A playbook for Generating Business Ideas

Why Passive Income is So Great
Passive income is income that is automated. You earn it without time, cost, or
effort of any kind. Many, but not all, of the business ideas below can provide
passive income. Passive, or automated, income is great for a few reasons:
a. Additional Income
You can earn additional income while earning passive income. Because passive
income does not retire your time, you could spend time on other opportunities,
such as a full-or part-time job. It would be very difficult to hold two full-time
jobs at once, but it’s completely feasible to have multiple passive income
streams, or a job and a passive income stream.
b. Bootstrapping

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When you are getting a business off the ground, you will likely have to spend a
period of time without earning income. The period before you receive funding
for your business or sufficient revenue to earn a real salary is referred to as
“bootstrapping.”
Passive income can be extremely helpful while you are bootstrapping. Many
people choose to take on consulting gigs so that they can earn enough money to
survive while they are bootstrapping. Others continue to work at a salaried job
and only work on the business part-time. Passive income can enable you to work
on the business full-time without going broke.
c. Continuous
Creating a passive income stream requires a lot of front loaded time, but it
doesn’t require a lot of, or any, continued time or maintenance. Once it’s in
place, it’s in place. It will keep providing you with income after you stop.
Most employees can’t take a month off from work while continuing to get paid.
You would have to quit your job and stop earning your salary. Passive income
streams can continue to compensate you even after you stop working.
d. Diversify
Diversifying is a great way to mitigate risk. It’s commonly used in an investment
context to refer to making multiple investments. By diversifying, you will be less
harmfully affected by a poor performing investment than if you were to only
hold that one investment. In addition, by making multiple investments, you may
be more likely to hold one that outperforms the rest. Similarly, a business
benefits from having more than one customer because if that one customer
leaves, the whole business would collapse.
A passive income source is a great way to diversify your revenue sources. In
today’s economy, jobs are being automated and outsourced, we have more and
more people with college degrees competing for the same jobs, and the speed at
which business is transacted and communication takes place means companies
can go from healthy to bankrupt faster than ever before. I think it’s smart to have

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a passive income stream in place in case you get fired or your company goes
bankrupt.
e. Location Independent
Your passive income will continue to generate for you regardless of your
physical location. Many jobs and businesses require you to be in a physical
location with your employees and/or customers. You can earn passive income
from anywhere in the world.

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