Invest Your Time Building Passive Income

Invest your time developing passive income instead of service income.

Recently, I received a question about the wisdom of pursuing a service-related business as opposed to building a product-based business. I'll give you my generic response to this question. Your situation will certainly be different, but the principles would still apply.

The question was in essence: "Should I spend my time on my service oriented business or arrange my time around building my product business, even if it means financing it with a part time job?" My answer:

I would shelve the service business (a small phone installation and service company) if at all possible. It is a labor intensive shrinking market because of wireless and computers. You're on call every time something bleeps, and like in any IT based business, you will get run into the ground on costs, low-balled by other providers, and hounded by customers every time they have a "need," perceived or real.

I would recommend taking the part-time job only if it does not hinder the growth of your product-based business and only if you truly need the income. Remember this...PASSIVE residual income will be the most important need as you become older.

You will not be able to work part-time jobs or install phones for the rest of your life. Also, in the technology industry, age is a liability, not an asset. People think that all technology experts or providers need to be young or they risk being out of touch. I know this from first hand experience.

Also, as with any technology, if you are not diligently staying on the cutting edge with regards to technology and pricing, you will quickly find yourself being undercut by aggressive young guys who tend to over-promise and under-deliver, and they will take your customers away.

So, the best plan is to forgo the service business and take the part-time job to meet your cash flow needs and to have fun. (The part-time job is being a tour guide in the mountains.) You might meet some prospective customers as well. Now, it is time to concentrate on your product business.

If you do not have your product-based business on the internet yet, you're lagging behind. It is time to get that up and running NOW. It takes several months to get that ball rolling, so don't delay. If you need help in that area, I have a great tool that will provide the assistance you need. Feel free to check it out at: http://www.onlinebusinesscreate.com.

I have one caution for you. Be careful to limit your part-time work to an amount that DOES NOT adversely affect your product-based business's growth. Your products will sell 24/7 on the internet until you are old and gray. Therefore, in my opinion, it is FAR more important to invest your time in this part of your business.

Remember, whenever possible, the building of passive residual income far outweighs the choice to simply seek another service job, where the income stream ends once your work stops.

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