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In the early stages of a new business, it is usually the founder who takes on many tasks themselves. With progress over time, the goal is to delegate secondary tasks so that the executives can focus on the 20% of tasks that will generate 80% of the results to scale the company.
The main objective is to be able to answer yes to the question: “If I were not present, would my company still generate money?” That’s an excellent indication of whether or not you are financially independent.
If you have several sources of income, you will get that much closer to becoming financially independent.
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It is important to make sure that your first business is mature and developed enough before you start focusing on an eventual second source of income. However, I believe it is also important for entrepreneurs to always have an ambitious attitude and seek new sources of growth.
Having multiple sources of income can decrease your risk of losing it all. If the business to which you’re dedicating all your efforts goes bankrupt or fails, you will lose your only source of income, and you will be left empty-handed. When you have several sources of steady income, that worry is reduced.
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Everyone wants to live their dream life, but not everyone is able to achieve that goal. If you are smart and manage more than one source of income, then you have a real chance of creating the dream life you want. The more time and effort you put into building your sources of income, the greater the chances you will achieve financial freedom to live the life you want.
You may decide to invest more freely in your time and personal development, you could choose to continue building additional sources of income, or you may want to travel the world and enjoy it with your family.
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You’ve likely heard the expression,“Wealth begets wealth.” Essentially, higher amounts of money and income will attract more money and ROI. Having multiple sources of income will allow you to invest a greater proportion in both your primary company and other new sources of income. In short, you will likely be able to scale faster because it is a virtuous cycle.
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With the rise of remote work, there has recently been more debate about what is best: working in an office or from the comfort of your home. This is relative, as both options have their benefits and disadvantages.
No matter your opinion, as your own boss, you will be the one to decide where and when to work on your businesses. And when you have the increased flexibility of an entrepreneur, you can monitor and strengthen your sources of income while continuously identifying new opportunities that aren’t limited to your geographic area.
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