As a small business owner, you may have heard you need to add “passive income” sources to your business. (Passive income sources, put simply, are ways to earn revenue while you’re not actively working — such as having a shop with digital downloads. You don’t need to be present in order to earn revenue.)
Sometimes, the idea of adding passive income sources to your business can be overwhelming: Do you really need passive income sources? What should they be? Where do you even begin? Today, we’re sharing 3 myths about passive income, with hopes to encourage you and point you in the right direction!
3 Myths About Passive Income
- I need to add passive income sources to my business immediately. At With Grace and Gold, we’re firm believers in building a strong, solid foundation for your service-based business before introducing new layers to your business. We recommend finding clarity in your brand, consistently connecting with your Ideal Client, and building a dedicated (Note: Dedicated does not necessarily mean large!) audience. This way, you’ll find clarity and purpose in your business — and your audience will be dedicated to your business, too. Once the foundation of your business has been solidified, it’s easier to add new layers to your business — such as a shop, a course, or a community. Not only will you have the basics of running your business mastered, but your audience will also be “ready” to be introduced to your new addition. (Conversely, if your business is a product-based business, you could certainly add passive income sources to your business as you begin your business journey. We believe it’s all about clarity and communicating your offerings clearly and succinctly to your audience!)
- If I add passive income to my business, it needs to be in the form of a course. At With Grace and Gold, we believe the passive income source you choose to add to your business should be added thoughtfully and strategically. If your audience isn’t looking for a course — you could create a course, but the course may not sell. Listen to what your audience is asking for. Maybe they’re looking for digital products or downloads, or maybe they’re looking for a sense of community. When you add a passive income source to your business, we believe it should be a balanced blend of (1) your expertise, (2) what your audience is looking for, and (3) what you feel passionate about offering. Where those three come together, you’ll find something truly special!
- I need to do what is working well for other businesses. It’s easy to want to add layers to your business that other businesses have added. In the end, we wholeheartedly believe, you’ll find the most success when you add something true to the heart and mission of your business — and true to the needs your unique Ideal Client has. Doing what is working well for other businesses isn’t always the answer. This applies to design, and it also applies to passive income sources. Something truly wonderful can happen when you reflect upon your heart, your passion, and your purpose. What need exists that hasn’t yet been filled? What is your unique calling?
These are just a few myths about passive income sources, and we’re so hopeful our explanations have shed some light on how to go about adding passive income to your business!