Especially among small business owners, it can be a struggle to make ends meet and turn a profit. It can be difficult to grow a business during its initial stages, with only 56% of small businesses making it past the five-year mark. There are also a variety of costs associated with starting a small business that can add up over time.
The success or failure of a small business may often depend on razor-thin margins, so it’s important to develop multiple income streams in order to protect your business against risk and encourage growth. One of the best ways to ensure continued growth is to develop passive income streams.
Passive income refers to income that you can earn without exerting any effort after an initial setup period. It’s a great option for entrepreneurs and individuals looking to increase their income outside of a traditional full-time job. Passive income has seen a huge rise in popularity in recent years, as more and more people discover ways to diversify their income. It does come with tax implications, so make sure to keep track of any income you receive in order to ensure you pay the correct amount of taxes.
While passive income might sound like a dream come true, there are a few considerations to keep in mind before diving in. Some types of passive income setups may necessitate a larger up-front investment, while others start off small with the potential to grow. You should also consider whether or not you have any particular skills or talents that could be monetized via passive income.
Copyrighted Intellectual Property
Your ideas are your property. If you have services that are helpful to many people, such as translating popular documents or creating unique designs or software, you could potentially monetize these ideas in order to generate passive income. You can create a copyright notice and charge a protected licensing fee for the use of your intellectual property. This, in turn, could result in royalties if someone decides to use your intellectual property to sell items in the future.
Invest In Stocks
Investing in stocks is another great way to develop a stream of passive income. Dividend stocks can be especially fruitful when it comes to generating additional wealth over time. When investing in the stock market, it’s important to do your research beforehand and to start out with a healthy investment amount. You also need to be committed to learning how the stock market functions and keep an eye out for potential new investments.
Create an E-book
E-books are high-value, educational pieces of content that can help your audience to understand complex and important topics. If you have an area of experience and a ton of knowledge about a particular subject, an e-book can be a lucrative way to develop a passive income stream. While e-books do require an upfront investment of time and energy while writing the book, after the book is released to your audience it can be a successful strategy for generating passive income.
Launch An Online Course
Similar to an e-book, online courses can help to educate and inform your audience. While developing an online course does require an initial time investment, it can yield high rewards. The development of an online course also often necessitates the creation of videos, PDF resources, and audio files.
Start A Blog
A blog is one of the easiest ways to generate passive income and has a relatively low barrier to entry. However, a successful blog doesn’t happen overnight and often requires months of continuous effort before you see results. If you’re thinking of starting a blog, it can be helpful to develop skills in related areas, including search engine optimization, content marketing, and social media. When starting a blogging business, it’s important to be consistent when publishing and promoting posts. Blogs can be monetized in a variety of ways, including advertising, affiliate marketing, and more.
Passive Income Apps
If you’re looking for a low-key way to generate passive income, passive income apps can be an easy and effective way to make some extra cash on the side. Passive income apps are popular with people looking for a “set it and forget it” approach to passive income. These can include popular apps like Honeygain, Survey Junkie, Swagbucks, and more.
- Honeygain – Honeygain is a free app that makes you money by allowing data scientists access to your network traffic. Depending on how many gigabytes you share with the Honeygain network, you can earn upwards of $30/month.
- Swagbucks – Swagbucks lets you earn free gift cards and cash for everyday things that you do online, including completing surveys, watching videos, and shopping online.
- Survey Junkie – Survey Junkie rewards participants for participating in surveys via gift cards and cash payouts.
- Nielsen Computer and Mobile Panel – This app allows you to monetize your internet usage and contribute to Nielsen research on internet behavior. Once you install the app, you begin earning rewards and will also be entered into a monthly sweepstake.
- Drop – Drop is an app that rewards you for making purchases with certain brands and retailers. Shop directly from the Drop app and earn points that can be exchanged at retailers including Amazon, Netflix, Starbucks, and more.
If your passive income starts to grow substantially, you may be able to seriously consider it a legitimate revenue source to help fund your small business. While the first few years of a startup can be difficult, starting your own business can be a personally and financially rewarding endeavor. It’s important to stay organized, have a plan, and stay compliant with any local and state regulations. In addition to your main revenue stream, passive income can be a great way to make a little extra money on the side, and can be a good opportunity to further develop your brand and increase your audience.
Don’t forget to make your business official and protect your personal assets by registering an LLC. The best incorporation services like ZenBusiness (the #1 BizFilings and MyCompanyWorks LLC alternative) can take care of the paperwork.
