Passive Income Trap

For 10 years I worshipped the idea of generating passive income to earn financial independence. Rich Dad Poor Dad made it sound so easy. A shortcut to the good life. Why work hard and apply myself in the corporate world when I can easily have it all through a passive income business? A belief was formed; I didn’t have to give much, if any effort to be financially successful. All I had to do was crack the code, start a passive income business.

This minimal effort belief was at the foundation of everything I did. If it wasn’t a road to passive income, don’t waste time trying.  I didn’t view my career as a learning, challenging, and self growth opportunity, but a means to an end. I was running away from anything that required me to “try my hardest”, but in tandem was constantly questioning why I was feeling dissatisfied, unengaged, and unfulfilled.

I learned that giving 100% effort is not a switch that can be turned on and off. Similar to emotions, when numbing the bad, the good is numbed with it. The idea of half-assing my way into financial freedom has not led to the life or the mindset I desired. Instead it has led to someone that is lazy and afraid to give 100% effort.

It’s time to develop new beliefs through asking a different question. What happens when I stop focusing on passive income and try my hardest at everything I do?

Top 20 Book Quotes: The 22 Immutable Laws of Marketing by Al Ries and Jack Trout

Below are the Top 20 quotes from The 22 Immutable Laws of Marketing: Violate Them at Your Own Risk!

  1. Be first. If you cannot be first, create a new category to be the first
  2. Being first to mind is better than first to the marketplace
  3. Marketing is not a battle of products but a battle of perceptions
  4. Owning a word in the prospects mind is the most powerful concept in marketing
  5. Do not imitate the strategy of the market leader
  6. Every market becomes a two horse race
  7. If you are shooting for second place, the leader determines your strategy
  8. Own a word in a customers mind and have them for life
  9. As category matures it will divide and become two or more categories
  10. Marketing results occur over an extended period of time
  11. There is an irresistible pressure to extend brand equity
  12. Forward progress requires sacrifices
  13. When you admit a negative, the prospect will see it as a positive
  14. In each situation only one move will produce substantial results
  15. Unless you write your competitors plans, you can’t predict the future
  16. To defeat your enemy you have to think like your enemy
  17. Success often leads to arrogance, and arrogance leads to failure
  18. Failure should be expected and accepted
  19. Successful programs are not built on fads, they are built on trends
  20. Without adequate funding an idea will only remain an idea

Creating a Small Company from Scratch

Creating a lifestyle company

I have been activity trying come up with an idea for lifestyle company, but hesitant to take any action. A blog post by Noah Kagan titled “How to create a million-dollar business this weekend”, was the motivation I needed.
Below are the steps I’ve taken, mistakes made and lessons learned.

Step 1: Find a problem; Create a solution

I live on a busy street with constant noise and light. In order to combat this I purchased earplugs and a sleeping mask. To my dismay, I soon realized that the poorly made mask digs painfully into the ears and the fabric suffocates my eyes with pressure. Frustrated I think, there has to be a better way to block out light from the eyes. Finally, I had a problem that I needed solving. My solution removed the straps and heavy fabric replaced by a thin cover over the eyelid.

Step 2: Discover potential market size

I used Google Adwords to search for terms relating to the product. The goal here is to see if there are enough potential customers to sustain your business. For example, the ad group “Sleep Eye” had 9,160 monthly searches. With Adwords quoting the cost per click (CPC) to be approximately $1.25, I could get a lot of potential users for my budget. First mistake: I did not calculate the lifetime value of a customer, a key metric for any e-commerce business.

Continue reading “Creating a Small Company from Scratch”