We've all heard the saying, 'Don't put all your eggs into one basket.'
While the mainstream media and the social norm may emphasize how safe and secure 9-5 jobs are, almost everyone who had a job realised this was nothing more than a pipe dream a few years ago.
As soon as the pandemic hit earlier in 2020, 114 million people in total lost their jobs around the world.
114 million people were put in difficult situations, unable to provide for their families, forced to find another way.
Aside from that, owning multiple income streams gives them a safety net since they've diversified their risk across multiple streams.
The problem is that there are hundreds of thousands of articles talking about the different streams of income one can build.
None of those articles discuss the process or strategies one can follow to build those income streams.
Building multiple income streams is no easy feat - many people attempt to build one business or side hustle at a time, and fail.
Juggling multiple is all the more harder.
In this article, I wanted to show you exactly how to build multiple streams of income fast and earn passive income from it.
Start with strengths, interests, or hobbies
One of the best places to start is with what you already know.
Everyone has skills, interests, or hobbies.
For example, if you were someone who had a marketing-based job and lost it earlier in 2020, you could have easily started a marketing agency and found clients due to your previous experience.
When I started blogging, I leveraged my ability to write.
Although I wasn't the best writer in the world, I was always pretty good at writing - especially when it came to creative writing.
At the same time, I had discovered a hidden interest, almost a passion for SaaS businesses.
My interest alone led me down a long rabbit hole where I was able to build, launch, and profit from my own SaaS business - Hawk Prospecting.
Although I closed this business down not long ago, I was able to learn many lessons which I can take with me into my next SaaS venture.
If you've ever worked in the retail sector, you may know a little bit about clothing and fashion - this is a perfect opportunity to start a small side hustle related to fashion and clothing.
You can even think of starting your own clothing brand, which can grow into a massive business over time.
No matter what you're good at, or like doing, there's a way to monetize that.
I used to believe it's not possible to turn passion into profit, however, following my discovery of NFTs, I started to see the massive opportunity in art and digital assets.
Start brainstorming ideas and start to think about what it is you'd like to do.
Focus on one thing at a time
If you took the time to brainstorm ideas, you might have a sheet full of ideas.
However, starting multiple things at once is the fastest way to fail at everything.
You are a single person with 24 hours in a single day.
8 of those hours are spent sleeping, 4-8 are spent doing other things - eating, resting, etc.
You now have around 8 hours to spend on building a side hustle or business.
8 hours per day is enough time to build a single side hustle, however, it's not enough time to build multiple.
On top of that, you've got limited capital to invest into starting a side hustle or business, so it's important you focus all your resources on one thing.
Looking at the image for this section, we see two sketches.
You want to focus on being the sketch on the right - you want to focus all your energy, attention, and resources on one thing and make it extremely successful.
A lot of people try to be the sketch on the right - they have multiple things going for them at a single time, and so they find it hard to make them all successful.
At best, you'll end up with mediocre results across the board, however, the reality might be a lot harsher.
Serial entrepreneurship is a trap a lot of new entrepreneurs fall into. Everyone thinks being a serial entrepreneur is cool and so they focus on building more than one thing at a time, and end up failing at all.
Focus on only one thing - we'll diversify later on.
Set the right goals
Setting goals is crucial to success in any venture.
Building multiple income streams takes a lot of planning and goal setting.
It gives us clarity on what we should be doing, how much progress we're making, and allows us to realise whether or not we need to readjust our course.
Think of your goals as a roadmap - a way to tell you where you need to go, and how to get there.
Luckily for you, I've spoken about setting SMART goals previously.
We want to start by setting a big, long-term goal. What is the financial goal that you want to achieve?
For a lot of people, that might be reaching $10K in monthly income.
From here, you'll want to start thinking about how many income streams you'll need to build to reach this goal.
If you build income streams that make $1000 per month, you'll need 10 income streams to reach your monthly goal.
However, if your streams make $2000 each, you'll only need to build 5 income streams to reach your monthly goal.
Spend some time planning this, it's very important to get right.
While building income streams that make, on average, $1000 per month is faster than building a stream of income that make $2000 per month, it might be easier to manage 5 income streams rather than 10.
No business is a 'set and forget' type business - everything you do will need some level of moderation in order to keep running and make a profit.
Therefore, you need to plan according to what you think you can handle - if 10 income streams are too many, you can build 5 that make $2000 per month instead.
Automate and delegate
It will be almost impossible to build multiple income streams without this step right here.
By now, you might have started working on your first stream of income.
It's important that you only start thinking about moving on once you're close to achieving your goal for the first income stream.
For example, if your goal is to build 5 income streams at $2000 per month, and you're running a marketing agency that charges clients $1000 per month, you'll need to get 2 clients before thinking of moving onto the next business.
Even then, there's still more to think about - you can't physically run 5 streams of income alone, even if they're 'passive streams of income.'
This is where automation and delegation come in. These are likely one of the most important things one must understand in business.
In order to scale past where you currently are, you'd need to hire people to help you run the day-to-day tasks of your business.
This step is not as difficult as a lot of people make it out to be.
Start to think about your own unique business, and everything that needs to be done.
Now, you'll want to throw each task into one of two buckets: Automation or delegation.
Automation simply means using AI to do the repetitive things you need to do.
You can schedule 100s of posts if you wanted to, saving you a lot of time and worry down the line.
Next, you can delegate.
This essentially means hiring people to do the things you need to do.
For example, outreach and sales are things people need to do - you can't build relationships using AI, you need to do so by talking to people, asking questions, etc.
This is where it's important you hire people to take over these specific tasks.
Simply head over to Upwork, create a job post, and go through the candidates.
When you start from 0 and suddenly start seeing large sums of money, it's easy to lose track of your goals and think you're free to spend it all.
However, this is where you need to hold back your urges or desires and think long-term.
The money you generate, especially in the short term, should not be spent on yourself.
Everything you generate should be going back into your businesses to help you build more powerful income streams.
If you start to take the money you earn, it won't be long until your business starts gasping for air, or worse, dying out completely.
Focus on building a self-sustaining business before you move on to the next one.
You should be able to step away from your business and it will still run seamlessly.
If you're the reason your business stays alive, then you're not ready to move on to the next business.
Once again, you need to ensure you automate or delegate the daily tasks necessary to run your business.
Only then can your business breathe without you.
Now, you can start to think about how you'll start to build the next income stream.
When your first income stream is producing revenue, you can now start to reinvest some of those earnings into the next income stream.
You'll be able to grow the next stream much faster than you did the first one because you've already gained a lot of new experience, and have a lot more capital to throw at it.
It's all about repeating the process you did with the first one - focus on one thing, build it up till you reach your goal, automate and delegate, then reinvest the profits.
Build connections with people
Finally, you'll want to focus on growing your professional network while building these streams of income.
Relationships are key in the field of business and the professional world in general.
If you're looking to start multiple streams of income, you may find yourself doing things you've never done before, things that you have no clue how to do.
The only way to make it work is to learn from someone who's done it before.
The amazing thing about building relationships is that you never know who you're going to meet.
While your direct network may not be the best fit for what you're doing, the people they know might be.
This is why LinkedIn is such a powerful social tool - if you connect to someone who has 2000 connections, you've immediately opened a gateway to 2000 new people.
Now think about how this might work if you're connecting and speaking to multiple new people every day, every week, consistently.
Connections and relationships can open up doors you might have thought were closed before.
You can run into someone who becomes your partner for the next business venture you decide to start.
Or you can run into someone who tells you about a big opportunity that you could start - there are so many possibilities, it's important you go out and find them.
That's how you can build multiple income streams fast and earn passive income.
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