Blog already been transfered

This blog is already been transfered to INVESTORS MONEY JOURNAL .com Pls. visit the new site to read newly update articles and videos. Thanks

Sunday, November 16, 2008

Create Passive Income - Power of Duplication (Leverage)

Not all business are created equal.

Some business are just glorified jobs.

Let me tell the story of Maria.

Maria was an accountant in a huge company. She had so much work, she worked until late into the evening every single night. Obviously, she hated her job. She felt trapped in her 8 a.m. to 10 p.m. prison everyday.

One day, she walked into a bookstore. On impulse, she bought a book on how to start a business. She read it in one sitting and got all revved up. Maria begun to dream of having her own carinderia (simple mini-eatery).

You see, Maria loved to cook. As a child,Maria was a helper in grandmas canteen. Through her mentor, she learned how to market, how to create delicious meals, how to run a kitchen like a battleship and how to make customers happy.

Maria resigned from her jo and jumped headlong into her new business.

And people loved her food. And because her house was on a busy street, sales were brisk and profits were good.

Maria was having a time of her life. She was doing what she loved and was earning more than her accountant's salary.

There was just one problem: One year into the business, Maria realized she was working harder and longer than when she was an accountant. Yes, she still worked until 10 in the evening. But this time, she didn't start at 8 a.m. but at 4 a.m., because she had to do the marketing early in the morning. I was an 18-hour job.Sure, she loved what she was doing. it was clearly her core gift and passion. But would she be able to continue with this backbreaking schedule?

From my point of view, Maria replaced one job with another job. Yes, the second job is now her own, but unless she trains others to do her work and duplicate herself, its just a glorified job. Unless she changes her approach, she will suffer from two things:

1. Entreprenur's Burnout

Maria is a perfectionist and cant delegate. She can't see someone else in front of her stove (she calls it her throne). She believed she has to be the one who does the cooking or the food wouldn't taste the same. When a business owner is like Maria, burnout is not far away. Stress will build up until Maria gets sick physically or emotionally - and may be forced to give up the business.

2. Dead-End Profits

Maria can never expand her business and increase her profit exponentially. Her earnings will remain stuck. Or if ever it will increase, it will increase via addition, not multiplication.

Remember that one of your goals is passive income.

You need to set-up a business in such a way that, one day, it can run without you. Or at least, with minimal supervision. Your goal is that while you sleep, your business earns for you.

When Maria can train cooks to duplicate her culinary skills and managers to duplicate her managing skills, she can exponentially expand her income by doing any of the following: offer catering services for parties, or start a new branch in another part of the city, or sell her sauce in bottles, or write cookbooks, or start her own cooking show on TV!

That's why every time I enter into any project, I always do it with a team around me. Never alone.

And together we crate a system for a project that's replicable and duplicable.

In other words, it's got to run on autopilot without my direct supervision.

Here's my ideal leader: If I appoint someone to be project head (or business manager). ater six months, I dont want her bothering me anymore except for major directional issues. If she/he still bothers me for tiny matters, I've chosen the wrong leader - or I trained her wrongly.

Excerpt from the Book of 8 Secrets of the Truly Rich by Bro. Bo Sanchez

No comments: