Every entrepreneur, well everyone for that matter only has so many hours in a day to accomplish everything on their to-do-list. For most people this means they have to charge by the hour for the service they provide.
If you have a consulting business you may make £100 per hour for providing your customers with a service.
If you own a gardening business, maybe you charge £15 an hour to go and work on someone’s garden.
If you are a social media or marketing provider, you may only charge your clients a fee for the start up work that you provide them and possibly a retainer for anything after for daily maintenance.
Even if you make an amazing hourly rate, there are still only so many hours in a day, a week, a month or even a year.
Ok so if you are a solicitor and you are charging £250 per hour, it’s likely that you are going to be able to buy a lovely family home, probably drive a high end car and enjoy the finer things in life, you are likely to be able to leverage other people’s administration skills to send out letters and manage your diary entries, however while you sleep at night, you aren’t going to be able to make money, and we all need sleep right!!!
So what is a passive income?
Basically, this is setting up a business that can practically run on autopilot 24/7 where you make money without you physically having to be working on it all the time. That being said, you couldn’t go away for a month, not do any work and still expect a fairy to come in and do it all for you.
Creating a passive income takes dedication and for you to be robust. For this to work successfully, you must work hard for the first few months and even years so you are able to gain all the benefits in years to come. The end game is for your passive income business model to keep earning you money while you get on with your day and enjoy life.