What is multiple of streams of income?
It is as simple as the name sounds. It is having different avenues from which income comes to you.
Money, as it is often said, is an idea. Having many streams of income, as you will see shortly, is not just for making more money, but what will come as a result of it. Below are reasons why you should have multiple streams of income:
1. Stability when any of the streams fails
There is a research that 90% of businesses fail in the first five years. If you have many businesses, not all of them will fail. Once any of them fails, you switch to other ones.
2. Trains you as a leader of business
What it would take to run a single shop alone is not what it would take to run a shopping mall or a multinational company. If you are a beginner, creating multiple streams of income would train you to be a multinational if you want to reach that goal. It would help you to know how to run different businesses at a time.
One problem some people have is that they learn a trade or a profession and stick to it. But real entrepreneurs don’t learn trades, but employ professionals who tell them what to do. It is Robert Kiyosaki who said that you should not learn a trade but learn how to run a business. These two are not the same.
3. Maintaining your balance in down trends
In business, there are cycles. The up and down cycles.
While many dread the down cycle, a good entrepreneur is not afraid of down cycles because he knows the trends and how to use them to his own advantage.
He does this with multiple streams of income. Like we mentioned above, he can switch to other streams when they are more profitable at a particular time and come back when the trends are favorable.
4. Adaptable to changes
There is only one thing that is constant… that is change.
In businesses, there are bound to be changes. Many see changes as bad. Changes should inspire us to go higher in life. If you have one source of income, you know only one line of business. If changes come, it might eat you up.
Take for instance, the issue of typing. Many years ago, many were very good using typewriters. And before you know it, computer emerged and some were so stubborn to continues using their typewriters. What happened? You guessed it. They lost their source of income.
What I mean here is that you can build your business around the existing ones to your own advantage. Let me give you an instance. I know of a mass transport company that started a courier service. It was very easy for them. They didn’t spend so much to start the business. They started with transporting with the existing vehicles before they built the custom-made infrastructure for the courier service. It would cost higher for someone who is new in the business. They made huge profit as a result of this.
6. Huge gains or profit
Of course, what is the use of being in business without gain?
With all these points above, you make huge profit in cash.
See you at the next level!