and budgeted for customer acquisition you’re in for a rude awakening. Online passive businesses rely on organic traffic and leads but even incremental traffic can be costly to generate. Be sure to forecast and budget for all areas of your business, including advertising costs, before you set out on your business journey.
Consistency
Consistently dedicating the time and effort required by your business is the best advice I’ve been given. Its easy to come up with an idea but its harder to execute your plan consistently over an extended period of time. The most successful businesses, regardless of whether they’re active or passive all have one thing in common and that is an industrious founder or co-founders. Our business, Compare Forex Brokers, isn’t an elaborate one but it is one we have been working on consistently for nearly three years. Some might brand it passive but I can tell you we’ve been committing to it diligently since day dot. Consistent effort brings about sustained results. This is the real key to running a passive business.
The above shouldn’t dampen your entrepreneurial spirit or result in you abandoning your business idea. It is simply designed to prepare you for the challenges and unpredictability of starting even the most passive of businesses.
Brought to you by Noam Korbl, Co-Founder Compare Forex Brokers, a website devoted to helping traders select the right Forex Broker
