Knowing the importance of Residual Income, many people, especially Post Covid-19 lock-down, started looking for their Plan B, i.e. second source of income or ideally, Residual Income.
Photo credit: imoney.my (https://www.facebook.com/IMoney.my/)
Last two days, I encountered a Facebook image about 4 Ways to build your wealth. The editor mentioned each of the path required hard work. Indeed, which path are you on?
Post Covid-19 Lock down, many people had chosen to monetize their product/service, Online or Offline.
Before dipping your feet into the water, what criteria to be considered so that you have easier life for years to come?
Put the first two in the above image, i.e. saver+investor and climb the corporate ladder aside, I have heard a few friends sharing their dilemma in the other two path:-
> Forced selling at rock bottom price to compete in the competitive online platform with extremely thin margin, or worse, without profit.
> Spent money buying stock, end up have to keep the left over stock at home.
If lucky, and the products/service is high demand, you need to stay up late at night, packing to post the next day. Worse is, you might running out of stock, and need to bid farewell to the customers who couldn’t wait.
If unlucky, you have to give away the left over stock to friends and relatives, for free, or idling at home.
> There are also stars in their field, possess excellent skill /service with many repeat customers, but couldn’t cope with the demand with limited or inefficient man power. Somehow, that’s minority. Most of business owners still struggling to get customers.
> A friend who started his nasi lemak delivery service has very good sale, but busy cooking, delivering since early morning, until no time to enjoy life.
Criteria To Be Considered
Taking above mentioned into consideration, shouldn’t you consider business with most of the following?
1. No need to invest, open shop and keep stock to avoid lost of capital.
2. No physical handling of the products or service, so that you can concentrate on marketing, instead of busy packing, post, preparing your ingredient, or spend time service your client.
3. No regular maintenance cost needed to run the business, consider virtual business if possible.
4. Products with high repeat order, and cater all categories of consumers. For instance, good quality effective consumable products that will attract repeat client. Best is something that you yourself used and love it.
5. Low entry selling price. High end products can bring higher profit, but how many you are able to sell in a month compare with products affordable by everyone now? Volume always win.
5. A team or stable company with strong background to partner with, instead of working alone.
6. Opportunity to expand globally, if possible.
7. Business that can work on the side, without affecting your main stream of income until you are financially independent.
8. Residual income. Some said dropship might fulfill the above criteria, but still the company pay you only when you get sales. What happen if few years later you stop promoting for them?
Did I leave out any other good criteria? Feel free to share in the comment below. :)