I have read many books on how to grow a business.
The idea behind most of these books is that you want a passive business. They say you can turn any business into a passive business if you have the right systems and people in place. Unfortunately, that’s not the case.
I’ve read many super successful business owners that laugh at the idea of a passive business. One of them in particular makes $10 million per year or more. They are the first to tell you that their business is anything but passive. It takes their full-time focus to make sure the employees and systems are running as designed. One small mistake in the system could cost them millions. Sure, you need the systems, but that doesn’t buy you complete freedom.
Unfortunately, I lost around $100,000 trying to automate my business like this.
I did this over the two years when I operated as a marketing agency. I found out that management is itself a full-time job. At one time I had 7 employees, and I was unable to do much of anything besides manage them. I found that I was able to do the work much easier by myself than having this entire team… and I was happier.
To further complicate things, I was losing clients left and right. It was hard to get the same results that I could get by myself when I had a large team. I continued to train them and make them better. But I also had to get another person who could sell more. Otherwise I wouldn’t be able to keep everyone busy, and I would lose even more money. I was a slave to my own business.
Which brings up another important point… I kept a LOT more profit working by myself. Sure, my revenue was higher with all the employees. But the amount that I kept for myself kept shrinking.
It is super stressful to have a lot of employees. I am very tolerant to stress. But over time it does wear on you, no matter who you are. It will affect your ability to make good decisions and keep you from being happy in your personal life. Most give up their personal life completely.
The best employee I ever had by far had a wife and 7 kids. My business was the sole source of income for his family and many others. When you have all that on your shoulders you must think about how your decisions affect everyone. It ties your hands and keeps you from being able to act in your own best interest.
If you want to make $100,000 year online, you don’t need to hire employees. In fact, if you can’t make a lot more than that without any employees, I would tell you NOT to hire.
First you should figure out how to maximize your own value. Only then can you see how to maximize everyone else’s value as well.
If you are trying to make your first $100,000 online, there is a better way.