He is licensing the Trump brand to other qualifed executives. There was even one here in Vancouver (hotel and casino) that was proposed by local investors...Originally Posted by Just a Guy
He is licensing the Trump brand to other qualifed executives. There was even one here in Vancouver (hotel and casino) that was proposed by local investors...
Without getting into your business details too much...
I would keep the diversification so that your not fully reliant on one income. Those that you do not believe to be scalable I would look to sell/cash-out of/leave dormant and reinvest that money into another idea with more scalability.
Now...some people have trouble shifting their mind from one market to another quickly, so perhaps it is best to find a scalable idea within the same marketplace/niche as one of your other profitable ventures, so that you become very specialized in one area, so to speak.
If the workload is too much to handle currently, outsourcing is soooo easy to come by for menial tasks. There is various sites you can find with a google search; just keep it to simple tasks because quality will probably suffer. I do this with a website of mine.
It sounds like your running a grey box in stocks, which should be very scalable; haven't seen many that weren't.
This seems more like work than passive income!
Aren't they the same? Find me something that is truly passive where all the effort it requires is to move money into an account and BAM you get 10% per year. My friend, you'll become my best buddy forever. But that is still effort
I don't get why people always think "outsourcing" or handing off most of a business is the magic bullet or it's soooo easy,once something is up and runnuing/scaleable/profitable(depends what the business is i guess but this is so not true with typical bricks& morter traditional businesses,i don't know if these are the businesses being talked about)
You cross-over from whatever skill/endevour you built(typically by yourself or a very small # of people)To having to learn the Real tough stuff(imo).How to grow the business,trianing employees,quality control,over looking/seeing both the finance and operations side,more tasks and moving parts,putting out more fires,making more mistakes(because your # of decisions muliply)and the list goes on(not to mention you have to pay up for manger's or whoever that is going to be overseeing the day to day operations which reduces your margins.
That seems like such a ''myth"There truly is very few real passive income activities.
It's why I love real estate although I agree it is not for everyone. I am now collecting rent on free and clear properties because I started (with large mortgages) in the seventies. In a few weeks I will close on a sale that will give me a 30% profit on a one year hold, plus pay me 8% interest in monthly payments for 2 years followed by a large cash balloon payment. Again, this did not happen overnight and I did not learn how to do it in a day either.5 years ago I spent two weeks creating and recording a video training course for an online video training company. I get royalties - that is true passive income at this point. I still get a very nice cheque every month from that one course. Think car payment. I can't do any more in my current situation unfortunately - but I have a friend who has done over a dozen of them - not all as successful as mine (My topic was Outlook 2007 training) but those streams of royalties are extremely valuable when they are totally passive, even if individually they are small. It's worth working very hard for a short time to set up something completely passive like that. Think about intellectual properly that once created can funnel money to you with absolutely zero extra work.
I agree that the way to go is to focus on one revenue stream at a time - scale and grow that one and ensure it will eventually be totally passive - then move on to the next one. I've only managed to get a couple up and running - but wow they do add up! Just be sure to focus on things that can be completely hands-off in the long run. That may mean selling a business or idea to somebody else and simply collecting royalties.
This is why I love dividends.
Maybe I over reacted. There is nothing wrong with passive income or royalty income or dividend income. But it has become a buzz word used by slick operators. All I can say is do not trust any financial advice unless you can check it out with 3 or 4 independent sources.
It's funny how the benefit of one road only gets revealed once you steered your car onto the other.
There are certain things that has begun to come to light.
1st is morale. With multiple projects it is easier to do small steps and fixing something small or doing a small incremental improvement that yields a direct increase in income (albeit small). Whereas the focus on one project means that these small incremental improvements disappear pretty fast and I am now staring at a longer commitment in time and capital. Doubts crops up pretty fast.
2nd is efficiency of capital allocation. As mentioned before, it takes a while to exhaust the smaller incremental capital improvements when there are multiple projects. So, I have to argue that the capital efficiency is higher with that setup mainly because I see an immediate improvement and get my money back faster. Whereas focusing on one takes longer for the money to turn profit. So in the short term, it is a more inefficient investment of capital, even though we all know that in the longer term, it is the better use of capital.
If only we can keep our emotions in check. But, I am happier and more confident.
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