In previous posts I established the limitations of self-employment and the restrictions it can have on your earning potential.
But the question is…how can you increase your earning potential as an entrepreneur?
First up is delegation. Having people work for you not only helps to spread the work load but allows your business to reach a wider range of people. Bringing people on board to work for you gives you more time to focus on working ON the business, rather than IN it!
Now that you’ve taken yourself out the equation you can replace it with systems. Creating a system is a great way to ensure your business remains running even when you’re not there. The success of the business is no longer solely reliant on you, it is now reliant on the system. This ensures that your business can be run and managed by anyone. This is advantageous because it helps to create continuity.
If done correctly, distribution can take your business from 0 – 100 ! If you have a product your main aim should be to put it in front of as many people as possible. That way it increases your chances of sales. No matter the idea or product, with the right marketing and distribution your business can take off! Obviously it takes a lot of hard work but when you look at the examples of successful businesses you can see they have mastered the art of distribution e.g McDonald’s.
This way is more for the creative ventures such as writing, painting, music etc. By creating a unique product which you claim ownership over, means you have the right to sell this on for profit. This means that even after the original effort has been completed you can still benefit from the work you put in. For example, writing a book may take you months or even years to complete but if written well, could provide you with regular income for years to come.
Creating a business that requires your client to come back month after month will help provide your business with a steady income stream. For example, monthly subscription services are a great way to gain that commitment from customers. It not only provides customers with a guaranteed service but it also helps stabilise business income. Gaining commitment from customers through direct debits is desirable to help generate a regular income for your business.
So there you have it! 5 ways to get you thinking about increasing your earning potential as an entrepreneur. All of these suggestions can contribute to your set up for a lifetime of residual income.
Please share any more tips below!