The best way to print your own money is to own a business. Entrepreneurship is the way to riches and wealth. Employment as not and will not make anybody rich. Going by the cashflow quadrant of Robert Kiyosaki of people that own 95% of the wealth of this world, are the 5% Business Owners and Investors of this world. Regrettably, only 5% of the wealth of this world are with the remaining 95% of the population who are either employees or self-employed.
The question is, what percentage of the world population do you want to belong? I am sure majority of people will want to be among the 5% that controls the 95% of the world wealth. Are you willing and ready to go into business for yourself? The majority of the world population dread anything called business because of the associated risk. The fact is, as an employee, you are actually in business of another man’s business idea and venture but with a ceased, controlled salary. You cannot determine your pay. The employer has the knife and the yam of your monthly, annual package. The reaction I often get when I talk this way in seminars and workshops is, if we all go into business, who will do the jobs? My response have always been and will always be, strive to be among the 5% in life no matter where you are starting your life from today.
Business owners have people to run systems/structures/organizations/institutions for them. They engage the service of brilliant, intelligent people. Investors have money working for them. My focus today is on Business ownership.
To own a business, it means, you have at least five hundred people running a system for you. To own your business in a traditional way, you must do market research, create a product, have huge sum of capital/money, arrange for how to warehouse your products, engage the service of distribution, do equipment leasing where necessary, property acquisition, determine employee’s package and benefits, determine the price, place and promotion of your goods and so on. To do the aforementioned, is capital intensive.
Please, business ownership is not the same as been self-employed. To be self-employed, it means you own a job not a business. A self-employed person must always be available in his/her shop, store, and venture to make money. They have no system working for them. They can’t go on vacation. They cannot attend workshops or seminars where they could be empower to grow their business. Any attempt by self-employed people to go on vacation, attend a workshop or go for any function, the store must be closed. That means money also stop flowing to the business for the period he was away. Should the self-employed person have health challenges that he/she needs to attend to, the business is also on a stand still. A brother and a friend who is into public speaking, lost some money because he could not honour his speaking engagement while on hospital bed. There was no system to do it for him whenever he was not available.
There was a time I used to run my company in a particular area in Ikeja, Lagos. I had a neighbor then who was hundred percent self-employed. This my neighbor goes to China to bring goods and market to the public. The funny part is, whenever this man travels, he goes without informing any of his staff that are about fifty or even more. The following morning, the staff will discover that, the office and the store are under lock. Anytime this man have to attend a function in church, in his native town, go for any meeting that involving days, the business must be shut for that period. He did not build any system. He never trusted anybody but himself. Having the mind-set to be self-employed, it means the business will die with you.
True some big businesses we see and patronage today, started through self-employed people. But they built capacity to own a system that will continue to run generations upon generations after they have gone. Two set of people control the wealth of this world. They are Scientist and Entrepreneurs. They both identify a problem and solved it. in the course of trying to solve the problem identified, they realized they need to surround themselves with the right people that will be willing to give their Time, Talents, Resources, etc. for a pay to solve the identified problem.
For illustration purpose. An Entrepreneur or Business Owner discover that he could only give Eight Hours (8hrs) daily to solve the identified problem, so he engages the services of Ten people who will exchange their Eight Hours (8hrs) daily for a pay. In total, Eighty Eight (88hrs) is what is now used to solve that problem daily. Imagine, the Business Owner engaging the services of 100, 200, 500, 1,000, 5,000, 10,000 people on eight hours daily? The Business Owner eight hours become insignificant and he can afford to go on vacation, attend functions, and so on without shutting down the business because there is a system. That is why Robert Kiyosaki said on the Cash-flow quadrant that people work for business owners.
Business Owners still get paid their bonuses, director’s emolument, and dividend even if they only come for annual general meeting (AGM) throughout the year. That is the Passive/Residual Income am talking about.
You will agree with me, that to be a Business Owner of that magnitude I described above, is capital intensive. It requires hiring the right to run the systems for you. It is risky you will also say. But no risk no gain too. It is good to go to business for yourself.
I want you to know that we are all in business. If you are an accountant in Nestle, you are in business just that you are not the owner of the business. You can own your own business, by first owning your life. There is a better way that intelligent people can leverage on. The focus is; FIVE (5) WAYS TO GENERATE PASSIVE INCOME not five (5) ways to make money. The focus is freedom not security.
Are there other legitimate ways to generate passive income? Yes! Watch out for the next ways to generate residual income. This is just number three out of five.
Matthew Abolurin is the Principal Consultant/CEO of Pep Access Ltd, a consulting outfit responsible for Business conception, actualization and growth, Sales and Marketing Training and HR Management. Matthew Abolurin is the President of Transformation Network International, a multifaceted Network where wisdom is given to create a life of Purpose, Passion, Peace and Prosperity.