As with anything, it’s extremely important to begin with a solid foundation in the world of money and generating income. So let’s begin there…
In the world of money, there are two types of income. Linear income and residual income. “How many times do you get paid for every hour you work?” If you only get paid once, then your income is “linear”. If you get paid multiple times for the work you did once, then your income is “residual”. “Residual Income” is what you should be working towards.
The secret of the wealthy is not that they have more money but that they have more TIME freedom. With more time, you can create more residual income streams. It becomes important then to begin shifting your income streams from linear to residual. So how do you do that?
First, you need to pick the right income stream that will soon create residual income for you. I have a formula that I use to pick the right income stream. All opportunities are passed through the filter of the money tree formula – the nine characteristics of the ideal income stream. It’s called the “MONEY TREE” formula because it spells the word MONEY TREE.
M in the Money Tree formula stands for Multiple Streams of Income
Multiple Streams of Income
The first goal in starting your own home based business is to add another stream of income to your life as a safety net for when other of your streams of income dry up. But the home based ProstaStream business you select should be a source of more than just one stream of income. It should eventually be a source of multiple streams of income all by itself.
For example, suppose you’re considering buying an existing restaurant. What possibility will you have to grow? Can you add more shops? Is your idea franchisable? Can one of your food entree’s be sold nationwide as a frozen item? Can you license your special cooking secrets to other restaurants. Is there a cookbook in there somewhere? What about bottling and selling your special sauces? Get the drift? Don’t even consider a business that doesn’t have expansion potential for additional streams of income. That’s why the first M in the formula reminds you of Multiple Streams of Income.
The O in the Money Tree formula stands for outstanding.
Outstanding product or service
If your product, service or information isn’t distinguishably excellent it will eventually become a casualty of competition. The goal of creating a money tree is to do the work once and to have the money flow for the rest of your life. What good does it do to create a business and eventually have it succumb to competition. In order for your source of income to survive through the next ten recessions…as there will be many more recessions in your lifetime…you must select a product, service or source of information that has the possibility to be permanently and perpetually profitable. When times get tough, people gravitate either to price or to quality. Don’t get stuck in the middle. That’s a sure formula for disaster. And don’t compete with the rest of the world on price. Make sure the quality of your produce is outstanding…the best in the world at a fair price. And you have a good chance of succeeding long term.