Why Multiple Streams of Income Can Be A Total Failure

By now, most Entrepreneurs have heard the statement that “every millionaire has at least 7 streams of income.” Multiple streams of income is defined as income coming in from multiple sources. The phrase can be mistake as an Entrepreneur should have money coming in from all directions. That can include having other businesses in addition to your main business or even taking on a job or two outside of your only business.

Having multiple streams of income is good, but it can also be bad. Why you may ask? Moving on to another form of income should only happen AFTER you have mastered your first form of income. If the first business is not doing well and it has not yet been consistently profitable, then all kinds of problems can pop up in your first business while you’re trying to create the second business. A lot of millionaires make money and are able to add additional income to help their business thrive, scale, and be profitable. Without such financial backing, you should make sure that the first business is where it should be, then look to add other revenue streams. If the business that you currently have is on its last leg, not making any money, and constantly stressing you out, the extra business will most likely do the same –doubling your money problems and stress.

Before starting another business, ask yourself :

  1. Do I have the time for another stream of income?
  2. Do I have the resources for another stream of income?
  3. Will the additional stream of income take away from the business I already have?
  4. Does the additional stream of income help me build wealth or debt?
  5. Is the new income active or passive income?
  6. Do you have a team to run the first business in your absence, so that you can dedicate time and effort to the new business?

After you ask yourself these questions, then decide if another business makes sense for you at the present time. Too many income streams can lead to a loss of focus on success and even a loss of lifestyle; you could end up losing in the long run. Some factors in being successful with multiple streams of income include having an already profitable business, a team that can support the sustainability of your current business, and having the right amount of time and resources to help grow the new business. Solidify your first stream of income before moving on to multiple streams.