Multiple Streams of Income - Part 4

Multiple Streams of Income – Part 4

and welcome back to the final video of the video series of how to build multiple streams of income so in this video we're gonna finally put the capstone the pinnacle step on truly replacing yourself and transitioning over to the next stream of income hey what's going on guys it's Sam Kwok here once again and welcome back to the video series how to build multiple streams of income so this is the final video of this series and we're gonna go over how do we go from the automation step to replace that step in an ultimately transition over to your next stream of income so so far we talked about the creation stage the flow stage in the automate stage which are very labor intensive and it takes time it's not gonna happen matter of nights or a matter of days or even matter of months it may take matter of years to accomplish the three steps that we just went over now the last step is rather easy but yet there are some some things that you have to be aware of before you transition into the next next step of income so so far we made it to you're gonna make it small so that time taking over everything we made it to this far which is a replace stage we were at automate build and create and note that the steps don't represent the amount of time and I'm just making a visual representation so with the replaced stage now that you've automated there's a couple things that you need in the replace stage to really replace yourself and to start getting you into the next stream of income the first thing is you're gonna need to you need to replace yourself so that maybe a partner or executive board of directors maybe a manager someone who I would imagine to be a veteran in this business as as you were so typically what I like what I see and what I see is a common denominator with this person that's gonna replace you right as the manager role this person has been with you in the business since the beginning or they they've been hired on as an employee in this step right in the build and the create step they may have been hired on as an employee they've they made it through right being being alongside you all the way to the point where now the business is doing really well money's coming in profits coming in so you may just promote that person as a man executive decision maker so that you can ultimately replace yourself now you may want to check in once in a while right once a month or twice a month just to see how the business is doing making sure that the business isn't going down or there are you know there aren't any poor decisions being made made to reverse course of the the build up stage right so even though you're replacing yourself you still have to kind of manage the manager so to speak now transitioning over to you the next thing there's some there's some things in philosophies and I want to cover before we transition into the next stream of income and one thing that I I strongly emphasized and I advise people to do is don't cross Industrial Industry lines meaning if you are in the donut shop business okay try to go and go to the nearest type of business that has to do with the donut shop so now you gotta ask yourself what components of the donut shop makes it a donut shopping here's what I mean when you're running a donut shop mean to buy ingredients right you're gonna need to buy maybe the you know it's a supply chain like how you're buying right so is it is it being delivered to you from another company who are you using as far as your main ingredients supplier so maybe your next stream of income that you're building could be a flower manufacturing right not the flower but the flower that makes bread okay and what this does is this adds to that business well you can go and serve your other donut shop down the street your competitors right you can make flowers for this for them but now you're gonna be a main supplier for your own donut shop by bringing and thus bring your own costs down bring your supply and your your supply chain costs down right because you don't have to pay for shipping anymore cuz you're you're pretty much paying for that on your own you get to you know basically make your own money as far as providing ingredients to make donuts for your donut shop so for me because I'm I'm gonna I'm in the real estate business you know I've been real estate investing and I've investing education company now you know we may roll out a real estate software we may have another aspect the business that we're gonna launch that's gonna be a different revenue now I have heard of people saying well Sam don't you want to diversify and go with a completely different type of business and my answer to that question is if you try to diversify and you let's say you are at the doughnut shop and now you want to start a mechanic business there's an incredible learning curve when it comes to switching industry and you're gonna have to redo the step right figuring out the system and all that in a completely different industry that you may not know of so my suggestion to you guys is if you're gonna go and jump ship to the next stream of income you might as well do it with something that's familiar to what you are already doing maybe if you are running a coffee shop maybe you're successful maybe you go a vertical meaning instead of selling your coffee on a retail store maybe you sell coffee packages online right you're shifting the medium of how you deliver your products and services so there this is this is a good example of what Rockefeller did right the the king of oil back in the Industrial Revolution rocket food is something that a lot of business at the time we're doing was not only was he by you know buying oil but he had his own refinery he had owners distributions distribution system it's kind of like how Walmart works today right walmart has their own distribution they have their own retail I think a better example would be Amazon Amazon lately have discontinued using outside carrier delivery services right so they're using less of UPS they're using less of the post office they have their own delivery and shipping company now they have another business of cloud and information technology and cloud computing they have the retail business so you can see that there the delivery of what they're doing is they're going vertical and horizontal they're going in different you're going in different industry but they're also owning that industry as to how they deliver where they get their materials and ingredients and information from so my my suggestion for a lot of you guys that are just getting started is to go horizontal or I'm sorry vertical right control how you distribute so maybe you are used to you know maybe you sell clothes you know clothes online instead of selling it through Amazon maybe you have your own retail online website right so when you're making that shift don't make a shift to a completely different category of Industry may make it a shift to us to the same industry but different aspect of the business so I give you my example as far as real estate goes I give you the donut donut shop and coffee shop example figure out what what you're shifting to now I will tell you when you shift to is something that you know that's familiar within your own industry the the build the create build a not only phase becomes radically radically fast so instead of taking three to five years to come up with the first stream the next stream if you're going by the similar industry and similar area this can be cut down within a year you can you can go from create to automate phase within a year so this is why I recommend people not to jump ship to a completely different history because it takes incredible amount of time to learn that business so learn that in the streets you kind of get familiar with how it takes rather I recommend that you guys you guys stay within your own industry and just master that industry be a rockefeller right master the oil industry so that's my recommendation for you guys and before you jump ship make sure you have a good a succession plan okay make sure you replace yourself with something that's qualified who can make executive decision there's a book called built to last by Jim Collins Jim Collins talks about in the book if you don't have a good succession plan meaning after you're gone and doing your next business if you don't have someone to take over the helm the control pit right the control point then you're gonna find yourself that you're gonna lose this business so you're gonna be in this perpetual cycle of building a business building the business and losing the business which is something that you don't want to be in right you want to know the business sustain it keep it going keep it growing make sure you have good people running it and it and and all while you're building in that stream of income so when you replace yourself it becomes a matter of managing people managing managers instead of having to manage customers and the operation so guys I hope this kind of helps you clarify the last step and if you guys need to review from step one or four go for it but I've given you guys as much as I could as far as building multiple streams of income and this is what I've been doing to build multiple streams of income and just give you guys my own advice and wisdom guys thank you so much for watching this series make sure if you enjoyed the series make sure you give us a thumbs up subscribe to our YouTube channel and if you have any questions go ahead leave them down below we love to chat with you up all right take care guys see you the next video well hello there you made it to the end of this video congratulations and that probably means that you like our video and you love what we did so be sure if you want to get more information more YouTube videos from us about real estate investing be sure to subscribe to our YouTube channel and hit the bio icon to make sure that you get 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