3 Methods to Create A number of (Large) Streams of Earnings | Entrepreneur

3 Methods to Create A number of (Large) Streams of Earnings | Entrepreneur

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How did Elon Musk develop into one of many richest entrepreneurs on the earth? He did not begin only one firm, he was concerned in a number of groundbreaking enterprises together with PayPal, SpaceX and Tesla. The identical goes for Richard Branson, who has launched over 400 firms, and Oprah, who has based or acquired substantial stakes in a number of companies together with Weight Watchers, True Meals Kitchen and Oatly.

Whereas some entrepreneurs are content material to start out a single enterprise, scale it, promote it and retire to a lifetime of leisure, different entrepreneurs are pushed to do extra. Maybe they need to change the world for the higher, or possibly they merely thrive by staying lively and rising companies.

In the event you assume you could need to observe within the footsteps of a number of the best entrepreneurs of all time and create a number of streams of earnings, listed below are 3 ways to make it occur:

Associated: How To Create 7 Streams of Earnings for Passive Wealth

1. Construct a number of companies, one after the other

The thought of beginning a number of companies would possibly sound interesting to a visionary entrepreneur. Nevertheless, when actuality strikes, enterprise homeowners typically uncover that working a single enterprise could be difficult sufficient. Fortuitously, there are methods to construct a number of firms and preserve your head above water.

First, if you are going to run a number of companies, you possibly can’t do all of it by your self. You want companions.

Second, do not begin a number of companies on the identical time. Begin one, give attention to it intensely till it turns into worthwhile, flip it right into a self-managing entity, after which you possibly can leverage your earnings to launch the following enterprise.

Third, discover methods to align your companies and create synergies so that every enterprise can develop quicker and higher.

2. Purchase present companies

Warren Buffett made his cash shopping for companies, not beginning them. May the identical tactic give you the results you want? Keep in mind the success of any acquisition hinges on who (and what) comes with the enterprise.

The “who” is simple — it is the people who find themselves at present employed by the enterprise. These folks might love the corporate or hate it. Neither of these is essentially good or dangerous. In the event that they love the corporate, they could keep, however it might additionally imply they do not need you to alter something, even when it is an enchancment. In the event that they hate the corporate, they could go away, however they could even have numerous concepts about how one can enhance issues.

The “what” could be extra difficult. Companies can include tax obligations, authorized entanglements and extra. This is the reason many acquisitions do not contain shopping for all the enterprise however an asset buyout, through which you solely purchase the elements of the enterprise you need. Regardless, be sure you do your due diligence so you already know precisely what you are entering into.

Associated: 17 Passive Earnings Concepts to Enhance Your Money Circulation in 2023

3. Outsource constructing companies

Many enterprise founders outsource elements of their enterprise, like advertising, however what in the event you might outsource all the enterprise? “At this time, there may be a lot complexity and competitors on the subject of launching a enterprise,” says Milos Safranek, founding father of Automated Wealth Administration Holdings. “You have acquired product sourcing, logistics and provide chain administration, to not point out this stuff are all the time altering. For a lot of entrepreneurs and buyers, it makes extra sense to outsource the operation completely.”

One of many best varieties of companies to outsource is an ecommerce retailer as a result of a lot of the method could be automated. Enterprise automation is vital to unlocking an entrepreneur’s full potential. It is the way you generate profits whilst you sleep, however most entrepreneurs do not know what automation programs and instruments can be found — which is why, for a lot of, it is sensible for them to give attention to imaginative and prescient, model and advertising whereas outsourcing every little thing else.

Many articles and entrepreneurial “consultants” on social media will let you know how one can create a number of streams of earnings “in a single day” or as a “facet hustle.” The concepts I shared above will not be get-rich-quick schemes, and so they’re not facet hustles. These are time-intensive methods that require giant quantities of cash and energy, but when they take a big effort, the payoff may also be massive.

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