When successful entrepreneurs are asked about their achievements, the questions often center around their business acumen. Of course, knowing how to generate and sell an idea, navigate key markets, problem solve and manage staff are all vital to business success.
However, several idolized entrepreneurs emphasize the importance of two other factors when it comes to lasting success. Lifestyle and passive income are two hugely significant assistants that entrepreneurs take control of on the road to their goals. Disregarding these two tenets of life outside work can have a damaging effect on your business and well-being.
In this article, we’ll explore why the lifestyle choices and passive income streams of successful entrepreneurs are more important than many analysts believe. We’ll also take a look at how successful entrepreneurs choose their lifestyles and select the most profitable forms of passive income. By evaluating these choices, you can learn how to employ them on your journey. Let’s get into it…
The Importance of Lifestyle for Successful Entrepreneurs
In his 2012 book ‘Screw Business as Usual, Virgin CEO Richard Branson stated:
"Building a successful business is not just about financial gains; it's about creating a lifestyle that aligns with your values and passions. When you achieve that, the money becomes a byproduct of doing what you love.”
While knowledge of how to set up and run a successful business is essential, having a lifestyle that aligns with your business is just as important. Building a business at the expense of your social life and mental/physical well-being may lead to expedited success. However, the stress and instability that such dedication causes may render the whole endeavor pointless. If you can’t enjoy your success, why try so hard to achieve it in the first place?
But lifestyle isn’t just about enjoying your success. Creating a lifestyle that works in harmony with your business can have a huge impact on your ventures. Some of the benefits of honing a symbiotic relationship between your company and your lifestyle include:
Creativity and Authenticity - A lifestyle that incorporates your business passions can help you generate ideas and find unique selling points. For example, if you operate a pet-care startup, volunteering at an animal shelter could help you find problem areas in the industry that your business could address. Additionally, this experience builds your authenticity when you begin to market to potential customers.
Improved Networks - Similarly, aligning your business interest with your lifestyle can open up new networking possibilities. For instance, perhaps your business sells state-of-the-art at-home gym technology. In this case, visiting your local gym regularly and chatting with other patrons will improve your understanding of your target market, help you generate ideas for future expansion, get expert knowledge from employees, and even find you viable partners who want to take a chance on your start-up.
Sustainable Success - A combination of the above benefits will help you lead a fulfilling lifestyle, as well as run a fulfilling business. This way, you’ll be much less likely to become disillusioned with your business or suffer from stress and eventual burnout. A lifestyle that benefits both your well-being and the well-being of your business will help you stay the course and achieve success at a sustainable rate.
How to Achieve an Entrepreneurial Lifestyle
Next, let’s take a look at how successful entrepreneurs structure their lifestyles to benefit both themselves and their businesses.
- Define Your Priorities
The easiest way to determine how your daily and weekly schedules should look is by defining your priorities. Understanding what passions truly matter to you will help you allocate your time effectively. This also helps to bolster your motivation and balance your well-being.
- Set Specific Goals
Whether it be leisure time, personal development objectives, or aims at work, setting goals in these areas will push you to success. Setting goals will also help you develop healthy habits, so completing less fulfilling tasks will become second nature. You’ll also be able to measure your success and make any necessary adjustments to your lifestyle.
- Foster Continuous Learning
An easy way to achieve a symbiosis between your lifestyle and your business success is by improving your industry expertise. If your business already connects to your passions, this will be a much more enjoyable and fulfilling experience all around. Fostering learning will help you set your business up for great things, as well as better yourself in the process.
- Build Your Support System
Stress can sometimes seem unavoidable, especially when work and lifestyle are so closely intertwined. A generous and sympathetic support system will help you relax in times of tension and remind you that your entrepreneurial endeavors aren’t everything. This can help you avoid burnout and deal with problems effectively.
- Delegate and Outsource
As an entrepreneur, your time is precious. Learning how to manage your time effectively can help you stay on top of important business tasks and still get enough ‘me time’ to feel satisfied. A big part of this is delegating tasks that would be better suited to other specialist employees, while you maintain oversight. If your entrepreneurial endeavor does not yet have employees, why not outsource some of your tasks to freelancers?
- Celebrate the Little Things
While setting up and running a business can be difficult from time to time, overall it should be a gratifying experience. Making time to celebrate, no matter how small your achievement, can remind you of the positives of running a business, and motivate you to achieve further success.
The Importance of Passive Income for Successful Entrepreneurs
In his book "Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!" entrepreneur Robert Kiyosaki provides the following insight:
“Having multiple streams of passive income is the key to achieving true financial independence. It provides a safety net and allows you to take risks and explore new opportunities without the fear of losing everything.”
The end goal of many entrepreneurs is to get their business to a point where it generates profit with very little interference on their part. Financial independence through business is certainly a common goal, but why wait to achieve this aim? There are countless ways to generate passive income while your business is still growing, which can protect you if a crisis strikes. Other benefits of passive income for successful entrepreneurs include:
Scaling and Growth - Once you’ve created a passive income stream, this money can be re-invested into your main business venture. This means your entrepreneurial success won’t be constrained by time or resources. It also means you can research and expand into new areas, employ expert advisors, and further your reach with dedicated marketing campaigns that your existing budget may not allow for.
Personal and Professional Growth - Finding the most profitable passive income streams will likely take some attention away from your business. However, in doing so you’ll learn a host of new skills and expand your offerings for potential partners or investors. This can strengthen your chances of entrepreneurial success and serve you well in future projects, too.
Freedom and Flexibility - Perhaps the best thing about passive income is that it can enhance your lifestyle. With more disposable income in your pocket, you’ll be able to take up new hobbies, treat your family and friends to experiences, and choose exactly how you spend time away from your desk. As we’ve seen, a fulfilling life outside of work will improve your attitude, and subsequently, your business’s chance of success.
How to Build the Best Passive Income Streams
Finally, let’s explore how successful entrepreneurs select and grow their preferred passive income streams.
- Find Your Passions and Interests
Though the point of passive income streams is that you can leave them to accrue profit independently, some do take a great deal of setup. This is why it’s easiest and least stressful to select a passive income stream that connects with your passions.
- Evaluate Your Financials
Next, to determine which passive income stream is best for you, you’ll need to know what resources you’re working with. If you’ve got a pool of capital to play with, purchasing large assets such as rental properties is a great way to go. However, if you’ve got limited investment options, opting for something like stocks may be more viable.
- Analyze the Market
Passive income streams that involve investment are always going to carry some deal of risk. This is why it can be worth researching the current markets for certain investment assets. For example, investing in whiskey has become a popular option for those seeking passive income. The rare whiskey market is on the rise, with projected returns of up to 20%. However, this upward trajectory may not last much longer.
- Use Your Existing Business
To save time and maximize resources it’s a good idea to combine your passive and active income streams. For example, if your business has physical premises, why not invest in a few vending machines? Though these will need to be stocked now and again, you can delegate this task and collect that season’s earnings at the same time.
- Leverage Your Network
If your passive and active income streams align, you can also involve your existing network of contacts. Passive income streams are much simpler to set up with some help. Partnering with others in your network can give you more resources and capital to work with, as well as extra experience in certain market sectors. However, this does mean you’ll need to split the profits.
- Seek Expert Advice
Finally, before you choose the passive income stream that’s best for you, it can help to consult experts in that area. If you’re investing in stocks and commodities, a reliable and honest stock broker will help you make the right decisions. If you’re writing and selling online courses, input from an academic will up your credibility and your sales.
In Conclusion…
The secrets of successful entrepreneurs extend beyond experienced, business-minded decisions and genius money moves. It may seem simple, but the right lifestyle and diverse income streams can help you achieve success in business.
By aligning your lifestyle with your entrepreneurial endeavor, building your schedule around your priorities, creating a reliable support system, and celebrating the little achievements as well as the big ones, your lifestyle can work in harmony with your business ventures.
Similarly, passive income streams can benefit your business by providing you with a safety net, and ample space to take risks and pursue originality. For the best passive income streams, involve your network and seek expert input during your research. Focus on market trends and choose diverse income streams that take advantage of your available resources.
True success isn’t measured only in numbers. It’s also measured by how much you enjoy the journey and how well your personal and professional lives are balanced. Adopt the secrets of successful entrepreneurs and you’ll be able to set out on a path that leads to financial prosperity and a purpose-driven life.
Sources
- https://www.google.co.uk/books/edition/Screw_Business_as_Usual/FbPWWtoTqKEC?hl=en&gbpv=0
- https://www.entrepreneur.com/living/why-your-health-is-the-key-to-your-success-in-business/323244
- https://www.entrepreneur.com/en-au/lifestyle/can-your-overall-lifestyle-really-affect-your-success-in/373317
- https://www.performwell.co.uk/balanced-entrepreneur-lifestyle/
- https://www.barrons.com/articles/how-to-live-like-an-entrepreneur-51668361029
- https://www.forbes.com/sites/theyec/2022/08/12/eight-lifestyle-changes-you-can-make-to-become-a-more-successful-fulfilled-leader/
- https://www.google.co.uk/books/edition/Rich_Dad_Poor_Dad_What_the_Rich_Teach_Th/kRqeDwAAQBAJ?hl=en&gbpv=0
- https://gocardless.com/guides/posts/why-is-passive-income-important-to-a-business/
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