119 | Want to Create Passive Income in your Business in 2023? 3 Things To Do When Getting Started!

Curious about creating passive, recurring income in your business in the New Year? Here are 3 things you must do when getting started!

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This episode is all about the power of passive income and the three things to do before getting started! We get it. It's tempting to just jump in and create a product or course when you have an idea, but what happens when you go to sell it and you hear “Crickets?” 

Many Entrepreneurs love the idea of creating passive income so that they can have more financial and time freedom to pursue the things they love the most like travel, time with family, and passion projects. But most business owners don't know how to get started or feel intimidated by all that is involved.  

Don't worry! We got you :) In this episode, we'll walk you through the steps to get started, plus we've got a couple of free gifts for you!

Previous Episodes about Passive Income:

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Creating passive income streams in your business is a common goal among entrepreneurs. The idea of creating something once and getting paid for it, again and again, is incredibly appealing, as it promises financial and time freedom to do the things you enjoy most. However, creating passive income is not as simple as it may seem, and it takes a lot of hard work and determination.

In Episode 55 of the podcast Can You Really Make Money While you Sleep? Danielle shares their personal journey towards creating passive income and the lessons learned along the way. Danielle explains that it was a huge learning curve and there were moments where she wanted to give up. But, in the end, the benefits of having passive income were worth the hard work.

Passive and recurring income is one of the smartest things you can implement in your business as it provides flexibility and stability. Even if it's not your main source of income, having multiple streams of income can help you hit your financial goals.

There are many ways to earn passive income through your business, such as creating an e-book or online course, selling templates, or pursuing affiliate marketing. However, before jumping into any of these ideas, Danielle recommends taking the following action.

Three steps to get started creating passive income:

  1. Build your brand and start creating content

    This will help you understand what your audience resonates with and what they don't. The best passive income products are often the exact things your audience/clients and customers have been asking for.

  2. Do market research

    Talking to real people, either in-person or over the phone or via Zoom, and asking specific questions about their pain points, problems that need to be solved, and desires, is crucial. This process is covered in the host's Signature Program, Action Takers Club, where they have a list of specific questions to ask.

  3. Start to build your network and connect with potential collaborative partners

    To truly scale your passive income streams, it's important to connect with other professionals in your industry and form strategic partnerships.

Creating passive income streams in your business is a long-term goal that requires hard work and determination. But with the right approach, it's possible to achieve financial and time freedom, and enjoy the benefits that come along with it.

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TRANSCRIPT

[00:00:00] Danielle: Today on the podcast, we are talking all about creating passive income in your business and three things you must do before you get started. So I am so excited about this. I love this topic so much because I know what it impacted has made in my life and in my business to be able to create a passive income stream, multiple passive income streams in our business, actually, at this point, and when I talk to a lot of entrepreneurs, you know, their long-term goals, a lot of them include creating passive income streams for themselves.

[00:00:36] Whether that be to spend more time traveling, to have more time, freedom to spend with their families, to take time off, whatever that might be. And so I'm really excited to jam out on this topic today. Let's go ahead and get started.

[00:00:51] Welcome to the Business Babes Collective podcast. I'm your host, Danielle Wiebe. in this podcast, you'll learn tangible business tips and [00:01:00] strategies on how to grow successfully and sustainably. We'll also interview seasoned entrepreneurs so you can listen in on their stories and see behind the scenes of what it took to grow and scale their businesses. Let's dive in as we discuss the wild, exciting, crazy challenging, rollercoaster ride of entrepreneurship.

[00:01:22] I remember a few years ago being in a position where I was feeling really, really burnt out in my business. I know a lot of you have heard this story before. I was experiencing extreme burnout. I was feeling really stuck and I was in this kind of cycle of working really hard, working around the clock, working 24/7 and just not really seeing the light at the end of the tunnel in that it was ever going to change or get better .

[00:01:51] And I don't know if any of you can resonate with that or, um, you know, maybe you're in that situation right now where you feel kind of like you're on a hamster [00:02:00] wheel. Now, whether you are in a traditional nine to five job or you're working with for someone else, or maybe you are your own business owner and you're in that season right now.

[00:02:11] And I remember thinking like, what is next for me? I cannot keep doing this. I can't keep running my business the way I'm running it right now. And something really, really needs to change. And for me, I knew that passive income was something that I really wanted, but I just had no idea where to even get started.

[00:02:35] I felt completely lost. Especially when it came to the technology that was necessary and just all of the things that I felt like came along with it just felt so overwhelming to me. And although I do wanna be really transparent in that,= it was a huge learning curve, there were a lot of moments where I wanted to give up.

[00:02:57] Um, and you know, it's not as simple as [00:03:00] some people may portray it to be. And I actually recorded a whole episode on this, if you wanna go check it out, it's episode 55. I will link it in the show notes as well, but it's can you really make money while you sleep? So it's kind of the reality behind building a passive income business and a lot of things that most people won't talk about and won't tell you.

[00:03:24] And so I wanted to just be super open and transparent in that episode just to share kind of what goes on behind the scenes in building that. Um, and it's a really great episode because I break down some of the things that you need to consider and, um, think about when you are looking to create that passive income for yourself.

[00:03:43] So, creating passive income, of course, is a huge draw for most people, most entrepreneurs especially, because the promise is that you can create something once and get paid for it again and again and again, and you're not adding any work [00:04:00] necessarily to your plate other than fulfilling orders in order to make that income.

[00:04:06] And so it's a very limited amount of work that is required in order to make the same amount of income. So I have personally seen incredible benefits that come along with having passive income streams and as much work as it took to create, um, those things. It has been so incredibly worth it and the skillset that I have acquired from doing that has been really game changing just for my entire business because learning the technology behind building an online course and creating funnels and systems and um, follow up sequences and all of those types of things has been incredible, because it has allowed me to be a part of different opportunities that I normally would not have been able to be a part of.

[00:04:59] It's allowed [00:05:00] me to grow my business and scale my business faster. It's allowed me to free up my time from the day-to-day in the business and really work on the growth side of things. Like, you know, focusing on the podcast and collaboration opportunities and guesting on other people's podcasts, being a guest speaker.

[00:05:18] All of those things have, I've been able to do because I have been able to be out of some of the weeds in my business that I used to be in. So in sharing all of that, like I said, I believe that it is one of the smartest things that you can do and implement into your business because it gives your business flexibility, stability, it allows you to have a cash flow in your business.

[00:05:43] Cash flow in business is so, so key and important, and so even if it's not your main source of income, having multiple streams of income can really help you grow and hit those financial goals that you set for yourself.

[00:05:58] So there are so many different [00:06:00] ways to earn passive income, and we're not gonna go through that in this episode because I actually did another episode all about that, which I'll also link in the show notes.

[00:06:10] It's episode 69 and it's all about passive income ideas that you can add to your business. So some of those ideas that I share in that episode in more detail are things like creating an ebook or creating an online course or selling templates or pursuing affiliate marketing opportunities, whether that be selling other people's products or other people's services, so, or, or other online products as well.

[00:06:35] And so there's lots of different ways that you can create passive income. It doesn't just have to be a course. It doesn't just have to be an ebook. I know that there are so many different options depending on what your business is. So whether you have a product or a service-based business, I can guarantee you, whatever industry you're in, there are ways to earn passive income in [00:07:00] your industry.

[00:07:00] So if you don't believe me, send me a DM and just share with me. Say like, Hey, this is my industry. What are some ideas of how I can create a passive income stream in my business? And I will brainstorm my, some ideas with you in the dms. So if you don't believe me, again, come find me on Instagram and, uh, ask me that question I'd, I'd love to chat with you about that.

[00:07:24] But like I said, there are a lot of different ways that you can earn an extra stream of income, and it can be so easy to kind of jump on all these ideas and start to dream about all of these different things that you can do. And trust me, once you are in the world of online business, passive income, all of that.

[00:07:45] It will be so tempting to jump on every opportunity and be like, oh, I could do this and I could do that, and I could also launch this and I could also launch that. And as tempting as that is, I really want you to be [00:08:00] strategic with this because creating more opportunities, it is not necessarily the best thing to do because it can split your time and fragment your time where you're not actually putting the right. Um, emphasis on the specific things that you should be focused on.

[00:08:18] So what I always like to talk about with my clients is focusing on those income producing activities, those things in your business that are generating the most amount of profit. And at this point, it could be a service that you offer or maybe it's a product, or maybe you're like me and you're doing events, whatever that is.

[00:08:41] That is definitely something that you want to continue doing until you can potentially, if you're wanting to pivot out of that, then if you can create a passive income stream and then slowly grow that to replace your current [00:09:00] income stream. That is what I recommend because you know, I know some people say like, go all in on your idea and just like, don't look back.

[00:09:09] I personally think that you shouldn't just go for an idea, not having a backup plan, not having that cash flow in your business, because what ends up happening is you actually end up becoming desperate and a desperate business owner is, uh, we don't make good decisions. And trust me, I've been in that position before, so I'm not judging anyone.

[00:09:31] If you are in that season right now, I feel you. I get you. I've been there. But you wanna be making decisions from a high level, broad overview, long-term vision of your business, not, oh my goodness, I need cash now. And then you start doing things that maybe are not in line with your values or maybe are not in line with your brand because you just need to earn the income.

[00:09:59] So if you [00:10:00] have a business right now that is generating income, don't just completely cut off that side of your business to go all in your passive income stream. Build that passive income stream on the side until you can potentially replace what you're doing. Okay.

[00:10:16] So I just wanted to say that upfront because I think it's really, really important and I wanna make sure that you guys are making really smart money decisions, um, because it is really important, you know, if you are someone, even if you're someone who's single, you know you are building a emergency fund maybe for your business during slope seasons. You also maybe are saving up for when you wanna take time off later on. Maybe you wanna start a family one day. Maybe you wanna travel somewhere and you wanna have that flexibility. So I think it's really important to make sure that your cash flow stays consistent while you're building up the other areas of your business.

[00:10:56] Now, I will say that [00:11:00] I didn't really have this opportunity when 2020 happened, and I think some of you are also, were also in that position. So for us as a business, you know, having 80% of our. being lost overnight. That was not a decision that we made because we were not able to do events.

[00:11:19] However, at that time, I did have some one-on-one coaching clients, and I also had our Mastermind. And so what I did is because I had both of those things set up, I already had experience in that area, I went all in on that, while simultaneously, building up what is now our signature business program Action Takers Club, which is our passive product.

[00:11:44] Um, and then also building up other things like affiliates and, um, other passive income opportunities that we have as well. And again, I've, I said this before, but I think I will do an episode that is [00:12:00] just about the income streams that we have personally as a business. If you guys are interested in that, let me know. Send me a DM and I can put that together for you. Some of the income streams that we have are passives, some of them are not, and so I can kind of break all those down so you can really get kind of a bird's eye view of what it looks like.

[00:12:17] But we built those one at a time, so I don't want you to think that you know, having, yes, having multiple streams of income is really amazing and great. However, build one income stream at a time until that income stream is stable. Then move on to your next one. Okay, so I wanted to say all of that before I dove to these three things.

[00:12:45] Now we're getting to the three tip of things to do before you jump into passive income. Okay, let's get started with the three things.

[00:12:54] Number one is to build your brand and start creating content. So if you are [00:13:00] brand new to business, or maybe you're not brand new, but you are doing a pivot in a big way. So you know when we, when 2020 happened, when we did our kind of big pivot, we really had to look at our brand.

[00:13:14] And yes, we had somewhat of established brand, we had some connections and all of the, all of those kind of things, but really in some ways we were starting from scratch. And so building in systems as well as starting to create content like this on a podcast was one of the first things that we started to.

[00:13:33] Now, the reason why this was so valuable is because we were able to really figure out what does our audience want to hear more of? What are they resonating with? And you can do that through many different ways, which we'll talk about. You can talk to people one-on-one. You can also look at your analytics.

[00:13:53] So for example, for the podcast, we can see what episodes get downloaded the [00:14:00] most. So right then and there we can see, okay, these episodes are getting downloaded more than these episodes. These topics are things that our audience really loves to learn about, and so it really gives us that ability to move forward and say, okay, we need to think about creating more content as well as more resources and potential either products or create affiliate opportunities where we can serve our clients through products and services that we're gonna be offering.

[00:14:31] So I think that's really, really important because a lot of people, they wanna start something. They wanna create a business, passive income, all those things. But they just come up with a product and then they try to sell it.

[00:14:46] And if you've ever tried to sell a product or sell a service to an email list of zero or you know, zero social media followers, zero community at all. It is very, very [00:15:00] challenging, right? And so it's important to recognize that yes, of course you can start with one person at a time. You can start with that referral network.

[00:15:10] But then really, if you wanna create passive income, that's where you really need to start creating a community. Because services, absolutely, you can do one-to-one because it's a higher price point normally, it is a personalized service or product. Usually if you have a product, for example, you can either be in stores or you can do pop-ups where you can connect with people one-on-one.

[00:15:35] They can touch and feel the product, but if you're selling something online, You need that buyer's list, you need that email list or that, those connections. Uh, of course social media is another thing, but I really truly recommend starting to build your email list. And so starting to create content and building your brand so that you can also start to recognize what does your community want and need from you.

[00:15:59] [00:16:00] Number two is do market research now, by doing market research. I don't just mean Googling and researching what other people are doing or have done. I mean talking with real people, either in person over the phone or Zoom. I personally like Zoom because then you can record it and you can actually transcribe it.

[00:16:21] It's really awesome because you can actually ask them specific questions, which we'll talk about in a second, and then really understanding the language that they're using to describe the things that they want and need; their desires, their pain points, and all of those things. And that is all incredible market research for you so that you can know, okay, in my marketing, in my content that I'm creating, I need to use the words that my ideal client is using. Not the words that I want to use because I think they sound fancy or they, I think they sound great.

[00:16:57] It's, I need to speak to [00:17:00] my ideal person where they are at. I need to make sure that they know that I am speaking directly to them because I'm using the words that they use to describe their pain points. So one of the things that I have done is market research, and I've done this several times in our business, and the other thing that I am just always doing is I'm talking to you.

[00:17:25] You right, the listener of this podcast. You guys are in my dms and asking me questions. I talk to my Mastermind members on a very regular basis, and they're asking questions and they're strategizing on things. And so a lot of the content that I create for this podcast is based off of the conversations that I'm having with my one-on-one clients, with my Mastermind members, with our Action Takers, club students, and with the people that are just listening to the podcast, and so it's been amazing.

[00:17:56] But if you are just starting from scratch and you don't necessarily have [00:18:00] that community first, then I want you to just start where you're at. Have some conversations, ask some people that you know that you would love to serve if you can hop on a quick call with them and ask 'em some questions.

[00:18:11] Now you can offer something in exchange, like a coffee gift card or something for free, whatever that might be in exchange for their time. But really diving into questions, specific strategic questions. We have a list of questions inside of our signature program, action Takers Club. We walk you through this entire process because we know it's so important whether you are creating a passive income stream or just a regular service or product, you need to understand your ideal client.

[00:18:43] So we have a list of, I think, over 20 questions that people can choose from. But I'm gonna share one of the example questions. So one of our example questions is, what is the biggest challenge when it comes to, and then it's the problem that you solve.

[00:18:58] So for me, it [00:19:00] would be, what is the biggest challenge when it comes to scaling your business to the next level? For you it could be, what is your biggest challenge when it comes to your skin? or when it comes to keeping your house clean or when it comes to finding clothes that you love, whatever your niche or industry is, change it to whatever business you are in and ask them what their biggest challenge is.

[00:19:25] Now again, I have lots of other questions inside of Action Takers Club. So if you're in that program, definitely go and check it. It's under the module clarifying and attracting your ideal clients. If you're not, then just come up with some questions on your own and really take the time to get to know your ideal person.

[00:19:45] Okay? Number three is start to build your network and connect with potential collaborative partners. This one, So, so key and I think so underrated, and I know a lot of people don't [00:20:00] even do this. They're so focused on just growing their own platform. They're trying to do it all themselves. They're trying to grow their own Instagram following, or their podcast or their email list, whatever it is.

[00:20:11] And they're not using strategic collaborations in order to do that. And I think that is a huge mistake and a huge missed opportunity, because if you look at some of the most successful business owners, you will see that they have created strategic collaborations and partnerships with aligned people and aligned business owners to help them grow faster.

[00:20:38] They would not be where they are today if they did not create those relationships and those collaborations. So it is so key to have this in place, and you guys know how passionate I am about this, but I think it often gets overlooked. This is the most effective way to get in front of large audiences without actually [00:21:00] having to build those email list subscribers, those followers yourself, you can find someone or find another business owner who has your ideal audience and collaborate with them, create a win-win scenario for the both of you. We go into this in detail in our strategic collaborations series, which is a part of our mastermind.

[00:21:23] But the thing that is so, so key to remember is that you need to create a win-win. And so if you have any questions on that or if you're feeling like, oh my goodness, I don't even know where to start, we do have a workshop on it. So send me a dm, I can send you the link to the workshop and you can get started on that.

[00:21:38] So after you have the, these three things, Then you'll have some data and you'll start to be building the connections that you will need, not only to create your product, but also to sell it.

[00:21:50] So I hope this episode was helpful. I hope that it was inspiring. I hope that you are starting, your wheels are starting to turn when it comes to ideas [00:22:00] of creating passive income for your business in 2023. And I have two gifts for you today from this episode. So one is our free masterclass class on how to scale a profitable business without working around the clock.

[00:22:15] In this class, I'll share my three big mistakes that I personally made that you might be making in your business that are keeping you stuck, and then also how I was able to cut my work hours in half while earning more income. Now that is a something that is available for you no matter when you are listening to this episode, so I wanted to include that in there.

[00:22:37] and number two is actually a live workshop that I am going to be a part of. So this is happening next week, next Tuesday, on December 6th, and it's called the Smarter Income Stream. So it will be me and nine other experts. I've been invited to be a part of this collaborative event [00:23:00] and we will be sharing how to build an audience, how to monetize that audience through passive income streams.

[00:23:06] So if you want to claim your free spot, highly recommend that you do. It's completely free. It's gonna be incredible. Go to businessbabescollective.com and you will actually see on the black bar at the very top, there will be a link to that sign up page, or you can just go to the show notes and I'll have a direct link there for you as well.

[00:23:29] So I hope this was helpful for you. I hope you loved it. Thank you so much for listening. I so, so appreciate you and I would love to connect with you. I would love for you to send me a D DM on Instagram. You can find me at @danilivinglife, Dani with an I livinglife and I would also love to hear what stood out to you from this episode.

[00:23:49] What are some things that you're gonna start to implement? Do you have any follow up questions for me? Don't hesitate to slide into my dms, ask me a question. I love chatting with you guys, so [00:24:00] I hope you have an amazing rest of your day, and I will see you in the next episode.

[00:24:10] If you love this episode, make sure you screenshot, post and tag us on Instagram @businessbabesco. Want to know when the next episode goes live? Subscribe on your podcast app and while you're there, leave us a review. Until next time, keep dreaming big, setting goals, and taking action.

Danielle Wiebe