Hey Amazing Lady! I’m so glad you’ve found your way here! Passive income is going to be perfect for your service based Business and in this Post I’ll be sharing with you 3 reasons why.
It seems you can't move on Social Media at the moment without seeing someone talking about passive, semi passive or recurring Income. But maybe you think it's not for you because you're a VA or Photographer or Beautician and you need to be a Coach to have Passive Income (definitely NOT true!). Or maybe you just don't understand what it is so you scroll past it. Or you think to earn passive income you need to create an online course and you're terrified of all the tech that you need to learn (also not true!)
What IS true is that passive income can be great for you because it creates freedom and flexibility within your Business, creates consistency of income which reduces stress about where the next sale is coming from and it can help with the growth of your Small Business because it doesn't involve you trading your time for money. There are only so many clients you can work with at a time. But when you build passive income products into your Business, it means you can sell to many people at the same time or work with many people at the same time without much further work required from you.
So let’s look in more detail at the 3 reasons why passive income is going to be perfect for YOUR service based Business.
If your business model is set up in a way that means clients pay you a chunk of money and then you fulfill the hours (such as a Coach, Consultant or Photographer) or that you work a certain amount of hours for a client and then they pay you for the time spent (such as a Virtual Assistant or Social Media Manager) then your income won't be consistent. Unless you're taking on the exact same amount of clients each month, it's unlikely you'll make a consistent regular income.
I've had some great income months in my business. In one particular month I made £14K in a weekend. And while that was awesome and I was excited for a few hours, I didn't take the time to really enjoy it and celebrate it because I was so focused on ‘what’s next?!'. I felt so stressed because I didn't know where the next 14K would come from. Or even the next £14. I didn't know how long it would be before I made the next sale so I always felt like I had to be working ‘just in case’.
Maybe you thrive off the pressure, off the unknown. But if you're anything like me, the unknown and the uncertainty creates stress and a need to always be working on the next thing.
Passive income means you can have more money coming in between those clients you're working with. This reduces your stress and allows you some time off too!
Which leads me on to reason number 2 why passive income will be great for your Business.
The sun is shining and it's a glorious day but you have to sit at your desk working because you really need to get another client. Or your friend asks you to meet for lunch but you have to decline again because you have a client booked in. You want to go and get your hair cut but the thought of doing it in the middle of the day stresses you out because you feel so guilty about having some ‘time off’ and not working on your Business.
None of this is conducive to what I call ‘Peaceful Abundance’! You're allowed to get clear on how you want to live your life, what kind of money you want to make and how you want to spend your time and then design your Business around that. Not the other way round. Are you currently adapting your life to fit in with your Business?
Passive income allows for flexibility for yourself, your Business AND your clients.
It means that you don't have to accept EVERY client. It means you can have a day off whether you're sick or ‘just because’ and not panic about it because you still have money coming in.
I used to work with around 20 clients a week. The money was great, sure, but at the end of the week I was exhausted and completely burnt out which meant I had no energy left to enjoy the weekend. I was resentful of my Business (and sometimes my clients!) when it was a beautiful day and I just wanted to sit in the garden with my family rather than be stuck at my desk in the hot office.
Now that I've introduced passive, semi passive and recurring income streams into my Business (I have multiple streams of income so abundance comes from a variety of sources), I've drastically reduced those hours. I no longer offer long coaching programs but instead just offer bespoke 60 Minute Coaching Sessions (clients can book a bundle of a few hours at a reduced rate if they want more than one) and I only now take on a few clients a month for these sessions. Now I get to choose who I work with, I open my calendar at the times I WANT to work and there's no more resentment. I now focus all of my energy on the call on my wonderful clients - and I have a lot more energy to give!
And I said earlier that it also creates flexibility for your clients. If there's not just 1 or 2 ways they can work you, it opens you up to more ways of earning money. As well as the 60 minute coaching sessions, I also have a variety of passive, semi passive and recurring revenue streams with my monthly membership, courses, kits and printables, a Book, Notebooks & Planners etc on Amazon. My clients who don't want to join a membership can still take a course. Those who have already worked with me before might not want to book again but might want to buy my Book for further action steps.
When you add passive income streams to your business it means that you're accessible to more people. Maybe those who can't afford your services right now might want to take a course. Or read your book. Or join your Membership. Or what about your current and existing clients? How could you help them further?
3. GROWTH & EXPANSION
The final reason why passive, semi passive and recurring income will be great for your Business (and this Blog Post is by no means an exhaustive list, there are plenty of other reasons!) is because it will allow for growth and expansion within your Business (and growth and expansion of your Bank Account too!).
There are only so many clients you can work with at one time. When you’ve built your Business to the stage that you’re fully booked with clients and couldn’t possibly take any more, the only way you can make more money from that Business model is by putting your prices up. There’s nothing wrong with increasing your prices (especially if you’re fully booked!) but there are only so many times you can do this before you price yourself out of your market.
Introducing some passive income streams into your Business means that not only can you take a day off and be more selective with the clients you take on, as mentioned in the last section, but it means you can grow your Business and your Bank Account without burning yourself out or continuously putting your prices up.
You could work with many clients at the same time within a group setting for example which means your client base is expanding without you sacrificing any more time. You could offer products with a particular service that take no more effort for you to promote but is another income stream for you.
Once you realise the potential of multiple streams of income, your possibilities really are endless!
Making money is allowed to be easy and yes, it really is ok to create something and earn from it again and again without much further input from you. And in case you’re wondering - yes you ARE good enough and yes you CAN do it too!
I know you may be wondering what kind of things you could create (I know because my clients ask me this ALL the time when I bring up passive income!) so I’ve created a Guide for you that gives you 17 Passive Income Ideas for your service based Business to get you started.
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