Entrepreneur
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What Passive Income Does for Me |
When I talk to people about creating multiple streams of passive income, they sometimes have a hard time beliving that it can truly change a persons life. It's a vital key to achieving true work life balance!
Here's a sample of what passive income does for me...
I can work on what I want (investments, businesses, real estate)...when I want (a few hours a day...or not : )
I can take trips with my family...paid for by my corporation
I dont have to look at the price on the menu
I use my time for my family, and helping others
I am not an absentee dad
I provide for my family and it will continue to grow even if I am not here
I have passive income that pays for our lake home and boat, jet ski, and cars
I have no employees!
I work with lots of people that i want to work with
I laugh a lot more.
I worry a lot less
I see my wife and kids much more
I can invest my time in things that really matter in the world
I help people achieve their dreams...very fulfilling
I am teaching my kids on how to be an entrepreneur and the secrets of financial literacy
I feel great and i am having a blast!
I am able to do much more physical exercise
I able to lead by example
I am building long term assets that will eventually benefit my grandchildren
These are just a few of the benefits of creating multiple streams of passive income. What does passive income do for you?
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I have a recurring dream...
Hello...I'm Mike Stuart, and I'm a serial entrepreneur. The small group of addicts respond in unison..."Welcome Mike". I'm nervous, but I begin to spill the beans of how I loath the thought of clocking in and out of a 9-5 job. I hate the thought of making someone else rich. I admit to missing baseball games and music recitals and giving up on family vacations. Individuals in the group shake their heads as if to say "yes, Mike I understand what you are saying."
My late nights at the office are hard on my wife, as well as being financially strapped. She reluctantly agreed to get a second mortgage on the house to fund the business. It rips at my heart to see her worried and sad. My kids can sense our frustration and fear.
I finally look up and say...but the real reason I am here today...Is the fact that I started the business for a reason. a great reason. That reason is my family. Just like most entrepreneurs. Its for them...for the family. I am doing it for my wife, my kids, so we can have more time and a better lifestyle. So they wont have to struggle with money in the future. So we can have fantastic long vacations to exotic locations. So my wife can have the luxuries she so deserves.
But the very reason I started the business is the very thing I have damaged the most in my quest to secure our financial freedom. Its painful for them. It's painful for me, and needs to stop. The business is to serve me and not the other way around. I must create a lifestyle business that serves us...and not serve a business that makes us give up our desired lifestyle.
As I wake from my dream, I think to myself...for many entrepreneurs...this is not far from reality. So...what's the 12 step process to get out of this mess?
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Does Your Business Align With Your Core Values? |
It's my belief, that your choices and decisions in business and within the family environment are based on your core values. In my coaching I try to help people identify their core values , keep them visible and create habits in their daily life that are supportive of these values. This is not always an easy task! Values are difficult to define and identify. In a nutshell your core values are at the very center of who you are and why you make the decisions you make. Your thoughts, words, actions, attitudes and motives reveal your real core values.
Have you ever had one of those moments when you over react or make a decision that surprises you and you ask...where did that come from? Well, take that question seriously and truly ask yourself...where DID that come from? And what does that say about me?
Are you true to yourself in your business? Feeling guilty for anything? Feeling guilty for something you've done or not done regarding your family? How do you react in the midst of stressful business situations? Or how do you take it when your spouse lets you down?
In order to have clarity in business or within your family, you must come together and agree on the core values that drive you.
I had a business partner that was always very aware of his core values. As entrepreneurs we were always looking for opportunities and opportunities always came knocking. It was very interesting to me when, from time to time, we would have a big money making opportunity in which I was frothing at the mouth. After listening and considering, he would say, "I'll pass on this. Its not for me." To which I would respond "What! Dude...this could be huge...what is your problem?" He would say... "It does not line up with my core values and purpose".
Even though I may have been bummed about not pursuing an opportunity, he always impressed me with his purpose driven approach to business. It was true as well with his family. They were all on the same page when it came to the things they invested in, places they vacationed, charitable giving and serving. It can be a life-changing event when an entrepreneur and spouse get lined up on the issue of core values. Take time today to start identifying the core values that drive you.
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I just got finished doing a radio program on the topic of Bootstrapping your Business in a Low Investment Capital Economy. One of the questions was, "Should you attempt to get some of your start up money from friends and family?"
This got me thinking...
Let's assume you have borrowed money to get your business started. You received a cash injection from a friend of the family to keep the business going. You grew your business with money from your in-laws. Regardless of where the money went, you borrowed money from your family to keep your business in hand. Now, your spouse wants you to pay those funds back. The problem is: your business can't afford to do so right now. So...here comes the friction! What do you do?
Even though most friends and family members that invest in a relative's business, do so to help the person out, they still expect to receive their money back. The most scrutinized business is the one that has borrowed from family. For starters, you should avoid this whenever possible. If you do borrow from family, it needs to be seen by both parties as an investment. And, you should have a contract drawn up whenever it is possible. The reason for doing all of this is quite simply to protect your investment in the business as well as your family's money. What's done is done, though. How do you move forward in a situation like this?
A good place to start is with a conversation between you and your spouse. Compile the profit and loss statement from your business or your cash receipts. Talk about your ability to repay the money right now and why it might not be able to happen immediately. At the same time, communicate with your spouse that you desire to, and have every intention of paying the funds back. This alone may help to settle a few nerves. The next step is to determine how to put a plan in place.
Let's assume that the business is strapped right now and you can't afford to repay even a small portion of the funds. Here are some ideas:
· Communication is key. Saying nothing to your spouse or avoiding your "loan officer family member" is the worst thing you can do. Discuss the near future and when you foresee being able to repay the funds to the family member.
· Develop an action plan for either increasing profits or decreasing expenses. The goal is to come up with 10 percent, 5 percent or another percentage of the owed amount to pay back per month. Find ways that the business can repay the funds over a timeframe. There are always areas to cut, and taking that small amount to pay back the loan is showing good faith.
· When you can't find a way to repay in the short term, it is time to talk with not only your spouse but also the person who has invested in you. Be frank and polite. Let everyone know your willingness to repay the funds, but work with them to come up with a repayment plan. They may be fine with allowing another six months to pass without repayment. You may want to tack on interest for the increased investment. OR...if there is significant upside to the business, they may be interested in converting the loan to equity ownership in the business. Warning! Having a family member as a business partner is not always a good idea! Caution is advised in this scenario.
Lay down terms for repayment in any situation. If family can't wait for the investment, you may have to borrow the funds from another source. If the business won't turn a profit for some time, the investor should be warned of such a situation.
The worst thing you can do is to let the problem continue to develop. You don't want there to be a rift between you and family or your spouse. Make sure everyone is on the same page and working towards full repayment.
Lastly...After you've had enough of that icky feeling in your stomach every time you see your rich Uncle Henry at a family gathering, let those feelings serve as a reminder to avoid borrowing from family in the future.
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Business Puberty and The 5 Hormones to Watch Out For |
Growing up is hard to do. I have 2 prepubescent boys right now in my house (3 more kids to go). Wow! How things change. The increase of testosterone, the discovery of girls. Yes...this is a big problem! Girls no longer have cooties...they are instead, cuties ...no, no... they're "hotties". All of the sudden my boys have to look good, smell good and be able to dance...In seventh grade! I'm buying new shoes, pants and shirts every 4 months, and we go through 1-1.5 gallons of milk each day! That's twice as expensive as gallon of gas right now. I get sad and a little overwhelmed when I think of all of this...but at the same time, I am excited to see them grow and I have a fabulous sense of pride regarding the whole thing. It's very rewarding.
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Once Upon a Time, I Was an Entrepreneur |
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Once upon a time, I was an entrepreneur—full of dreams, set on making
it big. I was a natural salesman—an outgoing, enthusiastic risk taker.
Ready to lead, ready to sacrifice, and ready to take on the world. So I
did. I learned to start and to fail, to win all and to lose all. I
loved it… and hated it. And I sacrificed my time, my finances, and… my
family. My excuse? It’s all for them. I’m running a business so I can
provide a solid financial future for my wife and kids, spend time with
them, and take away our worries.
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5 Reasons Spouses are not Supportive of the Entrepreneurial Adventure |
An entrepreneur takes pride in statements like, “I work for myself”, “I’m my own boss”, “I love the freedom”, “I’m pursuing the American dream”. However, pride can quickly turn to frustration and disappointment if his/her “significant other” does not share the same vision or enthusiasm for the venture. While owning a business is part of the American dream, operating one can present challenges both in terms of the business and family.
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When I talk to people about creating multiple streams of passive income, they sometimes have a hard time beliving that it can truly change a persons life. It's a vital key to achieving true work...
I have a recurring dream...
Hello...I'm Mike Stuart, and I'm a serial entrepreneur. The small group of addicts respond in unison..."Welcome Mike". I'm nervous, but I begin to spill th...
You CAN grow a seven-figure income and an indestructible family. You CAN turn your company into something that benefits you and those closest to you. You CAN succeed in business and in life right now!...
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