This couple has 8 incomes with the total worth $3 million annually. What's the secret?
As a married couple, one of the most meaningful accomplishments in starting our side business is finally being able to get rid of nine-to-five jobs. Now, we can focus on the things that are important to us, such as spending time with children, travelling, and giving back to society.
Craig and I had our own side business a few times before we met. But we started our first business in 2006 when we merged two side businesses into one company, Tandem Consulting. Our customers range from large companies such as Home Depot and Under Armour to more niche retailers in the health and beauty sectors. Today, Tandem's annual income is $3 million.
We currently have a total of eight income streams that altogether generate 7-figures a year. Two of them are passive income streams through our rental properties in Wisconsin. Most recently, we co-wrote a book called “So You Want to Start a Side Hustle.”
A lot of people, especially younger folks, often ask us about what to know before turning their side hustles into a full-time business. Here are five mistakes we learned the hard way:
And because we saw the hustle and bustle on our side as an extension of who we were, we had a hard time managing our time effectively. But in the end, what we found most helpful in increasing productivity was hiring people who could automate certain tasks and replicate our efforts.
When deciding if you, someone else, or someone needs to do a task, ask yourself:
No problem, right? Wrong.
You need to think about how to find these customers. Do you have a website? If so, how much will it cost and how will you maintain it? Do you need to consider marketing, branding, travel or other costs? Will you be certified? Who will handle your accounting, bookkeeping and legal contracts? What if the customer does not pay you.
For every business we engage in, these are things we must plan for. Your sales are not the same as your profits (and $80,000 is not what you ultimately bring home).
Let's say you are starting a part-time job in the landscape industry. Ultimately, you will turn it into a full-fledged business, generating $ 600,000 in annual income and $ 130,000 in net profit - provided you don't take a paycheck.
You could then spend a year or two honing your systems, securing your customer base, becoming more economical by paying off any debts and outsourcing your skills and management to multiple employees. Later, you can assign a key backup to run the business for $ 60,000 a year and keep $ 70,000 a year for yourself — all with minimal work.
If you have a modest personal budget and are good at managing your finances, you may be able to live on less than $ 70,000 a year. Over time, you will be able to accumulate savings and start or invest in another business.
Plus, at some point, you might want to cash out and sell a business or assets.
Don’t be afraid to revisit your pricing structure regularly. With basic inflation and an ever-changing and dynamic economy, you should be dynamic in your pricing as well.
Here are some of the biggest shifts a third-party hustler needs to make:
Craig and I had our own side business a few times before we met. But we started our first business in 2006 when we merged two side businesses into one company, Tandem Consulting. Our customers range from large companies such as Home Depot and Under Armour to more niche retailers in the health and beauty sectors. Today, Tandem's annual income is $3 million.
Source: CSBS
We currently have a total of eight income streams that altogether generate 7-figures a year. Two of them are passive income streams through our rental properties in Wisconsin. Most recently, we co-wrote a book called “So You Want to Start a Side Hustle.”
A lot of people, especially younger folks, often ask us about what to know before turning their side hustles into a full-time business. Here are five mistakes we learned the hard way:
Ineffective time and task management
In the early stages, we were terribly unprepared for the madness that happened when we were really absorbed in full-time work and juggling fast-growing side gigs.And because we saw the hustle and bustle on our side as an extension of who we were, we had a hard time managing our time effectively. But in the end, what we found most helpful in increasing productivity was hiring people who could automate certain tasks and replicate our efforts.
When deciding if you, someone else, or someone needs to do a task, ask yourself:
- Is this task important to you, your side hustle, or your values? If not, can you just not do it?
- If this task needs to be done, can you delegate it?
- If not, how and when can you complete this task in the most time-efficient way? When is the deadline?
- As you continue to perform this task, can you drop, automate or delegate it in the future?
Source: Internet
Mistaking revenue for profit
We know of several people trying to start an online coaching business. The mentality is this: find 20 customers, charge each customer $4,000 per year, and then make a profit of $80,000.No problem, right? Wrong.
You need to think about how to find these customers. Do you have a website? If so, how much will it cost and how will you maintain it? Do you need to consider marketing, branding, travel or other costs? Will you be certified? Who will handle your accounting, bookkeeping and legal contracts? What if the customer does not pay you.
For every business we engage in, these are things we must plan for. Your sales are not the same as your profits (and $80,000 is not what you ultimately bring home).
Reinvesting revenues to generate more sales
Source: Internet
Let's say you are starting a part-time job in the landscape industry. Ultimately, you will turn it into a full-fledged business, generating $ 600,000 in annual income and $ 130,000 in net profit - provided you don't take a paycheck.
You could then spend a year or two honing your systems, securing your customer base, becoming more economical by paying off any debts and outsourcing your skills and management to multiple employees. Later, you can assign a key backup to run the business for $ 60,000 a year and keep $ 70,000 a year for yourself — all with minimal work.
If you have a modest personal budget and are good at managing your finances, you may be able to live on less than $ 70,000 a year. Over time, you will be able to accumulate savings and start or invest in another business.
Plus, at some point, you might want to cash out and sell a business or assets.
Overpricing initially and not raising prices once you’ve established your brand
Once your business is successful, customers will pay for perceived value. And oftentimes, if something has low costs, people may value it less.Don’t be afraid to revisit your pricing structure regularly. With basic inflation and an ever-changing and dynamic economy, you should be dynamic in your pricing as well.
Reverting back to the employee mindset
Third-party hustlers often fail in adopting a hard ownership mentality. Since most of them started out as employees, employee scripts are usually used by default.Here are some of the biggest shifts a third-party hustler needs to make:
- Predictability, stability and variability: If you normally work for two weeks and get a two-week salary, the situation is predictable. You have a salary, an allowance, and usually a fixed schedule. But as an entrepreneur, you may train your guts, have an unpredictable schedule for years, and get low wages.
- Finding the Wisest and the Wisest: Employees usually aspire to be the smartest person in the room or consider the wisest to be a competitor. But when you start your own business, it's an asset to surround yourself with people who are smarter than you.
- Parenting and Self-Paring: Elon Musk once answered a question about what kind of encouragement to give entrepreneurs. "If you need a word of encouragement, don't do it," he said. Pass by hand, syllabus, or where someone needs to take good care of you.
Source: Internet
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