You’ll notice that the title of this blog involves the word “passive”.
I’m striving for a passive income not because I’m lazy and want to kick back and do nothing but because more than anything else I want to be flexible with my work hours and not have to answer to anyone.
That might sound a bit egotistical but it’s more that I’ve learnt a fair amount about business over the years which has led me to desire this type of l lifestyle.
My economics lecturers like to spend a large amount of time rabbiting on about preference sets. In a capitalist society, business owners and employees have different but complimentary preference sets. By and large, employees value the security of a reliable payslip at the end of every week. This security is traded for their time.
I’ve come to realise that at it’s highest level, business owners value their time most. A business, in my books, is a method of leveraging time. As an owner of a business, the sole task should be to develop systems once that are repeatable and scalable. If implemented properly, business owners can enjoy a much greater level of flexibility in their lifestyles.
You often read that being an entrepreneur is a round the clock activity and there is some truth to this. However, the best entrepreneurs I’ve worked with are all about working on their businesses not working in them (excuse the old cliche). As soon as you engineer yourself into the day to day workings of the business, you’ve traded the most valuable part of being a business owner and you might as well get a job instead.