Last week we talked about the idea of Passive Income to start building up income that doesn’t require you to directly work. I know you are VERY excited about creating passive income that could take care of your living expenses without seeing a bajillion clients a week, but before you do that- you have some work to do…
If you have been following us for awhile, you may have realized that Kelly and I don’t gloss over the tough stuff. There is no fast forward button or magic wand when building a profitable, sustainable business. Why? Because the things that you try to avoid now will come back to bite you on the tush later!
Yes, sometimes people seem to grow faster than others, but often you don’t see the work, research, planning, and implementation that came before what looks like an “overnight success.” Anybody who has been through our Business School Bootcamp for Therapists can tell you- it works- but it is NO magic wand! It really is a bootcamp!
Why You Must Create Time for Passive Income
You need passive income so you can see less clients, and have more time. But, you also need time so you can create passive income, and see less clients! It can feel frustrating when you’ve been overworking for so long and you need something to change right now and realize that there isn’t an overnight fix. The reality is most therapists don’t have the time to implement a passive income stream successfully.
A Quick Example About the *Time* It Really Takes to Create *Passive* Income
The most classic example of passive income is rental property. Buy a property, rent it out, the rent check covers the costs and then some and poof- you’ve got passive income. But what came before that… or during that “passive income” stream?
Have you ever purchased a piece of property? Think about the amount of time you spent researching, negotiating, signing papers, making sure the space was ready for move-in.
Ever looked for rental occupants, “marketed,” your rental space? Or managed a rental property , otherwise known as provided ongoing customer service? It is seldom initially a completely passive process. And, this doesn’t take into account all the “time” that was invested previously saving up that money to invest in a down-payment or closing costs for the property.
That ebook, or ecourse is not much different. There is research involved, paperwork, moving, marketing, customer service. You need time to research plan, create, and implement that passive income that you so need.
What Happens If You Don’t Create Time for Passive Income
I know you- you’ve listened to all the podcasts, watched the YouTube vidoes. They make it seem like you can create a magical income stream in just a few hours. Some of the trainings almost make it sound like you are stupid if you don’t already have a passive income stream.
But, most people find that creating and launching a passive income stream takes a LOT of time- much more than they were prepared for! If you don’t create the time for passive income you can end up spending more time, spending more money, and WASTING time for a project that would be a great idea but it never gets launched at all. Or, it gets launched in a way that doesn’t allow it to actually bring you in income.
You wouldn’t expect to spend 10 hours one weekend buying a house, getting it ready to move-in, finding renters, and setting up processes to make sure your rental gets taken care of. You can’t expect to spend 10 hours one weekend building an entire new arm of your business that will support you from scratch and have it start bringing you real income.
Erika, a psychologist in Florida, and one of our My Awesome Year coaching clients had this to say about passive income: “I thought launching passive income was gonna be easier than starting a business, but really it’s just as difficult and time consuming because now you have 2 things to juggle 😫. You have to have a solid business with consistent referrals and systems before venturing into a passive income stream, and an assistant you can delegate to.”
How to Create Time for Passive Income
Ok- you can’t really “create” time, but you can definitely take back time. It is important to assess how you are spending your time right now. Both our bootcampers and our private coaching clients consistently find that without addressing this issue, they end up getting distracted from the projects, passive income streams, etc. by the reality of running a business and living life. Here are some questions to explore:
What am I doing right now that isn’t actually helping my business that I can let go of?
What am I avoiding right now that needs to be done to keep my business running smoothly?
What am I doing (or avoiding) that could be automated by software?
What am I doing (or avoiding) that could be outsourced to an assistant?
Can I batch any activities to free me up for a few months? (Set 6 months of blog articles to drip out for example so the marketing continues while you shift your focus to another project).
Is there anything in my business that I could change to free up my time or make my life more streamlined? (Dropping an insurance panel, letting go of a contract that takes a lot of time, etc.)
Do I have processes and systems in place that make it easy for me to delegate tasks, oversee big projects, and move my focus away from my business without my income dropping?
These questions may seem easy on the surface. We know they aren’t. It is really easy to get mired down in the way that things have already been done. Before you move to creating a new business or income stream- make sure your current business process is truly running as efficiently as possible. If you don’t, it could easily keep you from ever getting a really great passive income project off the ground. OR, you could take the same inefficiencies that keep you busy in your business as is and replicate the same problems in a new area of your life.
One of the best pieces of advice that we can give you is to have an outside person really look at what is happening in your business. It is uncomfortable, it is vulnerable, but it is incredibly powerful. It doesn’t have to be a business coach, but it does need to be someone who understands your field, and that knows how to create something that is streamlined and that meets your needs.