The Biggest Myth about Multiple Streams of Income
What are Multiple Streams of Income?
If you're familiar with many success books, authors or speakers, then you've probably heard this very common tip about how to become wealthy: Take advantage of Multiple Streams of Income. The idea is that you should set up a number of different avenues that generate cash for you and if there is a problem with one avenue, the others will still provide a steady cashflow. So maybe you have some real estate deals here, a few businesses there, some investments there, etc. …. If real estate slows down, do not worry because you have others that provide plenty of money. Some very big name people assert that this is the key to success, but what they've unfortunately done is cause more harm than good.
You see, to a millionaire or a deca-millionaire, it does not take much to funnel tens of thousands or even hundreds of thousands of dollars into a new business venture. Losing that amount of money will not put them out on the street. They can absorb the loss. On the other hand, to the average person who hears their message, tens of thousands or hundreds of thousands represents 70-80% of their worth worth and sometimes even more! Nobody can stand to lose that amount of money. But that's not the biggest problem.
Multiple Streams of Income = Multiple Streams of Nothing.
The biggest problem with the idea of Multiple Streams of Income is that when you try to focus your attention across many businesses, tasks and responsibilities, you spread yourself too thin. You become less effective on every front. Let's speed this point up a little bit so you can see what I mean:
Suppose a racecar driver also tries to make ham sandwiches in his car, during the race. You've probably agree that something like that might be considered a 'health risk' when you're driving 200+ miles an hour. Being successful in business or in anything else is no different. It requires laser-focused attention and a constant awareness of what is going on around you.
If you do not want your business to explode, then what should you do? Some say this. Some say that, right? The truth is that in the beginning, it's OK to dabble, to try some of this and some of that. It's OK to try a little real estate and maybe an Internet Business. ESPecially when you're just starting out, it's important to find out where you're most effective and what you find the most rewarding and fun.
But once you find your calling, once you reach the point of: "OK, I know I want to do this." That's when it's time to drop the extra weight of the other ventures and turn the engines to full steam on that 1 course. You'll find that you're more effective, and that your income will multiply by giving it your all on one business, than if you continued trying to run many businesses.
Here's a great way to test out what you learned today. Decide right now that you will find that 1 thing you're interested in. Once you find it, dedicate 6 months to just that one business. Cater to it. Create new content for it. Make joint venture deals that will support it. Develop new products for it. But do it all for just this 1 business.
Breathe it. Drink it. Live it. Almost every millionaire made his or her fortune by building 1 business that served 1 market. Follow them example for 6 months and see where you end up. You just might end up writing me a 'Thank You' letter and to be honest, I'd love to see it happen.