Making money - Part 3

Archive for the ‘Making money’ Category

Multiple streams of income — why strive for it?

Passive income is one of those concepts that eluded me until I was in my mid- to late-20s. I grew up in a family of modest means. I figured that, if I went to university and worked hard, I’d be able to get ahead in life. Along the way, I realized that taking control of my own destiny — by becoming a consultant — would allow me to enjoy a richer life. But I was in the middle of my MBA before I realized the power of passive income.

You see, if you’re a freelancer or consultant who goes from job to job, you’re someone who owns an outsourced job. And there’s nothing wrong with that. But the best way to make money is to discover ways to turn that outsourced job into passive income.

Now I’m not suggesting you give up on consulting. No way. But I am suggesting you find ways to create efficiencies in your work. As a consultant, you’re an information broker. Look for ways to sell that information over and over again. Templates, books, hotlines, websites, articles, seminars, lectures, courses and so on.

There’s no need to strive for all those things at once. Once you’ve established yourself as a consultant, look for other ways to build on your success. Tackle one project at a time. And, hey, you don’t need an MBA to do it.

Passive income idea | Idea of the week

Passive income idea of the week — here’s a great idea for generating passive income (money that comes through the door without requiring you to lift a finger).

If you often find yourself recommending services to your clients and colleagues, check into referral fees. For example, marketing consultants often recommend copywriters, graphic designers, web developers and printers. And real estate agents often recommend everyone from home inspectors to painters. Find out if you can capture a small share of revenue — between 5 and 15 percent — for successful referrals. You’ll make money for something you’re doing anyway.

You’re in business to make money

I recently overheard a marketer say:

"If you’re in business to make money, you’ve got it dead wrong. You’re not in business to make money. You’re in business to meet needs."

When I started out in marketing, I thought this was true. But, over the years, I’ve realized that it’s not quite true. It should sound something more like:

"You’re not in business to make money. You’re in business to meet needs in a profitable way."

You see, if you focus just on meeting client needs, you’ll have happy clients, but you may not have a sustainable business model. You definitely need to find a fit by selling to the right clients. But sometimes you need to fire a few customers. If you get wound up in serving the needs of customers who aren’t profitable, you’re going to have a hard time breaking even. And then you won’t be able to meet anyone’s needs.

Remember: you’re in business to make money. If you want to be able to meet the needs of your clients, you have to consider return on investment. Ultimately, meeting the needs of your clients means making sure that you’re able to help yourself, too.

Passive income idea | Idea for passive income

Passive income idea – looking for an idea to help you generate passive income? Whether you’re working a regular job or self-employed as a consultant, it’s frustrating to work hard every day, only to have to start again tomorrow, so that you can have an income come in.

Passive income idea generates ongoing revenue

Creating a passive income means you’ve found a way to make money without working harder. For example, one graphic designer I know has created a successful invitation template business. Whereas graphic design jobs are usually one-off projects, a template is something she can sell over and over.

Some consultants make money by selling advertising space on their websites. By partnering with other vendors, they make money without needing to show up to do the work.

Have you got a passive income idea you’d like to share? Comment below or contact me.

How turning off your TV can make you money

Turning off your TV can make you money. Seriously. Over at TheSecondDollar, there’s an excellent article about reducing TV time and increasing your cash flow. I especially liked this tip:

Start a second business. I keep this blog running on less time than I used to spend watching television each night and it is earning some money. I also started a computer consulting business, where I fix people’s computers locally. This has opened up two solid revenue streams for me that, added together, approximate what I made from my job before. This has made me feel much less stressed about work – I do my job, but it no longer has the paralyzing “Oh my God what if they downsize?” fear that it used to have.

When I first became a consultant, I launched my business on a part-time basis. When I did that, I scaled back on watching TV. If you currently spend a couple of hours watching TV each night, you’ve actually got about 60 hours a month you could be using to run a consulting business. Even if you just worked 20 percent of the time and billed just $50 an hour, you could be making $600 a month — $7200 a year.

Wow. Turn your TV off a couple of nights a week and make an extra $7200 a year…or more. Sounds like a "get rich quick" scheme, but it worked for me.

Money making hobby – making hobby money

Money making hobby — it may sound like a new idea, but making money from a hobby has helped people for generations. With the advent of the Internet, the money making hobby has shot to the forefront — but it’s hardly new.

For example, people like the Bronte sisters made money from writing, one of the few socially acceptable ways for women to make money back then. Today, millions of people around the world work as freelance writers.

And Thomas Edison made money from inventions. Gadgets are hardly a 21st century idea!

And many people have made money from art, crafts, writing, woodworking, cooking, music and other hobbies. My good friend, Rhona-Mae, makes money with her piano. My brother and his wife sell plants at farmers’ markets in the summer. My brother’s friend turned his love of tropical fish into a money-making hobby business that cleans and maintains aquariums for businesses, institutions and individuals.

In a way, my consulting business is a money-making hobby. Although I make most of my living from marketing consulting, part of my business spills into freelance writing. Since I love reading, writing and research, this is a great way to get paid to do what I’d do anyway.

Do you have a money-making hobby?

Related to money making hobby

Money making hobby – making hobby money

Money making hobby — it may sound like a new idea, but making money from a hobby has helped people for generations. With the advent of the Internet, the money making hobby has shot to the forefront — but it’s hardly new.

For example, people like the Bronte sisters made money from writing, one of the few socially acceptable ways for women to make money back then. Today, millions of people around the world work as freelance writers.

And Thomas Edison made money from inventions. Gadgets are hardly a 21st century idea!

And many people have made money from art, crafts, writing, woodworking, cooking, music and other hobbies. My good friend, Rhona-Mae, makes money with her piano. My brother and his wife sell plants at farmers’ markets in the summer. My brother’s friend turned his love of tropical fish into a money-making hobby business that cleans and maintains aquariums for businesses, institutions and individuals.

In a way, my consulting business is a money-making hobby. Although I make most of my living from marketing consulting, part of my business spills into freelance writing. Since I love reading, writing and research, this is a great way to get paid to do what I’d do anyway.

Do you have a money-making hobby?

Gruesome retirement ahead? Try consulting

Gruesome retirement ahead? The Motley Fool says that’s the kind of retirement for which many people are headed. About one in three people would rather scrub a bathroom than plan for retirement! And about 2 in 5 people aged 55 and over have less than $25,000 saved. Yikes!

If you’re looking to step up your retirement savings contributions, consulting’s a good bet. Even consulting part-time can allow you to throw an extra $200 or $1000 a month into your retirement coffers. And you can use consulting as a transition to retirement. You could start out consulting full-time, then three-quarter time, then half-time, quarter-time, sporadically and so on. This is a great solution for people who want to take early retirement but will still have kids in college or high school, too.

A retirement calculator can be a good (but sobering) way to check your numbers. (I tried Googling for one, but all I could find were Canadian versions. What’s with Canadians and retirement planning?!)

Are you planning to consult during retirement? Drop me a line.

Mini storage rental | Why rent mini storage space?

Mini storage rental? As in self storage space? A growing number of small businesses are turning to mini storage rental as a way to avoid leaving their existing offices.

A few years ago, I did some marketing work for a self-storage company. I’d always thought mini storage was for people on vacation, homeowners with little storage space, or students away for the summer. It had never occurred to me that a huge number of mini storage users are small businesses.

Why use mini storage rental space?

  • Space for excess inventory
  • Seldom-accessed records, like those tax returns from five years ago
  • Seasonal products
  • Seasonal promotional materials
  • Tradeshow exhibits
  • Product samples
  • Rarely used equipment

Some mini storage facilities accept deliveries and even provide 24-hour access.  Why rent more office space when you could rent small or large storage units on a no-lease basis? Mini storage sounds like a great idea.

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Degrees in business management | degrees

Degrees in business management come with various options. Students can pursue two-year, four-year or graduate-level degrees in business management – in person, online or through correspondence. These degrees include:

Associate Degrees

Associate degrees – the lowest degrees in the hierarchy – indicate that a student has completed two years of introductory business management education. They are awarded by community colleges, junior colleges, polytechnic institutes, and some four-year universities and colleges. Holders of associate degrees transfer to bachelors degree programs or may pursue entry-level employment.

Bachelors Degrees

Bachelors of Business Administration (BBA), Bachelors of Commerce (B.Com) and Bachelors of Management (B. Mgmt) are the usual undergraduate education options. They are awarded by universities and four-year colleges. These four-year degrees introduce students to economics, business law, organizational behavior, marketing, finance, taxation, statistics, accounting, and management information systems.

MBAs and Graduate Degrees

A graduate degree is the highest level of business management education. A doctorate (PhD) is the pinnacle in the academic world, although an MBA (masters in business administration) typically garners more prestige. Students planning on an academic career usually complete a masters in management or an MBA, then go on to the PhD or Doctor of Business Administration (DBA). PhDs and DBAs require the student to become an expert in a field, generate original research and write and defend a 100,000-word thesis, which may take three or more years. But those with business careers in mind almost always pursue an MBA. An MBA provides graduate-level education in the core business management areas of finance, marketing, human resources, accounting, and strategy. An MBA is a one- or two-year program.

Business management degrees are available on campus, online and via distance education. Some programs even allow students to pick and choose among these options. Nervertheless, the traditional on-campus format remains the most popular choice for people pursuing a degree in business management.

This article was originally published on Suite101 by Andrea Coutu of Become a Consultant at ConsultantJournal.com.

Do you need an MBA to consult?