Want to earn an income online, but aren’t sure where to start?
Or you already have an established business, but just aren’t feeling it?
Benjamin Franklin once said, “By failing to prepare, you are preparing to fail.”
Preparation is an essential part of starting a new project or a business plan.
Whether if it’s at work, in school, or in business; it is important that we adequately prepare for things we set out to do.
There are many ways to make money nowadays, but most people only pursue 1 source of income. Here are 4 types of income I want to break down for a bit:
1. Earned or Active Income
This is the most common way that people are taught to make money. Earned/Active Income is generated from trading your time, hard work, or labour for money.
2. Passive Income
Passive income is becoming the favourite income stream for most entrepreneurs. It is generated from business or investments you have created or purchased. In another word, it comes from your assets. For example digital products like online courses or ebooks, affiliate marketing, network marketing, MLM, rental income, etc.
3. Portfolio or Investment Income
Portfolio or investment income refers to the income from stocks, bonds, mutual funds, real estate…etc. With this type of income, your money is working for you.
4. Inherited Income
Everyone knows about inherited income, more or less. This type of income doesn’t apply to everyone.
According to Cashflow Quadrant by Robert Kiyosaki:
Type No.1 is called “trading time for money”, if you don’t work, you don’t get paid.
Type No.2 and No.3 are the ways to “make money while you sleep”.
?These are the types of income you want to focus on.
They are the income streams not depending on your presence. “When work stops, income continues to create wealth and gives you time freedom”.
Now, let’s get started with the 6 fundamental things you want to do before building your business around 2 & 3, then start making money while you sleep!
1. Get A Mentor
In the year of 1675, Isaac Newton wrote in a letter to his rival Robert Hooke said: “If I have seen further, it is by standing on the shoulders of giants.”
Too many successful entrepreneurs around the world attribute their fortune to their mentors.
Why you need a great mentor:
- Guides your mind to new ideas and possibilities
- Helps you to overcome challenges and get out of your comfort zone
- Gives you positive guidance in terms of living habits, mindset, values, etc.
- Helps to shorten your learning curve, increases your chance to success
How to find a mentor:
A mentor can be someone you admire, a role model you want to become, or your favourite historical figure. Here are some of the places you can start finding them:
- Seminars and live events – such as SFM Momentum Day
- Online mentorship networks – recommend: thesixfigurementors.com
- Volunteer events – recommend: HOPE Volunteers Program
- Industry meetups and events – such as Affiliate World Conferences
- Social media – for example: Linkedin
Whether if it’s through formal events or informal interaction, it is better to find someone who can guide you along your journey.
2. Find Out Your Purpose
“Good luck is another name for tenacity of purpose.” – Ralph Waldo Emerson.
Maybe you want to open an online shop, or maybe you want to do affiliate marketing, whatever it is, before you can really build an online business, you need to find your purpose – define your “why”.
Here are a few questions that can help you find your purpose:
Q: What is important to you in life? What do you value?
For example, freedom, love, family, friends, integrity, partner
Q: What makes you want to do this project or start this online business?
Maybe you want to buy the sports car you have dreamt of, maybe you want to spend more time with your family, or maybe you want to replace that 9-5 job and start travelling around the world.
Q: How much money do you want to make ultimately? Be specific.
This is really important. You want to fix in your mind the EXACT amount of money you desire.
As Napoleon Hill mentioned in <<Think and Grow Rich>>: “It is not sufficient merely to say, “I want plenty of money.” Be definite as to the amount.”
I suggested that you can make a comprehensive calculation of the material wealth you want, put them on your “list” and figure out a total number. Write this number down and put it where you can see easily, read it twice every day after you get up and before you go to bed.
PS: recommend you to use a vision board here
I have divided my vision board into 4 parts: Personal Growth. Social Connections, Wealth, Social responsibility. List all the things you want to achieve under each part and put a picture beside each item if possible.
3. Discover Your Passion
“Do what you love” may seem out of reach to many people, but there is a much greater chance you will end up frustrated, unfulfilled and lost if your business is not aligned with your passion.
In fact, as long as you decide to take the leap, it doesn’t make sense not to turn your interests into a successful business and provide value by doing what you love.
If you haven’t found your passion yet, follow these steps:
Write down 5 things you interested in:
For example: travelling, dating, exercising, photography, online business, playing games…etc
Write down 5 things you are good at and enjoy doing:
For example: blogging, cooking, public speaking, playing music, graphic design, video shooting…etc.
Now, we will use the following step to tap into your niche market based on things you are interested in.
4. Niching Down to Stand Out
You or your brand will be more likely to stand out if you niche down and focus on a specific need. With less competition, you will also be able to see faster results with SEO.
So how to “niche down to stand out”?
Here, to illustrate with an example:
- Pick one niche you’re interested in – online business
- Narrow down a sub-niche under this niche market – affiliate marketing
- Again, narrow down a sub-sub niche under sub-niche – high ticket
Use the chart below to niche down all the items you listed in step 2 :
5. Write Down A Plan
A DREAM written down with a date becomes a goal.
A GOAL broken down into steps becomes a plan.
A PLAN back by ACTION becomes REALITY.
“Knowledge will not attract money unless it is organized and intelligently directed through a practical plan of action to the definite end of accumulation of money.”
Once you followed the steps listed above, you have hopefully managed to excite everyone to believe in your purpose and your vision, it means half of your business blueprint is ready!
Now, let’s plan out some specific strategies to execute your business goals.
You can make yearly/monthly/weekly plans based on your needs.
In the book 《The 7 habits of Highly Effective People》, Stephan Covey used his story to illustrate how WEEKLY PLANNING helped him to achieve more by working effectively, meanwhile kept all the dates and promises to each and every one of his family members.
Through practice, I’m getting use to do a detailed weekly plan at the beginning of each week, it helped to use my time wisely and be more productive.
Here is one of my weekly plans for your reference:
6. Join A Mastermind Group
Power of The Mastermind was “The Ninth Step to Riches” in 《Think and Grow Rich》.
In 《The 7 habits of Highly Effective People>》, it says: Dependent people need others to get what they want. Independent people can get what they want through their own effort. Interdependent people combine their own efforts with the efforts of others (their mastermind group) to achieve their greatest success.
Joining a mastermind group can not only make friends with like-minded people, but also help you grow in the following aspects:
- Brainstorming and collecting new ideas
- Peer accountability
- Group support
- Improving personal skills
- Improving business skills
?One of the most powerful mastermind groups I have ever come across:
SFM Tribe – over 3000 entrepreneurs around the world. It is the ultimate group of builders, doers, and creators – here to take accountability for your entrepreneur journey and your life.
Discover How to Start A Profitable Online Business From Scratch:
?1. Click “HERE”, register with your best email. Get Instant Access to SFM On-Demand Online Workshops FREE.
? 2. Click here for more FREE resources