Make Money Outsourcing A Real Business
This is the craziest kind of passive income I can think of, because it basically involves executing Michael Gerber’s e-Myth idea 110%…
i.e so much so, that you are no longer involved in the daily running of the business.
But it isn’t that hard.
In fact, this is what your real entrepreneur does best; starts something up and then gets management in to run it.
But the twist I’m putting on this idea (so you can make the most money possible), is to think of a service business where the majority of the work can be done overseas.
Without this aspect, you can end up eroding your profits to a slightly sad 3-8% (hello your average small business!).
But what businesses fit within this realm?
A lot more than you think.
Anything that is done on elance for example fits perfectly; meaning programming (web design, SEO, etc), design (graphic, logos, branding etc), writing (copy-writing, editing, web content etc), marketing (PPC, business plans etc), admin (data entry, research, transcription etc), consulting (accounting, financial planning, budgeting etc), legal (contracts, incorporation, wills etc), engineering (CAD, product design etc).
If you can create a website, then market it via Google SEO – think content like articles and videos – and push all leads to an in-country part-time project manager, who then liaises with your outsource workers, boom, you’ve successfully executed!!
So why isn’t everyone doing this?
Well, it’s a helluva lot of work up front and you can make a lot of mistakes.
I know it took us about 6-9 months to successfully execute this ourselves and it requires a good eye for talent, systems and well, trust!
Most small business owners unfortunately can’t work themselves out of the business and delegate like this.
But anyways, let me finish this idea by saying it kicks ass, and for those of you who already have service oriented small businesses, then you may already have your passive income idea at your fingertips. Time to transform that puppy from painfully active to 90% passive!
To give you an idea of what I’ve done; well, I’ve applied it to a service business (web design) to great effect, along with my business partner, and let me just say I do max 1 hour work a day on this business thanks to systematisation, automation and outsourcing. Pretty cool right?!
The big thing about this stream idea is that you have a real business, i.e it generates £100k plus a year, and your ‘take home’ margins remain in the 50-70% range.
We’re no longer talking about selling £3k of eBooks a year.
And yet, we’re only needing to do a few hours a week of overview work; checking the numbers, skim reading emails, making a few phone calls and well, that’s about it.
I will say the big thing we’ve learnt with this idea is that if you really want to make it passive (i.e no more than 10 hours a week of work), you really need to pay well above the standard rate for your outsourced personnel. It really is that simple.
Be generous and you’ll say goodbye to headaches forever.
Our goal is to find multiple income streams, and the more passive the better.