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Multiple Income Streams – Part 2

2010 July 6

If you remember our previous article on Multiple Income Streams, you’ll remember that we talked about the difference between working for yourself, and working for someone else. On one hand, you’re exchanging time for money – as an employee or as a self-employed person. This is naturally limited – there’s only so much free time you have, and you need to sleep, eat, and so on.

On the other hand, you could be an investor and use your money, to make more money. This is a great strategy, and you don’t need to be rich to do this, but we’ll cover this in a future article. The next few articles will focus on the last Quadrant – running a successful business.

What’s the difference between running a business and being self-employed? One word – leverage.

Leverage is the ability to multiply your efforts. The root lies in the word itself. Think of trying to change a car tire – its unlikely that you can lift (and hold!) the car up on your own. However, using a jack, a special type of lever, you can not only lift up the heavy car, but hold it up. The lever multiplies your strength so you can do virtually the impossible, and even make it look easy!

Running a true business works the same way. While as a consultant, you can sell your expertise to your customers – which is a great way to make money – you’re naturally limited by the amount of time you have. There’s only so many hours in the day – and you need to have time to enjoy your life too! Now, add some leverage to the mix, and not only can you have more free time, but you can remove that cap on your earnings. Your potential is now unlimited!

Sounds great, right? Well hold on, if it was really so easy, why isn’t everyone doing it?

Honestly, its really not that difficult. Don’t get me wrong, its definitely hard work, but the biggest barrier people have to succeeding in business is really three things:

  1. Knowledge
  2. Effort
  3. Fear

I’m sure the first two are rather obvious – otherwise the “Dummies” books wouldn’t be such a hit – knowledge on how to succeed in a specific business niche is of course critical to success. Effort also seems obvious, but its not exactly what you think. Effort doesn’t just mean trying harder, its actually a combination of Action (moving forward) and Persistence (keep going!). In other words, when the going gets tough, the tough get going. This is sometimes termed “taking Massive Action“.

The last one is not so obvious. Most successful businesspeople experience Fear just like the rest of us – fear of rejection, fear of failure, fear of poverty, and more. The difference, is that the successful ones conquer that fear – and go on to great success. There’s many great examples – Steve Jobs, Bill Gates, Elon Musk (PayPal and Tesla Motors), Adam Khoo (author), Tellman Knudson (Internet Marketing wizard), and many others. In fact, most of the really successful businesspeople you’ve seen at first don’t seem to have the “right stuff” – they’re usually not highly educated, they’re not already wealthy or from privileged backgrounds, they may not even be good looking (I’m looking at you Tellman, pre-haircut!).

However, by building up their knowledge, conquering their fear, and taking massive action, they ultimately win.

That’s it for today, our next post will talk about more specifics.

MKS

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4 Responses leave one →
  1. aamir58 permalink
    July 9, 2010

    Education plays a dubious role in this whole mix. On one hand you need it to become more successful but at the same time it breeds fear inside you, fear of failing that is.

  2. July 12, 2010

    There’s lots of interesting studies and theories about the nature and value of education. What I think I’ve understood from some of the “best” sources (at least what’s convinced me) is that “education” as practiced today in most societies, has been molded to produce good workers. By its very nature, it produces individuals who are taught to think in conformity to the nature and practice of the society that we live in. I’m not talking just about respect for law and the economic system, but their very place in that system.

    Its telling that often the most successful people in the world are those that are NOT educated.

    I’m a strong believer in life-long learning however – that should be self-evident, but the long-repeated mantra to “get a good degree, then you’ll get a good job” just isn’t true anymore, if it ever really was.

    Since the schools won’t do it, we need to teach our children the value of learning, not just education – and teach them the life skills that they won’t teach them in school. Not just financial skills, but spiritual, ethical, nutritional, physical, and intellectual skills.

    MKS

  3. aamir58 permalink
    July 14, 2010

    Very true. Schooling is just one part of education. We also need to prepare our kids on all these other necessary life skills
    On the subject that education system today is molded to produce good workers, I believe that we cannot blame somebody else for this and it is us who choose to live this life. Even after finding out this truth, we still continue to act as workers. Why? Because
    1. We are lazy and want to continue with status quo.
    2. We are afraid of change – change brings risk, risk generates fear – fear of failure. What happens if I don’t find what I am looking for? Then I might not be able to come back to where I am now.
    3. of lack of belief in oneself. Others have some special attributes that I don’t have.
    and many other reason, of course.

    I recently read an interesting book, although it had been around for sometime, “Alchemist” by Paulo Coelho. Very appropriate for the subject under discussion.

    Aamir

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