When people see the word, passive income, for the first time and understand its meaning, they may be very excited, as if they have found a path that others have never known, bright, as if financial freedom is at your fingertips. However, they found that they could not even start it. Buying a house to rent it, you need tens of thousands of dollars to pay for the house price. You don’t have that much money, you buy a fund, the annual profits are too low, you can’t even win the inflation rate, and trading stocks are too troublesome.
However, everything has its intrinsic logic. Since there is a concept of passive income, there must be a reason behind it. There are too many people who talk about passive incomes. What they are talking about is nothing more than paying attention to savings, paying attention to investment, and saving some time to do a part-time job.
But these are all of no use. People who can make big money are never like this. Maybe you now have 5 figure income. You do the same thing every day. Maybe you will be able to do it more proficiently sooner or later, but is it possible to make 6 figures? Impossible. You have to make a difference and think differently. Only in this way you can embrace the 6 figures income, not with the static one. The point of passive income is to change the way you think about things. When you think of something and you need to think differently from ordinary people, maybe you have an illusion of dominance and then maybe you got a way out.
I remember when I graduated from college, I never had the idea of making money or doing my own business, let alone the passive income. For me, a job in state-owned enterprises is the right track. Like many of my classmates in the same age, I began to look for a job after graduation. I later try hard to find a position in a designing institute of a state-owned enterprise. I was doing architectural design. I looked around at my colleagues, engineers and Chief engineers who were middle-aged and had grey hair. I have a spontaneous illusion, that maybe I will end my life here. I started from the bottom position as a technical staff. At that time, I worked overtime every day until very late. I often worked until one or two o’clock and others were all gone. The lights over my desk were always on and I was a little bit lonely. I was just thinking about designing and becoming a master of it and taking the lead. It was a pity that, at the end of the year, I discovered that my bonus was actually only 4 figures, a few thousand dollars. I never thought about buying a house and buying a car and running my own business before, but when my family called me to ask about the New Year’s affairs. By that time, I suddenly had a terrible fear. They thought that I was working in a very high-end company and industry and my income should be quite decent. I remember that I didn’t go home for the New Year that year. It may be self-respect. I told them that there is a big project that I need to do overtime during the New Year. In short, during that time, I began to think about the reality, whether it was important to become a master of architecture, or it was more important to become a rich man.
One day, I casually surfed the Internet and saw the book the poor dad and rich dad. I realized that there were such group of people in the world who actually make money without having to work. At that time, I was brewing, can I do something similar? Of course, afterwards, I did a lot of things. I read a lot of books. There are thousands of books I read. There were as many as ten kinds of business I did, and there were losses and gains, such as dining restaurant and washing machines, online sales of various documents, slowly got to know my own way. Later I began to write something. The process was smooth and magnificent. I remember when I received a profit of more than 8,000 dollars a day, I began to think that money making just should be like that. OK, no bull shit. Here we go some real stuff.
First, what is passive income?
The passive income I wrote is only for the poor people who used to be like me. Those who have the money to buy a house or invest in stocks can bypass. For ordinary people, I think a reliable passive income is a reliable automatic business. And a reliable automatic business is built on a reliable trouble. The key to passive income lies in the word, passive, which means that you don’t have to spend much time and energy on it. Even if you don’t have too much income, while the effort is extremely low. That is also a qualified passive business.
For example, to open a convenience store, ordinary people’s first reaction is to find a community, do a good signboards, and then try to find ways to increase the products catalogue, and increase its feature products and highlights, such as selling imported products; price-reduced eggs? Or something new to attract more people? Or a more conspicuous store door. Don’t laugh, it’s you! Does this idea feel familiar? Actually, 99% of people in the world had such first response to how to do business. There were too many people who asked for knowledge of entrepreneurship on social medias. Their first choice and entrepreneurial thinking was like this, I was not kidding. Peoples’ most common ideas is simply thinking about which community to choose and what products to sell. It’s like turning around in a pit, but you can never climb out of such pit, because this kind of way of thinking has limited people in the pit. Ok, how can we get out of it? First of all, there must be a clear logical thinking, such as convenience stores (can be split into)=products being demanded + stable visitor traffics. These two points may be the basic components of a convenience store.
Then you need consider the key points of these two components. For example, products being demanded includes how to choose the products, why people buying these products, and what products different people may buy. Stable visitor traffics means thinking about the commonness of customers. For example, if they live in a community, they have common characters, white-collar workers, and white-collar workers who work together. These are commonness.
Well, after analyzing the two basic points, what we need to think about next is how to reach these two basic points. What is the most direct and quick way to solve it? For example, I place a vending machine at the entrance of the community or office building. This is also a convenience store. In fact, several years ago, I thought about putting a vending machine on the corridor of our office building or on the first floor. This is a natural closed environment. There is no convenience store around the office building. Even if there is, everyone will not bother to go out of the building. If you put some cigarettes and drinks in vending machines, there will be a steady cash flow. At that time, I even also calculated the quantity of cigarettes everyone demand, the frequency of drinking water and drinking beverages. Basically, it would be possible to get all your investment back within one or two months.
Actually, doing business equals using the simplest way to solve the most fundamental problems. To solve the same problem, the simpler the method used, the lower the cost, and the lower the time consumption, the higher the revenue will be, and more likely the reproducible, so it will be expanded. For example, to sell convenience products to people, you may choose opening a convenience store, or you may choose doing a vending machine. For example, to sell information to others, you can choose to sell physic books, you can also choose to sell eBooks. The difference between the ways you choose determines your future way. The process of entrepreneurship is the process of constantly updating to achieve the same result. The simpler, cheaper, and the more attractive your approach is, the greater chance of your success.
Second, the business foundation of passive income.
What is the foundation of a business, in short, traffic. In the final analysis, all business is based on traffic. Whether it is offline or online, for example, a vending machine is placed downstairs or in an office building, which is a business, and the number of residents in the community and office workers in the office building, is the traffic of business. You need to find the commonness of the customers, in turn, the commonness determines the type of products and the business model. In the end, what to do, it is better to start from the areas you are familiar with, or you just develop a kind of feeling slowly. I remember half a year ago I once wrote about how to do a low-cost waste paper recycling business, the results shows soon after the waste paper recycling business works because of the increasing need for express delivery. However, many things have such unclear intuition. If someone had done so, they might have earned it.
In short, a good passive income business=simple, low cost, less time consuming business model + stable targeted traffics.