Tuesday, April 9, 2013

Questions I Consider Before Pursuing New Income Options

As a freelancer or “solopreneur” if you like, I’m continuously looking for and open to new income options.  However, with the Internet as an income earning environment and a business world that’s constantly changing, exploring new options can be costly in time, effort, as well as monetarily.  This means that I have to explore and make my decisions wisely and with minimal costs.  Therefore, here are some of the questions I ask myself before ever moving forward with developing a new income opportunity.

Is it Sustainable?
While some business decisions are short-term in nature, for the most part, I want business and income streams that I’m going to be able to grow over time into sustainable income.  Whether this comes by way of relationship building with clients in the form of discounts and free product, or through investments that can grow and continue to earn without me, looking for income sources that I will be able to count on for the foreseeable future can help me avoid being left without cashflow over the long term. 

Can it Become Passive Income?
The more income I can earn without doing much to earn it, the more time I can devote to exploring and building other income earning revenue streams.  This is why I love it when I can find somewhat passive income.  Whether it’s residuals from the articles I’ve written, interest from money in the bank, or dividends from stocks and bonds, income streams that can be set in place to work on their own are great ways to get my money working for me rather than vice versa.

Will the Work/Risk be Worth the Rewards?
It’s not always that easy to tell whether the risk involved in creating a new income stream will be worth the rewards.  And risk doesn’t always have to equate directly to my money and finances.  There can also be the risk of wasted time and effort, and sometimes that can be just as costly as directly losing money on an investment or building an income stream.  However, there are often things that I can do to evaluate what the risk versus the reward of a particular income stream is before moving forward with putting time, effort, and money into creating that stream.

What are Others Saying?
One of the main ways that I evaluate risk versus reward is by seeing what others are saying if in fact it is an income stream that has been tried before.  While I don’t often base my decisions completely on what others are saying or doing, they can provide certain valuable feedback regarding their experiences with a particular income stream.  Noting their successes and failures, the time it took them to develop the income stream into any substantial revenue producing item, as well as the amounts they were able to make and similar information can help me make a more informed decision before moving forward with my new income earning option.

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