Multiple income stream, scaling and the riches?

[Causalien]

A few years ago, I was convinced by one of my "buddy to riches" that the way to do it is through multiple streams of income. Initially, it started as making something every month that earns $20/month of revenue and let that accumulate, but as time goes on, I eliminated a few of them and ended up with the 4 I have now. My situation is in an awkward balance. Call it first world problems if you like, but since we are all here to learn to get richer, I might as well spill it: I cannot starve to death, but the wealth accumulation is also too slow. $100 when I only have $1000 net worth was great, but $100 at $10000 net worth is nothing.

I am of the opinion that this idea doesn't scale and I will be better off concentrating on one. Currently, if I want to grow any one of the 4 streams, I need to spend full days working on the idea, if I were to spread to all 4, that'd mean about 1 day per idea and before I know it, the week is gone. People say passive income is great, but often neglects to mention the upkeep part of any money making scheme.

So my question is, is this the way to riches and I am just not working hard enough? Or are people better off focusing on one idea once a comfortable base is established?

[avrex]

I would work to develop 1 of the 4 ideas further.
Set a reasonable time limit on the project (i.e. x number of days/months) to see if you can further advance the income on that 1 project.

Once the time limit expires, I would move on to the next project.
Best wishes to you Caus.

[kcowan]

You need to focus on leverage to enable you to handle multiple streams. Use other peoples' time and money to make money.

[Causalien]

Kcowan, I'll need some example of this.

I can see using other ppl's time, but I have to pay for them. Or getting investor money, but they are buying for my time. Combining the two would theoretically be what you meant, but I would still spend as much time pitching ideas than increasing revenue.

[kcowan]

An example is that, if you are using up all your time, you start mentoring others to do that job for you. You focus on the highest yielding activity (pitching ideas). And you get the labour rate down that way, maybe even charging people to get the training. And you offer some incentive to keep them connected to you even when they are masters.

[rookie]

cause, as you mentioned, if i wont starve to death, then i would pick the one i would enjoy doing the most.
another note of caution is that technology moves so fast that sometimes, a great idea today, can be worthless very soon. so if you are doing things part time, you will not have the momentum to encash the potential returns before the product/service is rendered obsolete.

[Mall Guy]

. . . Initially, it started as making something every month that earns $20/month of revenue and let that accumulate, but as time goes on, I eliminated a few of them and ended up with the 4 I have now . . .

well, I'm not sure I understand what your doing ??? By "making something" do you mean a computer program, a craft item, custom woodworking . . . scale comes from raising the minimum return on a project - early days $20/month was acceptable - so now maybe you only look at a project that return $50/month (you pick the number). A focused specialty, where you are viewed as an expert, commands higher returns . . . as long as the skill set remains in demand.

[Causalien]

well, I'm not sure I understand what your doing ??? By "making something" do you mean a computer program, a craft item, custom woodworking . . . scale comes from raising the minimum return on a project - early days $20/month was acceptable - so now maybe you only look at a project that return $50/month (you pick the number). A focused specialty, where you are viewed as an expert, commands higher returns . . . as long as the skill set remains in demand.

In your example, it'll be something like custom woodworking, except I make it so that they are mostly automatic. i.e. I start out making them myself, then I develop a machine to do it for me. Now if I want to go forward, I need to invest time to improve on the machine or I can invest capital to make a copy of the machine. And if I follow along what rookie is saying, have someone working for me to do the improving and copying. While getting a poor sap to pitch in his money.

All 4 ideas resides in different industries so that when one fails, the others are mostly intact. Take the stock trading algorithm for example. Since I've mentioned it before, it is no secret. Does the job for me, is consistent but sadly, doesn't scale with amount of capital injected due to the small total volume of the niche market it latches onto.

So things developed, and everything started with $20/ month in mind. And I slashed and hacked the other projects so that the 20% (4 projects) that makes 80% of the money remains because I am too lazy and the pool in the summer is too attractive.

[Just a Guy]

Is that $20/month above the cost of your time, or are you lying to yourself about profits?

If you are actually making passive income, then there may, or may not be ways to scale it. For example, you could hire lower cost labour to make the products, produce more and thus increase profits.

Of course, if there is no market for the increased demand, then there is no point in scaling production. Your choice then is to lower costs or find a more profitable, higher demand product.

100 units producing $20 is the same as 1 unit which produces $2000. Many times, the more profitable products take less time to push, but the lower volumes scare people.

[Causalien]

They are now mostly self sustaining. otherwise there's no point in automation.

Time cost is relative. With initial development time being huge and as the passive income grow, my worth per hour grow. So it was worth the time sink when I did my first project. Not so much now if you measure it this way.

But I just want to build. I don't really mind the work. Life is boring otherwise.